Question

True or False The model used for hypothesis testing of proportions is called a two-proportion z-test.

True or False Beta (β) is the significance level which determines if the null hypothesis is rejected.

True or False In business, the p-value is one of several factors in determining whether or not to reject a null hypothesis.

True or False We could make a decision to reject a null hypothesis on a very low p-value or a very high z score.

Answer 1

For hypothesis testing of proportion we always use Z test. Hence for testing the proportions we use Two proportion Z test.

Hence this is TRUE.

In hypothesis testing we use as level of significance which determines if the null hypothesis is rejected, not .

Hence this is FALSE.

We could make a decision to reject a null hypothesis on a very low p-value or a very high z score. If the P value is less than

then we reject H0.

Decision rule:

If P value    then reject H0.

If P value >   then fail to reject H0.

Hence we can say that this is TRUE.

Hope this will help you. Thank you :)