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# ec41lecture16_handout - Statistics for Economists Lecture...

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Unformatted text preview: Statistics for Economists Lecture 16 Kata Bognar UCLA Hypothesis Tests for the Population Mean P-Value Approach Unknown σ Statistics for Economists Lecture 16 Kata Bognar UCLA May 27, 2010 Statistics for Economists Lecture 16 Kata Bognar UCLA Hypothesis Tests for the Population Mean P-Value Approach Unknown σ Announcements • Homework 6 will be posted this afternoon. • Practice final will be posted over the weekend. Statistics for Economists Lecture 16 Kata Bognar UCLA Hypothesis Tests for the Population Mean P-Value Approach Unknown σ Last Lecture • Hypothesis test for the population mean • z-Test, critical value approach Statistics for Economists Lecture 16 Kata Bognar UCLA Hypothesis Tests for the Population Mean P-Value Approach Unknown σ Today’s Outline 1 P-Value approach, t-test 2 Inference for population proportion 3 Readings: Weiss, Chapter 9.5 - 9.6, 12.1 - 12.2 4 Readings for next class: Weiss, Chapter 14.1 Statistics for Economists Lecture 16 Kata Bognar UCLA Hypothesis Tests for the Population Mean P-Value Approach Unknown σ P-Value Approach • An alternative to the critical value approach of hypothesis testing. • The P-value gives the probability that the test statistic takes a value that is at least as extreme as the observed value. • Suppose that the observed value of the test statistic is z . • if the test is two-tailed then the P-value = P ( | Z | > | z | ) . • if the test is left-tailed then the P-value = P ( Z < z ) . • if the test is right-tailed then the P-value = P ( Z > z ) . • The P-value is called the observed significance level or the probability value. Statistics for Economists Lecture 16 Kata Bognar UCLA Hypothesis Tests for the Population Mean P-Value Approach Unknown σ P-Value Approach - Example 1. A health club claims that their members lose on average more than 10 pounds within the first month after joining the club. To verify this statement one collects a random sample of 36 members of the club and finds that they lost on average 10.8 pounds within the first month. The weight losses in the population follow a normal distribution with a standard deviation known to be 2.4 pounds....
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ec41lecture16_handout - Statistics for Economists Lecture...

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