STATISTICAL TEST - Use the data obtained from a sample to make a decision about whether the null

hypothesis should be rejected.

TEST VALUE/TEST STATISTIC - Numerical value computed from a statistical test.

TYPE I ERROR (α) - Reject the null hypothesis when it is true.

TYPE II ERROR () - Do not reject the null hypothesis when it is false.

Type I and Type II errors can not happen at the same time.

CRITICAL OR REJECTION REGION - The range of test values that indicates that there is a significant
difference and that the null hypothesis should be rejected.

NONCRITICAL OR NON-REJECTION REGION - The range of test values that indicates that the difference
was probably due to chance and that the null hypothesis should not be rejected.

CRITICAL VALUE - Separates the rejection region from the non-rejection region.

HYPOTHESIS TEST : TRADITIONAL METHOD

How to find critical values for specific values of α:

1. Draw the figure and indicate the appropriate area.

a. If the test is left-tailed, the rejection region, with an area equal to α, will be at the left
tail of a normal curve.

b. If the test if right-tailed, the rejection region, with an area equal to α, will be at the
right tail of a normal curve.

c. If the test is two-tailed, divide α by 2; one half of α will be at the right tail while the
other half will be at the left tail of curve.

2. Obtain the z-value from the table “Area under the normal curve”.

a. For a left-tailed test, use the z-value that corresponds to the area equivalent to α. Affix
a negative sign to the z-value.

b. For a right-tailed test, use the z-value that corresponds to the area equivalent toα.

c. For a two-tailed test, use that z-value that corresponds to α /2. Affix a negative sign to
the z-value at the left tail.

PROPERTIES OF THE STUDENT’S T-DISTRIBUTION

Properties similar to the standard normal (z) distribution:

1 It is bell shaped.
2 It is symmetric about the mean.
3 The mean, median and mode are equal to 0 and are located at the center of the distribution.
4 The curve approaches but never touches the x-axis.

Properties different from the z distribution:

1 The variance is greater than

2 It is a family of curves based on degrees of freedom.
3 As the sample size increases, it approaches the normal distribution.

ASSUMPTIONS FOR THE T TEST WHEN Σ IS UNKNOWN:

 The sample is a random sample

 Either n ≥ 30 or the population is normally distributed
HYPOTHESIS TESTING INVOLVING A POPULATION PROPORTION

This test is considered a binomial experiment where there are only two possible outcomes.

The two possible outcomes are:

❖ “success” (a sample possesses of a certain characteristic)

❖ “failure” (a sample does not possess that characteristic)

P = Population
^p = Sample

THE FOLLOWING MUST BE MET FOR TESTING A POPULATION PROPORTION:

1 The sample is a random sample.
2 𝑛𝑝 ≥ 5 and 𝑛(1 − 𝑝) ≥ 5.
3 The sampled values are independent of each other.