stat400lec31 - Statistics 400 Tests of Statistical...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Statistics 400 Tests of Statistical Hypothesis Confidence Intervals: Creates an interval where we think the true parameter we are estimating will fall with a certain probability or level of confidence. Serve the purpose when the goal is to estimate some population parameter If we want to TEST our data in favor or against some CLAIM we have to use a method call Hypothesis Testing. Hypothesis Testing: Formal procedure for comparing observed data with a hypothesis whose truth we want to assess Hypothesis: statement about the parameters in the population or model Results of Test: expressed in terms of a probability that measures how well the data and the hypothesis agree Example: Some years ago the government made a claim that the average income of the American people was $33,950. This would imply that Americans were doing worse than the reported average income was found to be $34, 076. A need arose to check to see if the government was understating the values of income. In a sample size of 50 people, the
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 07/24/2008 for the course STAT 400 taught by Professor Tba during the Fall '05 term at University of Illinois at Urbana–Champaign.

Page1 / 7

stat400lec31 - Statistics 400 Tests of Statistical...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online