BUS 082 Lecture Notes - Lecture 18: Statistic, Alternative Hypothesis, Sampling Distribution

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: bettencourt

Document Summary

Hypothesis tests for the mean one sample. Use z tests, convert sample statistic xbar to z statistic. Determine the critical z values for a specified level of significance. Two cut off values, defining the regions of rejection. If test statistic falls in the rejection region, reject h0 otherwise do not reject. Probability of obtaining a value for the test statistic equal to or more extreme than the observed sample value, given h0 is true. P value observed level of significance, probability of getting that result. Rule: h0 is rejected if the p value is less than a. Choose level of significance a and sample size n. Determine appropriate test stat and sampling distribution. Collect data and compute test statistic value and p value. Calculating p value probability of observing a test statistic more extreme that observed in the direction of the alternative hypothesis if the null is true. If unknown, use sample standard deviation and student t distribution.