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Federal funds are to be allocated for financial aid to
students for the cost of books. It is believe the mean
cost of books to a college student is $300. We are
concerned
Testing Hypotheses
Hypothesis about a mean
Example
A drug company develops a new cholesterol lowering drug
that they think is more effective than Loopitor. Suppose it is
known that a 10 mg dose of Loo
Hypothesis Testing
Goal: Make statement(s) regarding unknown population
parameter values based on sample data
Elements of a hypothesis test:
Null hypothesis - Statement regarding the value(s) of un