BAN 001 Chapter Notes - Chapter 11: Minitab, In Essence, Null Hypothesis
7 Sep 2016
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Hypothesis tests: hypothesis testing deals with making rational decisions when only incomplete information derived from a sample is available. Definition: a hypothesis is simply a quantitative statement about a population. A product research group has developed a new fuel injection system that they believe will increase gas mileage when installed in this automobile. H0 : null hypothesis represents the status quo, in this case 20 mpg. Ha : alternative/research hypothesis hypothesis which will be accepted only if the data derived through research provides convincing (significant) evidence of its truth, in this case > 20 mpg. In this example the product research group would install the new fuel injection system in a sample of these autos, run them for a prescribed number of miles under experimental conditions and record the gas mileage. Gas mileage is 20 mpg gas mileage is >20 mpg.
