EC255 Lecture Notes - Lecture 13: Null Hypothesis, Six Sigma, Statistical Parameter
Document Summary
Two types of inference: estimation, hypothesis testing. Test the validity of statement(s) about an unknown population parameter based on a random sample. One of the most important mechanisms for decision making. Structure problems to use statistical evidence to test theories about business phenomena. Older workers are more loyal to a company. Companies with more than billion in assets spend a higher percentage of their annual budget on advertising than do companies with less than billion in assets. A claim (assumption) about a population parameter. The city-wide mean monthly cell phone bill is = . The proportion of students who love this course is p . A non-statistical example: the defendant is innocent. The hypothesis that needs to be supported. A non-statistical example: the defendant is guilty: basic examples. An accountant would like to test whether this average has increased over the years.
