HTo OP
HTo OP
HTo OP
s Testing
Null and Alternative Hypotheses; Hypothesis Test
Significance Level
• The probability of making a Type I error, that is, of rejecting a
true null hypothesis, is called the significance level, α, of a
hypothesis test.
• Rejection region: The set of values for the test statistic that leads to
rejection of the null hypothesis.
• Nonrejection region: The set of values for the test statistic that leads to
nonrejection of the null hypothesis.
• Critical value(s): The value or values of the test statistic that separate
the rejection and nonrejection regions. A critical value is considered part
of the rejection region.
Graphical display of rejection regions for two-tailed, left-tailed, and right-tailed tests.
Critical value(s) for a one-mean z-test at the significance level α if the test is (a) two
tailed, (b) left tailed, or (c) right tailed
P-Value Approach to Hypothesis Approaching
• The P-value of a hypothesis test is the probability of getting sample data
at least as inconsistent with the null hypothesis (and supportive of the
alternative hypothesis) as the sample data actually obtained. We use the
letter P to denote the P-value.
P-value for a one-mean z-test if the test is (a) two-tailed, (b) left-
tailed, or (c) right-tailed.
Steps for performing Hypothesis Test for single population
STEP 1: Determine null, alternative mean
hypothesis. State your hypothesis about
the population mean.
STEP 2: Summarize the data. State a significance level.
STEP 3: Calculate test statistic (T-statistics)
• Estimated Standard error: