In our lesson:
- Hypotheses are tested using a statistical test based on this general formula which is the:
Test value= (observed value-expected value)/ standard error
Observed value: the computed sample
Expected value: the parameter expected when the null hypothesis were true
Standard error: the error of the statistics being tested
- Formula for Z-test and T-test
- Z-test for the mean is used when (n) is greater or equal to 30 or the population mean is normally distributed and the standard deviation is known.
- T-test for the mean is used when (n) is less than 30 and when the standard deviation is not known.
- Four possible outcomes and the summary statement for each situation:
When Claim is the Null Hypothesis
- Reject The Null Hypothesis; There is enough evidence to reject the claim
- Do not Reject the Null Hypothesis; There is not enough evidence to reject the claim
When Claim is the Alternative Hypothesis
- Reject The Null Hypothesis; There is enough evidence to support the claim
- Do not Reject the Null Hypothesis; There is not enough evidence to support the claim
- P-Value Method for the Hypothesis Testing – is the actual area under the standard normal distribution curve, representing the probability of a particular sample statistics or a more extreme sample statistic occurring if the null hypothesis is true.
- Steps in Hypothesis testing problems in P-Value Method
Step1. State the hypothesis and identify the claim
Step2. Compute the test value
Step3. Find the P-Value
Step 4.Make the decision
Step5. Summarize the Results
- Decision rule when using a P-Value
If P-Value is less than or equal to alpha, reject the null hypothesis.
If P-Value is greater than the alpha, do not reject the null hypothesis.
By: Carl Joel E. Palma III-Gold
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