STAB22H3 Lecture Notes - Lecture 9: Random Variable, Statistical Hypothesis Testing, Motor Oil
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Recall: statistical inference is making a decision or a conclusion based on the data. Example: researchers want to know if a new drug is more effective than a placebo. Twenty patients receive the new drug, and twenty receive a placebo. Twelve (60%) of those taking the drug show improvement only 8 (40%) of placebo patients the. We would conclude that the new drug is better. However, probability calculations yell us that a difference this large or larger between the results in the two groups would occur about one time in five simply because of chance variation. Since this probability is not very small, it is better to conclude that the observed difference is due to chance rather than a real difference between two treatments. Example: the sat test is a widely used measure of readiness for college study. Originally, there were two sections, one for verbal reasoning ability (satv) and one for mathematical reasoning ability (satm).
