BUSS1020 Lecture Notes - Lecture 9: Null Hypothesis, Statistic, Decision-Making

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1020
• Professor: Erick Li

Document Summary

Theory should lead to questions, claims or predictions that can be tested. Most common way to test hypotheses is via empirical methods i. e. data. Hypothesis = claim; often about a population parameter. Pop mean: mean monthly mobile bill is = . Pop prop: telstra"s (cid:373)arket share proportio(cid:374) i(cid:374) (cid:373)o(cid:271)ile pho(cid:374)e (cid:272)usto(cid:373)ers, , is greater than 0. 5. H0 states a default or status quo claim or assertion e. g. the average diameter of a manufactured ball is 30mmh0 ( = 30) H0 always about a population parameter, not about a sample statistic. Tests usually begin by assuming h0 is true (e. g. innocent until proven guilty) Can refer to status quo/historical value/relevant value. H0 may/may not be rejected in test. H0 cannot be proven (but can be rejected) by the test. Opposes h0 in some way (e. g. average diameter of a manufactured bolt is not equal to 30mm) H1 generally the hypothesis that the researcher is trying to find evidence for/against.