C7 - Hypothesis Testing

• A hypothesis is a statement made about the value of a population parameter. A hypothesis test uses a sample or an experiment to determine whether or not to reject the hypothesis.
• The null hypothesis is what we assume to be correct.
• The alternative hypothesis tells us about the parameter if our assumption is shown to be wrong.
• The test statistic is used to test the hypothesis. It could be the result of the experiment or statistics calculated from a sample.
• The critical value is the first value to fall inside of the critical region.
• A critical region is a region of the probability distribution which, if the test statistic falls within it, would cause you to reject the null hypothesis.