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margin of error
tells us how far our sample estimate might reasonably be from the true population parameter
smaller MOE = more precise estimate
larger MOE = less precise estimate
confidence level
tells us how confident we are in the method to create our confidence interval
higher confidence level
wider interval
lower confidence level
narrower interval
confidence interval
range of values that is likely to include a population parameter with a certain degree of confidence
example confidence interval
A 95% confidence interval for the population mean is (50, 60)
we are 95% confident that the true population mean falls between 50 and 60
statistical hypotheses
a claim about a population parameter that we want to investigate
null hypothesis
assumes there is no change
alternative hypothesis
Represents the claim that we are trying to find evidence for (3 kinds)
two-sided (does not equal )
right-sided ( u > 50)
left-sided ( u < 50)
p value
The probability of obtaining a result as extreme as, or more extreme than, the observed result, assuming the null hypothesis is true
tells us how surprising our sample result would be if the null hypothesis were actually true
small p value
strong evidence against H0
large p value
not enough evidence against H0
conclusion of statistical hypothesis test
a mathematical way to use data to assess the plausibility of a hypothesis
When completing a hypothesis test, we compare the p-value to the significance level (a)
There are two possible conclusions
when p value < or equal to a
reject H0
ex.
p-value: 0.03
a = 0.05
We reject!
when p value > a
fail to reject H0
ex.
p value : 0.08
a = 0.05
we fail to reject H0
impact of a (significance level)
The significance level (α) is the cutoff we use to determine whether we have enough evidence to reject the null hypothesis
increasing a makes it
easier to reject H0
decreasing a makes it
harder to reject H0
type 1 error
happens when we reject the null hypothesis even though it is actually true
z test & t tests
tests used to make inferences about a population mean
z test
Population standard deviation is known
uses the standard normal (Z) distribution
uses population standard deviation in calculations
t test
Population standard deviation is unknown
uses the t -distribution
Uses the sample standard deviation
test statsitcs
measures how compatible a sample estimate is with the null hypothesis