Is there a relationship between confidence intervals andtwo-tailed hypothesis tests? Let c be the level ofconfidence used to construct a confidence interval from sampledata. Let α be the level of significance for a two-tailedhypothesis test. The following statement applies to hypothesistests of the mean.
For a two-tailed hypothesis test with level of significanceα and null hypothesis H0: μ =k, we reject H0 wheneverk falls outside the c = 1–  α confidence interval for μbased onthe sample data. When k falls within the c = 1–  α confidence interval, we do not rejectH0.
(A corresponding relationship between confidence intervals andtwo-tailed hypothesis tests also is valid for other parameters,such as p, μ1 −μ2, or p1 −p2, which we will study in later sections.)Whenever the value of k given in the null hypothesis fallsoutside the c = 1 –  αconfidence interval for the parameter, we rejectH0. For example, consider a two-tailed hypothesistest with α = 0.05and
H0: μ = 21
H1: μ ≠21
A random sample of size 33 has a sample mean x = 22from a population with standard deviation σ = 3.
(a) What is the value of c = 1 − α?
Using the methods of Chapter 7, construct a 1 − αconfidence interval for μ from the sample data. (Roundyour answers to two decimal places.)
lower limit    | |
upper limit    | |
What is the value of μ given in the null hypothesis (i.e.,what is k)?
k =Â Â