Hypothesis Testing Flashcards
Null Hypothesis
H0 - the “claim”
Alternate Hypothesis. Can this ever be rejected/accepted?
H1 - the counter-claim. We never accept or reject this, only H0. If we reject H0, then we conclude with the Alternate Hypothesis
Sample Statistic
X-hat - the observed sample average, evidence we observe when deciding to reject the claim or not
Critical Value
c - cut-off value that indicates whether the claim is rejected or not rejected
Significance Level, and what you need the smaller this is. Which region is the SL the same size as? What are Typical Significance Level sizes?
alpha - how sure you want to be when rejecting H0. The smaller this is, the more evidence you will require.
The Significance Level is the size of the Rejection Region.
Typical sizes are 10% (.1) 5% (.05) or 1% (.01)
Type 1 Error, and what happens with lower Significance Levels
Rejecting the claim when it is in fact true. Lowering the Significance Level lowers the probability of a Type 1 Error.
Which letter refers to Population ?
Mu
Which letter refers to the sample?
X-hat
Which Hypothesis will have an equal/equal or sign?
Null Hypothesis will have
What is the Burden of Proof?
The Null Hypothesis is assumed to be true until proven otherwise
Lower-Tailed vs. Upper-Tailed Test?
Lower-Tailed test contains an Alternative Hypothesis with a Lesser Than sign, and an Upper-Tailed test contains and Alt Hyp with a Greater Than sign
2-Tailed Test
A test with an Alt Hypothesis that contains a “not equal” sign
Type 2 Error
When H0 is not rejected when it is, in fact, untrue
Which letter represents Sample Size?
n
Which letter represents Standard Deviation
lower case Sigma
