Z Conf levels

ankuragrawal.nit
Finance Junkie
Posts: 64
Joined: Sun Apr 01, 2012 10:52 am

Re: Z Conf levels

Postby ankuragrawal.nit » Mon Jan 09, 2012 3:41 pm

Absolutely sir,
the fact that
"reject null hypothesis" if z calc is > z statistic for a one-sided tail test
should be independent of null hypothesis having a > sign or a < sign.
But I am unable to interpret this thing intuitively

I mean if I have a null hypothesis where "mu>=45"
or "mu<=45" my Z-calc will be the same for the "same confidence interval"

so I cannot reject the null hypothesis in both these cases i.e. I can say with 99% confidence that mu<=45 as well as mu>45?

Suppose I have a model where I need to do analysis

I take mu<=45 as null hyp in case 1 and alter hyp would be mu>45

I take mu>=45 as null in case 2 for same model and alter hyp would be mu<45

I can say with 99% confidence that mu<=45
as well as mu>=45

How is that possible? Am i missing something?

O.o!!

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