MATH 2780 Lecture Notes - Lecture 8: Sample Size Determination, Null Hypothesis, Emor
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In this section, i would like to explain to you a general principle for statistical verification (testing) of hypothesis. Example: suppose the mayor of windsor (ontario) claims that the average income of households in his city is cad ,000. Let"s now follow this plan: recorded their annual income. standard deviation of. 2000: suppose we collected a representative sample of n=100 households and, suppose we found that based on the sample. If they replied dinosaurs then you would say, yes it maybe reasonable. If they said humans then would say it sounds unreasonable so the message is that to tell if 500 is reasonable or unreasonable, we must refer to a particular universe. Now, the reference universe is what the mayor claimed. In other words, if we assume the mayor is right, then our x would be from a universe (a distribution) that is normal with the above mean and standard deviation.