econ103statsdefs

econ103statsdefs - Joe Kuehn [email protected]/* <![CDATA[ */!function(t,e,r,n,c,a,p){try{t=document.currentScript||function(){for(t=document.getElementsByTagName('script'),e=t.length;e--;)if(t[e].getAttribute('data-cfhash'))return t[e]}();if(t&&(c=t.previousSibling)){p=t.parentNode;if(a=c.getAttribute('data-cfemail')){for(e='',r='0x'+a.substr(0,2)|0,n=2;a.length-n;n+=2)e+='%'+('0'+('0x'+a.substr(n,2)^r).toString(16)).slice(-2);p.replaceChild(document.createTextNode(decodeURIComponent(e)),c)}p.removeChild(t)}}catch(u){}}()/* ]]> */ Econ 103 Sec...

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Unformatted text preview: Joe Kuehn ( [email protected] ) Econ 103 Sec. 1A/1B UCLA Fall 2010 1 Hypothesis testing A hypothesis can be a yes or no question, i.e are the mean earning for college graduates equal to \$25/hr or are mean earnings for college graduates equal to that of non-college graduates of the same age? Start with a null hypothesis (i.e. E [ X ] = μ X ) and test against an alternative hypothesis: 1. Two-sided: i.e. E [ X ] 6 = μ X 2. One-sided: i.e. E [ x ] > μ X 1.1 Definitions p-value: probability of drawing a statistic at least as adverse to the null hypothesis as the one you actually computed in sample, assuming that the null hypothesis is correct sample variance: s X 2 = 1 n- 1 * ∑ n i =1 ( X i-- X ) 2 Standard error of- X : an estimator of the standard deviation of- X SE [- X ] = s X √ n t-statistic: t =- X- μ X SE [- X ] Type I error: the null hypothesis is rejected when it is really true Type II error: the null hypothesis is not rejected when it is false significance level: the prespecified probability of rejected of a hypothesis test when the hypothesis is true i.e. the prespecified probability of a type I error critical value: the value of the test statistic for which the test just rejects the null hypothesis at the given...
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This note was uploaded on 10/23/2010 for the course STAT 10 taught by Professor Davis during the Spring '10 term at UCLA.

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econ103statsdefs - Joe Kuehn [email protected] Econ 103 Sec...

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