NOTES_Chapter 11_Introduction to Hypothesis Testing

NOTES_Chapter 11_Introduction to Hypothesis Testing -...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 11: Introduction to Hypothesis Testing 11.1 Concepts of Hypothesis Testing Null hypothesis : H 0 Alternative or Research Hypothesis : H 1 Type I Error occurs when we reject a true null hypothesis (innocent is convicted) o Probability of this error is denoted by Type II Error is defined as not rejecting a false null hypothesis (guilty is acquitted) o Probability of this error is denoted by , and are inversely related, meaning that any attempt to reduce one will increase the other The Critical Concepts in Hypothesis Testing: 1. There are two hypotheses. One is called the null hypothesis and the other the alternative or research hypothesis 2. The testing procedure begins with the assumption that the null hypothesis is true. 3. The goal of the process is to determine whether there is enough evidence to infer that the alternative hypothesis is true. 4. There are two possible decisions: a. Conclude that there is enough evidence to support the alternative hypothesis b. Conclude that there is not enough evidence to support the alternative hypothesis
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/09/2011 for the course ECO 220 taught by Professor Tanaka during the Fall '11 term at University of Toronto.

Page1 / 2

NOTES_Chapter 11_Introduction to Hypothesis Testing -...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online