Question

Using only the confidence interval approach, at LaTeX: \alpha α = 0.05, the conclusion about the LaTeX: \beta β1 hypothesis test is:

Answer 1

Reject the null hypothesis because the value of null is outside the interval.

Explanation:

Null hypothesis is a statement that is to be tested against the alternative hypothesis and then decision is taken whether to accept or reject the null hypothesis. The null hypothesis is rejected or accepted on the basis of level of significance. When the p-value Test statistics is greater than level of significance we fail to reject the null hypothesis and null hypothesis is then accepted. In the given case p-value is less than critical value then we should reject the null hypothesis.