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 ? , we will
use...
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 p, we will
use...
"
p^ ~ N $ p0,
#
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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