06 Hypothesis Examples

# Xobs or p p pobs or p z zobs or p z zobs

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Unformatted text preview: P-Values: Two-sided test Upper-tail test P( X ! xobs ) or ˆˆ P( p ! pobs ) P( Z ! &quot; zobs ) + P( Z # zobs ) Lower-tail test P( X ! xobs ) or ˆˆ P( p ! pobs ) or P( Z ! zobs ) or P( Z ! zobs ) Decision Rule: Reject H 0 if p-value &lt; ! . There is sufficient evidence to conclude that H 0 is false. or Fail to reject H 0 if p-value &gt; ! . There is insufficient evidence to conclude that H 0 is false. 3 Example: From the Fam100 sample data, is there sufficient evidence to conclude that the population proportion of homeowners in the population of all households is different from 50%? Use a 1% level of significance. Hypotheses: H 0 : ! = 0.5 H1 : ! &quot; 0.5 ! = .01 Minitab Output: Test and CI for One Proportion: Own? Test of p = 0.5 vs p not = 0.5 Event = 1 Variable Own? X 65 N 100 Sample p 0.650000 99% CI (0.517221, 0.768085) Exact P-Value 0.004 Decision: Reject H 0 since p-value = .004 &lt; .01 = ! . There is sufficient evidence to conclude that H 0 is false and the population proportion of homeowners is different from 50% (higher). 4 Hypothesis Tests and Confidence Intervals for a Difference in Population Means (...
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## This note was uploaded on 02/11/2013 for the course STAT 509 taught by Professor Grey during the Spring '13 term at Alabama.

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