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Tests of Hypothesis
Definitions
Hypothesis : A statement about the value
of a population parameter developed for
the purpose of testing.
Hypothesis testing : A procedure, based on
sample evidence and probability theory,
used to determine whether the hypothesis
is a reasonable statement and should not
be rejected, or is unreasonable and should
be rejected.
Step Procedure for
Hypothesis Testing
Step 1: State null and alternate hypotheses
Step 4: Identify and determine the test statistic based on sample data
1- α
α/2 α/2
1-
Select a level of significance
Researcher
Null Accepts Ho Reject Ho
Hypothesis
ˆ P
p
Z
P (1 P )
n
P population proportion
ˆ sample proportion
p
Make a decision