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Central Limit Theorem
States that sampling distribution of x(bar) will be normally distributed for large n.
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Confidence Interval
A formula that tells us how to use the sample data to calculate an interval that estimates the target parameter.
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Confidence Coefficient
The probability that a randomly selected confidence interval encloses the population parameter�that is, the relative frequency with which similarly constructed intervals enclose the population parameter when the estimator is used repeatedly a very large number of times.
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Confidence Level
The confidence coefficient expressed as a percentage.
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Hypothesis
A statement about the numerical value of a population parameter.
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Null Hypothesis
Represents the hypothesis that will be accepted unless the data provide convincing evidence that it is false. This usually represents the �status quo� or some claim about the population parameter that the researcher wants to test.
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Alternative (research) Hypothesis
Represents the hypothesis that will be accepted only if the data provide convincing evidence of its truth. This usually represents the values of a population parameter for which the researcher wants to gather evidence to support.
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Test Statistic
A sample statistic, computed from information provided in the sample, that the researcher uses to decide between the null and alternative hypotheses.
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Type I Error
Occurs if the researcher rejects the null hypothesis in favor of the alternative hypothesis when in fact, Ho is true. The probability of committing a Type I error is denoted by alpha.
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Type II Error
Occurs if the researcher accepts the null hypothesis when, in fact, Ho is false. The probability of committing a Type II error is denoted by beta.
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One-Tailed Test
..of hypothesis is one in which the alternative hypothesis is directional and includes the symbol �<� or �>�.
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Two-Tailed Test
�of hypothesis is one in which the alternative hypothesis does not specify departure from Ho in a particular direction and is written with the symbol �not equal to�.
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Observed Significance Level (p-value)
For a specific statistical test is the probability (assuming Ho is true) of observing a value of the test statistic that is at least as contradictory to the null hypothesis, and supportive of the alternative hypothesis, as the actual one computed from the sample data.
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Response Variable
The variable of interest to be measured in the experiment.
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Dependent Variable
The response.
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Experimental Unit
The object on which the response and factors are observed or measured.
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Designed Experiment
One for which the analyst controls the specification of the treatments and the method of assigning the experimental units to each treatment.
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Observational Experiment
One for which the analyst simply observed the treatments and the response on a sample of experimental units.
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