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MM_207_Seminar_8 - Unit 8 Seminar Hypothesis Testing MM207...

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Unformatted text preview: Unit 8 Seminar Hypothesis Testing MM207: Statistics LEARNING OUTCOMES Define the alternative and null hypothesis of a hypothesis test List the general procedure for conducting a hypothesis test Perform a hypothesis test involving the mean for large and small samples Null & Alternate Hypothesis Null Hypothesis (H0): The "claim" (a parameter is EQUAL to this) Alternate Hypothesis (H1): If the "claim" is not true, this will be true (a parameter is LESS than, GREATER than, or NOT EQUAL to this) Type of Statistical Tests Based on the alternate hypothesis: Lefttailed test if H1 is LESS than the parameter Righttailed test if H1 is GREATER than the parameter Twotailed test if H is NOT EQUAL to the 1 parameter A pvalue Hypothesis Example The instructor of a first semester English class decides to investigate whether or not students' test scores on an entrylevel English test exceeds the required 75% that is needed for a passing score. What is the H0? What is the H1? Would the pvalue area be on the left, on the right, or on both sides of the mean? Types of Error Type I Error: Reject the H0 when it is true Type II Error: Fail to reject the H0 when it is false Level of significance (): The probability of rejecting H0 when it is true If pvalue , REJECT H0 If pvalue > , FAIL TO REJECT H0 The probability of a type II error is An Example Use a 1% significance level. Find the following: H0: H1: What type of test will you conduct? Test statistic: Pvalue: Conclusion: ...
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