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Unformatted text preview: dure for testing claim about a population characteristic. Null Hypothesis H0: Statement that value of population parameter is equal to some claimed value. Alternative Hypothesis H1: Statement that population parameter has a value that somehow differs from value in the null hypothesis. Critical Region: All values of test statistic leading to rejection of null hypothesis. A Significance Level: Probability that test statistic falls in critical region, assuming null hypothesis is true. Type I Error: Rejecting null hypothesis when it is true. Probability of type I error is significance level r . Type II Error: Failing to reject null hypothesis when it is false. Probability of type II error is denoted by b . Power of test: Probability of rejecting a false null hypothesis. Traditional method of testing hypotheses: Uses decision criterion of rejecting null hypothesis only if test statistic falls within critical region bounded by critical value. Critical Value: Any value separating critical region from values of test st...
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- Spring '10