9.2 Critical Values for Statistical Significance in ...
9.2 Critical Values for
Statistical Significance in
Hypothesis testing
1
Step 3 of Hypothesis Testing
n?
Step 3 involves computing a probability,
and for this class, that means using the
normal distribution and the z-table in
Appendix A.
n?
What normal distribution will we use?
¡§? For
p?
¡§? For
??
2
Step 3:
n?
What normal distribution?
¡§?For a hypothesis test about
use¡
? , we will
We plug-in s here as
our estimate for ¦̉.
X ~ N(? x = ? 0 , ! x = !
n
)
We assume the null is true, so we put the stated
value of ¦̀ from the null hypothesis here.
3
Step 3:
n?
What normal distribution?
¡§?For
a hypothesis test about
use¡
"
p? ~ N $ p0 ,
#
p, we will
%
p0 (1! p0 )
'
n
&
We assume the null is true, so we put the stated
value of p from the null hypothesis into the
formula for the mean and standard deviation.
4
Book example (Section 9.2, p.380):
n?
The null and alternative hypotheses are
H0: ? = $39,000
Ha: ? < $39,000
(one-sided test)
Data summary:
n=100
x = $37, 000
s=$6,150
5
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