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Ch8 Hypothesis Testing

Ch8 Hypothesis Testing - Stat1801 Probability and...

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Stat1801 Probability and Statistics: Foundations of Actuarial Science Fall 2010-2011 Chapter VIII Hypothesis Testing § 8.1 Introduction Hypothesis A statistical hypothesis is an assertion or statement about the population, usually formulated in terms of population parameters. It is denoted by or . 0 H 1 H Null Hypothesis The null hypothesis , denoted by , is usually a statement about something that 0 H has been established, or something that has an authoritative standing, or something worth protecting. Alternative Hypothesis The alternative hypothesis , denoted by , is usually a statement about something 1 H that challenges the authority, or something that needs not be protected strongly. The hypotheses are often expressed in terms of the population parameters. However, there exists exceptional cases in non-parametric problems. Example 8.1 = 118 : 118 : 1 0 μ μ H H , , = 1 : 1 : 2 1 2 0 σ σ H H = 2 1 1 2 1 0 2 : 2 : p p H p p H on. distributi normal not is Population : on. distributi normal is Population : 1 0 H H Definition A test of statistical hypothesis is a procedure, based upon the observed values of the random sample obtained, that leads to the rejection or non-rejection of the null hypothesis . 0 H P.165

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