STAT 503 Midterm II
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Test Statistic equation
ts = (ÿ - µ)/SE
When to Reject
- if ts is between tα/2 = fail to reject
- if outside reject
maximum probability of making a type I error
directional/ sidedness to test
- if alternative ≠ = non-directional or 2-sided
- if < or > = directional or 1-sided // put all α on one side
computing prob of type II
- if Alternate fixed = can do it
- if < or > can't
- probability ts is at least as extreme is the ts observed
- reject if p < α
- pay attention to sign!!
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