RVUC- Statistics Short Note (2).doc

# Solution steps 1 calculate µ and x µ birr 15000 x

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Solution: Steps: 1. Calculate µ and x µ = Birr 15,000 x = δ/√n= 2000/√30 = Birr 365.15 2. Calculate Z for X X X X X X X Z 05 . 2 365 000 , 15 750 , 15 750 , 15 Z 3. Interpret the results There is a 2.02% chance that the average earning being more than Birr 15, 750 annually in a group of 30 tellers. CHAPTER TWO 6

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7 | P a g e HYPOTHESIS TESTING Basic concepts The word hypothesis is made up of two Greek roots The word hypothesis consists of two words: Hypo + thesis = Hypothesis ‘Hypo’ means tentative or subject to the verification and ‘Thesis’ means statement about solution of a problem Hypotheses are conjectural statements that are amenable to empirical investigation Example: The Statement that “ Sixty Percent or more of the residents of Addis Ababa city attend worship services at least once a week” It is a statement of purported fact and can therefore be tested A statement, which is a value judgment, will not be considered as good hypothesis. Example: Psychology is a more important subject than Sociology. - It is the assumption we wish to test. - It is denoted by (H 0 ) - It always includes the equality sign - It refers to the view that the observations result purely from chance. - It is initially assumed to be true. H 0 : There is no significant interaction effect of schedule of reinforcement and extroversion on learning outcomes. H 0 : There is no significant relationship between intelligence When the null hypothesis is rejected, the outcome is side to be “statistically significant’’ When the null hypothesis is not rejected, then the outcome is said to be “not statistically significant” and achievement of students. Alternative Hypothesis It describes what you will conclude if you reject the null hypothesis. It is accepted if the sample data provide us with enough statistical evidence that the null hypothesis is false. is a statement that would be accepted if our sample data provide us with ample evidence that the null hypothesis is false or has to be rejected. 7
8 | P a g e - It is the opposite of what is stated in the null hypothesis . It is denoted by Ha or H 1 .It always includes the inequality sign - The assumption that the observations are the result of influences by some non- random cause. Types of Errors (Decision Errors) There are four possible outcomes of any hypothesis test, two of which are correct decisions and two of which are incorrect. The incorrect ones are called type I and type II errors. Types of Errors in hypothesis testing The following table presents the possible conclusions and errors in performing a test. State of Nature (Null hypothesis) Decision H 0 :True H 0 : False Accept H 0 correct Decision Type II error Reject H 0 Type I error Correct Decision Type I Error - Occurs when we reject a null hypothesis that is true.

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