Hypothesis Testing Notes

Hypothesis Testing

Basic Principles

• Hypothesis testing involves testing a claim about a population parameter.
• This includes parameters like the population mean or population proportion.
• Example:
  • Population mean monthly cell phone bill: \mu = $42
  • Population proportion of adults with cell phones: $\pi = 0.68$

Null Hypothesis ($H_0$)

• It is a statement about a population parameter.
• Example: The mean diameter of a manufactured bolt is 30mm ($H_0 : \mu = 30$).
• It always refers to a population parameter, not a sample statistic and should be expressed as ($H<em>0 : \mu = 30$) instead of ($H</em>0 : \bar{x} = 30$).
• Begins with the assumption that the null hypothesis is true (similar to