Page 342 - The p-value approach to hypothesis testing (Two.pptVIP

Page 342 - The p-value approach to hypothesis testing: (Two-tailed tests) In recent years? widely available statistical software? alternative approach to hypothesis testing. The p-value is the probability of obtaining a test statistic equal to or more extreme than the result obtained from the sample data, given that the null hypothesis Ho is true. Also called the observed level of significance It is the smallest level at which Ho can be rejected for a given set of data. p-value ? ?, fail to reject Ho p-value ? , reject Ho Easy for the normal distribution ? but the computation of the p-value can be very difficult for other distributions. Excel routinely present the p-value as part of the output for many hypothesis-testing procedures. P343 Phstat | One-Sample Tests | Z test for the mean, ? known Cereal box filling example: Ho = 368, ? = 15. n = 25, X-bar = 372.5, ? =.05, two tailed error Traditional hypothesis testing critical value ? ? 1.96 Z = (Xbar - ?)/(?/n?) = +1.50 -1.96 +1.50 +1.96. Fail to reject Ho. There is no evidence that the mean is different from the hypothesized value. p-value approach to hypothesis testing p342 Compute the probability of obtaining a Z value greater than +1.50 along with the probability of obtaining a Z value less than -1.50. Above +1.50 is .5000 -.4332=.0668. Standard normal distribution is symmetric, p = .0668+.0668=.1336. The probability of obtaining a result equal to or more extreme than the one observed is .1336. (p-value =.1336) ? (? = .05) p-value ? ?, Barely fail to reject Ho. P342 343 10 steps - p-value approach #11 Draw a picture. Page 345 Confidence intervals estimation verse hypothesis testing Two major components of statistical inference Same set of concepts, use them for different purposes. In many situations we can use confidence intervals to do a test of a null hypothesis. If the hypothesized value of ? falls into the confidence interval, the null hypothesis would not be rejected. If the