Week 4A

Question 1

How and when can a CI be used?

Answer 1

CIs can be used to test whether H0 = X, H1 does not = x

Can only be used for two tailed tests

If H0 = x is outside the CI, reject the null in favour of the alternative

Question 2

What is a type 1 error

Answer 2

Rejecting the null when it is true

Question 3

What is a type 2 error?

Answer 3

Not rejecting the null when it is false

Question 4

What is the hypothesis test and rejection rule for a Lower-tailed t test and when do you use it?

Answer 4

Hypothesis test:
H0: B1 > or = to X
H1: B1 < X

Rejection rule
t < - alpha

Used when you expect beta1 to have a negative effect

Question 5

What is the hypothesis test and rejection rule for a Upper-tailed t test and when do you use it?

Answer 5

Hypothesis test:
H0: B1 < or = to X
H1: B1 > X

Rejection rule
t > alpha

Used when you expect beta1 to have a positive effect effect