Lecture_14 (short)

1 2 3 4 5 state the null hypothesis h0 and the

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Unformatted text preview: Statistics – Class 14 McCombs Tests of Significance – Hypothesis Testing 5 Steps for Hypothesis Testing (After some practice you can reduce the number of steps to 2 or 3 steps, but it is much better to go the long way to avoid mistakes!) 1 2 3 4 5 State the null hypothesis H0 and the alternative hypotheses Ha and select a significance level, α. Calculate the test statistic. Find the P -value for the observed data. Compare P -value to α State a conclusion. If P -value ≤ α reject H0 in favor of Ha . If P -value > α accept H0 (better said, we cannot reject H0 ). Rafael Mendoza Elementary Business Statistics – Class 14 McCombs What we know so far... From a Population with Mean µ and Std. Dev. σ If we take SRS ’s of size n the statistics x’s form a Sample Distribution which is ¯ Normal by the Central Limit Theorem (CLT) ￿ √￿ N µ, σ / n ￿ Therefore, each x(k) (obtained from the kth SRS(n) ) is Normal...
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This document was uploaded on 02/19/2014 for the course STA 309 at University of Texas.

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