Question

"if alpha equals .05 and the probabiliby levle of your estimated regression slope is .04 in a two-tailed test you would reject retain accept null hypothesis not be able ot ame ka decision?

Answer 1

We reject the null hypothesis!

Explanation:

The decision rule is:

When the calculated value (probability => [P-value] level of the estimated value) is less than the alpha (α) => (level of significance), the test is significant. Hence, we reject the null hypothesis otherwise we accept the null hypothesis!

Please note that the test being two-tailed or one-tailed is only associated with the test statistic value. Which tells us if we must divide the alpha by 2 or not.

But for the decision, the alpha value is not affected by the tail structure. Therefore, we compare our P-value with the alpha. Since 0.04 (P-value) < 0.05 (alpha).