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• The P -value Method

• The Traditional method - Using Rejection Regions (critical value approach)

Decision Rule Based on P -value

To use a P -value to make a conclusion in a hypothesis test, compare the P -value with α

1. If P ≤ α, then reject H0 .

2. If P > α, then fail to reject H0 .

Recall:

A P -value (or probability value) is the probability of getting a value of the the sample test statistic that is at least as

extreme as the one found from the sample data, assuming that the null hypothesis is true. By extreme we mean: far

from what we would expect to observe if the null hypothesis is true.

In other words, a small P -value indicates that observation of the test statistic would be unlikely if the null hypothesis is

true. The lower the P -value, the more evidence there is in favor of rejecting the null hypothesis.

The z-test for a mean is a statistical test for a population mean. The z-test can be used when the population

is normal and σ is known, or for any population when the sample size n is at least 30. The test statistic is the

sample mean x̄ and the standardized test statistic is z.

x̄ − µ

z=

√σ

n

σ

Recall that √ = σx (standard error).

n

When n ≥ 30, you can use the sample standard deviation s in place of σ.

GUIDELINES

Using P -values for a z-test for a Mean µ

1. Write the null hypothesis H0 and alternate hypothesis Ha ; then identify the claim and decide whether the

test is left-tailed, right-tailed, or two-tailed.

2. Identify the level of significance, α.

3. Determine the standardized test statistic z.

4. Find the area that corresponds to z (as before - use Table).

5. Find the P -value.

left-tailed test: P = (Area in left tail)

right-tailed test: P = (Area in right tail)

two-tailed test: P = 2(Area in tail of test statistic)

6. Make a decision to reject H0 or fail to reject H0 .

If P ≤ α, then reject H0

If P > α, then fail to reject H0

7. Interpret the decision in the context of the original claim.

The Rejection Region Method of Hypothesis Testing

DEFINITION

The traditional method of hypothesis testing. A rejection region (or critical region) of the sampling distri-

bution is the range of values for which the null hypothesis is not probable. If a test statistic falls in this region,

the null hypothesis is rejected. A critical value z0 separates the rejection region from the non-rejection region.

Remarks

1. The rejection region is the set of all values of the test statistic that cause us to reject the null hypothesis.

2. The significance level (α) is the probability that the test statistic will fall in the rejection region when the null

hypothesis is actually true. If the test statistic falls in the rejection region, we will reject the null hypothesis, so α

is the probability of making the mistake of rejecting the null hypothesis when it is true.

Reject H 0 Reject H 0

z z0 z > z0 z

z < z0 z0 0 0

Left−Tailed Test Right−Tailed Test

Fail to reject H 0

Reject H 0

Reject H 0

z < z0 z0 z0 z > z0 z

0

Two−Tailed Test

GUIDELINES

Finding Critical Values in a Normal Distribution

1. Specify the level of significance α.

2. Decide whether the test is left-tailed, right-tailed, or two-tailed.

3. Find the critical value(s) z0 . If the hypothesis test is

(a) left-tailed, find the z-score that corresponds to an area of α.

(b) right-tailed, find the z-score that corresponds to an area of 1 − α.

(c) two-tailed, find the z-score that corresponds to an area of 21 α and 1 − 21 α .

4. Sketch the standard normal distribution.

Remember that, failing to reject the null hypothesis does not mean that you have accepted the null hypothesis as true

(just that there is not enough evidence to reject the null hypothesis).

We use a z-test for the mean when the population is normal and σ is known, or for any population when the sample size

n is at least 30 (then we may use: σ ≈ s).

GUIDELINES

Using Rejection Regions for a z-test for a Mean µ

1. Write the null hypothesis H0 and alternative hypothesis Ha ; then identify the claim.

3. Determine the critical value(s).

4. Determine the rejection region(s).

5. Determine the standardized test statistic z.

6. Sketch the sampling distribution, including test statistic, critical value(s) and rejection region(s).

7. Make a decision to reject H0 or fail to reject H0 .

(a) If z is in the rejection region - reject H0 .

(b) If z is not in the rejection region - fail to reject H0 .

8. Interpret the decision in the context of the original claim.

Claim

Decision Claim is H0 . Claim is Ha

ject the claim support the claim

Fail to Reject H0 . There is Not enough evidence There is Not enough evidence

to reject the claim to support the claim

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