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# 3: Hypothesis Testing

• Section 1
The previous two chapters introduced methods for organizing and summarizing sample data, and using sample statistics to estimate population parameters. This chapter introduces the next major topic of inferential statistics: hypothesis testing.
• Section 2
We are going to examine two equivalent ways to perform a hypothesis test: the classical approach and the p-value approach. The classical approach is based on standard deviations. This method compares the test statistic (Z-score) to a critical value (Z-score) from the standard normal table. If the test statistic falls in the rejection zone, you reject the null hypothesis. The p-value approach is based on area under the normal curve.
• Section 3
Frequently, the population standard deviation (σ) is not known. We can estimate the population standard deviation (σ) with the sample standard deviation (s). However, the test statistic will no longer follow the standard normal distribution. We must rely on the student’s t-distribution with n-1 degrees of freedom. Because we use the sample standard deviation (s), the test statistic will change from a Z-score to a t-score.
• Section 4
• Section 5
• Section 6