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Notes pg158-161 - 1 The Critical-Value Approach to...

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μ μ μ 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 ( α ). If our p-value was less than , we rejected the null hypothesis. α 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.
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