Professional Documents
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McGraw-Hill/Irwin
Chapter 9
Chapter Contents
9.1
9.2
9.3
9.4
9.5
9.6
9.7
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value.
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Role of Evidence
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Power of a Test
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The consequences of these two errors are quite different, and the
costs are borne by different parties.
Example: Type I error is convicting an innocent defendant, so the
costs are borne by the defendant. Type II error is failing to convict a
guilty defendant, so the costs are borne by society if the guilty
person returns to the streets.
Firms are increasingly wary of Type II error (failing to recall a
product
as soon as sample evidence begins to indicate potential problems.)
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Decision Rule
A test statistic shows how far the sample estimate is from its
expected value, in terms of its own standard error.
The decision rule uses the known sampling distribution of the test
statistic to establish the critical value that divides the sampling
distribution into two regions.
Reject H0 if the test statistic lies in the rejection region.
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Reject H0 if the test statistic < left-tail critical value or if the test
statistic > right-tail critical value.
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Figure 9.2
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Type I Error
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The p-value is the probability of the sample result (or one more
extreme) assuming that H0 is true.
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Step 2: Specify the decision rule - for = .10 for the two-tail
test and with d.f. n 1 = 24-1 = 23, reject H0 if tcalc > 1.714 or if
tcalc < -1.714, otherwise do not reject H0.
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Step 4: Since the test statistic lies within the range of chance variation,
we cannot reject the null hypothesis H0: = 142.
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LO9-9: Perform a hypothesis test for a proportion and find the p-value.
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Critical Value
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Figure 9.12
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Step 4: Since the test statistic lies in the left-tail rejection region,
we reject the null hypothesis H0: .13.
Figure 9.12
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The effect of
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The effect of
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In the case where n0 < 10, use MINITAB (or any other appropriate
software) to test the hypotheses by finding the exact binomial
probability of a sample proportion p.
For example,
Figure 9.19
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