HYPOTHESIS TESTING

HYPOTHESIS TESTING 

Hypothesis testing - a decision-making process for evaluating claims about a population

Three Methods used to test hypotheses:
1. Traditional Method - used since the the hypothesis method was formulated 
2. the P-Value Method - become popular with the advent of modern computers and high-powered statistical calculators
3. The Confidence Interval Method - illustrates the relationship between hypothesis testing and confidence intervals

Steps in Hypothesis Testing
1. State the hypotheses, and identify the claim
2. Find the critical value(s) from the appropriate table
3. Compute the test value
4. Make the decision to reject or not to reject the null hypothesis
6. Summarize results