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Unformatted text preview: Review and Examples Hypothesis Tests for means (with unknown σ ) consist of four steps: 1. State the hypotheses. The hypotheses should take one of these forms: H : μ ≥ μ H a : μ < μ H : μ ≤ μ H a : μ > μ H : μ = μ H a : μ 6 = μ 2. State the level of significance. This is denoted with α . 3. Compute the test statistic. We use the test statistic t when we do not know the value of σ . t = ¯ x μ s/ √ n 4. Form a conclusion. You can form a conclusion using two approaches. Remember the degrees of freedom is n 1. (a) The pvalue approach. Use the t table to compute the pvalue. If the pvalue is less than α , reject H . (b) The critical value approach. Look up the critical value on the t table. If the test statistic is larger (either positively or negatively) than the critical value, reject H . Example (Using Excel to do Hypothesis Tests) : The U.S. Energy Adminis tration reported that the mean price for a gallon regular gasoline in the United States was $2.36. We want to determine if gasoline prices in theUnited States was $2....
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This note was uploaded on 01/24/2011 for the course STATISTICS 19897 taught by Professor Jager,abigaill during the Fall '10 term at Kansas State University.
 Fall '10
 Jager,AbigailL

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