A population (with mean $\mu$) follows normal distribution. Ten samples (N) are drawn at random with a mean value of “x” and standard deviation of “S”. Following table provides the confidence limits, C(t) of the cumulative probability function for Student's t - distribution two-tailed test with degree of freedom, D. C(t) Which one of the following expression is correct for testing the null hypothesis $H_0: \mu = 0$ at $10\%$ significance level? D 0.9 0.95 0.975 9 1.38 1.83 2.26 10 1.37 1.81 2.23 11 1.36 1.80 2.20
$-1.83 < \frac{X}{\frac{S}{\sqrt{N-1}}} < 1.83$
The objective is to test the null hypothesis $H_0: \mu = 0$ concerning the population mean ($\mu$) using a sample from a normally distributed population.
The degrees of freedom (D) for a Student's t-distribution are calculated based on the sample size (N) as $D = N - 1$.
Calculation: $D = 10 - 1 = 9$.
For a two-tailed test with a significance level of $\alpha = 0.10$, the probability in each tail is $\alpha/2 = 0.10 / 2 = 0.05$. We need to find the critical t-value ($t_{critical}$) such that the cumulative probability up to this value is $1 - \alpha/2 = 1 - 0.05 = 0.95$.
Using the provided table for degrees of freedom (D) = 9:
| D | 0.90 | 0.95 | 0.975 |
|---|---|---|---|
| 9 | 1.38 | 1.83 | 2.26 |
| 10 | 1.37 | 1.81 | 2.23 |
Looking at the row for D = 9, the value corresponding to a cumulative probability of 0.95 is 1.83. This is our critical t-value ($t_{critical}$).
The test statistic expression provided in the options is:
Test Statistic = $\frac{X}{\frac{S}{\sqrt{N-1}}}$
Where X represents the sample mean, S represents the sample standard deviation, and N is the sample size.
For a two-tailed test at the 10% significance level, the null hypothesis $H_0: \mu = 0$ is not rejected if the calculated test statistic falls within the range defined by the negative and positive critical t-values:
$-t_{critical} < \text{Test Statistic} < t_{critical}$
Substituting the critical value (1.83) and the test statistic formulation:
$-1.83 < \frac{X}{\frac{S}{\sqrt{N-1}}} < 1.83$
The derived condition for not rejecting the null hypothesis exactly matches the expression in Option 2.
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