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Statistical Hypothesis
Statistical Hypothesis
Statistical Hypothesis
Is an assertion, statement, or conjecture concerning one or more unknown parameters or
distributional properties of the population.
Four possibilities
You have made the right decision when a true null hypothesis is not rejected or when
false null hypothesis is rejected.
You commit errors when true null hypothesis is rejected (type I error) and when a false
null hypothesis is not rejected (type II error).
Type I error
Is an error of rejecting a null hypothesis when in fact it is true
Type II error
Is an error of accepting a null hypothesis when in fact it is false
Type I error
α = P[Type I error]
Known as the level of significance.
This is the probability of rejecting a true null hypothesis.
A confidence level 1 – α is the probability of making the correct decision of not rejecting
a true null hypothesis.
Type II error
β=P[Type II error]