Learning Outcome Statements

1. Introduction

a. define a hypothesis, describe the steps of hypothesis testing, and describe and interpret the choice of the null and alternative hypotheses;

2. Null Hypothesis and Alternative Hypothesis

b. distinguish between one-tailed and two-tailed tests of hypotheses;

3. Test Statistic and Significance Level

c. explain a test statistic, Type I and Type II errors, a significance level, and how significance levels are used in hypothesis testing;

4. Type I and Type II Errors in Hypothesis Testing

c. explain a test statistic, Type I and Type II errors, a significance level, and how significance levels are used in hypothesis testing;

5. The Power of a Test

d. explain a decision rule, the power of a test, and the relation between confidence intervals and hypothesis tests;

6. The Decision Rule

e. distinguish between a statistical result and an economically meaningful result;

f. explain and interpret the p-value as it relates to hypothesis testing;

7. The Relationship between Confidence Intervals and Tests of Significance

d. explain a decision rule, the power of a test, and the relation between confidence intervals and hypothesis tests;

8. Hypothesis Tests Concerning the Mean: T-Test vs. Z-Test

g. identify the appropriate test statistic and interpret the results for a hypothesis test concerning the population mean of both large and small samples when the population is normally or approximately distributed and the variance is 1) known or 2) unknown;

9. Hypothesis Tests Concerning Differences between Means

h. identify the appropriate test statistic and interpret the results for a hypothesis test concerning the equality of the population means of two at least approximately normally distributed populations, based on independent random samples with 1) equal or 2) unequal assumed variances;

10. Hypothesis Tests Concerning Mean Differences (Paired Comparisons Test)

i. identify the appropriate test statistic and interpret the results for a hypothesis test concerning the mean difference of two normally distributed populations;

11. Hypothesis Tests Concerning a Single Variance

j. identify the appropriate test statistic and interpret the results for a hypothesis test concerning 1) the variance of a normally distributed population, and 2) the equality of the variances of two normally distributed populations based on two independent random samples;

12. Hypothesis Tests Concerning Differences between Variances

j. identify the appropriate test statistic and interpret the results for a hypothesis test concerning 1) the variance of a normally distributed population, and 2) the equality of the variances of two normally distributed populations based on two independent random samples;

13. Parametric and Non-Parametric Tests

k. distinguish between parametric and nonparametric tests and describe situations in which the use of nonparametric tests may be appropriate.