Hypothesis Testing

Question 1

What are the 4 conditions in order to use the distribution model?

Answer 1

1. Fixed number of trials
2. Trials are independent
3. Probability of success is constant
4. Only outcomes are success or failure

Question 2

What happens when the probability is changed?

Answer 2

The significance level is halfed
and the critical region has an upper and lower tail

Question 3

When is the null hypothesis rejected?

Answer 3

If the test statistics lower than the significance level

Question 4

what is the key word to indicate it’s one tailed?

Answer 4

decreased or increased

Question 5

what key word indicates its two tailed?

Answer 5

changed

Question 6

what is the critical region?

Answer 6

area where if the test statistic falls in the Ho is rejected

Question 7

What is the critical value?

Answer 7

• the last value < significance level
• The first value to fall within the region

Question 8

what is the issue if the significance level is too high?

Answer 8

the null may be reject even if it was true
eg. 20%

Question 9

what is the issue if the significance level is too small

Answer 9

the null may not be rejected even if it we should accept - false
eg. 0.1%

Question 10

what is significance level?

Answer 10

the maximum probability before the null is rejected