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Hypothesis Testing 101

posted Apr 22, 2014, 7:35 PM by Prof Kiernan   [ updated Jul 14, 2014, 3:30 PM ]

Steps for Hypothesis testing:

1.     Write down what’s given

i.e. sample standard deviation, sample size, population proportion


2.     Figure out what table & formula you should use


3.     Draw the picture!

Left tail is less than

Right tail is greater than

Two tail is equal to or not equal to


4.     Use the tables to find the critical value and add it to the picture

Use α to find the critical value in a one tailed test

Use, 𝛼/2 to find the critical value in a two tailed test


5.     Write the hypothesis

a.     The null hypothesis H0 always has an equal sign

b.     The alternative hypothesis has either a less than sign <, greater than sign> or not equal sign


6.     Use formula to find the test statistic Z, t, X 2 etc.


7.     Decide whether to reject or fail to reject the null hypothesis.

If the test statistic falls in the shaded critical region, reject the null hypothesis

If the test statistic does NOT fall in the shaded critical region, “Fail to reject” the null hypothesis


8.     State your conclusion:

 

Original claim is the null hypothesis

Original claim is alternative hypothesis


Reject H0

“There is sufficient evidence to warrant rejection of the claim that… (original claim)”

This is the only time that the original claim can be rejected.


“The sample data supports the claim that…(original claim)”

This is the only time that the original claim can be supported

Fail to reject H0

“There is NOT sufficient evidence to warrant rejection of the claim that… (original claim)”


“There is NOT sufficient sample evidence to support the claim that…(original claim)”

Source:  Triola, M. F. (2003). Elementary Statistics (9th ed.), Pearson Education, Inc.

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