Chapter 5

Chapter 5 - Chapter-5 Two-Sided Hypothesis concerning B(1...

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Chapter-5 Two-Sided Hypothesis concerning B(1): Follows three steps 1) Compute the standard error of Y, SE(Y), which is an estimator of the standard deviation of the sampling distribution of Y. 2) To compute the t-statistic, which has the general form given in hey concept 5.1, applied here, the t-statisic is t= (Y – u yo)/ SE (Y) 3) Compute the p – value., which is the smallest significant level at which the null hypothesis could be rejected based on the test statistic actually observe. For a null hypothesis to be correct. T-statistic has a standard normal distribution in large samples under the null hypothesis The pvalue for a two sided hypothesis testis 2 phi sign (- absolute vakue of t) wjere t act is the value of the t stat actually computed . The third step can be replaced by simply comparing the t-statistic to the critical value appropriate for the test with the desired significant level. For example, if the 5% significant level would reject the nul hypothesis if t act > 1.96. In this case, the population mean is said to be statistically significantly different than the

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Chapter 5 - Chapter-5 Two-Sided Hypothesis concerning B(1...

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