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S10.2 - Hypothesis Tests, Standard Deviation Known
Hypothesis Tests for a Population Mean, Population Standard Deviation Known
21
Mathematics
Graduate
11/08/2013

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Term
2 requirements needed to test hypotheses regarding population mean assuming the population standard deviation is known
Definition
1. A simple random sample is obtained
2. The population from which the sample is drawn is normally distributed or n>=30
Term
3 methods for testing hypotheses
Definition
1. Classical approach
2. P-value approach
3. Confidence intervals
Term
Statistically significant
Definition
When observed results are unlikely under the assumption that the null hypothesis is true
Term
Classical approach of hypothesis testing
Definition
If the sample mean is too many standard deviations from the mean stated in the null, we reject the null
Term
P-value approach of hypothesis testing
Definition
If the probability of getting a sample mean as extreme or more extreme than the one obtained is small, we reject the null
Term
2 requirements using classical and p-value approach
Definition
1. The sample is obtained using simple random sampling
2. The sample has no outliers and population is normally distributed or n >= 30
Term
Test statistic, z0 =
Definition
xbar-mew0/(sigma/n^0.5)
Term
Test statistic
Definition
Represents the number of standard deviations that the sample mean is from the assumed mean mew0
Term
The level of significance is used to determine
Definition
The critical value
Term
Critical value
Definition
Represents the maximum number of standard deviations that the sample mean can be from mew0 before the null is rejected
Term
Critical region
Definition
The set of all values such that the null is rejected
Term
Critical region, two-tailed test
Definition
If z0<-z(alpha/2) or
z0>z(alpha/2)
then reject null
Term
Critical region, left-tailed test
Definition
If z0<-zalpha
then reject null
Term
Critical region, right-tailed test
Definition
If z0>zalpha
then reject null
Term
Decision rule for classical approach
Definition
The comparison of the test statistic and the critical value
Term
Robust
Definition
Minor departures from normality will not adversely affect the results of the test
Term
P-value
Definition
The probability of observing a sample statistic as extreme or more extreme than the one observed under the assumption that the null is true
Term
Small p-value
Definition
Reject null
Term
Large p-value
Definition
Fail to reject null
Term
Decision rule for p-value approach
Definition
The comparison of the p-value and the level of significance
Term
Practical significance
Definition
Small differences between the statistic and parameter stated in the null are statistically significant, the differences may not be large enough to cause concern or be considered important
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