Single Population t-Test-ECO6416

Single Population t-Test-ECO6416 - Where is the estimated...

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Single Population t-Test The purpose is to compare the sample mean with the given population mean. The aim is to judge the claimed mean value, based on a set of random observations of size n. A necessary condition for validity of the result is that the population distribution is normal, if the sample size n is small (say less than 30). The task is to decide whether to accept a null hypothesis: H 0 = μ = μ 0 or to reject the null hypothesis in favor of the alternative hypothesis: H a : μ is significantly different from μ 0 The testing framework consists of computing a the t-statistics: T = [( - μ 0 ) n 1/2 ] / S
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Unformatted text preview: Where is the estimated mean and S 2 is the estimated variance based on n random observations. The above statistic is distributed as a t-distribution with parameter d.f. = ν = (n-1). If the absolute value of the computed T-statistic is “too large" compared with the critical value of the t-table, then one rejects the claimed value for the population's mean. This test could also be used for testing similar claims for other unimodal populations including those with discrete random variables , such as proportion, provided there are sufficient observations (say, over 30)....
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This note was uploaded on 10/05/2011 for the course ECO 6416 taught by Professor Staff during the Spring '08 term at University of Central Florida.

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