Monday, 23 July 2012

Hypothesis testing
         A decision making process for evaluating claims about the population.


Three methods used to test the hypotheses:

1. Traditional Method- used since the hypothesis-testing method was formulated
2. The P- value Method- become popular with the advent of modern computers and high-powered statistical calculators.
3. The Confidence Interval Method- illustrate the relationship between hypothesis testing and confidence intervals.


Steps in Hypothesis Testing
 
1. State the hypotheses, and identify the claim.
2. Find the critical value(s) from the appropriate table.
3. Compute the test value.
4. Make the decision to reject or not the null hypothesis.
5. Summarize the result.


J. Santillan

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