Hypothesis Testing

• A hypothesis is a statement made about the value of a population paramete.
• A test statistic is a result of the experiment testing a hypothesis.
• A null hypothesis is the hypothesis you assume to be correct.
• The alternative hypothesis tells you about the parameter if your assumption is shown to be wrong.
• The significance level is the threshold that must be met for a p-value to be considered significant.
• 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.
• The critical value is the first value to fall inside of the critical region.
• The acceptance region is the region where we accept the null hypothesis.