HYPOTHESIS TESTING A Spring 2016 OBJECTIVES v Be

HYPOTHESIS TESTING (A) Spring 2016

OBJECTIVES v Be able to determine the null and alternative hypothesis. v Be able to conduct hypothesis tests of the population mean and proportion. v Be able to interpret hypothesis test results in terms of the test.

I. DETERMINE THE NULL AND ALTERNATIVE HYPOTHESIS Typical phrases for null hypothesis • “It is known that…” • “Previous research shows…” • “The company claims that…” • “A survey showed that…” Typical phrase for alternative hypothesis • “Is it reasonable to conclude…” • “Is there enough evidence to substantiate…” • “Does the evidence suggest…” • “Has there been a significant…”

I. DETERMINE THE NULL AND ALTERNATIVE HYPOTHESIS (CONT. )

I. DETERMINE THE NULL AND ALTERNATIVE HYPOTHESIS (CONT. )

II. STEPS OF HYPOTHESIS TESTING

STEPS OF HYPOTHESIS TESTING

DECISION RULESCRITICAL VALUE Critical Value

DECISION RULESCRITICAL VALUE Critical Value

DECISION RULESCRITICAL VALUE Critical Value

CRITICAL VALUES Test Two-tailed Critical values Excel command NORM. S. INV(1 -α/2) T. INV(1 -α/2, df) Right-tailed NORM. S. INV(1 -α) T. INV(1 -α, df) Left-tailed NORM. S. INV(α) T. INV(α, df)