Schweser pg 337 Significance level solution, problem, states

homie

For problem 18 on pg 337, why does the solution use 0.025 for level of significance when the problem clearly states 0.05% level of significance?
Please advice.
Thanks.

d2rockstar

Don’t have the L1 curriculum in front of me, but it’s probably because the problem involves a two-tailed test.

bkballa

If the hypothesis is an equal sign ( = ), it is a two-tailed test.
You have to divide the level of significance by two.