This document provides an introduction to statistical hypothesis testing. It discusses key concepts like the null and alternative hypotheses, types of tests, important vocabulary, the basic process of hypothesis testing which involves stating hypotheses, collecting a sample, computing a test statistic and p-value, and concluding the test. It also covers types of errors like type 1 and type 2 errors, and how statistical tests are designed to minimize errors.

1. 8.1 INTRODUCTION TO
STATISTICAL TESTS
CHAPTER 8: HYPOTHESIS TESTING

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INFERENTIAL STATISTICS
• Inferential statistics involves methods of using
information from a sample to draw conclusions
regarding the population.
• Most statistical inference centers around the parameters of
a population (usually the mean or probability of success in a
binomial trial)
• In Chapter 7, we focused on estimating the value of the
parameter
• In this chapter, we will focus on decisions concerning the
value of a parameter and hypothesis testing
• To introduce statistical tests, we will discuss the mean, however
the methods apply to other parameters as well

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STATING HYPOTHESES
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STATING HYPOTHESES
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EXAMPLE 1:
NULL AND ALTERNATE HYPOTHESES
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TYPES OF TESTS
• We categorize a statistical test according to the
alternate hypothesis
Table 8-1
The Null and Alternate Hypotheses for Tests of the Mean 

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IMPORTANT VOCABULARY
FOR HYPOTHESIS TESTS
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BASIC PROCESS OF
HYPOTHESIS TESTS
1. State the null and alternate hypotheses
2. Take a simple random sample and compute a
sample test statistic
3. Use the sampling distribution of the test statistic
and the type of test to compute the P-value
4. Conclude the test
5. Interpret the results

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P – VALUE
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10. P – VALUE AND TYPES OF TESTS
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Page 415

11. TYPES OF ERRORS Page 416
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Type I and Type II Errors
Table 8-2

12. TYPES OF ERRORS
• For tests of hypotheses to be well constructed, they
must be designed to minimize possible errors of
decision. (Usually, we do not know if an error has
been made, and therefore, we can talk only about
the probability of making an error.)

13. TYPES OF ERRORS
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14. TYPES OF ERRORS
• Summary of the probabilities or errors associated
with a statistical test
Probabilities Associated with a Statistical Test
Table 8-3

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CONCLUDING A STATISTICAL TEST
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CONCLUDING A STATISTICAL TEST
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Meaning of the Terms Fail to Reject H0 and Reject H0
Table 8-4

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EXAMPLE 2:
STATISTICAL TESTING PREVIEW
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18. SOLUTION
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