Chapter 10 Slides PT 1
Chapter 10 Slides PT 1
Chapter 10
McGraw-Hill/Irwin Copyright © 2010 by The McGraw-Hill Companies, Inc. All rights reserved.
GOALS
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Hypothesis and Hypothesis Testing
HYPOTHESIS:
HYPOTHESIS TESTING:
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STEP 6: Interpret Result of Hypothesis Testing
TEST STATISTIC:
A value, determined from sample information, used to determine whether
to reject the null hypothesis.
CRITICAL VALUE:
The dividing point between the region where the null hypothesis is
rejected and the region where it is not rejected.
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Important Things to Remember about H0 and H1
Inequality Part
H0: null hypothesis and Keywords
Symbol of:
If we conclude 'do not reject H0', this does not necessarily mean that
the null hypothesis is true, it only suggests that there is not
sufficient evidence to reject H0; rejecting the null hypothesis then,
suggests that the alternative hypothesis may be true.
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In actual practice, the status quo is set up as
H0
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One-Tail Test: Null and Alternate
Hypothesis
EXAMPLE 3:
– According to the Census Bureau, 3.13 people reside in the typical
American household. A sample of 25 households in Arizona
retirement communities showed the mean number of residents per
household was 2.86 residents. The standard deviation of this sample
was 1.20 residents. AT the 0.01 significance level, is it reasonable to
conclude the mean number of residents in the retirement community
household is less than 3.13 persons?
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One-Tail Test: Null and Alternate
Hypothesis
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One-Tail Test: Null and Alternate
Hypothesis
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One-Tail vs. Two Tail Test
Formulation of the null and alternate hypothesis
differ for a one-tail and two tail test
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Level of Significance,
Researcher
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Test Statistic
Using Z-distribution vs. t-distribution
WHERE
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STEP 6: Interpret Results of Hypothesis
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Test Statistic and Critical Value
TEST STATISTIC:
• A value, determined from sample information, used to determine whether to
reject the null hypothesis.
CRITICAL VALUE:
• The dividing point between the region where the null hypothesis is rejected and the
region where it is not rejected.
• Level of Significance.
MEAN
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Testing for a Population Mean with a
Known Population Standard Deviation- Example
Step 3: Select the test statistic. changed from 200 per week.
EAMPLE p-Value
p-VALUE: is the probability of Recall the last problem where the hypothesis and
observing a sample value as extreme decision rules were set up as:
H0: ≤ 200
as, or more extreme than, the value
H1: > 200
observed, given that the null
Reject H0 if Z > Z
hypothesis is true. where Z = 1.55 and Z =2.33
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Testing for the Population Mean:
Population Standard Deviation Unknown
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Testing for the Population Mean: Population
Standard Deviation Unknown - Example
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Hypothesis Setup for Testing a
Proportion ()
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Test Statistic for Testing a Single
Population Proportion - Example
EXAMPLE
Suppose prior elections in a certain state indicated it
Step 4: Formulate the decision rule.
is necessary for a candidate for governor to
receive at least 80 percent of the vote in the Reject H0 if Z < -Z
northern section of the state to be elected. The
current governor is interested in assessing his
chances of returning to office and plans to
conduct a survey of 2,000 registered voters in
the northern section of the state. The survey
revealed that 1,550 planned to vote for the
present governor. Using the hypothesis-testing
procedure, assess the governor’s chances of
reelection.
Step 1: State the null hypothesis and the
alternate hypothesis.
H0: ≥ .80
H1: < .80
(note: keyword in the problem “at least”)
Step 2: Select the level of significance. Step 5: Make a decision and interpret the result.
α = 0.01 as stated in the problem The computed value of z (-2.80) is in the rejection region, so
the null hypothesis is rejected at the .05 level. The
Step 3: Select the test statistic. evidence at this point does not support the claim that the
Use Z-distribution since the incumbent governor will return to the governor’s mansion
assumptions are met and n and n(1-) ≥ 5 for another four years.
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Type II Error
Type I Error, the level of significance, denoted by the
Greek letter “”, is defined as the probability of
rejecting the null hypothesis when it is actually true.
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