Hypothesis Testing Flashcards
1
Q
To carry out a hypothesis test for a given parameter θ, you form…
A
Two hypotheses:
- The null hypothesis, Ho: θ = m , State every time that you assume the null hypothesis to be true
- The alternative hypothesis, H1: θ ≠ or < or > m , tells you about the value of the parameter if your assumption is shown to be wrong
2
Q
One tailed test
A
Has an alternative hypothesis, H1: θ < m or H1: θ > m . There is a single section to the critical region and one critical value
3
Q
Two tailed test
A
Has an alternative hypothesis, H1: θ ≠ m . There are two parts to the critical region and two critical values
4
Q
The actual significance level of a test
A
The probability of incorrectly rejecting the null hypothesis (often value calculated)
5
Q
A
