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Hypothesis Tests
Null Hypothesis
Have = sign
Alternative Hypothesis
Have ≠ sign
P value (aka probability)
Probability of P hat if null hypothesis is true
Significance Level
Percentage of probability’s unusualness
What is usually significance level
Less than 5% = unusual
Significance level symbol
Alpha
Alternative Hypothesis symbol
H1
Null Hypothesis Symbol
H0
Tests statistic is just
Z score
Z score
distance a data value is from the mean in terms of standard deviation
What kind of question is it if there are percentages
Proportion Q
When it says increase
use greater than sign
Level of significance
Probability of making Type I Error
Do you accept null hypothesis
NOOOO
Hypothesis test is just
guessing
T distribution is
centered at 0 and symmetric at 0
Confidence interval
made of interval numbers based on point estimate
Level of confidence
(1-a) - 100%
As sample size increases
margin of error decreases
Level of confidence increases
margin of error increases
More spread of the pop’s SD
Wider the interval for given level of confidence
If P-value is larger than 0.5
DONT REJECT NULL HYPOTHESIS
If p-value is LESS than 0.05
REJECT NULL HYPOTHESIS
Sample evidence can prove null hypothesis is true
FALSE
What happens to the probability of making a Type II error, beta, as the level of significance, alpha, decreases? Why?
Prob increase because Type I and Type II are INVERSELY RELATED