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CRITICAL VALUE
Significance level (α) which
defines the sensitivity of the test.
A value of α = 0.05 implies that
the null hypothesis is rejected 5%
of the time when it is in fact true.
LEVEL OF SIGNIFICANCE
CRITICAL VALUE OF z - DISTRIBUTION
• A critical value of z (Z-score) is used when
the sampling distribution is normal or close to
normal.
Z-scores are used when the
population standard deviation
is known or when you have
larger sample sizes.
LEVEL OF SIGNIFICANCE, 𝜶
• While the z-score can also be used to
calculate probability for unknown standard
deviations and small samples.
LEFT – TAILED TEST
• If the alternative hypothesis 𝐻! contains the less-
than inequality symbol (<), the hypothesis test is
a left-tailed test.
CRITICAL REGIONS/REJECTION
REGIONS
To determine the critical region for
a normal distribution, we use the
table for the standard normal
distribution.
0.025
IT’S YOUR TURN!
A banana company claims that the mean weight of
their banana is 150 grams with a standard deviation
of 18 grams. Data generated from a sample of 49
bananas randomly selected indicated a mean
weight of 153.5 grams per banana. Is there
sufficient evidence to reject the company’s claim?
Use α = 0.05.
IT’S YOUR TURN!