P-VALUES AND HYPOTHESIS TESTING

Question 1

What is p-value - Formally and Informally

Answer 1

Formally - The probability of seeing something at least as extreme as the data we have just observed, if the null hypothesis, H0, were true.

Informally - The probability of seeing something at least as interesting by random chance if there were actually no effect.

Question 2

What is a Type I Error?

Answer 2

Rejecting the null hypothesis when it is infact true

Question 3

What is a Type II Error?

Answer 3

Failing to reject the null hypothesis when it is false

Question 4

What is p-value with respect to the rejection boundary?

Answer 4

It is the significance level that puts the rejection boundary on the observed test statistic

Question 5

What is the one sample sign test used for?

Answer 5

The One-sample Sign Test simply determines a significance test of a hypothesized median value for a single data set. The 1 sample sign test is a Non Parametric Hypothesis test used to determine whether a statistically significant difference exists between the median of a non-normally distributed continuous data set and a standard. This test basically concerns the median of a continuous population.

Question 6

What is the one sample t-test?

Answer 6

The one-sample t-test compares the mean of a single sample to a predetermined value to determine if the sample mean is significantly greater or less than that value.

Question 7

What is the difference between a one sample t-test and sign test?

Answer 7

ONE SAMPLE T-TEST – SIMILAR ASSUMPTION WITH Z TEST BUT POPULATION VARIANCE IS UNKNOWN