Question

Essay: Write out (in a paragraph or so), the basic concept of hypothesis testing.

Answer 1

Hypothesis testing is always done when we have a sample data and we want to estimate a result out of the sample.

We always need to have a claim and an alternative claim.

Say we are testing on whether the mean of the data is 0 or not

We put the null hypothesis as H0:u=0 and the

Alternate Hypothesis as Ha:u\=0

Then we take the sample and find its mean and the standard deviation and find the t ratio or the Z ratio depending on what is the sample size.

t* or Z* ratio-> (sample mean-claim mean)*sqrt(sample size)/standard deviation of sample

Then we check the standard table for the values with the required significance level and degrees of freedom for the standard t or Z values.

If t*>t or Z*>Z, then we say that the null hypothesis is rejected else vice versa.

answered by: anonymous