Q.4

Question

A significance test allows you to reject a null hypothesis H0 in favor of an alternative Ha at the 5% significance level. What can you say about significance at the 1% level? 

(a) H0 can be rejected at the 1% significance level. 

(b) There is insufficient evidence to reject H0 at the 1% significance level. 

c) There is sufficient evidence to accept H0 at the 1% significance level. 

(d) Ha can be rejected at the 1% significance level. 

(e) The answer can’t be determined from the information given 

Step-by-Step Solution

Verified
Answer

The correct answer is (E) The answer can’t be determined from the information given.

1Step 1: Given Information

You reject the null hypothesis H0 if and only if the P-value is less than the significance level.

2Step 2: Explanation

At the 5% significance level the null hypothesis was rejected:

P<0.05=5%

We then do not know if the P-value P is less than 1% or not, thus answer (e) is correct.