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    Hypothesis Testing Key Words

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    Subaashini Mohanasundaram
    The document defines key terms used in hypothesis testing: the null hypothesis (H0), alternative hypothesis (H1), Type 1 and Type 2 errors, test statistics, critical region, critical value, level of confidence, significance level, one-tailed and two-tailed tests, and possible outcomes of rejecting or failing to reject the null hypothesis. It also provides examples of the significance level and outlines the steps to conduct hypothesis testing.

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    Hypothesis Testing Key Words

    Uploaded by

    Subaashini Mohanasundaram
    205 views2 pages
    The document defines key terms used in hypothesis testing: the null hypothesis (H0), alternative hypothesis (H1), Type 1 and Type 2 errors, test statistics, critical region, critical value, level of confidence, significance level, one-tailed and two-tailed tests, and possible outcomes of rejecting or failing to reject the null hypothesis. It also provides examples of the significance level and outlines the steps to conduct hypothesis testing.

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    The document defines key terms used in hypothesis testing: the null hypothesis (H0), alternative hypothesis (H1), Type 1 and Type 2 errors, test statistics, critical region, critical value, level of confidence, significance level, one-tailed and two-tailed tests, and possible outcomes of rejecting or failing to reject the null hypothesis. It also provides examples of the significance level and outlines the steps to conduct hypothesis testing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    205 views2 pages

    Hypothesis Testing Key Words

    Uploaded by

    Subaashini Mohanasundaram
    The document defines key terms used in hypothesis testing: the null hypothesis (H0), alternative hypothesis (H1), Type 1 and Type 2 errors, test statistics, critical region, critical value, level of confidence, significance level, one-tailed and two-tailed tests, and possible outcomes of rejecting or failing to reject the null hypothesis. It also provides examples of the significance level and outlines the steps to conduct hypothesis testing.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
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    KEY WORDS FOR HYPOTHESIS TESTING

    1. Null Hypothesis ( H0 )
    - An assertion that a parameter in a statistical mode takes a particular value and is assumed true until
    experimental evidence suggests otherwise.

    2. Alternative Hypothesis ( H1 )
    - Expresses the way in which the value of a parameter may deviate from the specified in the null hypothesis, and
    is assumed true when the experimental evidence suggests that the null hypothesis is false.

    3. Type 1 error - Rejecting the null hypothesis when it is in fact true.

    4. Type 2 error - Not rejecting the null hypothesis when it is in fact, false.

    5. Test Statistics
    - A function of a sample of observations which provides a basis for testing the validity of the null hypothesis.
    relevant statistic  hypothesized parameter
    test statistics 
    s tan dard error of relevant statistics

    6. Critical Region
    - The null hypothesis is rejected when a calculated value of the test statistic lies within this region.

    7. Critical Value - The value which determines the boundary of the critical region.

    8. Level of Confidence ( example : 95% = 0.95 / 99% = 0.99 )


    - How confident are we in our decision.

    9. Significance level (  )
    - The size of the critical region, the probability of rejection H0 when H0 is true ( Type 1 error).
    - Can be calculated -  = 1 - level of confidence ( example  = 1 - 0.95 = 0.05 )

    10. One-tailed test


    - The critical region is located at one end of the sampling distribution of test statistic.
    - H1 involves < or > but bot both.

    Right Tail Test Left Tail Test

    11. Two-tailed Test


    - The critical region comprises areas at both ends of the sampling distribution of the test statistic.
    - H1 involves 

    Two-tailed test

    12. Possible Outcome of a Hypothesis Test


    - Reject H0
    - Do not reject H0 or Fail to reject H0
    13. Conclusion
    - Reject H0
    Reject H0 as there is sufficient evidence, at ___ % significance level, that the _____details from the
    question____.

    - Do not reject H0 or Fail to reject H0


    Do not reject H0 as there is insufficient evidence, at ___ % significance level, that the _____details from the
    question____.

    Other important details :

    The larger the sample size, the larger the value of test statistics. Therefore the stronger evidence to reject H0.

    Steps to do Hypothesis Testing :

    1. Define a random variable.


    2. State the distribution.
    3. State the null and alternative hypotheses.
    4. State the significance level.
    5. Determine the critical region.
    6. Calculate the test statistic.
    7. Compare the result.
    8. Make decision.
    9. Write the conclusion.

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