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Making Decision
Lastly a decision should be arrived as to whether the null hypothesis is to be accepted or rejected. In this regard the value of the test statistic computed to test the hypothesis plays a very important role. If the computed value of the test statistic is less than the critical value the computed value of the test statistic falls in the acceptance region and null hypothesis is accepted. If the computed value of the test statistic is greater than the critical value the computed value of the test statistic fall in the rejection region and null hypothesis is rejected. Usually 5% level of significance α = 0.05 is used in testing a hypothesis and taking a decision unless otherwise any other level of significance is specifically stated.
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