Andrew F Siegel, in Practical Business Statistics (Seventh Edition), 16 Hypothesis testing uses data to decide between two possibilities (called hypotheses) 1 It can tell you whether the results you are witnessing are just coincidence (and could reasonably be due to chance) or are likely to be real Some people think of hypothesis testing as a way of using statistics to make decisions Accepting or rejecting the null hypothesis based on pvalue and R value Based on the correlation of two measures in the following plot The pvalue tells there is a significant correlation between the two measures but the correlation coefficient R is close to zero that means there is no evidence of any relationship Therefore, we reject the null hypothesis, and accept the alternative hypothesis However, if the p value is below your threshold of significance (typically p < 005), you can reject the null hypothesis, but this does not mean that there is a 95% probability that the alternative hypothesis is true

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It tells whether the hypothesis be accepted or rejected
It tells whether the hypothesis be accepted or rejected-By definition, an accepted hypothesis is what you are left with once H0 has been disproven, This is also called H1 Importantly, H1 has not not been but emerges from the ruins of the disproven H0 A rejected hypothesis should always be the state of not having been able to disprove H0 Any other use of the term will easily get you into troubleHow do you decide whether to reject or fail to reject the null hypothell tentence 2 How do you tell whether the test bleft, right, or two talled bullets 3 Why can we never accept the null hypothesis




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The result of the test will determine whether we accept or reject, but the pvalue gives usStatistic's under the null hypothesis •Measure of how likely the test statistic value is under the null hypothesis Pvalue ≤ α ⇒ Reject H 0 at level α Pvalue > α ⇒ Do not reject H 0 at level α •Calculate a test statistic in the sample data that is relevant to the hypothesis being tested Variance of a sample tells a statistician about dispersion of the random variable from its mean It is the second moment whether the hypothesis analysis is accepted or rejected
To determine whether to reject the null hypothesis using the tvalue, compare the tvalue to the critical value The critical value is t α/2, n–p1, where α is the significance level, n is the number of observations in your sample, and p is the number of predictors If the absolute value of the tvalue is greater than the critical value, you reject the null hypothesisBased on the outcome of the hypothesis test one hypothesis is rejected and accept the other based on a previously predetermined arbitrary benchmark This bench mark is designated the P value However, one runs into making an error one may reject one hypothesis when in fact it should be accepted and vise versaWhereas the alternative hypothesis relates to the statement to be accepted if / when the null is rejected The final conclusion, once the test has been carried out, is always given in terms of
This leads us to reject H0 and accept the alternative hypothesis This probability is nothing but the pvalue in hypothesis testing When the probability of observation by considering H0 is true falls below the threshold value/alpha/level of significance (ie 005) we reject the null hypothesis and accept the alternative hypothesis The pvalue doesn't determine whether we accept or reject the null hypothesis; Decision Rule Calculator In hypothesis testing, we want to know whether we should reject or fail to reject some statistical hypothesis To make this decision, we compare the pvalue of the test statistic to a significance level we have chosen to use for the test If the pvalue is less than the significance level, we reject the null hypothesis




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The pvalue (or the observed level of significance) is the smallest level of significance at which you can reject the null hypothesis, assuming the null hypothesis is true You can also think about the pvalue as the total area of the region of rejection Remember that in a onetailed test, the regi In statistics, we use hypothesis tests to determine whether some claim about a population parameter is true or not Whenever we perform a hypothesis test, we always write a null hypothesis and an alternative hypothesis, which take the following forms H 0 (Null Hypothesis) Population parameter = ≤, ≥ some value H A (Alternative Hypothesis) PopulationThe P value is the universal measure that is used in hypothesis testing to determine whether to reject the Null hypothesis or fail to reject it Each hypothesis test will calculate the appropriate P value based upon the test statistic When to use P Values are associated with all hypothesis tests




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If it is greater than α, you fail to reject H 0 Your decision can also be based on the confidence interval (or bound) calculated using the same αIn general a p value of 005 or greater is considered critical, anything less means the deviations are significant and the hypothesis being tested must be rejected of less than 050, but greater than 025 (Follow blue dotted line and arrows in Fig 5)Set the significance level, α, the probability of making a Type I error to be small — 001, 005, or 010 Compare the P value to α If the P value is less than (or equal to) α, reject the null hypothesis in favor of the alternative hypothesis If the P value is




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If the null hypothesis is rejected, then we accept the alternative hypothesis If the null hypothesis is not rejected, then we do not accept the alternative hypothesis Going back to the above example of mean human body temperature, the alternative hypothesis is "The average adult human body temperature is not 986 degrees Fahrenheit"In the same way, a statistical test cannot prove the null hypothesis, but it can provide evidence against it As for the alternative hypothesis, it may be appropriate to say "the alternative hypothesis was not supported" but you should avoid saying "the alternative hypothesis was rejected" Once again, this is because your study is designed to reject the null hypothesis, not to reject the alternative hypothesisRejecting the Null We now have all the pieces of information to either accept the Null Hypothesis or to reject it In the table above, we want the twotailed test, and a significance level of p=005 Our df as we know = 30 Run down the column for 005 till you reach the row for df=30 The value in the table is 42
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In Hypothesis testing, if the significance value of the test is greater than the predetermined significance level, then we accept the null hypothesis If the significance value is less than the predetermined value, then we should reject the null hypothesis A statistical test is a way to determine whether the random variable is following the null hypothesis or alternate hypothesis It basically tells whether the sample and population or two/ more samples have significant differences You can use various descriptive stats such as mean, median, mode, range, or standard deviation for this purpose1 Ans To decide whether to reject or fail to reject the null hypothesis we consider the following two conditions such as;



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