This question evaluates understanding of hypothesis testing fundamentals, specifically the ability to formulate null and alternative hypotheses and specify a decision rule for a single observation against a fully specified reference distribution.
You observe a single numeric value, x, and want to decide whether it could plausibly have been drawn from a standard normal distribution N(0, 1). Assume the reference distribution (mean = 0, variance = 1) is fully specified and not estimated from data.
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