Chapter 5 · Data Analysis: A Concise Overview of Statistical Techniques · Slide 190/274

Hypothesis Testing

Analogy: a rustling in the bushes — is that a lion? H₀: There is no lion in the bushes.

5.2.1 · Hypothesis TestingStep 2 · Lion analogy

Step 2 · Setting the significance level

Analogy: a rustling in the bushes — is that a lion?
H₀: There is no lion in the bushes.

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

β — probability that a false null hypothesis is accepted.

There is no lion, but you run away ↓

	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

↑ You stay unconcerned — and the lion eats you

QUESTIONSTAR · Dr. Paul Marx190 / 274