OPER1135 Lecture Notes - Lecture 14: Null Hypothesis, Statistical Hypothesis Testing, Test Statistic

• School: Boston College
• Department: Operations Management
• Course: OPER1135
• Professor: Stephanie Jernigan

Document Summary

Critical value method (review: for a two-tail test for the mean, known, convert sample statistic ( ) to test statistic (zstat: determine the critical z values for a specified level of significance a from a table or computer, decision rule: if the test statistic falls in the rejection region, reject h0 ; otherwise do not reject. If the p-value is low then h0 must go. 1. state the null hypothesis, h0 and the alternative hypothesis, h1. 2. choose the level of significance, a, and the sample size, n. 3. determine the appropriate test statistic and sampling distribution. 4. determine the critical values that divide the rejection and nonrejection regions. 5. collect data and compute the value of the test statistic. 6. make the statistical decision and state the managerial conclusion. If the test statistic falls into the nonrejection region, do not reject the null hypothesis h0. If the test statistic falls into the rejection region, reject the null hypothesis.