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Unformatted text preview: 10 1 Chapter Ten OneSample Tests of Hypothesis OneSample Tests of Hypothesis GOALS ONE Define a hypothesis and hypothesis testing. TWO Describe the five step hypothesis testing procedure. THREE Distinguish between a onetailed and a twotailed test of hypothesis. 10 2 Chapter Ten continued GOALS FOUR Conduct a test of hypothesis about a population mean. FIVE Conduct a test of hypothesis about a population proportion. SIX Define Type I and Type II errors. OneSample Tests of Hypothesis OneSample Tests of Hypothesis 10 3 What is a Hypothesis? What is a Hypothesis? Twenty percent of all customers at Bovines Chop House return for another meal within a month. What is a What is a Hypothesis? Hypothesis? A statement, claim or assumption about the value of a population parameter developed for the purpose of testing. The mean monthly income for systems analysts is $6,325. 10 4 Types of Hypothesis Types of Hypothesis Testing Research Hypotheses A new drug will increase longevity in AIDS patients by 6 months Testing the Validity of a Claim A leading soft drink manufacturer states that each liter of a soft drink contains at least 67.6 ounces Testing in DecisionMaking Situations Specifications for a part require a mean length of 2 inches per part. Any deviation from this standard will cause problems in assembly 10 5 What is Hypothesis Testing? What is Hypothesis Testing? Hypothesis testing Hypothesis testing Based on sample evidence and probability theory Used to determine whether the hypothesis is a reasonable statement and should not be rejected, or is unreasonable and should be rejected not guilty does not prove innocence 10 6 Hypothesis Testing Hypothesis Testing Do not reject nul l Re ject nul l and acc ept alterna te St ep 5: Tak e a sam ple, arrive at a dec ision St ep 4: For mu late a dec ision rule St ep 3: Iden tify the test stat istic St ep 2: Se lect a level of sign ificanc e St ep 1: St ate nul l and alterna te hyp othe ses 10 7 Alternative Hypothesis H 1 : A statement that is accepted if the sample data provide evidence that the null hypothesis is false Null Hypothesis H A statement about the value of a population parameter Step One: State the null and alternate hypotheses Step One: State the null and alternate hypotheses 10 8 Three possibilities regarding means H : = 0 H 1 : = 0 H : < H 1 : > 0 H : > H 1 : < 0 Step One: State the null and alternate Step One: State the null and alternate hypotheses hypotheses The null hypothesis always contains equality. 3 hypotheses about means 10 9 Step Two: Select a Level of Step Two: Select a Level of Significance. Significance. The probability of rejecting the null hypothesis when it is actually true; the level of risk in so doing....
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This note was uploaded on 04/06/2009 for the course ECON 41 taught by Professor Guggenberger during the Spring '07 term at UCLA.
 Spring '07
 Guggenberger

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