QMS 202 Study Guide - Type I And Type Ii Errors, Central Limit Theorem, Null Hypothesis

• School: Ryerson University
• Department: Quantitative Methods
• Course: QMS 202
• Professor: Bob Hudyma

Document Summary

Chapter 11: fundamentals of hypothesis testing: one-sample tests. 2. test statistic - sample result = normal distribution, t distribution. Type 1 error - reject null hypothesis h0 when it"s true and shouldn"t be rejected: prob of type 1 error occurring: . Type 2 error - don"t reject null hypothesis h0 when it"s false and should be rejected = missed opp: prob of type 2 error occurring: . Confidence coefficient (1 - ) - prob not reject null hypothesis h0 when true and shouldn"t be rejected: confidence level = (1 - ) x 100% Risk - prob of committing type 2 error: depends on diff b/ hypothesized and actual val of pop parameter, if diff large is small. Power of a statistical test (1 - ) - prob you will reject the null hypothesis when it"s false and should be rejected. Risks in decision making: a delicate balance. 11. 2: z test of hypothesis for the mean (