Hypothesis Test

Hypothesis Test

1. Identify:

   • Unit of analysis
   • Logical element
   • Variable
     • Ho: Null hypothesis
     • H1:. Alternate hypothesis
     • Ho & H1: are statements regarding POPULATION

2. P=Proportions

   • Y=Average
     • σ=Standard Deviation

3. Type of Errors

   • Error type I
     • Null Hypothesis is REJECTED when its actually TRUE
   • Error Type II
     • Null Hypothesis is ACCEPTED when its actually FALSE

4. If distribution is approximately normal then;

   • If population st. Dev. is known:
     • Z-test
   • If population st. Dev. is NOT known
     • if n ≥30
       • Z-test
     • If n<30
       • T-test

5. Confidence Intervals

   • σ=Population St. Dev.
     • S=Sample St. Dev.
       • μ=Population mean
         • X̄=Sample mean
   • Degrees of freedom= n-1