Chapter 7 - Hypothesis testing Flashcards
What is a hypothesis?
A statement made about the value of a population parameter that we wish to test by collecting evidence from a sample
What is the null hypothesis?
The hypothesis that you assume to be correct. It has nothing to do with your sample
What is the alternative hypothesis?
There has been some change in the population parameter
What is a one-tailed test?
A hypothesis test in the form H1: p>x or p
What is a two-tailed test?
A hypothesis test in the form H1: p≠x
What is the test statistic?
The evidence from the sample
What is the level of significance?
The maximum probability where we would reject the null hypothesis
What is the critical region?
An area of the probability distribution which, if the test statistic falls within, it would cause you to reject the null
What is the critical value?
The first value in the critical region
What is the acceptance region?
The region in which we accept the null hypothesis
What is the actual significance level?
The probability of incorrectly rejecting the null hypothesis
What is important to remember about two-tailed tests?
There are two critical regions - one at either end of the distribution
How to conduct a one-tailed test?
Formulate a model for the test statistic
Identify the two hypotheses
Calculate the probability of the test statistic assuming the null is true
Compare this to the significance level
Write a conclusion in context of the question
