This preview shows page 1. Sign up to view the full content.
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!)
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...
View Full Document
This document was uploaded on 02/19/2014 for the course STA 309 at University of Texas.
- Fall '07