International Business QNM222 Lecture Notes - Lecture 1: Null Hypothesis, Decision Rule, Test Statistic

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1 tail: more than or less than question. H = alternative hypothesis; what you wish to prove. H = null hypothesis; the status quo, the opposite of the alternative hypothesis. Small sample: 1 tail: t=t. inv(alpha, degrees of freedom) Degrees of freedom = (sample size 1) =sample mean population mean / std error. 1 tail, less than: if test statistic is more negative than decision rule, reject ho. 1 tail, more than: if test statistic is more positive than decision rule, reject ho.

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