STA248H1 Lecture Notes - Lecture 7: Null Hypothesis, Confidence Interval, Interval Estimation
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02 ) or a two sided ( (cid:3028) Then the test statistic used to test each of these is. 2 (cid:3028) where n is the sample size and s is the sample standard deviation. The key element of this formula is the ratio s/ 0 which compares the ratio of the sample standard deviation to the target standard deviation. The more this ratio deviates from 1, the more likely we are to reject the null hypothesis. Note: when sampling is from a normal distribution, then under the null hypothesis. ,(cid:3041) 12 where freedom. is the critical value of the chi-square distribution with n - 1 degrees of. The formula for the hypothesis test can easily be converted to form an interval estimate for the variance: A confidence interval for the standard deviation is computed by taking the square root of the upper and lower limits of the confidence interval for the variance.