LEGACY Hypothesis Testing

Hypothesis Testing

A hypothesis is a statement about the value of a population parameter

• To carry out a test you have the null hypothesis which you assume to be true
• The alternative hypothesis tells you about the parameter if is false

For a one-tailed test: , or , For two-tailed test: ,

If the probability of < significance level then you reject it. A critical region is a region of the probability distribution which if the test statistic falls in you reject The actual significance level is the probability of incorrectly rejecting the null hypothesis