In: Statistics and Probability
a)When is it appropriate to calculate a z-test?
b)What is the formula for a z-test?
c)If we set α = 0.10 what does that tell us?
d)If p < α then what should you do?
e)What is the z-table used for when conducting a z-test?
f)What are the 7 steps for hypothesis testing?
Ans a ) it is appropriate to use z test if the sample size is larger than 30 ,the population standard deviation is known and population from which the sample is taken should be normally distributed
ans b ) the formula for z test is
c ) The α = 0.10 i.e significance level is a value for which a P-value less than or equal to 0.10 is considered statistically significant.
d ) if p < α then it means the results are statistically significant.
e ) A z-table is a statistical table that gives us to the percentage of values below a z-score or above a z score at standard normal curve .
f)the seven steps for hypothesis testing are
1) State the Null Hypothesis.
2) State the Alternative Hypothesis.
3) set the significance level
4) define rejection region for the test statistic
5 ) find the test statistic
6) conclusion ( either reject or accept the null hypothesis)
7) interpretation in the context of problem