Applied Statistics - Hypothesis Testing - 5.1.1 Flashcards
What is a hypothesis test?
A statistical way to test a statement made about a population
Null Hypothesis
The assumed population parameter, assuming no change has happened
Alternate Hypothesis
How we think the population parameter could have changed
One tailed test calculates…
Has the population parameter increased of decreased
Two tailed test calculates…
Has the population parameter changed
What is the Null and alternate hypothesis in a one tailed test
H0: θ = …
H1: θ < … OR θ > …
What is the Null and alternate hypothesis in a two tailed test
H0: θ = …
H1: θ ≠ …
What is the Significance level
The smallest probability that an event could have occurred by chance
What is a Test Statistic
A value calculated from a sample to test the hypothesis
What is the critical region
The values of a test statistic, which leads to H0 being rejected
If probability is in critical region…
Reject null hypothesis
If probability is in acceptance region…
Accept null hypothesis
Properties of two tailed test
- Two critical regions
- Significance is halfed (5% -> 2.5%)