Workshop 7 - Hypothesis Testing

Question 1

Hypothesis testing

Answer 1

Assessing whether a statement about a population parameter is supported by the data

Question 2

Estimation

Answer 2

When we actually estimate the value of the parameter

Question 3

Significance level

Answer 3

Risk we are willing to take to reject null hypothesis, in favour of the alternative hypothesis, when in reality the null hypothesis is the correct hypothesis.

Question 4

Procedure for hypothesis testing

Answer 4

1. Decide on a null hypothesis
2. Check whether the assumptions required for the test in question are valid
3. Calculate appropriate test statistic, using the sample data.
4. Find from an appropriate statistical table a p-value
5. Either compare the calculated p-value with a fixed significance level that has been specified as necessary in this context, or report and interpret the p-value itself.
6. State a conclusion