This document discusses hypothesis testing using the z-test and t-test. It provides examples of stating the null and alternative hypotheses, determining significance levels, finding critical values, computing test statistics, and making conclusions about whether to reject the null hypothesis. For the z-test, it shows how to calculate the test statistic z. For the t-test, it explains how to use the t-table to find the critical value based on degrees of freedom and the type of test (one-tailed or two-tailed). Practice problems demonstrate applying these steps to hypothetical data sets.
This document discusses hypothesis testing using the z-test and t-test. It provides examples of stating the null and alternative hypotheses, determining significance levels, finding critical values, computing test statistics, and making conclusions about whether to reject the null hypothesis. For the z-test, it shows how to calculate the test statistic z. For the t-test, it explains how to use the t-table to find the critical value based on degrees of freedom and the type of test (one-tailed or two-tailed). Practice problems demonstrate applying these steps to hypothetical data sets.
This document discusses hypothesis testing using the z-test and t-test. It provides examples of stating the null and alternative hypotheses, determining significance levels, finding critical values, computing test statistics, and making conclusions about whether to reject the null hypothesis. For the z-test, it shows how to calculate the test statistic z. For the t-test, it explains how to use the t-table to find the critical value based on degrees of freedom and the type of test (one-tailed or two-tailed). Practice problems demonstrate applying these steps to hypothetical data sets.
This document discusses hypothesis testing using the z-test and t-test. It provides examples of stating the null and alternative hypotheses, determining significance levels, finding critical values, computing test statistics, and making conclusions about whether to reject the null hypothesis. For the z-test, it shows how to calculate the test statistic z. For the t-test, it explains how to use the t-table to find the critical value based on degrees of freedom and the type of test (one-tailed or two-tailed). Practice problems demonstrate applying these steps to hypothetical data sets.
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Hypothesis Testing
Z-TEST & T-TEST
Review State the null and alternative hypothesis. 1. The average room rate in hotels in a certain region is $82.53. A travel agent believes that the average in a particular resort area is different. ◦ H0 : μ = 82.53, Ha : μ ≠ 82.53 2. The average farm size in a predominately rural state was 69.4 acres. The secretary of agriculture of that state asserts that it is less today. ◦ H0 : μ = 69.4, Ha : μ < 69.4 Z-Test 1. State the Hypotheses 2. Determine the Level of Significance 3. Determine the critical value and the rejection region 4. State the decision rule 5. Compute the test statistic (Z) ◦ Z= 6. Formulate the decision Example A diet clinic states that there is an average loss of 24 pounds for those who stay on the program for 20 weeks. The standard deviation is 5 pounds. The clinic tries a new diet, reducing salt intake to see whether that strategy will produce a greater weight loss. A group of 40 volunteers loses an average of 16.3 pounds each over 20 weeks. Should the clinic change the new diet? Use α = 0.05. 1. State the Hypothesis ◦ H0 : μ = 24, Ha : μ > 24
2. Determine the Level of Significance
◦ α = 0.05 (right-tailed) Example 3. Determine the critical value and the rejection region. ◦ Critical Value = 1.65
4. State the Decision Rule
◦ Reject H0 if Z > 1.65
5. Compute the test statistic (Z)
◦ Z= ◦ Z= 1.65
◦ Z=
6. Formulate conclusion: Do not Reject H0
Practice Practice a. Critical Value = 1.96 a. Z = 2.59 b. Reject H0
b. Critical Value = -1.65
a. Z = 2.59 b. Do not reject H0 T-Test 1. State the Hypotheses 2. Determine the Level of Significance 3. Determine the critical value and the rejection region 4. State the decision rule 5. Compute the test statistic (T) ◦ Z= 6. Formulate the decision Determining the Critical Value (T-Test) Parts of the T-Table ◦ Degrees of Freedom (d.f.) = Sample Size – 1 ◦ Significance Level ()
To determine the Critical Value
1. Locate the degree of freedom (First column on the right) 2. Identify the level of significance (Two tailed/One tailed) 3. Find the intersection Practice Practice a. Critical Value = 2.797 (two-tailed) ◦ T= ◦ Do not reject the null hypothesis