3: Confidence Intervals and Hypothesis Testing

Question 1

Hypothesis testing procedures

Answer 1

1. state hypothesis
2. calculate test statistic
3. find critical value using the given significance level
4. make conclusion
   - reject the null hypothesis if the test statistic is greater than the critical value

Question 2

sampling distribution

Answer 2

the distribution of possible outcomes of sample statistic that would result from repeated sampling
- samples should be the same size and drawn from the same population

Question 3

characteristics of student’s t-distribution

Answer 3

• similar to standard normal distribution
• symmetric around 0
• less probability near the mean than standard normal
• more probability in tails than standard normal
• positive excess kurtosis
• degrees of freedom is one less than the sample size
• as the degrees of freedom increase, the distribution approaches a standard normal distribution