Hypothesis testing

• Null hypothesis Ho is the default postion if nothing changed in the population parameter
• Alternative hypothesis H1 is that there has been some change in the population parameter
• Level of significance is the maximum probabaility where we would reject the null hypothesis usually 5%
• Steps

  1. say what the propability stands for
  2. say what Ho equals and H1
  3. state the significance level eg 5%
  4. show what the binomial is eg p (x < or > y)
  5. using equation state if Ho is rejected or not
  6. relate back to the question