Chapter 11 - Hypothesis Testing Flashcards
Define the null hypothesis.
The null hypothesis, H₀ is a statistical statement representing your basic assumption.
Define the alternative hypothesis.
The alternative hypothesis, H₁ is a statement that contradicts the null hypothesis.
Define the critical and acceptance regions.
The critical region is the set of values that leads you to reject the null hypothesis. The acceptance region is the set of values that leads to accept the null hypothesis.
Define the significance level of a hypothesis.
Every hypothesis test has a significance level. This is equal to the probability of incorrectly rejecting the null hypothesis.
What is the effect of lowering the significance level?
As you lower the significance level, you need more evidence to reject the null hypothesis and you lower the chance of making an incorrect conclusion.
What is true if H₀ is assumed true.
If H₀ (null hypothesis) is assumed to be true, for discrete random variables, a value lies within the critical region if the probability of X being equal to or more extreme than that value is equal to or less than the significance level.
Define the p-value.
The p-value is the probability that X is equal to or more extreme than an observed value. If the p-value is greater than the significance level, you accept H₀. If the p-value is less than or equal to the significance level, you reject H₀.
