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Statistics for Business by Derek Waller

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8

Hypothesis Testing of a Single Population

You need to be objective

The government in a certain country says that radiation levels in the area surrounding a nuclear power plant are well below levels considered harmful. Three people in the area died of leukaemia. The local people immediately put the blame on the radioactive fallout.

Does the death of three people make us assume that the government is wrong with its information and that we make the assumption, or hypothesis, that radiation levels in the area are abnormally high? Alternatively, do we accept that the deaths from leukaemia are random and are not related to the nuclear power facility? You should not accept, or reject, a hypothesis about a population parameter – in this case the radiation ...

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