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Module 6: Hypothesis Testing (Setting a Trade off download (Make it "…
Module 6: Hypothesis Testing
Setting a Trade off
Make it "too easy" and we incorrectly Reject the Null
Type I Error
Make it "too difficult" and we fail to Reject the Null when w should
Type 2 Error
Set "Level of Significance"/alpha (kind of an arbitrary decision)
Generally "0.05"
Level of Significance = They are significantly different
P-value = probability
2 "competing" stastistical hypotheses
Ha: Alternative Hypothesis
"Is the data inconsistent with the Null Hypothesis being true?"
Ho: Null Hypothesis ("nothing going on")
With values inside our confidence interval
There is no difference in means
"Fail to Reject the Null" :!:
T-statistic
1 sample T-Test
2 Sample T-Test
