Question

A freelancer, who specializes in digital marketing, is interested in the average amount of money small businesses spend on pay per click advertising. In previous years, less than 3300 dollars, on average, is spent on pay per click annually. The digital marketing freelancer suspects this average has increased in recent years. If the digital marketing freelancer chooses to use the rejection region approach for their hypothesis test, what do they need to calculate in order to compare with the critical value

Answer 1

Test statistics

Explanation:

A test statistic is calculated to compare with the critical value approach. The critical value is found by choosing any value of significance level ∝ = 0.05, 0.1 or 0.01 . Mostly 5% is preffered .

The the calculated value of the test statistic is compared with the chosen value rejection region that whether it falls in the critical region or not.

The test statistic is applied on the conditions given. For example comapring many results can be done by using chi square or comparing two means can be done by t test or testing the variation can be done by F - test.

In the given problem a z test would be used.