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Briefly explain the meaning of each of the following terms. a. Null hypothesis b. Alternative hypothesis c. Critical point(s) d. Significance level e. Nonrejection region f. Rejection region \(\mathrm{g}\). Tails of a test h. Two types of errors

Short Answer

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a. Null hypothesis: Statement we assume to be true.\nb. Alternative hypothesis: Counter statement to null hypothesis.\nc. Critical point(s): Values separating rejection and nonrejection regions.\nd. Significance level: Risk of making a Type I error.\ne. Nonrejection region: Range of values for which we accept the null hypothesis.\nf. Rejection region: Range of values for which we reject the null hypothesis.\ng. Tails of a test: Relates to rejection region(s) in the distribution.\nh. Two types of errors: Type I error (erroneously reject null), Type II error (fail to reject false null).

Step by step solution

01

Define Null Hypothesis

The null hypothesis, often denoted as \(H_0\), is a statement about a population parameter that we assume to be true until we have enough evidence to suggest otherwise.
02

Define Alternative Hypothesis

The alternative hypothesis, often denoted as \(H_a\) or \(H_1\), is the statement we believe might be true if the null hypothesis is false. It is basically the complement of the null hypothesis.
03

Define Critical point(s)

Critical points are values that separate the rejection region(s) from the nonrejection region in a testing distribution. At these points, if the calculated test statistic equals or exceeds the critical value, we reject the null hypothesis.
04

Define Significance Level

The significance level, often denoted as \(\alpha\) (alpha), is the probability of rejecting the null hypothesis when it is true. It represents the risk of making a Type I error.
05

Define Nonrejection Region

The nonrejection (or acceptance) region is the range of values for which we retain (do not reject) the null hypothesis.
06

Define Rejection Region

The rejection region is the range of values for which we reject the null hypothesis.
07

Define Tails of a Test

Tails of a test relate to the rejection region(s) in the testing distribution. A test can be one-tailed (rejection region is in one tail) or two-tailed (rejection regions are in both tails).
08

Define Types of Errors

There are two types of errors in hypothesis testing. Type I error occurs when we reject the null hypothesis when it's true. Type II error occurs when we fail to reject the null hypothesis when it's false.

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Most popular questions from this chapter

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Consider the null hypothesis \(H_{0}: \mu=100\). Suppose that a random sample of 35 observations is taken from this population to perform this test. Using a significance level of \(.01\), show the rejection and nonrejection regions and find the critical value(s) of \(t\) when the alternative hypothesis is as follows. a. \(H_{1}: \mu \neq 100\) b. \(H_{1}: \mu>100\) c. \(H_{1}: \mu<100\)

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