ECO220Y1 Lecture Notes - Lecture 2: Null Hypothesis, Alternative Hypothesis
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Our hypothesis is therefore about a parameter, p, the proportion of the whole population. Contains the range of proportions that we consider plausible if the null hypothesis is not true. An alternative hypothesis that focuses on deviations from the null hypothesis value in only one direction, which is called a one-sided alternative. Like the jury, we ask, could these data plausibly have happened by chance if the null hypothesis were true? . Are the data surprising, given the null hypothesis? . P-value specifically, we want to find the probability of seeing data like these (or something even less likely) given that we accept the null hypothesis. We cannot say the null hypothesis is true, just that it is most likely not false. For two-sided alternatives, the p-value is the probability of deviating in either direction from the null hypothesis value.
