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Explain the meaning of each term.

a. null hypothesis b. alternative hypothesis

c. test static d. significance level

Short Answer

Expert verified

a). The null hypothesis is a hypothesis to be tested.

b). The alternative hypothesis is a hypothesis which contradicts the null hypothesis.

c). The test statistic is statistic used as a basis for deciding whether the null hypothesis should be rejected.

d). The significance level of the hypothesis test is the probability of making a Type I error, that is, of rejecting a true null hypothesis.

Step by step solution

01

Step 1. Definition (a).

Null hypothesis:

The null hypothesis is a hypothesis to be tested. We use symbol H0to represent the null hypothesis.

02

Step 2.  Definition (b).

Alternative hypothesis:

The alternative hypothesis is a hypothesis which contradicts the null hypothesis. A hypothesis is considered to be alternative to the null hypothesis. We use the symbol Hato represent the alternative hypothesis.

03

Step 3. Definition (c).

Test statistic:

It is used as a basis for deciding whether the null hypothesis should be rejected or not.

04

Step 4. Definition (d).

Significance level:

It is the probability test, making a Type I error, that is, of rejecting a true null hypothesis.

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