CHAPTER9
     ONE-SAMPLE TESTS
     OF HYPOTHESIS
                                                        LIND
                                                    MARCHAL
                                                     WATHEN
                                                       WAITE
                       © 2015 McGraw-Hill Education            2
  Learning Objectives
  LO1 Define a hypothesis.
  LO2 Explain the five-step hypothesis testing procedure.
  LO3 Define Type I and Type II errors.
  LO4 Define the term test statistic and explain how it is used.
  LO5 Distinguish between a one-tailed test and a two-tailed test 
        of hypothesis.
  LO6 Conduct a test of hypothesis about a population mean.
  LO7 Compute and interpret a p-value.
  LO8 Conduct a test of hypothesis about a population proportion.
                           © 2015 McGraw-Hill Education              3
  Learning Objective
   LO
     1
        DEFINE A HYPOTHESIS
                       © 2015 McGraw-Hill Education        4
  What is a Hypothesis?
  A hypothesis is a statement about a population 
  parameter subject to verification.
  In statistical analysis we make a claim, that is, state a 
  hypothesis, collect data, and then use the data to test 
  the claim.
  Example:  A hypothesis might be that the mean 
  monthly commission of sales associates in a retail 
  electronic store is $3000.
 LO1
                         © 2015 McGraw-Hill Education         5
  What is Hypothesis Testing?
  The terms hypothesis testing, significance testing, and 
  testing a hypothesis are used interchangeably.
  Hypothesis testing is a procedure based on sample 
  evidence and probability theory to determine whether 
  the hypothesis is a reasonable statement.
  Example:  To test the validity of the assumption on the 
  previous slide (μ = $3000), we select a sample from the 
  population of all sales associates, calculate sample 
  statistics and, on the basis of specific decision rules, 
  reject or not reject the hypothesis.
 LO1
                         © 2015 McGraw-Hill Education         6