STAT 2507A – July 22

STAT 2507A – July 22 - STAT2507AJuly20...

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1 STAT 2507A – July 20 Jerry Situ 9.2-9.7 Summer 2009
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Exercise Identify the hypothesis, define Type I and II  errors, what are the consequences of the  errors It is the responsibility of the federal government to  judge the safety and effectiveness of new drugs.  There are two possible decisions: approve the  drug or disapprove the drug. You are contemplating a masters in business. If  you succeed, a successful career awaits you. If  you fail, you wasted two years of your life. Should  you go for it? 2
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Review- Setting up hypothesis Alternate hypothesis: is what you hope prove (by  rejecting the null and accepting H a ) Type I error (alpha) is rejecting H o  when H o  is true (a  false positive) You choose alpha through the confidence level. When you have flexibility in terms of your assumption (null),  set it up so that the Type I error is what you want to control. When you have flexibility in terms of your null and  alternate, think of what you want to be able to  conclude, then this is the alternate hypothesis.
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Statistical versus practical  significance Statistical significance is based on the  confidence level chosen. Determined by statistical test. Practical significance is based on whether the  difference has any real impact. Judged by the research based on expertise Statistical significance DOES NOT EQUAL  practical significance
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Statistical versus practical  significance (2) The average of two STAT2507A classes obtained  from a sample of students is 95% and 99%. Is the  average mark different? Statistical significance: We test the H
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This note was uploaded on 05/24/2011 for the course STAT 2507 taught by Professor Masoudmollaalizadehnasari during the Summer '09 term at Carleton CA.

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STAT 2507A – July 22 - STAT2507AJuly20...

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