Hypothesis Testing Flashcards
How is hypothesis testing conducted
First, create a default, null hypothesis, and then you create an alternative hypothesis and see if the evidence contradicts the null hypothesis
Is the null hypothesis ever approved based on sample evidence
No only not rejected, it is like a test against a particular illness
If the null hypothesis is rejected what commonly ocurrs
Some action is taken and a new status is estabished
What is a one tailed and two tailed hypothesis test
If it is one tailed we can only reject the null hypothesis in one side of the hypothesized value. If it has two tails we can reject it on both sides of the tested value
What is a type I error
False negative
What us a type II error
False positive
How do you decrease the likelihood for a type I error without increasing the likelihood for type II errors
Increasing the test sample
What is the p value
The likelihood of finding a sample mean at least as extreme as the current one. It is the observed probability of a type I error
How does the four step process go in hypothesis testing
Establish a null and an alternative hypothesis, specify the significance level which is the allowed probability of making a type 1 error, calculate the value of the test statistic and lastly state the conclusion and interpret the results. If p value is smaller than a the null hypothesis is rejected