Hypthesis Testing

Question 1

Binomial distribution assumptions

Answer 1

1. Fixed number of trials
2. Outcomes of the trials are independent
3. There are 2 outcomes, success and failure
4. The probability of success is constant

Question 2

When do you reject hypothesis

Answer 2

P<SL

Question 3

When do you accept hypothesis

Answer 3

P>SL

Question 4

If observed value falls inside critical region do you accept or reject null hypothesis

Answer 4

Reject H0 (null hypothesis), accepy alternative hypothesis

Question 5

If observed value doesnt fall inside critical region do you accept or reject null hypothesis

Answer 5

Accept null hypothesis, reject alternative hypothesis

Question 6

1 mark

Explain what you understand by a hypothesis

Answer 6

A statement concerning a population parameter

Question 7

2 marks

Explain what you understand by a critical region.

Answer 7

1. A critical region is the range values or a test statistic where the test is significant
2. That would lead to the rejection of H0 / acceptance of H1

Question 8

Define hypothesis test

Answer 8

A hypothesis test is a statistical test that is used to determine whether there is enough evidence in a sample of data to infer that a certain condition is true for the entire population

Question 9

Can extreme events be ruled out in a Normal distribution?
Why can’t we say there’s no chance of a very rare event (e.g., a hurricane in an unlikely place) if the situation is modeled by a Normal distribution?

Answer 9

Because the tails of a Normal distribution are infinite, meaning there’s always a non-zero probability of extreme events, no matter how unlikely