Hypothesis Testing
o Goal: Make statement(s) regarding unknown population
parameter values based on sample data
o Elements of a hypothesis test:
– Null hypothesis - Statement regarding the value(s) of unknown
parameter(s). Typically will imply no association between
explanatory and response variables in our applications (will
always contain an equality)
– Alternative hypothesis - Statement contradictory to the null
hypothesis (will always contain an inequality)
– Test statistic - Quantity based on sample data and null
hypothesis used to test between null and alternative hypotheses
– Rejection region - Values of the test statistic for which we
reject the null in favor of the alternative hypothesis