Critical Value

Definition

A critical value is a specific value that separates the rejection region from the non-rejection region in hypothesis testing. It is compared to the test statistic to determine whether to reject or fail to reject the null hypothesis.

Related terms

Test Statistic: A test statistic is a numerical value calculated from sample data that is used in hypothesis testing.

Rejection Region: The rejection region is an area on a distribution where, if the test statistic falls within it, we reject the null hypothesis.

Non-Rejection Region: The non-rejection region is an area on a distribution where, if the test statistic falls within it, we fail to reject the null hypothesis.