{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# recitation12 - Review and Examples Hypothesis Tests for 1 2...

This preview shows pages 1–2. Sign up to view the full content.

Review and Examples Hypothesis Tests for μ 1 - μ 2 consist of four steps: 1. State the hypotheses. The hypotheses should take one of these forms: H 0 : μ 1 - μ 2 D 0 H a : μ 1 - μ 2 < D 0 H 0 : μ 1 - μ 2 D 0 H a : μ 1 - μ 2 > D 0 H 0 : μ 1 - μ 2 = D 0 H a : μ 1 - μ 2 6 = D 0 2. State the level of significance. This is denoted with α . 3. Compute the test statistic. We use the test statistic z when we know the value of σ 1 and σ 2 and the test statistic t when we do not know the value of σ 1 and σ 2 . z = x 1 - ¯ x 2 ) - D 0 r σ 2 1 n 1 + σ 2 2 n 2 t = x 1 - ¯ x 2 ) - D 0 r s 2 1 n 1 + s 2 2 n 2 4. Form a conclusion. You can form a conclusion using two approaches: (a) The p -value approach. Use the z or t table to compute the p -value. If the p -value is less than α , reject H 0 . (b) The critical value approach. Look up the critical value on the z or t table. If the test statistic is larger (either positively or negatively) than the critical value, reject H 0 . Example (Using Excel to do Hypothesis Tests) : FedEx and UPS are the world’s two leading cargo carriers. According to the Airports Council International,

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}