11 terms

Alternative Hypothesis (Ha)

The claim about the population that we are trying to find evidence for.

Null hypothesis (H0)

A statement of "no difference."

One-sided alternative hypothesis

States that a parameter is larger than the null hypothesis value OR states that the parameter is smaller than the null value.

Power

The probability that the test will reject the null when the specified alternative value of the parameter is true.

P-value

Probability, computed assuming the null is true, the statistic would take a value as extreme or more extreme than the one actually observed.

Significance test

Assesses the evidence provided by data about a null hypothesis and in favor of an alternative hypothesis

Statistically significant

When our P-value is less than the chosen significance level.

Test statistic

Measures how far a sample statistic diverges from what we would expect if the null hypothesis were true, in standardized units.

Two-sided alternative hypothesis

States that the parameter is different from the null value (it could be either smaller or larger).

Type I error

Occurs if null is rejected when null is true.

Type II error

Occurs if null is not rejected when the alternative is true.