Section 12.1 Student Learning Objectives
Hypothesis testing emerges as a crucial component in decision making where one of two competing options needs to be selected. Statistical hypothesis testing provides formal guidelines for making such a selection. This chapter deals with the formulation of statistical hypothesis testing and describes the associated decision rules. Specifically, we consider hypothesis testing in the context of the expectation of a measurement and in the context of the probability of an event. In subsequent chapters we deal with hypothesis testing in the context of other parameters as well. By the end of this chapter, the student should be able to:
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Formulate statistical hypothesis for testing.
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Test, based on a sample, hypotheses regarding the expectation of the measurement and the probability of an event.
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Identify the limitations of statistical hypothesis testing and the danger of misinterpretation of the test’s conclusions.
