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Chapter 10
McGrawHill/Irwin
TheMcGrawHillCompanies,Inc.2008
GOALS
1.
2.
3.
4.
5.
6.
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What is a Hypothesis?
A Hypothesis is a statement about the value of a population parameter developed for the purpose of
testing.
Examples of hypotheses made about a population parameter are:
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Inequality
Symbol
Part of:
>
H1
<
H1
No more than
H0
At least
H0
Has increased
>
H1
Is there difference?
H1
H0
Keywords
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See left
text
H1
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H0: = 200
H1: 200
(note: keyword in the problem has changed and is
different from)
Step 2: Select the level of significance.
= 0.01 as stated in the problem
Step 3: Select the test statistic.
Use Z-distribution since is known
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H0: 200
H1: > 200
(note: keyword in the problem an increase)
Step 2: Select the level of significance.
= 0.01 as stated in the problem
Step 3: Select the test statistic.
Use Z-distribution since is known
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Type I Error
Defined as the probability of rejecting the null
hypothesis when it is actually true.
This is denoted by the Greek letter
Also known as the significance level of a test
Type II Error
Defined as the probability of failing to reject the
null hypothesis when it is actually false.
This is denoted by the Greek letter
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In testing a hypothesis, we can also compare the pvalue to the significance level ().
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H0: $60
H1: < $60
(note: keyword in the problem now less than)
Step 2: Select the level of significance.
= 0.01 as stated in the problem
Step 3: Select the test statistic.
Use t-distribution since is unknown
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X
s
256 250
6
10
3.162
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-2.913
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Sample proportion
(1 )
n
Sample size
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H0: .80
H1: < .80
(note: keyword in the problem at least)
Step 2: Select the level of significance.
Test using = 0.05
Step 3: Select the test statistic.
Use Z-distribution since the assumptions are met
n and n(1-) 5
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and
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Type II Error
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End of Chapter 10
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