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Using Hypothesis Testing to Make Informed Decisions

Presented in English
Published on ‎11-07-2024 03:30 PM by Staff | Updated on ‎11-07-2024 05:40 PM

 

See how to:

  • Understand the difference between a Null and an Alternate Hypothesis, the two conditions that we want to investigate
    • Null Hypothesis - generally the status quo, e.g. There is NO DIFFERENCE in the population means from which these two samples were drawn
    • Alternative Hypothesis - the complement of the Null, e.g. There IS A DIFFERENCE in the population means
    • We can also insert Greater Than (or Less Than) instead of No Difference
    • Accepting Alternate Hypothesis is rejecting (or disproving) Null Hypothesis
    • When running tests, we look for proof that the Alternative Hypothesis is within our confidence level, and we can Refute (or Disprove) the Null Hypothesis
    • Caution: If we DO NOT reject the Alt, it DOES NOT mean that the Null is true and perhaps we didn't collect enough data to accept it. 
  • Confidence Level is the level of surety involved with the hypotheses
    • Confidence Level needed can depend
      • Often, acceptable Confidence Level for making decisions is 95%.
      • Perhaps if you are looking at life-or-death decisions, you need to be 99.9% confident in the results
    • 95% confidence means  if you run statistical test 100 times, your should be right about 95 times
    • Alpha value is  1 - Confidence/100
  • Compare and interpret Confidence Interval on a Mean Value
  • Compare Mean to a Target Value
    • Analyze>Distribution and then Test Mean from red triangle
    • Interpret Quanitles, Summary Statistics, Means Test
  • Compare two Means
    • Analyze>Distribution and then t-test from red triangle
    • Interpret t-test
  • Compare more than Two Means
    • Analyze>Distribution and then Means/ANOVA from red triangle
    • Run Oneway analysis (ANOVA)
    • Interpret Summary of Fit, R-square, Analysis of Variance and Means for one ANOVA
  • Hypothesis Testing for Equivalence – Used because when sample means are not different, we still can’t conclude that the population means were the same
    • Alternate Hypothesis is that Population Means are the same, within some specified margin
    • Null Hypothesis is that the Population Means MAY NOT BE the same within the margin.
    • Difference in Population Mean is outside the equivalence interval
    • Employ 2-sided t-tests (TOST)

 

Note: Q&A is interspersed beginning at ~ Time 20:05.

 

If you have questions for Jerry, type @JerryFish in your comment.

 

Resources

 

Compare Mean to Target ValueCompare Mean to Target ValueCompare Mean to Target Value



Start:
Mon, Jun 21, 2021 02:00 PM EDT
End:
Mon, Jun 21, 2021 03:00 PM EDT
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