P value method of testing hypotheses uses decision

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Unformatted text preview: tical region from values of test statistic that do not lead to rejection of null hypothesis. P-value method of testing hypotheses: Uses decision criterion of rejecting null hypothesis only if Pvalue … a (where a = significance level). P-value: Probability of getting value of test statistic at least as extreme as the one found from sample data, assuming that null hypothesis is true. Left-Tailed Test: P-value = area to left of test statistic. Right-Tailed Test: P-value = area to right of test statistic. Two-Tailed Test: P-value = twice the area in tail beyond test statistic. where P1B ƒ A2 is P1B2 assuming that event A has already occurred. Cn One Mean: Requires simple random sample and either n 7 30 or normally distributed population. Test statistic z= x - mx q s 1n x - mx q s 1n 1for s known2 Counting Fundamental Counting Rule: If an event can occur m ways and a second event can occur n ways, together they can occur m # n ways. Factorial Rule: n different items can be arranged n! different ways. Permutations (order counts) of r items selected from n different items: nPr Poisson Distribution: Discrete...
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