SECTION 14- STATISTICAL HYPOTHESIS TEST

Question 1

what’s the null hypothesis

Answer 1

the hypothesis you assume is true about a population, unless proven otherwise

Question 2

what is the alternative hypothesis

Answer 2

• referred to as H₁

- whether you believe the probability is greater or less than

Question 3

what is the significance level

Answer 3

• the level which you set the boundary to reject the null hypothesis (H₀)

Question 4

what is the critical region

Answer 4

• a region of the probability distribution, which, if the test statistic falls within would cause you to reject the null hypothesis

Question 5

what is the critical value

Answer 5

• the first value to fall inside of the critical region

Question 6

difference between critical region and significance level

Answer 6

• significance level of a hypothesis test is the probability of incorrectly rejecting the null hypothesis
• the critical region is the region of values that corresponds to the rejection of the null hypothesis at the chosen probability level

Question 7

difference between a one-tailed and two-tailed test

Answer 7

one-tailed: checks if probability has increased of decreased e.g H₁ : p> … p <
two-tailed: test if probability has changed in either direction; critical region is split at either end of distribution; significance level at each end is halved e.g. H₁ : p ≠ …

Question 8

what is the acceptance region

Answer 8

• the set of values for which the null hypothesis is accepted

Question 9

model y = axⁿ in a linear relationship

Answer 9

log y = log a + nlog x

Question 10

what is the product moment correlation coeffcient (PMCC)

Answer 10

• the measure that describes the strength between two variables and is dennoted by r