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A large-sample \(\alpha\) -level test of hypothesis for \(H_{0}: \theta=\theta_{0}\) versus \(H_{a}: \theta>\theta_{0}\) rejects the null hypothesis if $$\frac{\hat{\theta}-\theta_{0}}{\sigma_{\hat{\theta}}}>z_{\alpha}$$ Show that this is equivalent to rejecting \(H_{0}\) if \(\theta_{0}\) is less than the large-sample \(100(1-\alpha) \%\) lower confidence bound for \(\theta\)

Short Answer

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Reject \(H_0\) if \(\theta_0\) is less than the lower confidence bound \(L\).

Step by step solution

01

Understand the Hypothesis Test

The test is a right-tailed test with null hypothesis \(H_{0}: \theta = \theta_{0}\) and alternative hypothesis \(H_{a}: \theta > \theta_{0}\). We reject \(H_{0}\) when the test statistic exceeds the critical value \(z_{\alpha}\).
02

Define the Test Statistic

The test statistic for this hypothesis test is given by \[\frac{\hat{\theta} - \theta_{0}}{\sigma_{\hat{\theta}}} > z_{\alpha}\]where \(\hat{\theta}\) is the sample estimate of \(\theta\) and \(\sigma_{\hat{\theta}}\) is the standard deviation of \(\hat{\theta}\).
03

Determine the Confidence Bound

We are interested in the large-sample \(100(1-\alpha)\%\) lower confidence bound for \(\theta\). This bound is given by \[L = \hat{\theta} - z_{\alpha}\sigma_{\hat{\theta}}\]where \(L\) is the lower confidence bound.
04

Relate the Hypothesis Test to the Confidence Bound

Given both expressions, note that the inequality for rejecting \(H_{0}\) is satisfied when \[\theta_{0} < \hat{\theta} - z_{\alpha}\sigma_{\hat{\theta}}\]which can be rewritten as \[\theta_{0} < L\] This shows that \(H_{0}\) is rejected if \(\theta_{0}\) is less than the lower confidence bound \(L\).

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Key Concepts

These are the key concepts you need to understand to accurately answer the question.

Confidence Interval
Understanding confidence intervals is crucial in statistics. A confidence interval is a range derived from sample data that is likely to contain the true population parameter. In a hypothesis testing setting, the confidence interval incorporates a confidence level, usually expressed as a percentage like 95% or 99%. This confidence level indicates the probability that the interval contains the true parameter.

A lower confidence bound is a specific type of confidence interval focusing only on the lower end, providing insights when we test if a parameter exceeds a certain value. In the context of hypothesis testing, if the null hypothesis value \(\theta_0\) is not within the lower confidence bound, it suggests that our sample data provides enough evidence to reject the null hypothesis in favor of the alternative.
  • This is directly tied to the probability threshold we choose (significance level \(\alpha\)).
  • A smaller \(\alpha\) results in a broader interval, signifying more stringent evidence is needed to make a claim.
Recognizing the relationship between hypothesis tests and confidence intervals helps in making informed decisions based on data.
Large-Sample Theory
Large-sample theory, often referred to as asymptotic theory, plays a vital role in statistics, especially for hypothesis testing and confidence intervals. This theory assumes that as the sample size grows larger, the distribution of the sample estimate becomes a normal distribution.

This concept is particularly useful when dealing with large sample sizes where the Central Limit Theorem (CLT) comes into play. The CLT asserts that, given a large enough sample size, the distribution of the sample mean will be approximately normal regardless of the original distribution of the data.
  • Large-sample methods provide simple approximations for complex statistical problems.
  • They enable the use of z-scores for constructing confidence intervals and testing hypotheses like in our problem.
In practical terms, large-sample theory allows statisticians to make reliable inferences about a population using large datasets. It supports the establishment of rules, like rejecting a null hypothesis, by providing a clear threshold based on standard normal distribution.
Right-Tailed Test
A right-tailed test is a type of hypothesis test where we are interested in determining if the sample provides enough evidence to conclude that a parameter is greater than a specified value. This type of test is called 'right-tailed' because we look at the tail on the right side of the distribution.

The null hypothesis and the alternative hypothesis guide the structure of the test. For a right-tailed test, the null hypothesis \(H_{0}: \theta = \theta_{0}\) posits no effect or difference, while the alternative hypothesis \(H_{a}: \theta > \theta_{0}\) suggests a potential effect or difference in the positive direction.
  • The critical value \(z_{\alpha}\) determines the region where we would reject \(H_{0}\).
  • If the calculated test statistic exceeds \(z_{\alpha}\), we reject \(H_{0}\), supporting \(H_{a}\).
In summary, right-tailed tests are essential when we want to assert that an outcome or parameter is significantly greater than a baseline value, using systematic testing and evaluation of statistical evidence.

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Most popular questions from this chapter

True or False. a. If the \(p\) -value for a test is .036 , the null hypothesis can be rejected at the \(\alpha=.05\) level of significance. b. In a formal test of hypothesis, \(\alpha\) is the probability that the null hypothesis is incorrect. c. If the \(p\) -value is very small for a test to compare two population means, the difference between the means must be large. d. Power \(\left(\theta^{*}\right)\) is the probability that the null hypothesis is rejected when \(\theta=\theta^{*}\). e. Power( \((\theta)\) is always computed by assuming that the null hypothesis is true. f. If \(.01 < p\) -value \( < .025\), the null hypothesis can always be rejected at the \(\alpha=.02\) level of significance. g. Suppose that a test is a uniformly most powerful \(\alpha\) -level test regarding the value of a parameter \(\theta .\) If \(\theta_{a}\) is a value in the alternative hypothesis, \(\beta\left(\theta_{a}\right)\) might be smaller for some other \(\alpha\) -level test. h. When developing a likelihood ratio test, it is possible that \(L\left(\widehat{\Omega}_{0}\right) > L(\widehat{\Omega})\) i. \(-2 \ln (\lambda)\) is always positive.

A check-cashing service found that approximately \(5 \%\) of all checks submitted to the service were bad. After instituting a check-verification system to reduce its losses, the service found that only 45 checks were bad in a random sample of 1124 that were cashed. Does sufficient evidence exist to affirm that the check-verification system reduced the proportion of bad checks? What attained significance level is associated with the test? What would you conclude at the \(\alpha=.01\) level?

Show that a likelihood ratio test depends on the data only through the value of a sufficient statistic. [Hint: Use the factorization criterion.]

An article in American Demographics reports that \(67 \%\) of American adults always vote in presidential elections. \(^{\star}\) To test this claim, a random sample of 300 adults was taken, and 192 stated that they always voted in presidential elections. Do the results of this sample provide sufficient evidence to indicate that the percentage of adults who say that they always vote in presidential elections is different than the percentage reported in American Demographics? Test using \(\alpha=.01\)

Let \(Y_{1}, Y_{2}, \ldots, Y_{20}\) be a random sample of size \(n=20\) from a normal distribution with unknown mean \(\mu\) and known variance \(\sigma^{2}=5 .\) We wish to test \(H_{0}: \mu=7\) versus \(H_{a}: \mu>7\) a. Find the uniformly most powerful test with significance level. \(05 .\) b. For the test in part (a), find the power at each of the following alternative values for \(\mu\) : \(\mu_{\alpha}=7.5,8.0,8.5,\) and9.0. c. Sketch a graph of the power function.

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