StatsCh9 - Chapter 9 Hypothesis Testing Chapter 9 1 Example...

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Chapter 9 1 Chapter 9 Hypothesis Testing
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Chapter 9 2 Example We are a new airline trying to compete in the US market. A survey of airline passengers showed that the most important thing when flying is: A) safety B) being on time C) good food D) no lost luggage
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Chapter 9 3 To be competitive in the US market we would like to show that we lose less luggage than the other airlines. A recent study showed that the lost luggage percentage is 1%. How would we use sample information to claim that we lose less luggage than the industry as a whole?
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Chapter 9 4 Hypothesis tests consist of a 1. Null hypothesis, H 0 : this is a specific value of a population parameter. The null hypothesis is what we believe until we see statistical evidence that persuades us to believe something different. We often think of this as the status quo.
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Chapter 9 5 2. Alternative hypothesis, H 1 : The parameter in the alternative hypothesis does not have a specific value. This is the statement that either allows us to take action or is the claim we want the evidence to support. (It is typically the compliment of H 0 .)
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StatsCh9 - Chapter 9 Hypothesis Testing Chapter 9 1 Example...

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