LM 8: Hypothesis Testing

Question 1

What is the difference between null and alternative hypothesis?

Answer 1

alternative hypothesis is what the analyst believes

null hypothesis is what we’re trying to reject or disprove

Question 2

What is the F test, chi square, and paired comparisons most appropriate for?

Answer 2

F-test: concerning differences between the variances of the populations.

chi-square test: variance of a single, normally distributed population.

paired comparison test: compare the means, not variances, of two populations.

Question 3

What’s the difference between type 1 and type 2 null errors in hypothesis testing?

Answer 3

Type 1: false positive (reject a true null hypothesis)

Type 2: false negative (accept a false null hypothesis)