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Lecture21

# Lecture21 - STAT 350 Lecture 21 8.5 Further Aspects of...

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STAT 350 Lecture 21 8.5 Further Aspects of Hypothesis Testing

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Topics Lab 4 discussions Type I and Type II errors Statistical vs Practical Significance The Relationship Between Test Procedures and Confidence Intervals
Errors in Hypothesis Testing Type I Error: Rejecting H 0 when H 0 is actually true Type II Error: Not rejecting H 0 when H 0 is false

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Type I Error Rejecting H 0 when H 0 is actually true The significance level α is the probability of making a type I error. If α =0.01, then there is 1% chance of making a type I error. If H0 is true and the test procedure is used repeatedly on different samples, H0 will be rejected (incorrectly) 1% of the time.
Statistical vs. practical significance What is statistically significant? When the P-value is smaller than the chosen significant level α , it is customary to say that the result is statistically significant. When the result is statistically significant, the null hypothesis is rejected. Statistical vs practical significance Even after H0 has been rejected, the data may suggest that there is no practical difference.

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Example 8.12 Samples of two automobile braking systems were selected and the braking distance (ft)
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