Answer the following questions What are the basic steps or e

Answer the following questions:

What are the basic steps or elements of statistical testing?

What is a null hypothesis?

What is an alternative hypothesis?

Refer to Ch. 9 of Understanding Basic Statistics and Ch. 17 of Business Research Methods for guidance with this assignment.

Solution

The basic steps of Statistical testing are,

1) To set up the null hypothesis (H₀).

2) To set up the alternative hypothesis (H₁).

3) Set the level of significane ( ).

4) Select the appropriate test statistic.

5) Use the level of significance and the alternative hypothesis to determine the critical region.

6) Find the critical values that form the boundaries of the critical region.

7) Take a decision based on sample.(i.e.whether to reject or fail to reject the null hypothesis).

Null hypothesis- The null hypothesis is a statement of \"no difference\".

or

   Statement (claim) about the value of a population parameter.

It is denoted by H₀

For example- A manufacturer claims that their light bulbs burn for an average of 1000 hours.

Here claim of the manufacturer is light bulbs burn on an average of 1000 hours.

So null hypothesis is,

H₀ : light bulbs burn on an average of 1000 hours.

Here we have given that the parameter is average and it is a population parameter ( µ ).

It means   H₀ :  µ = 1000. This is our null hypothesis.

Alternative hypothesis : Any statement which is complement to null hypothesis is an alternative hypothesis.

or

Any hypothesis that differ from the null hypothesis is an alternative hypothesis.

It is denoted by ( H₁ ).

Alternative hypothesis is of three types ;

i) Greator than type ( > ).

ii)Less than type ( < ).

iii) Not equal to type ( ).

First two types ( i.e. greator than type or less than type ) are one sided hypothesis while third type ( i.e. not equal to type) is two sided hypothesis.

For example- A manufacturer claims that their light bulbs burn for an average of 1000 hours. We have reason to believe that the bulb do not last the long.

We define null hypothesis for this example in earlier now we have to find the alternative hypothesis.

A manufacturer claim is average life of bulb is 1000 hours so it\'s complement is either > or < or .

And in second statement we have given that the bulb do not last the long it means bulb life is less than 1000 hours so this is our alternative hypothesis.

H₁ :  bulb life is less than 1000 hours

H₁ : µ < 1000.

This is an answer.