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ec41lecture15_handout

ec41lecture15_handout - Statistics for Economists Lecture...

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Statistics for Economists Lecture 15 Kata Bognar UCLA Hypothesis Tests Hypothesis Test for the Population Mean Statistics for Economists Lecture 15 Kata Bognar UCLA May 25, 2010
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Statistics for Economists Lecture 15 Kata Bognar UCLA Hypothesis Tests Hypothesis Test for the Population Mean Announcements Midterm 2 scores are online.
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Statistics for Economists Lecture 15 Kata Bognar UCLA Hypothesis Tests Hypothesis Test for the Population Mean Last Lecture t-Interval procedure Hypothesis testing
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Statistics for Economists Lecture 15 Kata Bognar UCLA Hypothesis Tests Hypothesis Test for the Population Mean Today’s Outline 1 Hypothesis tests for the population mean 2 z-Test, critical and p-value approach 3 t-Test 4 Readings: Weiss, Chapter 9.2 - 9.3, 9.5 - 9.6 5 Readings for next class: Weiss, Chapter 12.1 - 12.2
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Statistics for Economists Lecture 15 Kata Bognar UCLA Hypothesis Tests Hypothesis Test for the Population Mean Decision Rule in Hypothesis Testing We decide about the rejection or non-rejection of the null hypothesis based on the value of a test statistic for the sample. The rejection region is the set of values for the test statistics that leads to rejection of the null hypothesis. The non-rejection region is the set of values for the test statistics that leads to non-rejection of the null hypothesis. The critical values of the test statistic separate the rejection regions from the non-rejection region. The critical value(s) depend on the significance level of the test.
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Statistics for Economists Lecture 15 Kata Bognar UCLA Hypothesis Tests Hypothesis Test for the Population Mean Decision Rule in Hypothesis Testing - Example Transaction times at the ATMs of a particular bank have a distribution with mean 270 and standard deviation 24 seconds... Assuming that the null hypothesis is true, ¯ X is approximately normally distributed with μ ¯ x = 270 and σ = 24 / 64 = 3 . Decision rule: reject the null if the sample mean is not higher than 264 = rejection region: ¯ X 264 . do not reject the null if the sample mean is higher than 264 = non-rejection region: ¯ X > 264 . The significance level of this test is about 2 . 5% .
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Statistics for Economists Lecture 15 Kata Bognar UCLA Hypothesis Tests Hypothesis Test for the Population Mean Decision Rule in Hypothesis Testing - Example (cont.) Transaction times at the ATMs of a particular bank have a distribution with mean 270 and standard deviation 24 seconds...
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