7.82 An improper significance test. A friend has performed a significance test o

Question

7.82 An improper significance test. A friend has performed a significance test of the null hypothesis that two means are equal. His report states that the null hypothesis is rejected in favor of the alternative that the first mean is larger than the second. In a presentation on his work, he notes that the first sample mean was larger than the second mean and this is why he chose this particular one-sided alternative. (a) Explain what is wrong with your friend's procedure and why. (b) Suppose that he reported t 1.93 with a P-value of 0.06. What is the correct P-value that he should report?

Explanation / Answer

a)as above hypothesis tested if two mean are equal therefore it should be two tailed or two sided hypothesis.

Hence he should not chose one sided alternative

b) correct p values should be area under both the tails which needs to be =2*0.06=0.12

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