Probability of Observing a Quantity or Proportion

Quantity

State a quantity or proportion

Proportion

Excel functions standard deviation of quantities = stdev(data) area to the left of t-score = t.dist(t-score, degrees of freedom, TRUE) area to the left of z-score = norm.s.dist(z-score, TRUE)
t-score =

Calculate the score

Calculate the score

Find the area to the left of the score

The shaded area is the probability of observing a quantity or proportion less than or equal to the stated quantity or proportion.

Hypothesis Test for a Single Proportion

State the hypothesis

Comparing a sample proportion to a fixed quantity H0 : population proportion = standard error =

H0 > HA <

H0 = HA

(1 )
N
Calculate the score
z-score = sample proportion standard error

Confidence Interval p ( critical value ) p (1 p ) N

Find the area to the left of the score (standard normal distribution)

Find the p-value (standard normal distribution)

Excel functions area = norm.s.dist(z-score, TRUE) z-score = norm.s.inv(area)

p-value = 1 norm.s.dist(z-score, TRUE)

p-value = 2 x (1 norm.s.dist(abs(z-score), TRUE))

p-value = norm.s.dist(z-score, TRUE)

State the conclusion

p-value approach: The probability of the null hypothesis being true is the p-value. Significance approach: If p-value < significance level, reject the null hypothesis.

Hypothesis Test for Comparing Proportions

State the hypothesis

H0 > HA <

H0 = HA

Comparing two sample proportions H0 : population proportion 1 = population proportion 2 standard error = p1 ( 1 p1 ) p2 (1 p2 ) + N1 N2
Calculate the score
z-score = sample proportion standard error

Find the area to the left of the score (standard normal distribution)

Find the p-value (standard normal distribution)

Excel functions area = norm.s.dist(z-score, TRUE) z-score = norm.s.inv(area)

p-value = 1 norm.s.dist(z-score, TRUE)

p-value = 2 x (1 norm.s.dist(abs(z-score), TRUE))

p-value = norm.s.dist(z-score, TRUE)

State the conclusion

p-value approach: The probability of the null hypothesis being true is the p-value. Significance approach: If p-value < significance level, reject the null hypothesis.

Hypothesis Test for a Single Mean

State the hypothesis

H0 > HA <

H0 = HA

Comparing a sample mean to a fixed quantity H0 : population mean = s2 N degrees of freedom = N 1 standard error =

Calculate the score

Confidence Interval x ( critical value ) s2 N

Find the p-value (t distribution)

Excel functions area = t.dist(t-score, degrees of freedom, TRUE) t-score = t.inv(area, degrees of freedom)

p-value = 1 t.dist(t-score, df, TRUE)

p-value = 2 x (1 t.dist(abs(t-score), df, TRUE))

p-value = t.dist(t-score, df, TRUE)

State the conclusion

p-value approach: The probability of the null hypothesis being true is the p-value. Significance approach: If p-value < significance level, reject the null hypothesis.

Hypothesis Test for Comparing Means

State the hypothesis

H0 > HA <

H0 = HA

Comparing two sample means H0 : population mean 1 = population mean 2 standard error =
2 2 s1 s2 + N1 N2

Calculate the score

degrees of freedom N1 + N2 2

Find the area to the left of the score (t distribution)

Find the p-value (t distribution)

Excel functions area = t.dist(t-score, degrees of freedom, TRUE) t-score = t.inv(area, degrees of freedom) area to the nearest tail = t.test(data set 1, data set 2, 1, 3)

p-value = 1 t.dist(t-score, df, TRUE)

p-value = 2 x (1 t.dist(abs(t-score), df, TRUE))

p-value = t.dist(t-score, df, TRUE)

State the conclusion

p-value approach: The probability of the null hypothesis being true is the p-value. Significance approach: If p-value < significance level, reject the null hypothesis.

Hypothesis Test for a Single Variance

State the hypothesis

Comparing a variance to a fixed quantity H0 : population variance = 2 degrees of freedom = N 1

H0 > HA <

H0 = HA

Calculate the score

2 -score =

( N 1 ) s2
2

Find the area to the left of the score (Chi-squared distribution)

Find the p-value (Chi-squared distribution)

Excel functions area = chisq.dist(score, degrees of freedom, TRUE)

p-value = 1 chi.dist(x-score, df, TRUE)

p-value = 2 x min(1 chi.dist(x-score, df, TRUE), chi.dist(x-score, df, TRUE))

2 -score = chisq.inv(area, degrees of freedom)

p-value = chi.dist(x-score, df, TRUE)

State the conclusion

p-value approach: The probability of the null hypothesis being true is the p-value. Significance approach: If p-value < significance level, reject the null hypothesis.

Hypothesis Test for Comparing Variances

State the hypothesis

H0 > HA <

H0 = HA

Comparing two variances H0 : population variance 1 = population variance 2 degrees of freedom smaller variance = Nsmaller variance 1 degrees of freedom larger variance = Nlarger variance 1

Calculate the score

Find the area to the left of the score (F distribution)

Find the p-value (F distribution)

Excel functions area = f.dist(f-score, df for smaller variance, df for larger variance, TRUE) F-score = f.inv(area, df for smaller variance, df for larger variance)
State the conclusion

p-value approach: The probability of the null hypothesis being true is the p-value. Significance approach: If p-value < significance level, reject the null hypothesis.