Problem6(RejectionRegion)

1. Find a cutoff on the test statistic such that a decision rule of the form "Reject H₀if the test statistics is larger than cutoff or smaller than -cutoff" has at most 5% chance of making a type-I error (false positive, i.e. rejecting H₀when it is true).

Answer:

1. Based on this cutoff on the test statistic, form an equivalent rejection region for the sample statistic. Inotherwords,findtwocutoffsc₁andc₂suchthatthedecisionruleaboveisequivalenttoadecision rule of the form "Reject H₀if the sample statisticXis larger than c₁or smaller than c₂".

Answer: