21 terms

Null Hypothesis

denoted by Ho, is a tentative assumption about a population parameter

Alternative Hypothesis

denoted by Ha, is the opposite of what is stated in the null hypothesis

Hypothesis Testing Procedure

uses data from a sample to test the two competing statements indicated by Ho and Ha

The equality part of the hypothesis always appears in...

the null hypothesis

Lower Tail

Null hypothesis as an assumption to be challenged

Upper Tail

Alternative hypothesis as a research hypothesis

Type 1 Error

rejecting the null (Ho) when it is true

Level of significance

The probability of making a type 1 error when the null hypothesis is true as an equality

Significance Tests

Applications of hypothesis testing that only control the type 1 error

Type 2 Error

Accepting the null (Ho) when it is false

"Do not reject Ho" and "do not accept Ho"

Statisticians avoid the risk of making a Type 2 error by using..

Step 1 of Hypothesis Testing

Develop the Null and alternative hypothesis

Step 2 of Hypothesis Testing

Specify the level of significance (alpha)

Step 3 of Hypothesis Testing

collect the sample data and complete the value of the test statistic

Two-Tail

Compare, equal to or not equal

Z-test

If you know the population variance

T-test

If you do not know the population variance

Pooled-Variance

a method for estimating variance of several different populations when the mean of each population may be different, but one may assume that the variance of each population is the same

Step 4 of Hypothesis Testing

Use the value of the test statistic to compute the p-value

Reject Ho

If P-Value is less than or equal to alpha

Critical Value Approach

Use the level of significance to determine the critical value and the rejection rule. Use the value of the test statistic and the rejection rule to determine whether to reject Ho.