STAT 301 Study Guide - Midterm Guide: Statistical Hypothesis Testing, Null Hypothesis, Statistical Parameter

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27 Mar 2014
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Hypothesis testing is a method for using sample data to decide between two competing claims (hypotheses) about a population characteristic. A hypothesis is a statement about the value of a population parameter developed for the purpose of testing. e. g. the mean salary for all graduates of four-year business schools is ,200 per month. The mean monthly income for all systems analysts is at least ,625. Less than twenty percent of all juvenile offenders are caught and sentence to prison. Null hypothesis a claim about a population characteristic that is initially assumed to be true. In carrying out a test of h0 versus ha, the hypothesis h0 will be rejected in favor of ha only if sample evidence strongly suggests that h0 is false. Note: failing to reject h0 is not the same as saying h0is true. We just do not have enough evidence to claim that it is false. Hypothesis for tests comparing a parameter to a value.