Question

Suppose we want to test at α = 5% significance the claim that at Danvers-Hilton Resort Hotel the mean guest bill for a weekend is $600 or less. What is the critical value z for this hypothesis test? (Assume we are using the standard normal distribution) Round your answer to three decimal places.

Answer 1

The critical value for this hypothesis test is -1.645.

Step-by-step explanation:

The critical value for a hypothesis test is the value that separates the region of rejection from the region of non-rejection. In this case, we want to test the claim that the mean guest bill for a weekend at Danvers-Hilton Resort Hotel is $600 or less.

Since we are using a standard normal distribution, we can find the critical value by finding the z-score that corresponds to the given level of significance.

For a one-tailed test at α = 0.05, the critical z-value is -​1.645. This means that we reject the null hypothesis if the test statistic is less than -​1.645.