6

Inferences Concerning Means and Proportions

6.1 Introduction

In practical situations, statistical inference can involve either estimating a population parameter or making decisions about the value of the parameter. In the Chapter 5, we have considered estimation. Now we take up a study of tests of hypotheses. In tests of hypotheses, a postulate or a statement about a parameter of the population is tested for its validity.

Statistical decisions are conclusions arrived at about the population parameters on the basis of a random sample from the population.

6.2 Statistical Hypotheses

Statistical hypothesis is a guess made about the parameter or parameters of population distri­butions.

Suppose, e.g., we want to decide that a coin is not fair. We ...

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