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6 Cards in this Set

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Hypothesis Test

Used to prove or disprove a theory or claim by comparing two or more samples or comparing a single sample to a define value.

Hypothesis Testing 5 Steps

Determine what to compare and assume no difference


Decide how much risk of being wrong is acceptable


Use data to calculate a test statistic


Compare the test statistic to a critical test statistic


Make a decision by comparing p-vale to accepted risk value

Null Hypothesis

Statement of no change or difference


Cannot be proved only rejected

Alternative Hypotheses

Statement of change or difference


Challenges the null hypothesis

Type I Error

Reject a null when it is true false positive (producers risk).

Type II error

Fail to reject a null hypothesis when it is false. False negative (consumer risk).