Applied maths chapter 7

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10 Terms

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what is H0
the null hypothesis, which is the hypothesis that you assume to be correct
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what is H1
the alternative hypothesis that tells you about the parameter if your assumption is shown to be wrong
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one tailed is
< or >
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two tailed is…
≠
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to carry out a hypothesis test
you assume the null hypothesis is true

consider how likely the observed value of the test stat was to occur

if less than the significance level, this is unlikely to have occurred by chance

so you reject the null hypothesis
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what is the critical refion
the region of the probability distribution which, if the test stat falls within it, would cause you to reject the null hypothesis

use the given table to find the first value that falls outside the significance level
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what is the actual significance level
the probability of incorrectly rejecting the null hypothesis - the probability that your result happened completely by chance
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for two tailed tests…
you half the significance level
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to carry out a one tailed test…
formulate a model for the test stat

identify hypotheses

calculated the probability of the test stat taking the observed value, assuming the hypothesis is true

compare to significance level

write a conclusion **in the context of the question**
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