Chapter 8

Hypothesis Testing

Abstract

This chapter explains about the Hypothesis testing. Sampling theory deals with two types of problems viz.: estimating and testing of hypothesis. The theory of probability plays an important role in decision-making and the branch of statistics which helps us in arriving at the criterion for such decisions is known as hypothesis testing. In this chapter we explain the basic concepts, types of errors, degrees of freedom, null hypothesis, and alternative hypothesis level of significance. The procedure of hypothesis testing for large samples is introduced.

Keywords

Sample; population; test of significance of mean for large sample; computation of test statistic Z; test of significance for single proportion and confidence ...

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