Flashcards
Hypothesis Testing
Cards in this deck (9)
- 1What is Hypothesis?Hypothesis is an claim
- 2What is hypothesis testing?process of determining if given hypothesis is true or not
- 3what is type 1 errorreject null hypothesis , when null hypothesis is true
- 4what is type II erroraccept null hypothesis when H0 is false
- 5how do you determine Null and alternate hypothesisclaim you want to validate is put in alternate hypothesis
- 6what is p-valuep-value is the probability of type 1 error; ie., probability of getting sample evidence that is equally or unfavorable to the null hypothesis while null hypothesis is actually true.
- 7when do you reject null hypothesis?assign acceptable level of risk to the type 1 error; (alpha);
if p-value < alpha , ie., low risk of rejecting H0 when H0 is true, reject Ho; - 8when do you fail to reject null hypothesis?when p-value > alpha ;
- 9How to compute the p-value?determine the test statistic to be used:
Z, t, Chi etc.,
compute the value of test statistic : Z-score, t-value , Chi -value;
ex.,
Z = (X-bar - Mu)/sigma
from the value of test statistic , find the probability
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- asd Business Analytics Flashcards on Hypothesis Testing, created by Mukundhan Srinivasan on 17/04/2016.
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- Mukundhan Srinivasan
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