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SIS
TESTING By
M.SREE TEJA
(100517765316)
What is
Hypothesis?
𝐻0: 𝜇 = 𝜇0
Alternative
Hypothesis
𝐻 𝑎: 𝜇 > 𝜇 0
𝐻 𝑎: 𝜇 < 𝜇 0
Level of significance
and
confidence
when it is true
Risk Confidence
Designation Description
𝜶 𝟏−𝜶
More than $100 million
0.001 0.999
Supercritical (Large loss of life, e.g. nuclear
0.1% 99.9%
disaster
0.01 0.99 Less than $100 million
Critical
1% 99% (A few lives lost)
0.05 0.95 Less than $100 thousand
Important
5% 95% (No lives lost, injuries occur)
0.10 0.90 Less than $500 (No
Moderate
10% 90% injuries occur)
Type I and Type II
Error
Decision
Accept Null Reject Null
Situation
𝐻0: 𝜇 = 𝜇0
Right tailed test @
5% Significance level
𝐻0: 𝜇 = 𝜇0
Limitations of the
test of Hypothesis