A 95% confidence interval is equivalent to which of the following hypothesis tests?
Choose the correct answer below.
A.
A two-tailed test with a significance level of 0.05
B.
A two-tailed test with a significance level of 0.10
C.
A right-tailed test with a significance level of 0.05
D.
A left-tailed test with a significance level of 0.05
Solution:
Given in the question
95% confidence interval so Confidence level = 0.95
Level of significance = 1 - confidence level = 1 - 0.95 =
0.05
alpha/2 = 0.05/2 = 0.025
So A 95% confidence interval is equivalant to two-tailed test with
a significance level of 0.05.
So its answer is A. i.e. two tailed test with a significance level
of 0.05
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B.
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