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Significance Tests about Hypotheses Hypothesis In statistics, a hypothesis is a statement about a population, usually of the form that a parameter takes a particular numerical value or falls in a certain range of values Null hypothesis H0 and alternative hypothesis Ha . A significance test is a method for using data to summarize the evidence about a hypothesis. Steps for a Significance Test 1. Assumptions 2. Hypotheses: null hypothesis H0 and alternative hypothesis Ha 3. Test statistic 4. P-value 5. Conclusion Significance Test for a Population Proportion p 1. Assumptions Randomization, and large sample size 2. Hypotheses Null: H0 : p = p0 Alternative: Ha : p > p0 (one-sided) or Ha : p < p0 (one-sided) or Ha : p 6= p0 (two-sided) 3. Test statistic z= pĖ â p0 se0 with se0 = p p0 (1 â p0 )/n 4. P-value Alternative hypothesis Ha : p > p 0 Ha : p < p 0 Ha : p 6= p0 5. Conclusion P-value Right-tail probability Left-tail probability Two-tail probability More on P-values Alternative hypothesis Ha : p > p0 1-prob, where prob is the probability corresponding to the z-score Alternative hypothesis Ha : p < p0 prob, where prob is the probability corresponding to the z-score Alternative hypothesis Ha : p 6= p0 2 × prob, where prob is the probability corresponding to the z-score if z-score is negative; 2 × (1 â prob), where prob is the probability corresponding to the z-score if z-score is positive More on Conclusions If the P-value is less than a preset value (threshod), e.g. 0.05, which corresponds to 95% confidence level, then we reject the null hypothesis. If the P-value is larger than a preset value (threshod), then we do not reject the null hypothesis.