All possible values which a test-statistic may assume can be divided into two mutually exclusive groups: one group consisting of values which appear to be consistent with the null hypothesis and the other having values which are unlikely to occur if H_{o} is true. The first group is called the acceptance region and the second set of values is known as the rejection region for a test. The rejection region is also called the critical region. The value(s) that separates the critical region from the acceptance region is called the critical value(s). The critical value which can be in the same units as the parameter or in the standardized units, is to be decided by the experimenter keeping in view the degree of confidence he (she) is willing to have in the null hypothesis. |