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Hypothesis Testing

The document defines key terms used in hypothesis testing: the null and alternative hypotheses, Type I and Type II errors, and left-tailed, right-tailed, and two-tailed tests. It also outlines the five steps for conducting a hypothesis test procedure: 1) state the hypotheses and identify the claim, 2) find the critical value(s), 3) compute the test value, 4) make a decision to reject or not reject the null hypothesis, and 5) summarize the results. Finally, it provides guidelines for interpreting p-values and determining statistical significance based on the p-value.

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Sadia R Chowdhury
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22 views

Hypothesis Testing

The document defines key terms used in hypothesis testing: the null and alternative hypotheses, Type I and Type II errors, and left-tailed, right-tailed, and two-tailed tests. It also outlines the five steps for conducting a hypothesis test procedure: 1) state the hypotheses and identify the claim, 2) find the critical value(s), 3) compute the test value, 4) make a decision to reject or not reject the null hypothesis, and 5) summarize the results. Finally, it provides guidelines for interpreting p-values and determining statistical significance based on the p-value.

Uploaded by

Sadia R Chowdhury
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Null hypothesis: A stastistical hypothesis that states that there is no diiference

between a parameter and specific value or there is no diiference between two


parameter. Example: The student of class one scroed an average number of 90 out
of 100. The population mean is 90.

Alternative hypothesis: A statisctical hypothesis that states that the existance of a


difference betweem a parameter and specific value or states that there is difference
between two parameter. Example: If I give a plant unlimited amount of sunlight,
then the plant will grow to its largest possible size.

Type I error: Type I error is also known as false positive and occurs when a
researcher indirectly rejects a true null hypothesis. Example: When an innocent
person get a punishment of 14 years of jail without even doing any crime.

Type II error: Type I error is also known as false negative and occurs when a
researcher fails to reject a null hypothesis which is really false. Example: When a
culprit doesn’t get punishment.

Left tailed test: A Hypothesis Test where the rejection region is located to the
extreme left of the distribution.

Right tailed test: : A Hypothesis Test where the rejection region is located to the
extreme right of the distribution.

Two tailed test: The null hypothesis should be rejected when the test value is
in either of two critical regions on either side of the distribution of the test value.

Hypothesis test procedure


Step 1 State the hypotheses and identify the claim.
Step 2 Find the critical value(s) from the appropriate table.
Step 3 Compute the test value.
Step 4 Make the decision to reject or not reject the null
hypothesis.
Step 5 Summarize the results.

P value
1. P-value is used to find the exact level of significance.
2. It can be used to find whether a single coefficient is significant or not in an
equation.
3. If the p-value is less than or equal to 10% (0.10), the coefficient is
significant at 10% level.
4. If the p- value is less than or equal to 5% (0.05), the coefficient is significant
at 5% level.
5. If the p-value is less than or equal to 1% (0.01), the coefficient is significant
at 1% level.

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