Hypothesis Test for Means
- A statistical hypothesis is an assertion about a parameter of a population.
- Hypothesis testing is an application of statistical inference which forms a major part of statistics.
- It provides a well structured analytical method for making decision about population means.
Types of Hypothesis
- NULL HYPOTHESIS: the statement about the population parameter that will be assumed to be true during the conduct of the hypothesis test. Its denoted by H0.
- ALTERNATIVE HYPOTHESIS: the hypothesis that includes all population values not included in the null hypothesis. It is denoted by H1.
- Examples
- The box cereal has a mean fill of 16 ounce. H0: µ = 16 H1: µ ≠ 16
- Good year’s tire will last longer than its competitors, or more than 60,000 miles, H0: µ ≤ 60,000 H1: µ > 60,000
Steps to Formulating the Null and Alternative Hypothesis
- The population parameter of interest (µ, ρ,σ ) must be identified
- The hypothesis of interest to the researcher or the analyst must be identified
- The null hypothesis will contain the equal sign, the null hypothesis will not
- The range of the possible values for the parameter must be divided between the null and alternate hypothesis
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