chapter 8 c

# chapter 8 c - Handout 13. Chapter 8.4 and 8.5. Testing...

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1 Handout 13. Chapter 8.4 and 8.5. Testing hypotheses about a population proportion (large samples). Review: Steps in Hypothesis Testing 1. Specify the population value of interest. 2. Formulate the appropriate null and alternative hypotheses. 3. Specify the desired level of significance. 4. Determine the rejection region. 5. Obtain sample evidence and compute the test statistic. 6. Reach a decision and interpret the result. p-value approach • p-value: Probability of obtaining a test statistic more extreme ( or ) than the observed sample value given H 0 is true. – Also called observed level of significance. – Smallest value of α for which H 0 can be rejected . • Compare the p-value with α – If p-value < α , reject H 0 – If p-value ≥ α , do not reject H 0 Hypothesis on a population mean. Suppose the hypotheses are about the parameter m -population mean . H 0 : m = m 0 The test statistic is and the rejection region is given by : 1) If H 1 ; m > m 0 Reject H 0 when z calc >z α p-value =P(Z > z cal ) 2) If H 1 ; m < m 0 Reject H 0 when z calc < -z α p-value =P(Z < z cal ) 3) If H 1 ; m∫m 0 Reject H 0 when | z calc| > z α /2 it means: z calc <-z α /2 or z calc > z α /2 , p-value =P(|Z| >z cal ) Reject H 0 when p-value is small , let’s say p-value < a ,or p-value <0.05. n σ µ 0 x Z = Example1 A phone industry manager thinks that customers’ monthly cell phone bills have

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## This note was uploaded on 04/17/2008 for the course HONORS 191 taught by Professor Palmero during the Spring '08 term at UMass (Amherst).

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chapter 8 c - Handout 13. Chapter 8.4 and 8.5. Testing...

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