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Chapter 9: Fundamentals if Hypothesis Testing: One-Sample Tests

Hyphothese testing-interential method; requires that you state a claim unambiguously


o Null hypothesis-mutually exclusive alternative hypothesis

The Null and Alternative Hypothesis


Null hypothesis=H0
Alternative hypothesis= H1; is the opposite of the alternative hypothesis
o The alternative hypothesis serves as the focus of research oftentimes
You can never prove that the null hypothesis is correct because the decision is based on
only sample information, but you can conclude that there is insufficient evidence to
warrant its rejection
Statement of the null hypothesis always contains an equal sign
Statement of the alternative hypothesis never contains an equal sign
Regions of Rejection and Nonrejection
Sampling distribution of the test statistic is divided into two regions, region of rejection
and region of nonrejection
o If the test statistic falls into the region of nonrejection, you do not reject the null
hypothesis
You conclude that there is insufficient evidence that the population mean
fill is different from null
o If the test statistic falls into the rejection region, you reject the null hypothesis

Region of rejection consists of the values of the test statistic that are unlikely to occur if
the null hypothesis is true
o These values are much more likely to occur if the null is false
To make a decision concerning the null hypothesis, you first determine the critical value
of the test statistic
o Critical value divides the nonrejection region from the rejection region
Risks in Decision Making Using Hypothesis Testing
Type 1 error-occurs if you reject the null when it is true and should not be rejected; is a
false alarm
o Probability of Type 1 error occurring is (level of significance)
Chapter 9: Fundamentals if Hypothesis Testing: One-Sample Tests

(1-) is the confidence coefficient, probability that you will not reject the
null when it is true
Type 2 error-occurs if you do no reject the null when it is false and should be rejected;
represents a missed opportunity to take some corrective action
o Probability of Type 2 error occurring is
Depends on the difference btwn the hypothesized and actual values of the
population parameter
When the difference is large, is small
(1- ) is the power of a statistical test, probability that you will
reject the null when it is false and should be rejected
you can reduce the probability of type 2 error by increasing the sample
size, allowing to detect small differences
however when reduce you increase and vice cersa

Z Test for the Mean ( known)


when standard deviation is know, you use the Z test for the mean if population is normally
distributed
o if population is not normally distributed, you can still use Z test if the sample size
is large enough for the Central Limit Theorem to take effect

Hypothesis Testing Using the Critical Value Approach


two-tail test: when rejection region is divided into two tails of the distribution
Chapter 9: Fundamentals if Hypothesis Testing: One-Sample Tests

Hypothesis Testing Using the p-value approach


p-value: probability of getting a test statistic equal to or more extreme than the sample
result given that null is true
o aka observed level of significance
decisions rules for rejecting null in p-value approach:
o if the p-value is greater than or equal to , do not reject the null
o if the p-value is less than , reject the null

t Test of Hypothesis for the Mean ( Unknown)


Chapter 9: Fundamentals if Hypothesis Testing: One-Sample Tests

t test is robust, meaning that it does not lose power if the shape of the population
departs somewhat from the normal distribution as long as the sample size is large

One-Tail Tests
have an alternative hypothesis that focuses on a particular direction
Z Test of Hypothesis for the Proportions
sample proportion, p=X/n
if the numbers of events of interest(X) and the number of events that are not of interest
(n-X) are each at least five, you can use the Z test for the propotion