MGMT 2340
Section
W01
Business Statistics I
Instructor:
E. Mark Leany
contact via
Blackboard
online.uen.org
alternately:
[email protected]
Data Distributed by Frequency
Alphabetical
from the Skew
67

166
Probabilities of Events
Areas Under the Normal Curve
226
This chart is the
same one as
the 3rd page
on your quiz
(and on the
test)

272
Sampling Distribution based on
n
Confidence Intervals
302

One-Sample Tests of Hypothesis
Chapter 10
326
GOALS
1.
Define a
hypothesis
and
hypothesis testing
.
2.
Describe the five-step hypothesis-testing procedure.
3.
Distinguish between a
one-tailed
and a
two-tailed test of
hypothesis
.
4.
Conduct a test of hypothesis about a population mean.
5.
Conduct a test of hypothesis about a population
proportion.
6.
Define
Type I
and
Type II errors
.
7.
Compute the probability of a Type II error.
326

Hypothesis, Hypothesis and Testing
HYPOTHESIS
A statement about the value of a population
parameter developed for the purpose of testing.
HYPOTHESIS TESTING A procedure based on sample
evidence and probability theory to determine whether the
hypothesis is a reasonable statement.
328
5 Steps in Testing a Hypothesis
1.
State the Null Hypothesis and the
Alternate (
or Alternative
) Hypothesis
2.
Select a Level of Significance (
Į
)
3.
Select the Test Statistic
4.
Formulate the Decision Rule
5.
(Calculate &) Make a Decision

Step 1: State the Null Hypothesis
and the Alternate Hypothesis
NULL HYPOTHESIS
A statement about the value of a
population parameter developed for the purpose of
testing numerical evidence.
ALTERNATE HYPOTHESIS A statement that is
concluded if the sample data provide sufficient
evidence that the null hypothesis is false.
329
Important Things to Remember about H
0
and H
1
z
H
0
: null hypothesis and H
1
: alternate hypothesis
z
H
0
and H
1
are mutually exclusive and collectively
exhaustive
z
H
0
is always presumed to be true
z
H
1
has the burden of proof
z
A random sample (
n
) is used to “
reject H
0
”
z
If we conclude 'do not reject H
0
', this does not
necessarily mean that the null hypothesis is true, it only
suggests that there is not sufficient evidence to reject H
0
;
rejecting the null hypothesis then, suggests that the
alternative hypothesis may be true.
z
Equality is always part of H
0
(e.g. “=” , “
¡
” , “
¢
”).
“
£
”
“<” and “>” always part of H
1
329

"Proving" using Hypothesis Tests
z
If you REJECT the NULL, you conclude that there
is significant evidence that the ALTERNATE is true.
z
If you
DO NOT REJECT
the NULL, you conclude
that there is NOT significant evidence that the
ALTERNATE is true.
–
Technically, you never really accept the NULL, you
just fail to reject it
.
–
This is similar to court where a person is declared "NOT
GUILTY" which is not the same as "INNOCENT".
z
Note that ALL these "proofs" have a level of
possible error associated with them.

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- Spring '11
- Leany
- Statistics, Normal Distribution, Null hypothesis, Statistical hypothesis testing, Hypothesis and Testing