# 6.2 - STAT3000 Section 6.2: Tests of Significance General...

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STAT3000 Section 6.2: Tests of Significance General Hypothesis Test 1) check assumptions 2) state the null and alternative hypotheses 3) compute the test statistic 4) determine the P-value 5) draw conclusion 1) This process relies on the reasonable condition of normality and randomness. 133

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2) Null Hypothesis , H 0 : the status quo to the party performing the experiment. Alternative Hypothesis , H a : the research hypothesis which will be accepted only if the data provide convincing evidence of its truth. 3) test statistic – measure of compatibility between the null hypothesis and the data. Many test statistics can be thought of as a distance between a sample estimate of a parameter and the value of the parameter specified by the null hypothesis. 4) P-value – the probability that the test statistic would take a value as extreme or more extreme than that actually observed from the sample data assuming H 0 is true. 5) Conclusion – state a conclusion in the CONTEXT of the scenario provided. 134
Hypothesis Test about μ when σ Known 1.Check conditions 2. H 0 : μ = μ 0 H a : μ < μ 0 left-tailed test H a : μ > μ 0 right-tailed test H a : μ μ 0 two-tailed test 3. Z = 0 X n μ σ - test statistic 4. Determining the P-value: One-sided test (left) One-sided test (right) 2 sided-test 5. If P-value α , reject H 0 . There is sufficient evidence, at the specified α , H a is true. If P-value > α , fail to reject H 0 . There is not sufficient evidence, at the specified α , H a is true. Ex) You are interested in determining whether the 135

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average salary for middle managers in your industry has increased from the 1995 average of \$48,150. Your test statistic is 1.8. Based on this information, which of the following is a correct conclusion? Z= 1.8
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## This note was uploaded on 06/05/2011 for the course STAT 3000 taught by Professor Staff during the Spring '08 term at University of Georgia Athens.

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6.2 - STAT3000 Section 6.2: Tests of Significance General...

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