Lecture 3: Basics of Inferential Statistics i Flashcards
What are the Methods of inferential statistics?
Estimation
Hypothesis testing
What is Estimation in inferential statistics?
Point and interval estimation
What is Hypothesis testing inferential statistics?
Hypothesis testing in statistics is a way to test the results of a survey or experiment to see if you have meaningful results.
You’re basically testing whether your results are valid by figuring out the probability that your results have happened by chance.
•The smaller the probability: the more convinced we are that our results reflect the truth and is statistically significant
In Hypothesis testing, the smaller the probability: the more convinced we are that our results reflect the truth and is statistically significant
True or false?
True
What are the 5 steps of Hypothesis testing?
1- State the null hypothesis (H0)
2- State the alternative hypothesis (H1 or HA )
3- Choose your significance level, what kind of test you need to perform
4- Find the p-value
5- Reach a conclusion
What is the null Hypothesis?
What does it state?
H0
It states: There is no difference things are the same as each other or the same as a theoretical expectation
What is the alternative hypothesis?
What does it state?
Ha or H1
It states that things are different from each other, or different from a theoretical expectation.
What is the significance level?
α (alpha)
Is the probability that results could have occurred by chance.
When do we say the event is significant?
If the level is quite low, that is, the probability of occurring by chance is quite small, we say the event is significant.
This is a threshold of the amount of error we are willing to accept.
Usually below 0.05 (5%)
What are P values?
- P values are used to determine statistical significance in a hypothesis test.
- Probability that an effect/difference is due to chance
- Probability of Type I error or α (alpha) error
What does it mean If P < significance value?
It means obtaining that result purely by chance is small
So there is a significant difference
What does it mean If P value > 0.05?
The probability that results are purely do to chance is greater than 5%, so conclude no significance
So no significant difference
What is Type I error?
False positive results - α error
Falsely concluding a statistically significant relationship exists when in fact it does not.
Acceptable error at 0.05
What causes type I error?
- Type I alpha error is due to ‘random’ chance associated with sampling.
- “Fishing Expedition”: If you perform multiple tests, the chance of random error increases.
What is Fishing Expedition ?
If you perform multiple tests, the chance of random error increases.