So what did you learn in this session?
- Hypothesis — a claim or an assumption that you make about one or more population parameters
- Types of hypothesis:
- Null hypothesis (H₀) – Makes an assumption about the status quo
– Always contains the symbols ‘=’, ‘≤’ or ‘≥’ - Alternate hypothesis (H₁) – Challenges and complements the null hypothesis
- Null hypothesis (H₀) – Makes an assumption about the status quo
– Always contains the symbols ‘≠’, ‘<’ or ‘>’
- Types of tests:
- Two-tailed test – The critical region lies on both sides of the distribution
– The alternate hypothesis contains the ≠ sign - Lower-tailed test – The critical region lies on the left side of the distribution
– The alternate hypothesis contains the < sign - Upper-tailed test – The critical region lies on the right side of the distribution
- Two-tailed test – The critical region lies on both sides of the distribution
– The alternate hypothesis contains the > sign
- Making a decision – Critical value method:
- Calculate the value of Zc from the given value of α (significance level)
- Calculate the critical values (UCV and LCV) from the value of Zc
- Make the decision on the basis of the value of the sample mean ¯x with respect to the critical values (UCV AND LCV)