B.3 testing the hypothesis

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B.3 testing the hypothesis

  1. 1. Testing the Hypothesis
  2. 2. Conducting Hypothesis Tests • All hypothesis tests are conducted the same way. (state hypothesis, form analysis plan, analyze sample data according to plan, interpret data and make a claim based on the results of the analysis) 1. State hypothesis: Ho &Ha, where Ho & Ha are mutually exclusive 2. Form analysis plan: describes how to use the sample data and whether to reject or not reject the null hypothesis 3. Analyze: calculate computation using sample data TEST STATISTIC: use following equation when null hypothesis involves mean or proportion TS= (Statistic- Parameter) OR TS= (Statistic – Parameter ) SD of Statistic SD of Statistic ** where parameter is a value specific to the null hypothesis and the statistic is the point estimate of parameter ** when the parameter in the null hypothesis involves qualitative data, use a chi-square statistic as Test Statistic (in future lesson) ** you can find the TS formula under inferential statistics in the formula sheet P-value: probability of observing a sample statistic as extreme as the test statistic, assuming the null hypothesis is true. 4. Interpret Results: compare P-value to significance level, reject the null hypothesis when the P- value is less than the significant level.

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