BSB123 Lecture Notes - Lecture 7: Test Statistic, Level Set, Decision Rule
Document Summary
Hypothesis of no difference, no change, no effect or no relationship. There is a change, difference, effect or relationship. Hypothesis testing assesses the strength of evidence against the null hypothesis, h 0. If we can reject or nullify the h 0 , it will enable us to support the alternative hypothesis (h 1 ). Note: alternative hypothesis is commonly denoted h 1 or h 0. = 4 mins (the waiting time is unchanged. ) > 4 mins (the waiting time is increased. ) In this unit, we will only discuss hypothesis testing of . If we do not reject it, our decision is correct. If we reject it, we make a type i ( ) error. If we reject it, our decision is correct. If we do not reject it, we make a type ii ( ) error. Type i error reject ho, when in fact ho is true.
