
10
Hypothesis Tests and Simulation Envelopes
This chapter explains how to conduct a variety of tests of statistical significance, and how to use
simulation envelopes for hypothesis testing. It also attempts to correct some of the com mon mis-
conceptions abou t these methods.
10.1 Introduction
Often the main purpose of statistical analysis is to decide whether a claim is true or false. For
example, the Chorley-Ribble data (page 9) were studied in Section 9.12.3.3 to investigate whether
an industrial incinerator did, or did not, increase the risk of laryngeal cancer for residents n earby. A
standard tool for this purpose is hypothesis testing or significan ...