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Hypothesis testing typically begins with a theory, a claim, or an assertion about a particularparameter of a population.Some of them are:
The Null and Alternative Hypotheses
The hypothesis that the population parameter is equal to the company specification isreferred to as the null hypothesis. A null hypothesis is often one of status quo and isidentified by the symbol H0. Whenever a null hypothesis is specified, an alternativehypothesis is also specified, and it must be true if the null hypothesis is false. The alternativehypothesis H1, is the opposite of the null hypothesis H0. The alternative hypothesisrepresents the conclusion reached by rejecting the null hypothesis. The null hypothesis isrejected when there is sufficient evidence from the sample data that the null hypothesis isfalse.
Regions of Rejection and Non-rejection
The sampling distribution of the test statistic is divided into two regions, a region of rejection (sometimes called the critical region) and a region of non-rejection. If the teststatistic falls into the region of non-rejection, you do not reject the null hypothesis. Theregion of rejection consists of the values of the test statistic that are unlikely to occur if thenull hypothesis is true. These values are much more likely to occur if the null hypothesis isfalse. Therefore, if a value of the test statistic falls into this rejection region, you reject thenull hypothesis because that value is unlikely if the null hypothesis is true.