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Unformatted text preview: Statistics for Economists Lecture 16 Kata Bognar UCLA Hypothesis Tests for the Population Mean PValue Approach Unknown 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 PValue Approach Unknown 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 PValue Approach Unknown Last Lecture Hypothesis test for the population mean zTest, critical value approach Statistics for Economists Lecture 16 Kata Bognar UCLA Hypothesis Tests for the Population Mean PValue Approach Unknown Todays Outline 1 PValue approach, ttest 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 PValue Approach Unknown PValue Approach An alternative to the critical value approach of hypothesis testing. The Pvalue 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 twotailed then the Pvalue = P (  Z  >  z  ) . if the test is lefttailed then the Pvalue = P ( Z < z ) . if the test is righttailed then the Pvalue = P ( Z > z ) . The Pvalue is called the observed significance level or the probability value. Statistics for Economists Lecture 16 Kata Bognar UCLA Hypothesis Tests for the Population Mean PValue Approach Unknown PValue 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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This note was uploaded on 05/31/2010 for the course ECON 41 taught by Professor Guggenberger during the Spring '07 term at UCLA.
 Spring '07
 Guggenberger

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