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Assignment 2 0f Inferential Statistics-Converted-Compressed-1 PDF

Interval estimation provides a range of values that is likely to include an unknown population parameter, calculated from a sample. Specifically, [1] a confidence interval gives a high and low estimate for where the population parameter likely falls, at a specified confidence level. [2] For example, a 95% confidence interval means there is a 95% chance the population parameter is within the calculated high and low values. [3] Confidence intervals provide more information than a single point estimate.

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104 views

Assignment 2 0f Inferential Statistics-Converted-Compressed-1 PDF

Interval estimation provides a range of values that is likely to include an unknown population parameter, calculated from a sample. Specifically, [1] a confidence interval gives a high and low estimate for where the population parameter likely falls, at a specified confidence level. [2] For example, a 95% confidence interval means there is a 95% chance the population parameter is within the calculated high and low values. [3] Confidence intervals provide more information than a single point estimate.

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Name Sharifa Bibi

Reg. no 2017-kiu-2513

(1) Explain the concept of interval estimation?

Interval
A point estimate, however, tells only part of the story. While we expect
the point estimate to be close to the population parameter, we would
like to measure how close it really is. A confidence interval serves this
purpose.
CONFIDENCE INTERVAL
A range of values constructed from sample data so that the population
parameter is likely to occur within that range at a specified probability.
The specified probability is called the level of confidence
Confidence interval gives an estimated range of values which is likely to
include an unknown population parameter, the estimated range being
calculated from a given set of sample data. If independent samples are
taken repeatedly from the same population, and a confidence interval
calculated for each sample, then a certain percentage (confidence level)
of the intervals will include the unknown population parameter.
Confidence limits are the values at each end of a confidence interval.

1. Explain in your own words as fully as you can.


I. Statistical hypothesis.

A statement about a population developed for the purpose of testing


A hypothesis is a statement, assertion about a population. Data are
then used to check the reasonableness and validity of the statement,
In statistical analysis we make a claim, that is, state a hypothesis, we
collect data, then use the data to test the assertion.
II. Critical region
A critical region, also known as the rejection region, is a set of
values for the test statistic for which the null hypothesis is
rejected. i.e. if the observed test statistic is in the critical region
then we reject the null hypothesis and accept the alternative
hypothesis
III. Level of significance
The significance level, also denoted as alpha or α, is the
probability of rejecting the null hypothesis when it is true. For
example, a significance level of 0.05 indicates a 5% risk of
concluding that a difference exists when there is no actual
difference
IV. Composite hypothesis
In hypothesis testing a composite hypothesis is a hypothesis
which covers a set of values from the parameter space. ... The
"composite" part means that such a hypothesis is the union of
many simple point hypotheses. In a Null Hypothesis Statistical
Test only the null hypothesis can be a point hypothesis
V. Test statistics
A value, determined from sample information, used to determine
whether to reject the null hypothesis. A test statistic is a statistic
(a quantity derived from the sample) specified in terms of a test
statistic, considered as a numerical summary of a data-set that
reduces the data to one value that can be used to perform the
hypothesis tests

(Q 2) explain with examples the type error ɪ and type 2 error?

(Type 1 error)

Rejecting the null hypothesis, Ho, when it is true.

Examples of Type I Errors

For example, let's look at the trail of an accused criminal. The null hypothesis
is that the person is innocent, while the alternative is guilty. A Type I error in
this case would mean that the person is not found innocent and is sent to jail,
despite actually being innocent,

Type 2 error.
Accepting the null hypothesis when it is false
Example.
A type II error produces a false negative, also known as an error of
omission. For example, a test for a disease may report a negative
result, when the patient is, in fact, infected. This is a type II error
because we accept the conclusion of the test as negative even
though it is incorrect

Q 3) explain how the null and alternative hypothesis are formulated?

A hypothesis is an approximate explanation that relates to the set


of facts that can be tested by certain further investigations. There
are basically two types, namely, null hypothesis and alternative
hypothesis. A research generally starts with a problem. Next,
these hypotheses provide the researcher with some specific
restatements and clarifications of the research problem.

The criteria of the research problem in the form of null hypothesis


and alternative hypothesis should be expressed as a relationship
between two or more variables. The criteria is that the statements
should be the one that expresses the relationship between the two
or more measurable variables. The null hypothesis and alternative
hypothesis should carry clear implications for testing and stating
relations.
(4 ) what is the difference between one sided test and two sided test?
When should each be use?

One sided test


One sided test which is also called one tailed test , refers to the test in
which the critical region is located on one side.
Two tailed test
Whereas in two tailed test the critical region is located on either side of
the curve
When the alternate hypothesis state a direction one tailed test should
be used. When it does not state a direction two tailed test should be
used.

(5) under what circumstances we prefer t test over z test. When should
each be used?

You must use the t-distribution table when working problems when the
population standard deviation (σ) is not known and the sample size is small
(n<30). General Correct Rule: If σ is not known, then using t-distribution is
correct. If σ is known, then using the normal distribution is corrects

(6) explain briefly what is meant by pair t test ? and under what
situation it is used.

A paired t-test is used to compare two population means where there are two
samples in which observations in one sample can be paired with observations
in the other sample. ... Before-and-after observations on the same subjects
(e.g. students' diagnostic test results before and after a particular module or
course)

A paired t-test is used when we are interested in the difference between two
variables for the same subject. Often the two variables are separated by time

The paired sample t-test has four main assumptions: The dependent variable
must be continuous (interval/ratio). The observations are independent of one
another. The dependent variable should be approximately normally
distributed

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