QMS 202 Lecture Notes - Lecture 3: Type I And Type Ii Errors, Null Hypothesis, Statistical Parameter

• School: Ryerson University
• Department: Quantitative Methods
• Course: QMS 202
• Professor: Gunawardena Egodawatte

Document Summary

Hypothesis/prediction is a claim (assertion) about a population parameter. States the claim or assertion to be tested. Is always about a population parameter not about a sample statistic. Begin with assumption that the null hypothesis is true (court case example) Similar to the notion of innocent until proven guilty. Refers to the status quo or historical value. Is generally the hypothesis that the researcher is trying to prove. What is the null hypothesis is not rejected. In a trail, the null hypothesis is innocence. The objective is not to demonstrate the accused in innocent but to see if the evidence (data) contradicts this hypothesis. If there is no evidence, the accused cannot be declared guilty, but this does not mean innocence has been proven. So we say there is no evidence to conclude that the accused is guilty. If the sample mean is close to the stated population mean, the null hypothesis is not rejected.