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Chapter 10: One-Sample Tests of Hypothesis (Hypothesis Testing (1.State…
Chapter 10: One-Sample Tests of Hypothesis
Hypothesis
A statement about the value of a population parameter developed for the
purpose of testing.
A procedure based on sample evidence and probability theory to determine whether the hypothesis is a reasonable statement.
Test Static
A value, determined from sample information, used to determine whether to reject the null hypothesis.
Critical Value
The dividing point between the region where the null hypothesis is rejected and the region where it is not rejected.
Hypothesis Testing
1.State null and and alternate hypothesis
2.Select level significant
3.Identify test static
4.Formulate decison
5.Take sample
Testing for the Population Mean: Population Standard Deviation Unknown
When the population standard deviation (σ) is unknown, the sample standard deviation (s) is used in its place. l
The t distribution is used as test statistic and computed
Type for Errors
Type 1 Error
Probability of rejecting the null hypothesis when it is actually true
Denoted by the Greek letter ""
Also known as the significance level of a test
Type 2 Error
Probability of "accepting" the null hypothesis when it is actually false
Denoted by the Greek letter “β”
p-Value
Probability of observing a sample value as extreme as, or more extreme than, the value observed, given that the null hypothesis is true
p-value can also be compared to the significance level ()
Decision rule using the p-value:
Reject H0 if p-value < significance level