Stats - Confidence Intervals As Tests

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3/24/2017 Stats:ConfidenceIntervalsasTests

Stats:ConfidenceIntervalsasTests
Usingtheconfidenceintervaltoperformahypothesistestonlyworkswithatwotailedtest.

Ifthehypothesizedvalueoftheparameterlieswithintheconfidenceintervalwitha1alphalevelof
confidence,thenthedecisionatanalphalevelofsignificanceistofailtorejectthenullhypothesis.
Ifthehypothesizedvalueoftheparameterliesoutsidetheconfidenceintervalwitha1alphalevelof
confidence,thenthedecisionatanalphalevelofsignificanceistorejectthenullhypothesis.

Soundssimpleenough,right?Itis.

However,ithasacoupleofproblems.

Itonlyworkswithtwotailhypothesistests.
Itrequiresthatyoucomputetheconfidenceintervalfirst.Thisinvolvestakingazscoreortscoreand
convertingitintoanxscore,whichismoredifficultthanstandardizinganxscore.

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