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Hypothesis Testing Overview

The document outlines the steps for hypothesis testing which include: 1) stating the null and alternative hypotheses; 2) selecting a significance level such as 0.05; 3) calculating the test statistic using a z-score or t-score formula; 4) determining the critical region based on the alternative hypothesis and distribution; 5) using the decision rule to reject or fail to reject the null hypothesis based on where the test statistic falls relative to the critical value; and 6) stating the conclusion.

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111 views1 page

Hypothesis Testing Overview

The document outlines the steps for hypothesis testing which include: 1) stating the null and alternative hypotheses; 2) selecting a significance level such as 0.05; 3) calculating the test statistic using a z-score or t-score formula; 4) determining the critical region based on the alternative hypothesis and distribution; 5) using the decision rule to reject or fail to reject the null hypothesis based on where the test statistic falls relative to the critical value; and 6) stating the conclusion.

Uploaded by

calliepearson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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HYPOTHESIS TESTING

1. Hypothesis
i.
Null hypothesis
ii.
Alternative hypothesis

H0 : = 0
H1 : 0

> 0 / < 0

2. Significant level
= 0.05 / 0.01 / 0.02 / 0.10
3. Test statistic
x
z

x
s
n

/
4. Critical region
(refer to Alternative hypothesis)
H1
0
> 0
< 0

Z distribution
Z/2
Z
Z

t distribution
t/2,v
t,v
t,v

5. Decision rule
(refer to Alternative hypothesis)
H1
0
> 0
< 0
6. Conclusion

Z distribution
Reject H0 when Ztest > Z/2 or Ztest < -Z/2
Reject H0 when Ztest > Z
Reject H0 when - Ztest < -Z

t distribution
Reject H0 when ttest > t/2,v or
ttest < -t/2,v
Reject H0 when ttest > t,v
Reject H0 when ttest < -t,v

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