ADM 2304 Study Guide - Midterm Guide: Mase, Statistical Hypothesis Testing, Null Hypothesis
11 Jul 2014
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Itwo main tools: confidence intervals & hypothesis tests: confidence intervals give you an interval around your estimate within which you are confident (to some level of probability) that the true population parameter lies, hypothesis tests allow you to determine whether your sample estimate give you reason to believe that the population parameter is different from some assume value. If you don"t know the sd then you replace it with the se and get: (estimate +/ t*(se of estimate)) there is some existing theory, called the null hypothesis h0, as to the value of some parameter that you wish to test against an alternative hypothesis, ha formulate a test statistic that has a specific distribution if h0 is true collect a random sample from your population compute a test statistic based on your sample if the value of your test statistic is sufficiently improbably, assuming h0 is true, then we reject the h0 in favor of ha.
