7 Hypothesis Testing

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9 Terms

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Hypothesis test

determining how likely observed data would have happened 'by chance', and making subsequent deductions

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Hypothesis

statement made about the value of a population parameter

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Test statistic

result of experiment or statistic calculated from sample

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Null hypothesis, H0

hypothesis you assume to be correct

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Alternative hypothesis, H1

tells you about the parameter if your assumption is shown to be wrong

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critical region

region of probability distribution which, if the test statistic falls within in it, would cause you to reject the null hypothesis

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critical value

first value to fall within the critical region

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acceptance region

region where we accept the null hypothesis

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actual significance level

probability of incorrectly rejecting the null hypothesis