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# Significance, Hypothesis Test

1. In research, one often hopes to be able to state results using a confidence level that the results are valid of 90% or more. To test results to determine the confidence level, what is the significance of locating the test statistic in the tail that has a probability less than &#940;, which implies a confidence level of 1-(alpha)?

2. In a hypothesis test, one establishes the hypothesis that one hopes to be proved. The hypothesis is proved if the null hypothesis is disproved. To disprove the null hypothesis, one must show, with a degree of confidence, that the chance for the alpha error is less than &#940;, in which the confidence level is 1 - (the alpha percentage). What is the alpha error in a hypothesis test? What is the Beta error in the hypothesis test?

3. In inferential statistics, it is important, if it is unknown whether the probability distribution of the universe is a normal distribution, to use a sample size that allows the use of the central limit therom. In analysis, the assumption of a normal distribution lets one use the mean of the sample distribution to determine what about the probability distribution of the universe?

4. What are the assumptions necessary to use the z-series test? What are the assumptions necessary o use the t-series test?

Lind, Marchal, and Wathen, (2005) Statistical Techniques in Business & Economics

Please indicate other references and information from Linds, Marchal, and Wathen. Also provide examples if you can.

#### Solution Summary

The solution examines significance and hypothesis tests.

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