Chapter 5 · Data Analysis: A Concise Overview of Statistical Techniques · Slide 189/274

Hypothesis Testing

Analogy: innocence in a criminal trial. H₀: The defendant is innocent.

5.2.1 · Hypothesis TestingStep 2 · Criminal-trial analogy

Step 2 · Setting the significance level

Analogy: innocence in a criminal trial.
H₀: The defendant is innocent.

Significance (α) — probability that a true null hypothesis is rejected.

β — probability that a false null hypothesis is accepted.

Convicting an innocent person ↓

	Null hypothesis (H₀) is true	Null hypothesis (H₀) is false
Null hypothesis reject	Type I errorFalse positive	Correct decisionTrue positive
Null hypothesis do NOT reject	Correct decisionTrue negative	Type II errorFalse negative

↑ Releasing a criminal

QUESTIONSTAR · Dr. Paul Marx189 / 274