What is a level of significance test


Discuss the below:

Q: A manufacturer wants to increase the absorption capacity of a sponge. Based on past data, the average sponge could absorb 3.5 ounces. After the redesign, the absorption amounts of a sample of sponges were (in ounces): 4.1, 3.7, 3.3, 3.5, 3.8, 3.9, 3.6, 3.8, 4.0, and 3.9. What is the decision rule at the 0.01 level of significance to test if the new design increased the absorption amount of the sponge?

a Do not reject null hypothesis if computed t is less than 2.580
b Do not reject null hypothesis if computed t is less than 2.821
c Reject null hypothesis if computed z is 1.96 or larger
d Reject null hypothesis if computed t is less than 2.764

 

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