Question

In: Operations Management

a) The test statistic is: b) rejection region c) p-value (between what?) d) test decision e)...


a) The test statistic is:

b) rejection region

c) p-value (between what?)

d) test decision

e) conclusion

Solutions

Expert Solution

Ans. C- p-value


The random variable calculated by using the sample data and used for testing a hypothesis is termed as a test statistic. The test statistic value may be used for accepting or rejecting the null hypothesis. The statistic is the calculated quantification of the p-value (probability value) and is derived by comparing the actual results with the hypothesized results. The p-value will reveal the degree to which the data sample and hypothesis reach to an agreement. Therefore, the test statistic is used for accessing evidence’s strength towards supporting the null hypothesis.


For running the hypothesis tests, the normal or t-distribution can be used. The known area of these distributions enables us to calculate the p-value. Large test statistics cause low p-values and there are more chances of rejecting the test hypothesis in these cases. Some of the types of test statistics are given below.


Hypothesis Test - Test Statistic
Z Test - Z Score
T-Test - T Score
ANOVA -   F-Statistic
Chi-Square Test - Chi-Square Statistic   

In a hypothesis test where test statistic is equal to S, we find the probability. When the probability of extreme S value is lesser than the critical/significant level, the null hypothesis is rejected.


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