ECO220Y1 Chapter Notes - Chapter 12: Test Statistic, Statistical Hypothesis Testing, Alternative Hypothesis
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ECO220Y1 Full Course Notes
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Null hypothesis: is claim being assessed in hypothesis test, usually, null hypothesis is statement of "no change from traditional value, is about population proportion, not sample proportion. Trying to deduce population proportion: h0: p = p0, where p0 = original population, old algorithm yielded 67% satisfaction, sample for new algorithm on 1000 people yielded 71% satisfaction. If hypothesizing there is no change from new to old algorithm: h0: p = 0. 67. Alternative hypothesis: proposes what we should conclude if null hypothesis unlikely, if new algorithm better than old one, tsx is down on some days and up on others. One-sided alternative: interested in deviations in either direction away from hypothesized parameter value, interested in deviations in only one direction away from hypothesized parameter value, ha: p>p0 or ha: p