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inferential statistics

2 ways to state a statistical hypothesis

first is the null hypothesis H0, this is the chance hypothesis

says there is no significant relationship

although the null states the difference should be zero, this shouldn't be taken too literally, a certain amount of fluctuation is expected

 

question is, how big can the difference be and not be considered significant?

to do this we use standard error

however pop std usually unknown so we use the std of the sample

second method of stating a hypothesis is called the alternate H1

says there is a significant difference

 

there are 6 steps in hypothesis testing

1) formulae the hypothesis, H0 or H1

2) specify the appropriate sample statistic and its sampling distribution

3) select a level of significance (")

4) construct a decision rule

5) compute the value of the test statistic

6) make the decision

specifying the sample statistic

test statistics divided into 2 groups: parametric and nonparametric

parametric tests are based on hypothesis concerning population parameters

1) assumed samples are drawn form normally distributed population

2) assumes homogeneity of variance, that is variances within the subsamples are assumed to homogeneous from subsample to subsample, if this is violated test is seriously compromised

3) assumed data is measured on continuous metric scale

 

computing test statistics

 

test statistics = computed statistic - hypothesized parameter

standard error of the computed statistic

 

the key is the selection of the test distribution

 

significance of the difference between 0 and : when F is known

use the z test

where 0 is calculated from the sample

: is the hypothesized parameter

F0 is the standard error or the standard deviation of the sampling distributions of the means which is computed by F/n1/2

 

confidence limits

how far from the population mean would the sample mean have to deviate to cause one not to accept H0

when the random sample size is large X can be assumed to be normally distributed

confidence limits for : when F is known

question might arise, how far from the population mean would sample mean have to be to cause one not to accept H0

from knowledge of the normal distribution, regardless of where 0 is located relative to :, approximately 95% of the possible values of 0 that make up the distribution are within 2 std devs of the mean

the lower and upper limits for 0 are : -1.960 and : +1.960

this is the confidence interval for :

given the sample mean 0 and Z value, the lower and upper confidence limits may be computed by

where

you can't be sure that population mean falls with the limits but you can 95% confident that it does

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