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The document defines key terms related to hypothesis testing including parameters, statistics, sampling distribution, standard error, null and alternative hypotheses, test statistics, types of errors, level of significance, critical region, one-tailed and two-tailed tests, and confidence limits. It provides critical values for different levels of significance and test types. It then describes how to perform hypothesis tests for a single proportion and difference of proportions from large samples, including defining the null and alternative hypotheses, calculating the test statistic, determining the critical value, and deciding whether to reject or fail to reject the null hypothesis.

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10 views2 pages

Definitions

The document defines key terms related to hypothesis testing including parameters, statistics, sampling distribution, standard error, null and alternative hypotheses, test statistics, types of errors, level of significance, critical region, one-tailed and two-tailed tests, and confidence limits. It provides critical values for different levels of significance and test types. It then describes how to perform hypothesis tests for a single proportion and difference of proportions from large samples, including defining the null and alternative hypotheses, calculating the test statistic, determining the critical value, and deciding whether to reject or fail to reject the null hypothesis.

Uploaded by

cse.220840131017
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Definitions

Test Hypothesis :
1. Parameters : Statistical constant of population such as mean, standard
deviation & correlation coefficient
2. Statistic : Statistical constant for sample drawn from given population such
as mean, standard deviation ,correlation coefficient
3. Sampling Distribution : If different means are arranged according to frequencies,
Frequency distribution formed is sampling distribution
4. Standard Error : Standard deviation of sampling distribution of statistic is
known as standard error
5. Null Hypothesis : Null Hypothesis is hypothesis which is tested for all possible
rejection under assumption is true
6. Alternative Hypothesis : Any hypothesis which is complementary to null
In which rejection of null hypothesis implies acceptance
of alternative hypothesis
7. Test Statistic : after setting null hypothesis & alternative hypothesis test statistic
8. Errors in Hypothesis Testing :
(i) Type 1 error :
 Error of rejecting Null Hypothesis when it is true
 Denoted by (1-α)
 Occurs when null hypothesis is true, but difference of means is significant
& hypothesis is rejected
(ii) Type 2 error :
 Error of accepting Null Hypothesis when it is false
 Denoted by β
 Occurs when null hypothesis is false, but difference of means is
insignificant & hypothesis is accepted
9. Level of Significance : Maximum probability of making Type I error
10.Critical Region : Region of standard normal curve corresponding to predetermined
level of significance
11.Two Tailed Test : When test of hypothesis is rejected on both sides of standard
curve it is called Two Tailed Test
12.Confidence Limits : Limits within which hypothesis lie with specified probability

Critical Value (Zα) Level of Significance α


1% 5% 10%
Two tailed test | Zα | = 2.58 | Zα | = 1.96 | Zα | = 1.645
Right Tailed Test Zα = 2.33 Zα = 1.645 Zα = 1.28
Left tailed test Zα = -2.33 Zα = -1.645 Zα = 1.28
Large Samples (n>30)
Single Proportion :
p = sample population
P = population proportion
1. Null Hypothesis : H0 : P = P0
2. Alternative Hypothesis : H1 : P ≠ P0
H1 : P < P0 (left tailed)
H1 : P > P0 (right tailed)
3. Level of significance : α (0.05)
𝒑−𝑷
4. Test Statistics : Z = where Q = 1-P)
𝑷𝑸
√
𝒏

5. Critical Value Zα
6. Decision : If |Z| < Zα : null hypothesis accepted
If |Z| > Zα : null hypothesis rejected

Difference of Proportions :
p1, p2 = sample population
P1, P2 = population proportion
1. Null Hypothesis : H0 : P1 = P2
No significant difference in 2 population proportions
Alternative Hypothesis : H1 : P1 ≠ P2
7. Level of significance : α (0.05)
𝒑−𝑷
8. Test Statistics : Z = where Q = 1-P)
𝑷𝑸
√
𝒏

9. Critical Value Zα
10.Decision : If |Z| < Zα : null hypothesis accepted
If |Z| > Zα : null hypothesis rejected

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