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Summary Statistics 1B

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summary of the book introduction to the practice of statistics

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  • February 1, 2016
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Statistic 6.2

Tests of significance:

 The confidence interval is appropriate when our goal is to
estimate population parameters
 Tests of significance – to assess the evidence provided by the
data in favor of some claim about the population parameter
o a formal procedure for comparing observed data with a
hypothesis whose truth we want to asses
o a process of assessing the significance of the evidence
provided by data against the NH
o Step 1: state the NH and the AH
o Step 2: calculate the value of the test statistic
o Step 3: find the p-value
o Step 4: state a conclusion; e.g. a significance level ∝
 hypothesis is a statement about the population parameters
 the results of a test are expressed in terms of a probability
that measures how well the data and the hypothesis agree
Stating Hypotheses:

 null hypothesis – the statement being tested in a test of
significance; usually the null hypothesis is a statement of “no
effect” or “no difference in the true means”
o e . g . H 0 : there is no difference in the true means
o a statement about the population parameter
o refers to the true means
 alternative hypothesis – name of the statement that we hope
or suspect to be true instead of the null hypothesis
o e . g . H a : the true means are not the same
o is the statement that we will accept if the evidence
enables us to reject the NH
 the test of significance is designed to asses the strength of the
evidence against the null hypothesis
 “if” the previous sentence is true; the null hypothesis is true
 then ask whether the data provide evidence against the
supposition we have made
 Step 1: state a claim that we will try to find evidence against
 Hypothesis always refer to some populations not to a
particular outcome; therefore we always have to state our NH
and AH in terms of population parameters
 Alternative hypothesis can whether be one-sided or two-sided;
which refers whether a parameter differs from its null
hypothesis value in a specific direction or in either direction



Test statistics:

,  When NH is true, we expect the estimate to take a value near
the parameter value specified by NH
 Values of the estimate far away from the parameter value
specified by NH give evidence against NH; the alternative
hypothesis determines which directions count against NH
 To assess how far the estimate is from the parameter,
standardize the estimate
estimate−hypothesized value
o z=
standard deviationof the estimate
 a test statistic measures compatibility b/w the NH and the
data
o usually measures how far the data are from the NH
557−0
 e.g. z= =1.49→ we have observed a sample estimate
374
that is about one and a half standard deviations away from
the hypothesized value of the parameter
p-values:

 two or three standard deviations is its criterion for rejecting
NH
 a test of significance finds the probability of getting an
outcome as extreme or more extreme than the actually
observed outcome
 extreme = far from what we would expect
 the direction or directions that count as far from what we
would expect are determined by the NH and AH
 p-value – the probability, assuming the NH is true, that the
test statistic would take a values as extreme or more extreme
than that actually observed
o the smaller the p-value, the stronger the evidence
against the NH provided by the data
o e.g. p.362 6.12
Statistical significance:

 we can compare the p-value we calculated with a fixed value
the we regard as decisive entscheidend; this amounts announce
in advance how much evidence against the NH is required to
reject the NH
 significance level – the decisive value of p, commonly know as
α
 ∝=0.05
 if the p-value is less or equal to ∝ , you conclude that the AH
is true; if the p-value is greater than ∝ , than you conclude
that the data do not provide sufficient evidence to reject the
NH
Tests for a population mean:

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