Chapter 9, Problem 1RP

Explain the meaning of each term.

1. a. null hypothesis
2. b. alternative hypothesis
3. c. test statistic
4. d. significance level

To determine

Explain the meaning of null hypothesis.

Explanation of Solution

Null hypothesis:

Null hypothesis is a statement about population parameter, its value is equal to the claim value, which is denoted by $H_0$. The population parameter can be mean, standard deviation, proportion, variance, and so on. The possible symbols used in the null hypothesis would be $\le ,\ge$ or =.

To determine

Explain the meaning of alternative hypothesis.

Explanation of Solution

Alternative hypothesis:

It is complementary to the null hypothesis. That is, it differs from the null hypothesis. The possible symbols used in the alternative hypothesis would be <,>, or ≠. It is denoted by $H_a$.

1. 1. If the sign is < or > then the test is called as one-tailed test.
2. 2. If the sign is ≠. Then the test is called as two-tailed test.

To determine

Explain the meaning of test statistic.

Explanation of Solution

Test statistic:

This is a numerical value calculated from sample data by which it can be concluded whether the null hypothesis would be rejected or accepted in a hypothesis testing.

To determine

Explain the meaning of level of significance.

Explanation of Solution

Significance level:

The probability of rejecting a true null hypothesis is called as a level of significance.