8. The Logic and Steps for Hypothesis Testing

Topics and Notes

1. Logic and technical terms of hypothesis testing
• a. logic - Hypothesize first (state H₀), then check whether the data contradicts it.
• b. Null hypothesis (H₀) vs alternative hypothesis (H_a)
• c. significance level: α (the same α in the confidence level 1 - α)
• d. Test statistics (for mean): $TS = (\bar{x}- \mu_0)/(s/\sqrt{n})$ and its distribution
2. Types and methods of hypotheses
• a. Types of test: right, left, and two-tailed tests
• b. Critical value and p-value methods for tests
3. Steps for hypothesis testing
• Step 1. Identify the claim about the population
• Step 2. Set up null and alternative hypotheses
• Step 3. Evaluate the test statistics
• Step 4. Find the critical value or p-value
• Step 5. Make statistical decision on H₀
• Step 6. Conclusion about the claim in step 1
4. Lecture Note
• a. CI for normal population mean and population proportions HTML PDF

Practice and Interactive Apps

1. Practice exercises #08 WEB LINK
2. [Optional]Read sections 9.1-9.2 of Navidi's textbook
3. Normal Tests Population Means INTERACTIVE APPS