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of testing, or a statement about a population parameter subject to verification. Hypothesis testing is a procedure, based on sample
evidence and probability theory, used to determine whether the hypothesis is unreasonable statement and should be rejected or is
reasonable and should not be rejected.
Hypothesis Testing Steps. 1) State null & alternate hypothesis. 2) Select a level of significance (the probability of rejecting H0
when it is true. 3) Identify the test statistic (t/z) 4) Formulate a decision rule (where will you reject H0?) (.5- α, find that # on the
t/z chart. Coordinating # is critical point. 5) Take a sample, arrive at decision (complete formula t/z). 6) Fail to reject or reject H0
H0 is a statement that needs to be tested about the numerical value of a population parameter (no difference/no change/the current
or reported condition). H1 is a statement that describes what you will conclude if you reject H0 (alternate hypothesis/research
hypothesis/boastful claim).
H0 status quo—nothing changes in situation (smoking is NOT harmful to your health (nothing changes whether you smoke or not).
H0 (this medication is NOT effective in treating this disease).
α Level of significance (level of risk) represents the probability of rejecting the null hypothesis when its true/value between 0 &
1. This represents rejection region .05 consumer research projects. .01 quality assurance. .10 political polling.
The direction of the test involving claims that use the words “has improved”, “is better than”, and the like will depend upon the
Inequality variable being measured. For instance, if the variable involves time for a certain
Keywords Symbol Part of:
medication to take effect, the words “better” “improve” or more effective” are translated
Larger (or as “<” (less than, i.e. faster relief). On the other hand, if the variable refers to a test
> H1
more) than
score, then the words “better” “improve” or more effective” are translated as “>”
Smaller
(or less)
< H1 (greater than, i.e. higher test scores)
No more than ≤ H0 Notation Meaning
At least ≥ H0 n sample size
Has increased > H1 x sample mean
Is there
difference?
≠ H1 S2 sample variance
Has not S sample standard deviation
= H0
changed ρ sample proportion
Has N population size
“improved” “is
See right H1 µ (mu) population mean
better than” “is
σ2 population variance
more effective”
σ population standard deviation
Anything related to population = parameter.
π population proportion %
Sample=statistic.
P-value the probability of finding a value of the test statistic this extreme when the null hypothesis is true.is smallest level of
significance where you will reject H0 when H0 is true (prob Type I error). If P-value is less than α of: a) .10 = some evidence H0 is
not true. b) .05 = strong evidence H0 is not true . c) .01 = very strong evidence H0 is not true d) .001 = extremely strong evidence
H0 is not true. If P-value < α; reject H0 If P-value > α; do not reject H0
Use the pooled sample variance in the formula to calculate the value
of the test statistic.
X1 − X 2
t =
1 1
s 2p +
n
1 n 2
Chapter 11 formulas:
Case 3: either n1 or n2 or both < 30, unknown but equal Case 4:
σ σ 2
u
2
s
Dependent: before & after samples/matching or pairing observations. Dependent better than independent samples, reduces variation in sampling distribution.
αβ ρ π σµ