Virtual COMSATS

Inferential Statistics
Lecture-32

Ossam Chohan
Assistant Professor
CIIT Abbottabad

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 Recap of previous lectures
• Introduction of Correlation and Regression.
– Simple Regression model.
– Hypothesis testing for correlation coefficient.
– Hypothesis testing for regression coefficients.
– Some practice Problems.

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 Objective of Lecutre-32
• Power of Test.
• Course Close up 

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 The Power of a Test
• The power of a test with respect to the
specified alternative hypothesis, is the
probability of rejecting a null hypothesis when
it is actually false. The power of a test is
complement of β.
• Recall what is β?
• Power = Pr(Reject H0/H0 is false)
• Power = 1- β

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 Special Problem
• A random sample of size 4 is drawn from a
normal population with known variance 15. A
one tailed test of the form H0: µ≤30 against H1:
µ > 30 at 5% level of significance is performed.
Calculate the probabilities of Type-II error (β)
for the values of µ= 31, 32, 34 and 36 in the
alternative hypothesis. Also calculate the
powers of the test and hence sketch the
power curve for this test.
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Solution

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Cont…

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 Course Close-up
• Sample and Sampling?
• Sampling distribution of different statistics.
• Why sampling distributions.
• Statistical Inferences.
• Estimation.
• Point and interval estimation.
• Hypothesis Testing.
• Z, t, chi-square and F-distributions
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• Single population, two populations and more
than two populations.
• Correlation and Regression analysis.
• Non-Parametric Tests.
• Statistical Quality Control.

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 References for Course Material
and examples
• http://www.isixsigma.com/new-to-six-sigma/
getting-started/what-six-sigma/
• http://www.stats.gla.ac.uk/steps/glossary/hy
pothesis_testing.html
• http://stattrek.com/estimation/estimation-in-
statistics.aspx
• Statistical Theory Part-II by Sher Muhammad
Chaudhary.
• Statistics for Management by Levin and Rubin.
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• http://www.utstat.toronto.edu/~olgac/sta248
_2013/notes/sta248_Lecture3.pdf
• http://www.iienet2.org/iietrainingcenter/Det
ails.aspx?EventCode=SQC
• http://www.statistics.com/
• Different books for exercise problems.

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