00:01
All right.
00:02
So again, we are determining the rejection region based off of what the significance level is and whether or not it's a two -tailed test or a one -tale test.
00:17
So the first one we're testing if it's less than 17 with a significance level of 0 .01.
00:22
So that's a one -tale test.
00:23
We're going to go to our appendix and look at the 1 % probability, the tail probability of 0 .01.
00:30
Since it is a negative or less than 17, we're going to take the negative z score of 2 .326.
00:43
Moving on to part b, we are testing if it is not equal to 880.
00:49
So we have our significance level of 0 .01.
00:51
Since this is a two -tailed test, we have to divide it by 2 to figure out where it's going to be here.
00:56
Because, again, the 1 % is going to be contained within both tails, not just within 1.
01:00
So that's .005, which is 2 .576 on the appendix in the back of the book...