Procedure for hypothesis testing

steps in hypothesis testing pdf

This is the same procedure that we used to conduct a hypothesis test for a single mean, single proportion, difference in two means, and difference in two proportions.

Thus, a null hypothesis states that there is no difference between the assumed and actual value of the parameter. The hypotheses are stated in such a way that they are mutually exclusive.

types of hypothesis testing

We often use two-sided tests even when our true hypothesis is one-sided because it requires more evidence against the null hypothesis to accept the alternative hypothesis.

The average score in an aptitude test administered at the national level is The p-value is the area under that distribution to the right of the test statistic that was computed in Step 2.

Hypothesis testing in research methodology pdf

The P-value is the probability of observing a sample statistic as extreme as the test statistic, assuming the null hypothesis is true. The third step is to construct the confidence interval. The intervention and control groups have the same survival rate or, the intervention does not improve survival rate. The fourth step is to reject or accept the null hypothesis depending upon the comparison between the tabulated value and the calculated value. Cautions About P-Values Your sample size directly impacts your p-value. Business Jargons Business Statistics Hypothesis Testing Procedure Hypothesis Testing Procedure Definition: The Hypothesis is an assumption which is tested to check whether the inference drawn from the sample of data stand true for the entire population or not. You should always verify the practical relevance of your results. Computed from sample data, the test statistic might be a mean score, proportion, difference between means, difference between proportions, z-score, t statistic, chi-square, etc. Using sample data, perform computations called for in the analysis plan. This step of the hypothesis testing also involves the construction of the confidence interval depending upon the testing approach. It is because the null hypothesis is the statement being tested and we need a specific value to include in our calculations. Level of significance is defined as the probability of making a type-I error. The second step of this approach is to determine the test size. This means that hypotheses should be clearly stated, considering the nature of the research problem.

Selecting a significance level: The hypotheses are tested on a pre-determined level of significance and as such the same should be specified. The hypotheses will depend on the research question. Not likely to happen strictly by chance.

errors in hypothesis testing

When presenting the results of a hypothesis test, include the descriptive statistics in your conclusions as well. The decision involves either accepting the null hypothesis or rejecting it.

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How to Test Hypotheses