Chapter 10 Section 5 Putting It All Together: Which Method Do I Use? Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 1 of 12 Chapter 10 – Section 5 ● Learning objectives 1 Determine the appropriate hypothesis test to perform Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 2 of 12 Chapter 10 – Section 5 ● Parallels between hypothesis tests and confidence intervals Both use the concept of the variability of a sample statistic Both use critical values from the normal Student’s tdistributions Both have means with known σ, means with unknown σ, proportions, and standard deviations cases Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 3 of 12 Chapter 10 – Section 5 ● It should not be surprising that the decision process for which hypothesis test to use is very similar to the decision process for which confidence interval to use ● Start with Is the parameter a mean? Is the parameter a proportion? Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 4 of 12 Chapter 9 – Section 4 ● In analyzing population means ● Is the population variance known? If so, then we can use the normal distribution ● If the population variance is not known If we have “enough” data (30 or more values), we still can use the normal distribution If we don’t have “enough” data (29 or fewer values), we should use the t-distribution ● We don’t have to ask this question in the analysis of proportions Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 5 of 12 Chapter 10 – Section 5 ● For the test of a population mean ● If The data is OK (reasonably normal) The variance is known then we can use the normal distribution (section 10.2) with a test statistic of x 0 n Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 6 of 12 Chapter 10 – Section 5 ● For the test of a population mean ● If The data is OK (reasonably normal) The variance is NOT known then we can use the Student’s t-distribution (section 10.3) with a test statistic of x 0 s n Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 7 of 12 Chapter 9 – Section 4 ● For the analysis of a population mean ● If The data is “strange” (i.e. not normal at all) then we should use nonparametric methods (not covered in this textbook) Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 8 of 12 Chapter 10 – Section 5 ● For the test of a population proportion ● If n p (1 – p) ≥ 10 n ≤ .05 N then we can use the proportions method (section 10.4) with a test statistic of p̂ p0 p0 ( 1 p0 ) n Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 9 of 12 Chapter 9 – Section 4 ● For the analysis of a population proportion ● If either n p (1 – p) is too small (less than 10) or n is too small (less than .05 N) then we need to use some other method (not covered in this textbook) Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 10 of 12 Summary: Chapter 9 – Section 4 ● The main questions that determine the method ● Is it a Population mean? Population proportion? ● In the case of a population mean, we need to determine Is the population variance known? Does the data look reasonably normal? Sullivan – Fundamentals of Statistics – 2nd Edition – Chapter 10 Section 5 – Slide 11 of 12