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Unformatted text preview: 1 The Critical-Value Approach to Hypothesis Testing Recall that for the p-value approach to hypothesis testing we: 1. Stated the null and alternative hypotheses 2. Calculated the probability of observing a sample statistic as contrary to the null hypothesis as what we did observe from our sample data. (If the hypothesis test was one-tailed, the calculated probability was our reported p-value. If the hypothesis test was two-tailed, we doubled our calculated probability and reported that for our p-value). 3. We compared our p-value to our level of significance for testing ( ). If our p-value was less than , we rejected the null hypothesis. Otherwise, we could not reject the null hypothesis. In the critical value approach to hypothesis testing we do the following: 1. State the null and alternative hypotheses 2. Select the level of significance 3. Select the critical value of the test statistic 4. Formulate decision rule 5. Determine the calculated value of the test statistic and either...
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- Fall '09