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1. Hypothesis:
A tentative statement about something is called hypothesis.
Or
Any statement or claim about something is called hypothesis i.e.
For example when we hear thunder of clouds outside the room we draw a statement that it may
be rain today outside. Our this statement is hypothesis
2. Statistical Hypothesis:
Any statement or claim about unknown population parameter is called statistical hypothesis i.e.
For example
i.
ii.
Null Hypothesis
Alternative Hypothesis
or
Alternative Hypothesis
: 15
: < 15
: > 15
True
Correct Decision
Type I Error / Alpha Error
Accept
Reject
i.
False
Type II Error / Beta Error
Correct Decision
ii.
7. Level of Confidence:
It is defined as probability of accepting the null hypothesis when it is true. It is denoted by
Greek letter (1 ).
8. Rejection Region / Critical Region:
A rejection region specifies a set of values of the test statistic for which null hypothesis is
rejected. It is also called critical region.
9. Acceptance Region / Non-Critical Region:
An acceptance region specifies a set of values of the test statistic for which null hypothesis is not
rejected. It is also called non-critical region.
10. Critical Values:
The values of the test statistic which bound rejection and acceptance region for the null
hypothesis are called critical values.
11. Two Tailed Test:
If the critical region is located equally in both tails of the sampling distribution of test statistic,
the test is called two tailed test.
12. One Tailed Test:
If the critical region is located in only one tail of the sampling distribution of test statistic, the
test is called two tailed test.
It may be left tailed as well as right tailed.
2.
H:
Null Hypothesis
H1:
Alternative Hypothesis
SIGNIFICANCE LEVEL