Inferential Statistics

H₀

States there’s no relationship, usually stated instead of H₁ because it’s simpler

1 Sample Z-Test

1. Define H₁ and H₀

2. Get sampling distribution of sampled mean

3. Given sampling distribution, what’s the probability that the mean observed is unusual

4. Based on that probability, make a decision to either reject or accept null

Ways to Verify H₀

1. Calculate the chance of drawing a sample in the 5% tips

2. Find the z scores that define the 95% then compare sample mean

Two Tailed Test

Considers both ends of distribution by considering 2.5% on each tip

Directional Hypothesis

Considers only a tail of the distribution