Decisions with Data + z-test Flashcards
Confidence interval
Quantifies the uncertainty of our estimates.
* A q% confidence interval includes the true parameter q% of the times, if we repeat the experiment many times (an infinite number of times).
for a standard normal curve N(0,1), c =
97.5th percentile ≈ 1.96
* gives 95% between ± c
Hypothesis Testing
- Set up research question - H
- Weigh up evidence - ATP
- Explain conclusion - C
“innocent until proven guilty”
Null hypothesis holds until you can disprove it
what is hypothesis testing?
a scientific method for weighing up the evidence given in the data against a given hypothesis (model)
null hypothesis H0
postulates a certain expected value
alternative hypothesis H1
the underlying expected value is actually different.
the smaller the p-value is…
the more evidence we have against the null hypothesis
Assumptions (for z-test)
- Observations are independent of each other.
- Sample mean (sample sum) follows a normal distribution or sample size is big enough such that normality is approximately satisfied (from CLT)
reject the null hypothesis
The convention is to reject the null hypothesis if p<α, where α is a predetermined significance level, often chosen as α=0.05
The practical difference between a one- and two-sided test
the p-value of a two-sided test is often simply double the p-value from a one-sided test under the same model
z-test
used to test a hypothesis about a proportion in a population
* in fact anywhere we have an (approximately) normal test statistic with known mean and SD under H0