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You reject the null hypothesis when…
p < α
There IS sufficient evidence to show…
You fail to reject the null hypothesis when…
p > α
There is NOT sufficient evidence to show…
Type II error
Occurs when you FTR
Occurs when a null hypothesis that is actually false is not rejected
False negative
To minimize the risk of a Type II error you can…
Increase sample size (this increases power of the test)
Increase significance level
Type I error
Occurs when you reject
Occurs when a true null hypothesis is incorrectly rejected
False positive
The probability of committing a Type I error is the significance level
To minimize the risk of a Type I error…
Lower the significance level
Increase the sample size
Use p̄ when…
Hypothesis testing - TWO sample populations
When you’re comparing two proportions
Use p̂ when…
When estimating population proportion
Confidence intervals
Hypothesis testing - ONE sample population
Rules for population mean
Random sample
Normal curve OR n ≥ 30
Rules for testing population proportion
random independent sample
np and nq > 10
n < .10N
Rules for testing population mean
random independent sample
no outliers
Rules for testing homogeneity
random independent samples
all expected values > 5
Rules for testing difference of means
2 random independent samples
n1 ≥ 30
n2 ≥ 30
normal
no outliers
Rules for mean difference
random DEPENDENT sample (matched pairs)
normal - n ≥ 30 or no outliers
Use a binomial distribution when…
fixed independent trials, count successes
finding the number of successes
ex: flipping a coin and wanting to find the probability of getting exactly 7 heads
Use a geometric distribution when..
UNFIXED number of trials
trials until first success, count trials (UNFIXED)
when you want to know the probability of success happening on a specific trial
ex: rolling a die repeatedly until you get a 6, and wondering what the probability that the first 6 happens on the 4th roll