Questions On The Null Hypothesis Essay

859 Words Sep 17th, 2016 4 Pages
Question 1
Null hypothesis
The null hypothesis, which is symbolically expressed as H0, is a statement that indicates no difference between a parameter and a specific value or between two parameters.
Alternative Hypothesis
The alternative hypothesis, which is symbolically expressed as HA or H1, is a statement that indicates the presence of a difference between a parameter and a specific value or between two parameters.
Decision Rules
On testing the null hypothesis, two main decision rules are plausible. These decisions are arrived at using either the critical value or the probability value (p-value). On one hand, the critical value is a value that indicates the boundary between the critical region and the non-critical region. In this case, the critical region is a range of values of the test statistic that denotes a significant difference and that the null hypothesis should be rejected. On the other hand, the p-value denotes the likelihood of obtaining an extreme sample statistic when the null hypothesis is true. In this case, we may reject the null hypothesis or fail to reject the null hypothesis. Based on the critical value, we reject the null hypothesis if the test statistic is in the critical region. If the test statistic is not in the critical region, we do not reject the null hypothesis. Based on the p-value, we reject the null hypothesis if the p-value is less than or equal to the significance level. If the p-value is greater than the significance level, we do not…

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