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Basic Concepts of Testing of Hypothesis

The document outlines the basic concepts of hypothesis testing, including definitions of simple and composite hypotheses, null and alternative hypotheses, and the test statistic. It also discusses types of errors, specifically Type I and Type II errors, along with the level of significance and power of the test. Additionally, it explains the critical region, critical value, and acceptance region in the context of hypothesis testing.

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18 views2 pages

Basic Concepts of Testing of Hypothesis

The document outlines the basic concepts of hypothesis testing, including definitions of simple and composite hypotheses, null and alternative hypotheses, and the test statistic. It also discusses types of errors, specifically Type I and Type II errors, along with the level of significance and power of the test. Additionally, it explains the critical region, critical value, and acceptance region in the context of hypothesis testing.

Uploaded by

zoloqueen2005
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Basic concepts of testing of hypothesis

Hypothesis – Any statement about the probability distribution of population.


Example of Hypothesis
a) X is a geometric random variable
b) The distribution of a r.v X is Poisson with mean 10
c) The average height of students in our college is 165 cm
d) X is a Normal random variable with mean 25
e) X is a Binomial random variable with parameters 20, .5
f) X is an exponential random variable with mean 5
Simple and Composite Hypotheses
Simple hypothesis – A statistical hypothesis is said to be simple if it completely specifies
the distribution of a random variable.
Example
The distribution of a r.v X is Poisson with mean 10
X is a Binomial random variable with parameters 20, .5
X is an exponential random variable with mean 5
Composite hypothesis - A statistical hypothesis which is not simple is said to be
composite hypothesis.
Example
X is a geometric random variable
The average height of a student in our college is 165 cm
d) X is a Normal random variable with mean 25
Null and Alternative hypotheses
Null Hypothesis: The hypothesis to be tested is called null hypothesis and is denoted by H0
Alternative Hypothesis: Hypothesis which is supposed to accept when the null hypothesis
is rejected. It is denoted by H1 or Ha.
Test Statistic: Appropriate statistic calculated to decide whether to accept or reject the
hypothesis.
Types of Errors
Type I error: The error of rejecting the null hypothesis when it is actually true.
Type II error: The error of Failing to reject the null hypothesis when the alternative
hypothesis is true.
Level of significance and Power of the test
Level of Significance: Probability of Type I error = P(Reject H0|H0 true)
Power of the test: 1 - Probability of Type II error = 1 - P(Fails to reject H0|H1 true)
= P(Reject H0|H1 true)
Critical Region and Critical value
A critical region, also known as the rejection region, is a set of values of the test statistic
for which the null hypothesis is rejected.
Acceptance region is a set of values of the test statistic for which the null hypothesis is
accepted.
Critical Value is a value which separates acceptance region and rejection region.

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