Hypothesis testing

• Hypothesis is 


  a theory or statement
• hypothesis test 


  testing the theory or statement
• null hypothesis $H_0$


  what we already believe to be true
• Alternate hypothesis $H_1$


  what we are trying to prove
• significance level 


  decision point
• critical value 


  the first value within our significance level
• critical region 


  all values within the significance level
• How to carry out a hypothesis 


  1.Define a test statistic - what we are testing

  2.Carry out some statistical analysis - binomial, correlation, normal

  3.Conclusion - compare to the given significance level