sbe10_06 - Statistics for Business and Economics Chapter 6 Inferences Based on a Single Sample Tests of Hypothesis Learning Objectives 1 Distinguish

# sbe10_06 - Statistics for Business and Economics Chapter 6...

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Statistics for Business and Economics Chapter 6 Inferences Based on a Single Sample: Tests of Hypothesis
Learning Objectives 1. Distinguish Types of Hypotheses 2. Describe Hypothesis Testing Process 3. Explain p-Value Concept 4. Solve Hypothesis Testing Problems Based on a Single Sample 5. Explain Power of a Test
Statistical Methods Statistical Methods Estimation Hypothesis Testing Inferential Statistics Descriptive Statistics
Hypothesis Testing Concepts
Hypothesis Testing Population I believe the population mean age is 50 (hypothesis). Mean f8e5 X = 20 Random sample Reject hypothesis! Not close. Reject hypothesis! Not close.
What’s a Hypothesis? © 1984-1994 T/Maker Co.
Null Hypothesis 1. What is tested 2. Has serious outcome if incorrect decision made 3. Always has equality sign: = , , or 4. Designated H 0 (pronounced H-oh) 5. Specified as H 0 : μ = some numeric value Specified with = sign even if or Example, H 0 : μ = 3
Alternative Hypothesis 1. Opposite of null hypothesis 2. Always has inequality sign: , < , or 3. Designated H a 4. Specified H a : μ , < , or some value Example, H a : μ < 3
Identifying Hypotheses Steps Example problem: Test that the population mean is not 3 Steps: State the question statistically ( μ 3) State the opposite statistically ( μ = 3) Must be mutually exclusive & exhaustive Select the alternative hypothesis ( μ 3) Has the , < , or > sign State the null hypothesis ( μ = 3)
State the question statistically: μ = 12 State the opposite statistically: μ 12 Select the alternative hypothesis: H a : μ 12 State the null hypothesis: H 0 : μ = 12 Is the population average amount of TV viewing 12 hours?What Are the Hypotheses?
State the question statistically: μ 12 State the opposite statistically: μ = 12 Select the alternative hypothesis: H a : μ 12 State the null hypothesis: H 0 : μ = 12 Is the population average amount of TV viewing differentfrom 12 hours?What Are the Hypotheses?
State the question statistically: μ 20 State the opposite statistically: μ 20 Select the alternative hypothesis: H a : μ 20 State the null hypothesis: H 0 : μ = 20 Is the average cost per hat less than or equal to \$20?What Are the Hypotheses?
State the question statistically: μ 25 State the opposite statistically: μ 25 Select the alternative hypothesis: H a : μ 25 State the null hypothesis: H 0 : μ = 25
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