Hypothesis Flashcards
What is hypothesis
A hypothesis is an assumption about one or more population parameters, which may or may not be true
Steps in Hypothesis Testing
(1) Formulate the null and alternative hypotheses
(2) Specify the level of significance. What is level of significance? What are the conventional values? Note: once the level of significance is known, the level of confidence is implied
(3) Specify the test statistic
(4) Specify the decision rule
(5) Compute the Test statistic
(6) Present the results
(7) Make the decision
(8) State the implication
Errors in testing hypotheses
When we test hypotheses, as much as possible, we try to minimize errors. But since we are not God, we make provision for errors through the specification of the level of significance. There are two possible errors that may arise
Which are
Type I Error; and
Type II Error
Reject H_0 Do not reject H_0
(i.e. Accept H_0)
H_0 is True Type I Error Correct Decision
H_0 is false Correct Decision Type II Error
Z calculated Or t calculated =
(X ̅-µ)/(σ/√n) (Xbar minus nu)/sigma/square root of n
Where X ̅ = sample mean
µ = population mean
and n = sample size
When do you reject H0
Reject h0 if Z calculated < -z tabulated
Reject h0 if z calculated > tabulated
Difference between one tailed and 2 tailed test
For example, we may wish to compare the mean of a sample to a given value x using a t-test. Our null hypothesis is that the mean is equal to x. A two-tailed test will test both if the mean is significantly greater than x and if the mean significantly less than x.
A one-tailed test is appropriate if you only want to determine if there is a difference between groups in a specific direction.
What test do you use for population variance unknown sample size small
T test
How to get t tabulated at a particular level of significance
TѲ,n-1
N-1 refers to the degrees of freedom of the one sample t test
Testing two population means
Formula for z calculated when population variances known
X1-x2
———-
Square root of
Ѳ^2. Ѳ^2
—- +. ——
n1. n2
Testing two population means
Formula for z calculated when population variances Unknown but sample size large
n1 plus n2= 60
Test statistics z
X1-x2
———-
Square root of
S1^2. S2^2
—- +. ——
n1. n2
Testing two population means
Formula for z calculated when population variances Unknown but sample size large
n1 plus n2 < 60
Test statistics t
X1-x2 ———- Square root of (n1-1)s1^2 + (n2-1)s2^2 ———————————- (1/n1 + 1/n2) n1 +n2^-2
If equal variances are assumed then t tabulated has v degrees of freedom where v=
V=n1+n2-2
If equal variances are not assumed then v=
V=