(BQ) Part 2 book "Business statistics: A decision - making approach" has contents: Estimating single population parameters, introduction to hypothesis testing, estimation and hypothesis testing for two population parameters, analysis of variance,.and other contents. | Introduction to Hypothesis Testing From Chapter 9 of Business Statistics, A Decision-Making Approach, Ninth Edition. David F. Groebner, Patrick W. Shannon and Phillip C. Fry. Copyright © 2014 by Pearson Education, Inc. All rights reserved. Quick Prep Links Review the concepts associated with the Central Limit Theorem. Examine the sampling distribution for proportions. Familiarize yourself with the Student’s t-distributions and normal probability distributions. Review the standard normal distribution and the Student’s t-distribution tables, making sure you know how to find critical values in both tables. Introduction to Hypothesis Testing Hypothesis Tests for Means Hypothesis Tests for a Proportion Outcome 1. Formulate null and alternative hypotheses for applications involving a single population mean or proportion. Outcome 2. Know what Type I and Type II errors are. Outcome 3. Correctly formulate a decision rule for testing a hypothesis. Outcome 4. Know how to use the test statistic, critical value, and p-value approaches to test a hypothesis. Type II Errors Outcome 5. Compute the probability of a Type II error. Why you need to know Estimating a population parameter based on a sample statistic is one area of business statistics called statistical inference. Another important application of statistical inference is hypothesis testing. In hypothesis testing, a hypothesis (or statement) concerning a population parameter is made. We then use sample data to either deny or confirm the validity of the proposed hypothesis. For example, suppose an orange juice plant in Orlando, Florida, produces approximately 120,000 bottles of orange juice daily. Each bottle is supposed to contain 32 fluid ounces. However, like all processes, the automated filling machine is subject to variation, and each bottle will contain either slightly more or less than the 32-ounce target. The important thing is that the mean fill is 32 fluid .
