Two-sided Use a two-sided alternative hypothesis also known as a nondirectional hypothesis to determine whether the population parameter is either greater than or less than the hypothesized value.
A two-sided test can detect when the population parameter differs in either direction, but has less power than a one-sided test. One-sided Use a one-sided alternative hypothesis also known as a directional hypothesis to determine whether the population parameter differs from the hypothesized value in a specific direction.
You can specify the direction to be either greater than or less than the hypothesized value. A one-sided test has greater power than a two-sided test, but it cannot detect whether the population parameter differs in the opposite direction. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors. Your Money. Personal Finance. Your Practice.
Popular Courses. Financial Ratios Guide to Financial Ratios. What Is a Null Hypothesis? Key Takeaways A null hypothesis is a type of conjecture used in statistics that proposes that there is no difference between certain characteristics of a population or data-generating process. The alternative hypothesis proposes that there is a difference.
Hypothesis testing provides a method to reject a null hypothesis within a certain confidence level. Null hypotheses cannot be proven, though. Important Analysts look to reject the null hypothesis to rule out chance alone as an explanation for the phenomena of interest. Compare Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation.
This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Related Terms How Hypothesis Testing Works Hypothesis testing is the process that an analyst uses to test a statistical hypothesis.
Data from the National Institute of Mental Health. Skip to content Hypothesis Testing with One Sample. Try It. Collaborative Exercise. Chapter Review In a hypothesis test , sample data is evaluated in order to arrive at a decision about some type of claim.
In a hypothesis test, we: Evaluate the null hypothesis , typically denoted with H 0. The null is not rejected unless the hypothesis test shows otherwise. If we reject the null hypothesis, then we can assume there is enough evidence to support the alternative hypothesis. Never state that a claim is proven true or false. Keep in mind the underlying fact that hypothesis testing is based on probability laws; therefore, we can talk only in terms of non-absolute certainties.
Formula Review H 0 and H a are contradictory. The random variable is the mean Internet speed in Megabits per second. The random variable is the mean number of children an American family has. Homework Some of the following statements refer to the null hypothesis, some to the alternate hypothesis.
The mean number of years Americans work before retiring is The mean starting salary for San Jose State University graduates is at least? Twenty-nine percent of high school seniors get drunk each month. The mean number of cars a person owns in her lifetime is not more than ten.
About half of Americans prefer to live away from cities, given the choice. Europeans have a mean paid vacation each year of six weeks. Glossary Hypothesis a statement about the value of a population parameter, in case of two hypotheses, the statement assumed to be true is called the null hypothesis notation H 0 and the contradictory statement is called the alternative hypothesis notation H a.
Previous: Introduction. Share This Book Share on Twitter. We want to test whether the mean GPA of students in American colleges is different from 2.
The null and alternative hypotheses are:. We want to test whether the mean height of eighth graders is 66 inches. We want to test if college students take less than five years to graduate from college, on the average. We want to test if it takes fewer than 45 minutes to teach a lesson plan. In an issue of U. News and World Report , an article on school standards stated that about half of all students in France, Germany, and Israel take advanced placement exams and a third pass.
The same article stated that 6. Test if the percentage of U.
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