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Donald Cooper
Pamela Schindler
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Chapter 17
Hypothesis Testing
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Hypothesis Testing
Slide 17 - 1
Classical Statistics
sampling-theory approach
objective view of probability
decision making rests on analysis of available
sampling data
Bayesian Statistics
extension of classical statistics
consider all other available information
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Hypotheses
Slide 17 - 2
Null
that no statistically significant difference
exists between the parameter and the statistic
being compared
Alternative
logical opposite of the null hypothesis
that a statistically significant difference does
exist between the parameter and the statistic
being compared.
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Logic
Slide 17 - 3
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Decision
Testing
Slide 17 - 4
Type I error
a true null hypothesis is rejected
Type II error
one fails to reject a false null hypothesis
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Classes
of Significance
Tests
Slide 17 - 6
Parametric tests
Z or t test is used to determine the statistical
significance between a sample distribution
mean and a population parameter
Assumptions:
independent observations
normal distributions
populations have equal variances
at least interval data measurement scale
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Classes
of Significance
Tests
Slide 17 - 7
Nonparametric tests
Chi-square test is used for situations in which a
test for differences between samples is required
Assumptions
independent observations for some tests only
normal distribution not necessary
homogeneity of variance not necessary
appropriate for nominal and ordinal data, may be used
for interval or ratio data
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How
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Hypothesis
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Multiple
Tests
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K Related
Samples
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Use when:
The grouping factor has more than two levels
Observations or subjects are
matched . . . or
the same subject is measured more than once
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