ams572_notes_3

# 1 we have already derived the pq when we derived the

• Notes
• 11

This preview shows pages 3–8. Sign up to view the full content.

1. We have already derived the PQ when we derived the C.I. for μ 3

This preview has intentionally blurred sections. Sign up to view the full version.

is our P.Q. 2. The test statistic is the PQ with the value of the parameter of interest under the null hypothesis () inserted: is our test statistic. That is, given in true 3. * Derive the decision threshold for your test based on the Type I error rate the significance level For the pair of hypotheses: versus It is intuitive that one should reject the null hypothesis, in support of the alternative hypothesis, when the sample mean is larger than . Equivalently, this means when the test statistic is larger than certain positive value - the question is what is the exact value of -- and that can be determined based on the significance level α—that is, how much Type I error we would allow ourselves to commit. Setting: P(Type I error) = P(reject = We will see immediately that from the pdf plot below. 4
At the significance level α , we will reject in favor of if Other Hypotheses (one-sided test or one-tailed test) Test statistic : 5

This preview has intentionally blurred sections. Sign up to view the full version.

(Two-sided or Two-tailed test) Test statistic : Reject if 6
4.

This preview has intentionally blurred sections. Sign up to view the full version.

This is the end of the preview. Sign up to access the rest of the document.
• Fall '10
• WeiZhu
• Statistical hypothesis testing, significance level, OJ

{[ snackBarMessage ]}

### What students are saying

• As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

Kiran Temple University Fox School of Business ‘17, Course Hero Intern

• I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

Dana University of Pennsylvania ‘17, Course Hero Intern

• The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

Jill Tulane University ‘16, Course Hero Intern