Introduction to Statistical Hypothesis Testing

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Learn basic concepts of statistical hypothesis testing

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HYPOTHESIS TESTING Prem Sankar C M Tech Technology Management Dept of Futures Studies Kerala University

Franklin Gothic Book:

Introduction A statement which is capable of being tested by scientific methods. A statistical hypothesis is a statement which we want to test on the basis of result obtained from a random sample The procedure by which either accept or reject the hypothesis is called testing hypothesis

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Basic Concepts Null hypothesis Alternate hypothesis

Calibri:

Null hypothesis Null hypothesis is the hypothesis which we want to reject denoted by H 0

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Alternate hypothesis Alternate hypothesis is the hypothesis which we want to prove denoted by H a

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Type I and Type II errors Two possible types of errors are Rejecting Ho when it is true Accepting Ho when it is false α - Level of significance 1- β - power of test Accept Ho Reject Ho Ho is true Correct decision Type I error ( α ) Ho is false Type II error ( β ) Correct decision

Wingdings:

Level of significance - α The probability of rejecting hypothesis H 0 when it is true 5% Level of significance means that there is a risk of 5% of rejecting H 0

Trek:

Procedure for testing a hypothesis Formulate a null hypothesis and an Alternate hypothesis Specify the level of significance Select an appropriate sampling distribution Select a random sample Decide whether to reject Ho or not

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