{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# L22 - Testing a Single Parameter Signicance tests are...

This preview shows pages 1–4. Sign up to view the full content.

Testing a Single Parameter Significance tests are different type of statisti- cal inference. Want to choose between com- peting hypotheses about a parameter. θ Definition: An hypothesis is an assertion about a population or about a parameter. We distinguish two kinds of hypotheses: H 0 : null hypothesis (status quo, previously accepted) H 1 : alternative hypothesis (what you hope to establish) A significance test is a procedure for judging which hypothesis is true. 1

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

View Full Document
Criminal trial analogy (in Canada, U.S.A.): H 0 : not guilty H 1 : guilty Not treated symmetrically. Assume H 0 true unless compelling evidence against H 0 in favour of H 1 . Likewise, in statistics H 0 is assumed true and is only rejected in favor of H 1 if the evidence (data) is compelling ( significant ) beyond rea- sonable doubt (could not happen by chance). 2
Example. p 248 . Standard production setup, average μ = 30 minutes to com- plete task. Variation: work conditions, parts, ability leads to random error . X i is time taken by randomly selected worker i . X i = 30 + ε i . Assume ε i

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

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern