LCT14 - Introduction to Business Statistics Lecture 14 The...

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1 Introduction to Business Statistics Lecture 14 The Strength of Evidence in Hypothesis Testing Introduction: In hypotheses testing, H a is what we would like to support. However, we accept H a , or equivalently reject 0 H , only when we have strong evidence as Type I error has more serious consequence. The hypothesis testing method studied so far can only tell us to reject or to accept 0 H for a given probability of Type I error, α . Can we use the hypothesis testing method to measure how strongly the data support H a ? That is, use hypothesis testing method to measure the significance of evidence in supporting H a .
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2 The probability of type I error, α , is also referred to as the significance level, a measure of significance in supporting H a . We are going to discuss The meaning of as the strength of evidence The corresponding critical value. In the following example, please pay attention to how can be viewed as the standard to be achieved by our sample data to support H a .
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This note was uploaded on 11/23/2010 for the course BBA ISOM111 taught by Professor Hu during the Fall '08 term at HKUST.

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LCT14 - Introduction to Business Statistics Lecture 14 The...

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