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HYPOTHESIS TESTING PROCEDURE

HYPOTHESIS TESTING PROCEDURE. STEP 1. Establish the Hypothesis a.) Null Hypothesis H o : = b.) Alternative Hypothesis H a :. STEP 2. Choose a Significance Level a =. STEP 3. Plan the Test a.) Choose the Test Statistic (formula)

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HYPOTHESIS TESTING PROCEDURE

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  1. HYPOTHESIS TESTING PROCEDURE STEP 1. Establish the Hypothesis a.) Null Hypothesis Ho: = b.) Alternative Hypothesis Ha: STEP 2. Choose a Significance Level a = STEP 3. Plan the Test a.) Choose the Test Statistic (formula) b.) Determine the Rejection Region Z or t 0 F or c2 0 STEP 4. DATA BLOCK Collect data and Calculate test statistic STEP 5. Draw conclusion STEP 6. Estimate the parameter of interest and determine Confidence Interval

  2. Hypothesis Tests - Tests for One Population Differences in the Means 2 Test To Use Formula s Population Variance ( ) known? - m Yes Z - Test x = 0 Z s / n where : x - Sample Me an m - Standard Mean 0 s - Population Standard Deviation n - Sample Size - m No t - Test x = 0 t s / n where : x - Sample Me an m - Standard Mean 0 s - Sample Standard Deviation n - Sample Size - Tests for Two Population s – Paired Data Differences in the Means Population Population Test to Formula Variances Variances Use known? Equal? N/A N/A Paired d = t Sample t - s / n Test where : d - Sample Differences Mean s - Sample Standard Deviation n - Sample Size

  3. - Tests for Two Populations Differences in the Means Population Population Test to Formula Variances Variances Use known? Equal? Yes N/A Two Pop . For Equal Sample Sizes - Z - Test x x = A B Z 1 s + s 2 2 ( ) A B n where : x - Sample Mean i s - Population Standard Deviation i n - Sample Size For Unequal Sample Sizes - x x = A B Z s s 2 2 + A B n n A B where : x - Sample Mean i s - Population Standard Deviation i n - Sample Size i No Yes Two – For equal sample sizes - Pop. , x x = A B t Pooled + 2 2 s s Variance A B t - Test n where : x - Sample Mean i s - Sample Standard Deviation i n - Sample Size For unequal sample sizes - x x A B = t æ ö + SS SS 1 1 ç ÷ A B + + - è ø n n n n 2 A B A B where : x - Sample Me an i n - Sample Si ze i

  4. - Tests for More than Two Populations Differences in the Means . Differences in the Dispersion Comparison Test To Formula Use 2 Population Variance to a c - - Test 2 ( n 1 ) s c = 2 Standard s 2 0 where : s - Sample Standard Deviation s - " Standard" or Population Standard Deviation 0 n - Sample Size Two Population F - Test = 2 2 F s s A B Variances where : s - Sample Standard Deviation i Differences in Proportions Comparison Test To Formula Use - Population Proportion to a Z - Test p P = 0 Z Standard - P ( 1 P ) / n 0 0 where : p - Sample Proportion n - Sample Size - Two Population Z - Test p p = 1 2 Z Proportions (2 Pop’s) é ù 1 1 - + p ( 1 p ) ê ú n n ë û 1 2 where : p - Sample Proportion i n - Sample Size i + x x 1 2 p = + n n 1 2 x - Number of Sample Items with Characteristic of Interest i

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