Refer to the hypothesis test in the previous exercise. Suppose we now set = 0.01. a. What would our conclusion now be? Interpret this

Refer to the hypothesis test in the previous exercise. Suppose we now set α = 0.01.

a. What would our conclusion now be? Interpret this conclusion.

b. Note that the conclusion has been reversed simply because we have changed the value of α. But have the data changed? No, simply our level of what we consider to be significance. Instead go ahead and assess the strength of evidence against the null hypothesis.

Data from Previous Exercise

A sample of 100 donors to a charity has a mean donation amount of $55 with a sample standard deviation of $25. Test using α = 0.05 whether the population mean donation amount exceeds $50.