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Chapter 12: Hypothesis Tests – Large Samples
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Definition: Critical Region or Rejection Region
A critical or rejection region is a range of the test statistic values for which
the null hypothesis will be rejected.
This range of values will indicate that there is a significant or large enough
difference between the postulated parameter value and the corresponding
point estimate for the parameter.
The range of values which will indicate that there is not a significant or large
enough difference between the postulated parameter value and the
corresponding point estimate for the parameter is the non-critical or non-
rejection region.
Definition: Non-Critical Region or Non-Rejection Region
A non-critical or non-rejection region is the range of the test statistic values
for which the null hypothesis will not be rejected.
Figure 12-1
illustrates the idea of an example of a critical or rejection and
non-critical or non-rejection (do not reject) region. There are other critical
regions we will encounter in the chapter.