MATH 10041 Chapter Notes - Chapter 9: Null Hypothesis, Statistical Parameter, Test Statistic
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Step 1: hypothesize: state your hypotheses about the population parameter. Step 2: prepare: get ready to test: choose and state a significance level. Choose a test statistic appropriate for the hypotheses. State and check conditions required for the computations, and state any assumptions that must be made. Step 3: compute to compare: compute the observed value of the test statistic in order compare the null hypothesis value to our observed value. Find the p-value to measure your level of surprise. *hypotheses are always statements about the population parameters. For the test you are about to learn, this parameter is always mu, the mean of the population. *the t-statistic measures how far (how many standard errors) away our observed mean, x bar, lies from the hypothesized values, mu0. Values far from 0 tend to discredit the null. If the estimated mean differs from the hypothesized value, then the test statistic will be far from 0.