Hypothesis Testing Discrete Variables

Question 1

How to do a hypothesis test for a discrete variable.

Answer 1

Calculate the probability of getting an observed or more extreme value and compare this with the significance level. For a one tail test reject the null hypothesis if the probability is less than the sig level and for a two tail, reject if it’s less than half the sig level.

Question 2

When to reject a null hypothesis for a one tail and two tail test?

Answer 2

One tail: if the probability is less than the sig level.

Two tail: if the probability is less than half the sig level.