BUSS1020 Lecture Notes - Lecture 10: Confidence Interval, Test Statistic
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Hypothesis testing steps: state the (cid:2868) and (cid:2869) (cid:894)use or , (cid:374)e(cid:448)er use x or p(cid:895) Compare it with the critical value (defined by alpha: make a decision, accept the hypothesis, reject the hypothesis, make a conclusion. Goal: test hypothesis or from a confidence interval for the difference between two population means, 1 - 2. When we have two samples, and they are independent: The clt says: linear combinations of independent rvs are approximately normally distributed, as the sample size gets larger. Thus, clt applies here when: two groups are independent and randomly samples, as long as each group is. Either normally distributed, or has large enough sample size. Hypothesis tests for 1 - 2 with 1 and 2 unknown and assumed equal. Assumptions: samples are randomly and independently drawn, populations are normally distributed or both sample sizes are large enough for clt (both at least 30, population variances are unknown, but assumed equal.