CHAPTER 5

Hypothesis Testing

Chapter Objectives

• Introduce hypothesis testing

• Stress the connection between random variables and hypothesis testing

• Discuss how critical values are used and how P-values are calculated

• Introduce tests for claims about a proportion or mean

• Introduce tests for comparing two parameters

• Introduce chi-square tests

• Introduce the basics of ANOVA

• Stress the requirements of the data for each type of test

5.1   Introduction

In the media, we may hear statements such as

“More than 65% of voters support this bill,” or

“The average home value in the United States is less than $150,000.”

To determine if this first statement is true, we would have survey every voter and calculate the proportion who support the ...

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