International Business QNM222 Lecture Notes - Lecture 1: Null Hypothesis, Decision Rule
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Sample size and proportion: determine confidence level and alpha. Level of significance = alpha: calculate z score: z= normsinv(confidence + alpha/2, determine margin of error (e): This will be stated in the question either directly (margin of error, error, or error rate), or indirectly ( within x% ): calculate sample size: n= p(1-p)(z/e)^2. Round up your answer to the next whole number. Hypothesis testing-proportion: qualify: np 5; n(1-p) 5, state your hypothesis: Ho : null hypothesis; the status quo; what is understood to be true. H1: alternative hypothesis; what you are being asked to do; what you are attempting to prove: determine confidence level, alpha: Formula"s on page 1: prepare the decision rule: D. r. is an interval with a positive and negative value: calculate the test statistic: 1 tail more than question: reject ho if test statistic is more positive than the decision rule.