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Copy of 221X Lesson 9 - Hypothesis Testing

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Andy Newey

on 6 February 2015

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Transcript of Copy of 221X Lesson 9 - Hypothesis Testing

221X Lesson 9 - Hypothesis Testing
Statistical Process
"Daniel can discern more truth"

Collect Data -
Describe Data -
Make Inference -
Take Action -
Hypothesis Testing
Population of USA
Hyp Test Process
Infer findings to
Test Statistic
z - score
t - statistic
normal distribution with
mean = 0
sd = 1
bell shaped
not technically "normal"
based on n (sample size)
df = v = n - 1
right skewed distribution
df1 and df2

- the chance of observing an event (sample), as extreme or more, assuming the Ho is actually True
How does p-value compare to
If p-value < α : REJECT Ho
If p-value > α :
Fail to REJECT Ho
Ho: "Null Hypothesis"
Generally accepted to be true
"Skeptics argument"
not an equal sign
Ha: "Alternative Hypothesis"
Treatment Works
Something Different

"There is sufficient evidence to support <Ha>"

Fail to Reject:
"There is insufficient evidence to support <Ha>"
alpha = level of significance
P(Type I error) = alpha
- From applet try to identify how α and B are related
Full transcript