Week 7 - Hypothesis Testing

Hypothesis Testing

A kind of test that distinguishes between “real” differences between the sample and the population, and differences that occur by random chance.

Significance

Used to indicate that a result is unlikely due to chance. Occurs when p < 0.05

P-value Below 0.05

Means there’s less than a 5% chance that the result happened randomly.

Null Hypothesis

H₀. Theorizes that differences occur due to random chance (ie. the random sample drawn is unrepresentative). Default assumption.

Alternative Hypothesis

H₁. Can also be called the “research hypothesis”. Difference is real and statistically significant. The sample characteristics are too different the population to occur due to random chance.

Five Step Model of Hypothesis Testing

1. Making assumptions and meeting test requirements.

2. Stating the null hypothesis.

3. Selecting the sampling distribution and establishing the critical region.

4. Computing the test statistic.

5. Making a decision and interpreting the results of the test.