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    BRM Assignment 1 Group 4

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    geachew mihiretu
    The document discusses hypothesis testing, which is a formal statistical procedure used to test hypotheses. It describes the four steps of hypothesis testing and the two types of errors that can occur when interpreting results: type I errors, where a null hypothesis is incorrectly rejected, and type II errors, where a null hypothesis is incorrectly accepted. Lowering the alpha level and increasing sample size can help reduce these errors.

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    BRM Assignment 1 Group 4

    Uploaded by

    geachew mihiretu
    6 views3 pages
    The document discusses hypothesis testing, which is a formal statistical procedure used to test hypotheses. It describes the four steps of hypothesis testing and the two types of errors that can occur when interpreting results: type I errors, where a null hypothesis is incorrectly rejected, and type II errors, where a null hypothesis is incorrectly accepted. Lowering the alpha level and increasing sample size can help reduce these errors.

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    Brm Assignment 1 Group 4

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    The document discusses hypothesis testing, which is a formal statistical procedure used to test hypotheses. It describes the four steps of hypothesis testing and the two types of errors that can occur when interpreting results: type I errors, where a null hypothesis is incorrectly rejected, and type II errors, where a null hypothesis is incorrectly accepted. Lowering the alpha level and increasing sample size can help reduce these errors.

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    6 views3 pages

    BRM Assignment 1 Group 4

    Uploaded by

    geachew mihiretu
    The document discusses hypothesis testing, which is a formal statistical procedure used to test hypotheses. It describes the four steps of hypothesis testing and the two types of errors that can occur when interpreting results: type I errors, where a null hypothesis is incorrectly rejected, and type II errors, where a null hypothesis is incorrectly accepted. Lowering the alpha level and increasing sample size can help reduce these errors.

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    of 3

    GAGE UNIVERSITY COLLEGE

    DEPARTMENT OF MBA

    BUSINESS RESEARCH METHODS


    GROUP ASSIGNMENT-1

    Prepared By:
    Eyerusalem Abebe ------------------ MMBA/227/14
    Ahmedin Sherefa ------------------ MMBA/378/14
    Derbew Tafere ----------------------MMBA/264/14
    Dereje Gemechu -------------------- MMBA/261/14
    Habtamu Siyoum -------------------- MMBA/260/14
    Selam Tsegaye -----------------------MMBA/248/14

    Submitted to: Dr. Fetene B.

    April, 2022
    Hypothesis Testing

    Hypothesis testing is the formal procedure used by statisticians to test whether a certain
    hypothesis is true or not. It's a four-step process that involves writing the hypothesis, creating an
    analysis plan, analyzing the data, and then interpreting the data. These tests are useful because
    you can use these tests to help you prove your hypotheses. If you have a successful test, then you
    can publish that information to let people know what you have found.
    For example, a cleaning company can publish information that proves that their cleaning product
    kills 99% of all germs if they perform a hypothesis test that has data that proves their hypothesis
    that their cleaning product kills 99% of germs.
    While these tests can be very helpful, there is a danger when it comes to interpreting the results.
    It is possible to make two different kinds of errors when interpreting the results.

    Type I Errors

    The first type is called a type I error. This type of error happens when you say that the null
    hypothesis is false when it is actually true. Our null hypothesis is the hypothesis for our expected
    outcome. If our null hypothesis is that dogs live longer than cats, it would be like saying dogs
    don't live longer than cats, when in fact, they do. To help you remember this type I error, think of
    it as having just one wrong. You are wrongly thinking that the null hypothesis is false. In
    statistics, we label the probability of making this kind of error with this symbol:

    α
    It is called alpha. This is a value that you decide on. Usually, it is 0.05, which means that you are
    okay with a 5% chance of making a type I error. The lower the alpha number, the lower the risk
    of you making such an error. The tricky part with setting the alpha number is that if you set it too
    low, it may mean that you won't catch the really small differences that may be there.

    Type II Errors

    The other type of error is called a type II error. This type of error happens when you say that the
    null hypothesis is true when it is actually false. For our null hypothesis that dogs live longer than
    cats, it would be like saying that dogs do live longer than cats, when in fact, they don't. To help
    you remember a type II error, think of two wrongs. You are wrongly thinking that the null

    1
    hypothesis is wrong. The probability of making a type II error is labeled with a beta symbol like
    this:

    β
    This type of error can be decreased by making sure that your sample size, the number of test
    subjects you have, is large enough so that real differences can be spotted. So for the dogs and
    cats, this would mean that you need to gather data about enough dogs and cats to see a real
    difference between them. If you have information about just one dog and one cat, you can't say
    for sure that the statement that dogs live longer than cats is true or not. If the dog lives longer
    than the cat, then you might make the mistake of saying that dogs do live longer than cats, even
    though the opposite were true, your sample size isn't large enough for you to see a difference.

    If you take this beta value and you subtract it from 1 (1 - beta), you will get what is called the
    power of your test. The higher the power of your test, the less likely you are to make a type II
    error.

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