# Null Hypothesis Rejection --Quants

For a two-tailed test of hypothesis involving a z-distributed test statistic and a 5% level of significance, a calculated z-statistic of 1.5 indicates that: A) the null hypothesis is rejected. B) the null hypothesis cannot be rejected. C) the test is inconclusive. For a two-tailed test at a 5% level of significance the calculated z-statistic would have to be greater than the critical z value of 1.96 for the null hypothesis to be rejected. *****************************************************************3 The answer is B in Schweser but i think its A… Can anyone confirm, pls?

I think it is B; I remember that “reject beyond the test statistic to the right” obviously, 1.5, less than the statistic means “cannot be rejected”

Why do you think its A?

-1.645 < 1.5 < 1.645 so it lies in the middle… CANNOT Reject. if > 1.645 or < -1.645 or in other words abs(t-stat) > 1.645 then reject…

for 5% significant level, the rejection region is z>1.96 or z

my bad… -1.96 to +1.96 is right…