Study Guide Cpt 8 Soln

Study Guide Cpt 8 Soln - [email protected]..

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[email protected] www.cbpa.drake.edu/laugerman Office 351 Aliber Phone 271-1897 Statistics for Managers Hypothesis Testing Hypothesis Testing: Select confidence level, α and sample size n. Remember α is the probability that you will reject a null hypothesis that is true. Based on the Central Limit Theorem a sample size of 30 or more is best if possible. 1. State null and alternate hypothesis: H 0 : µ = 0, H 1: µ ≠ 0 (two-sided hypothesis test). H 0 : µ ≤ 0, H 1: µ > 0 or H 0 : µ ≥ 0, H 1: µ < 0 (one-sided tests). Remember H 0 represents the status quo and H 1 represents what you are trying to prove. 2. Calculate the test statistic from the sample (or observed) data. Be sure to use the appropriate formula. 3. Find critical value(s) for α. This gives the outer boundary(s) for the test statistic. Be sure to use the right critical value (usually based on whether standard deviation is known from the population, σ, or estimated from the sample, S). 4.
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This note was uploaded on 04/29/2008 for the course STATS 072 taught by Professor Judd during the Spring '08 term at Drake University .

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Study Guide Cpt 8 Soln - [email protected]..

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