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Graph illustrates the normal distribution of the test statistic Z in a two-sided hypothesis test. Under H0, Z has a standard normal distribution, with a mean of 0 and a variance of 1. The critical values are fixed at ±1.96, which corresponds to a 5% significance level (ie, type I error) under H0. The rejection regions are the areas marked with oblique lines under the two tails of the curve, and they correspond to any test statistic lying either below -1.96 or above +1.96. Two hypothetical test statistic values, -0.5 and 2.5, result in not rejecting or rejecting H0, respectively.
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