Chapter 10 : One-Sample Tests of Hypothesis

Chapter 10 : One-Sample Tests of Hypothesis

1. HYPOTHESIS

   • A statement about the value of a population parameter developed for the purpose of testing

2. HYPOTHESIS TESTING

   • A procedure based on sample evidence and probability theory to determine whether the hypothesis is a reasonable statement.
   • five-step hypothesis-testing procedure
     • 1.State null and alternate hypotheses
       • 2.Select a level of significance
         • 3.Identify the test statistic
           • 4.Formulate a decision rule
             • 5.Take a sample, arrive at decision

3. TEST STATISTIC

   • A value, determined from sample information, used to determine whether to reject the null hypothesis.

4. CRITICAL VALUE

   • The dividing point between the region where the null hypothesis is rejected and the region where it is not rejected.

5. TYPE I ERROR

   • probability of rejecting the null hypothesis when it is actually true.

6. TYPE II ERROR

   • probability of “accepting” the null hypothesis when it is actually false.

7. Important Things to Remember about H0 and H1

8. Hypothesis Setups for Testing a Mean or a Proportion

   • MEAN
   • PROPORTION

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