Question

A critical value in a confidence coefficient calculation:

defines the area where the population will occur

same as confidence coefficient

defines the area where the population will not occur

separates a sample statistic that is likely to occur from that of ones that are unlikely to occur

Answer 1

A critical value

separates a sample statistic that is likely to occur from that of ones that are unlikely to occur

For example: Consider the following graph:

Region of rejection Area = 0.025 Region of rejection Area = 0.025 Region of Acceptance Area = 0.95 -1.96 1.96

Here the critical value of +-1.96 separates the sample statistic that is likely to occur from that of ones that are unlikely to occur. If the calculated sample statistic is greater than 1.96 or less than -1.96, it is very less likely to occurs. If it lies between the two critical values, then it is more likely to occur.

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