1. The document discusses the difference between hypothesis testing and estimation. Hypothesis testing involves using sample evidence to assess the likelihood that an assumption about a population characteristic is true, while estimation uses samples to estimate unknown population characteristics.
2. The null hypothesis states that any difference between a sample statistic and assumed population parameter is due to chance. Analysts test the null hypothesis to determine if sample evidence suggests it is unlikely or not.
3. Hypothesis testing procedures involve stating the null and alternative hypotheses, determining the appropriate sampling distribution assuming the null is true, taking a sample and computing test statistics, and assessing the likelihood of the test statistics given the assumed distribution.
1. The document discusses the difference between hypothesis testing and estimation. Hypothesis testing involves using sample evidence to assess the likelihood that an assumption about a population characteristic is true, while estimation uses samples to estimate unknown population characteristics.
2. The null hypothesis states that any difference between a sample statistic and assumed population parameter is due to chance. Analysts test the null hypothesis to determine if sample evidence suggests it is unlikely or not.
3. Hypothesis testing procedures involve stating the null and alternative hypotheses, determining the appropriate sampling distribution assuming the null is true, taking a sample and computing test statistics, and assessing the likelihood of the test statistics given the assumed distribution.
1. The document discusses the difference between hypothesis testing and estimation. Hypothesis testing involves using sample evidence to assess the likelihood that an assumption about a population characteristic is true, while estimation uses samples to estimate unknown population characteristics.
2. The null hypothesis states that any difference between a sample statistic and assumed population parameter is due to chance. Analysts test the null hypothesis to determine if sample evidence suggests it is unlikely or not.
3. Hypothesis testing procedures involve stating the null and alternative hypotheses, determining the appropriate sampling distribution assuming the null is true, taking a sample and computing test statistics, and assessing the likelihood of the test statistics given the assumed distribution.
1. The document discusses the difference between hypothesis testing and estimation. Hypothesis testing involves using sample evidence to assess the likelihood that an assumption about a population characteristic is true, while estimation uses samples to estimate unknown population characteristics.
2. The null hypothesis states that any difference between a sample statistic and assumed population parameter is due to chance. Analysts test the null hypothesis to determine if sample evidence suggests it is unlikely or not.
3. Hypothesis testing procedures involve stating the null and alternative hypotheses, determining the appropriate sampling distribution assuming the null is true, taking a sample and computing test statistics, and assessing the likelihood of the test statistics given the assumed distribution.
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PHILIPPINE WOMEN’S UNIVERSITY
TAFT, MANILA
EXPANDED TERTIARY EDUCATION EQUIVALENCY
AND ACCREDITATION PROGRAM (ETEEAP) SECOND TRIMESTER, SY 2020-2021 BUSINESS STATISTICS – CLUSTER 4 ---------------------------------------------------------------------------------------------------------------- TOPIC- 6 HYPOTHESIS TESTING
It is important to understand the difference between hypothesis testing and estimation. Both procedures involve the use of sampling distributions.
Estimation involves using sample evidence to estimate the unknown characteristics of a
population.
Hypothesis testing involves using sample evidence to assess the likelihood that an assumption about some characteristics of a population s true.
Null Hypothesis is the assumption about the population that us tested using sample evidence. It states that the difference between sample statistic and the assumed population parameter is due to chance variation in sampling. The symbol for the null hypothesis is Ho The symbol for the alternative hypothesis is H1
HYPOTHESIS TESTING PROCEDURES
1. State the null and alternative hypothesis.
2. Assume the null hypothesis is true, and determine the appropriate sampling distribution for this assumption.
3. Take a random sample from the population under investigation and compute the appropriate test statistics from the collected data. After the sample have been selected, the appropriate statistic, a single numerical value, is calculated from the data, This is commonly the sample mean or sample proportion.
4.Assess the likelihood of selecting the test statistics from the assumed sampling distributions. QUESTIONS: 1.Why do analysts test the null hypothesis?
2. Whys is it necessary to assume that the null hypothesis is true?
3. State the appropriate null hypothesis and alternative hypothesis to test the following statements:
a. A supplier of plastic cups has agreed to send manufacturing firm shipments containing no more 2% defectives.
b. The average time for delivery of Jollibee is 45 minutes.
c. The average age of PWU college student is 21 years old.
d. A random sample of accounts receivable were checked to determine whether the proportion that were delinquent has changed from 10%.
