Statnprob1 Q4 Testinghypothesiss
Statnprob1 Q4 Testinghypothesiss
Statnprob1 Q4 Testinghypothesiss
PROBABILITY
LESSON 1: TESTING HYPOTHESIS
4TH QUARTER
Hartmann, K., Krois, J., Waske, B. (2018): E-Learning Project SOGA: Statistics and Geospatial Data
Analysis. Department of Earth Sciences, Freie Universitaet Berlin.
Error in Hypothesis Testing
Error in Hypothesis Testing
Let’s Try!
Bryan is starting his own food cart business, and he is
choosing cities where he will run his business. He wants to
survey residents and test at 5% level of significance whether the
demand is high enough to support his business before he applies
for the necessary permits to operate in his selected city. He will
only choose a city if there is strong evidence that the demand
there is high enough. We can state the null hypothesis for his test
as:
Let’s Try!
Here are things we should know about One and Two-tailed test
• When the alternative hypothesis is two-sided like Ha : 𝜇 ≠𝜇 o , it is
called two-tailed test.
• When the given statistics hypothesis assumes a less than or greater
than value, it is called one-tailed test.
Illustration of Rejection Region
For us to understand on how to claim or reject the null hypothesis,
let’s take note the regions on our distribution curve.