10 - Hypothesis formation types of Error And Estimation Flashcards
Hypothesis
Tentative assumption that is capable of being tested-
- relationship hypothesis
- comparison hypothesis
Criterias for hypothesis
- stated clearly, correct terminology and operationally defined
- testable
- state expected relationships between variables
- limited in scope
- grounded in past knowledge
H0
The bull hypothesis assumes that any difference or relationship that exists between populations is due to chance.
H1
Alternate hypothesis assumes that any difference or relationship that exists between populations is not due to chance.
Non directional hypothesis
Two tailed test
Decrease Type I error
Require higher significance level
Directional hypothesis
Uses one tailed tests
Increase type I error
Requires a lower significance level
Testing the null hypothesis
SE(M)=SD/sqrd(n)
Then
Z = (X-M)/SE(M)
Type I error
Reject the null hypothesis when it is true
Type II error
Accept the null hypothesis when it’s false
Point estimate
A single statistic is used as the estimate of the population parameter
Interval estimate
Estimate the range of values within which the population mean lies
Confidence interval
Is the range within which we believe the true population estimate to lie.
Confidence level
Is the probability that the population parameter falls within the confidence level.
H0 and H1 Gross simplification
Probability is a continuous scale