Hypothesis Testing

Basic procedure

-State the null and alternative hypothesis

-Set the criteria (level of confidence)

-Compute test statistic

-Make a decision

Alternative Hypothesis (Ha)

What is concluded if there is sufficient evidence to reject the null hypothesis

Null hypothesis (Ho)

The hypothesis that the researcher wants to reject, it is the hypothesis that is actually being tested

A simple statement about a population parameter

Two-tail

Ho mu = mu_o

Ha mu /= mu_o

One tail

Ho mu <> mu_o

Ha mu >< mu_o

mu_o

Hypothesized value

Significance level

Allowable margin of error to achieve certain confidence level

__ distance between U_x| and x|, the __ the test statistic will be and less likely it is that the true population mean

Larger, larger

Make a decision

T-test of sample mean

To test whether sample mean is equal to (greater than/less than) a hypothesized value