Hypothesis Testing

Hypothesis Testing

Question 1

Hypothesis testing is basically based on six steps. These steps make the entire worked in a better protocol and generate best results in the end (Brown, 2010).

Step 1

In the first step the null and alternative hypothesis are been determined. In this point the researcher must put what is considered to be true historically in the Null hypothesis. On the other hand what is determined to be kept in alternative hypothesis? All the burden of evidences is bear by the alternative. The example for this can be that if we already have knowledge that average value of the random variable is going to be 100 in the past and we are then testing something which is newer, than that might be affecting the value of µx than the proper null and alternative hypothesis will be the following:

H0: µ× = 100

HA: µ× ?100

The illustrated hypothesis may differ in accordance to the fact that some new method has increased or decreased the value.

Step 2

At this point level of significance is specified, here comes the involvement of a and ß. In case of a, the researcher shows that the probability of concluding the alternative hypothesis which is proposed by the researcher is true when on the other hand alternative hypothesis is than not true. This is called type 1 error. In case of ß, the researcher shows that the probability of not concluding the alternative hypothesis which has been proposed by the researcher is true when on the other hand alternative hypothesis true. This is called type 2 error (Brown, 2010).

Step 3

In this step the Test Statistic is determined and its distribution is also involved. This is basically not much depending on the fact that we have conducted 1 or 2 sided tests. Distribution of the Test Statistic depends on whether ...