What is the meaning of critical ratio in statistics?

Answer 1

The critical ratio in statistics is a measure used to determine the significance of a test statistic in hypothesis testing. It is typically calculated as the ratio of the difference between the sample mean and the population mean to the standard error of the sample mean. A high critical ratio indicates that the sample mean is far from the population mean, suggesting that the null hypothesis may be rejected. This concept is commonly applied in contexts such as t-tests and z-tests to assess the likelihood of observing the sample data under the null hypothesis.