Outline

Introduction
Definitions
Exercises

Chapter 9 - Lecture 1
Hypotheses and Test Procedures

Andreas Artemiou

February 26th, 2010

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures

 Outline
Introduction
Definitions
Exercises

Introduction

Definitions
Statistical Hypothesis
Test Hypotheses
Errors and Power
Examples

Exercises

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures

 Outline
Introduction
Definitions
Exercises

The story of a (possible) cheater

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures

 Outline Statistical Hypothesis
Introduction Test Hypotheses
Definitions Errors and Power
Exercises Examples

Statistical Hypothesis

I Statistical Hypothesis is a claim about the value of a

parameter or about the value of several parameters, or about
the entire probability distribution. There are two contradicting
hypotheses:
I The null hypothesis H0 is the claim that is initially assumed
to be true
I The alternative hypothesis HA is the claim that contradicts
the null (and the one we are interested to test).

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures

 Outline Statistical Hypothesis
Introduction Test Hypotheses
Definitions Errors and Power
Exercises Examples

Test Hypotheses

I The procedure used to reach a conclusion whether the null

hypothesis will be rejected or not is called test hypotheses.
The procedure is based on 5 steps:
I Step 1: State the hypotheses
I Step 2: Check conditions and find the null distribution and
the test statistic
I Step 3: Find the rejection region (or calculate the p-value)
I Step 4: Make a decision
I Step 5: Reach a conclusion

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures

 Outline Statistical Hypothesis
Introduction Test Hypotheses
Definitions Errors and Power
Exercises Examples

Definitions

I Test statistic is the function of sample data on which the

decision whether to reject or not the null hypothesis will be
based
I Rejection region is a set of values of the test statistic for
which the null hypothesis will be rejected

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures

 Outline Statistical Hypothesis
Introduction Test Hypotheses
Definitions Errors and Power
Exercises Examples

Type I and Type II error

I Type I error is the probability to reject the null hypothesis

when it is true and we shouldnt actually reject it. It is
denoted with and it is also called the size of the test
I Type II error is the probability to do not reject the null
hypothesis when it is false and we should have actually
rejected it. It is denoted by and it is a function of all the
parameter values in the alternative hypothesis.
I Power = 1 - Type II error
I What do you think the definition of the power is?

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures

 Outline Statistical Hypothesis
Introduction Test Hypotheses
Definitions Errors and Power
Exercises Examples

Example 9.1 page 421

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures

 Outline Statistical Hypothesis
Introduction Test Hypotheses
Definitions Errors and Power
Exercises Examples

Example 9.2 page 422

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures

 Outline
Introduction
Definitions
Exercises

Exercises

I Section 9.1 page 426

I Exercises 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14

Andreas Artemiou Chapter 9 - Lecture 1 Hypotheses and Test Procedures