Level of Significance
α = 1- confidence coefficient
What does a test statistic do?
Helps determine whether a null hypothesis should be rejected
reject the null hypothesis when it is actually true
Sampling distribution is aka what?
probability distribution of a sample statistic based on all possible random samples from a population
What is a type 2 error?
failure to reject a false null hypothesis
When do you use normal distribution?
when mean and sigma are present
What is the level of significance?
The probability of making a type 1 error when Ho is true
more evidence = more value
Method Sample?
Larger sample size = smaller variance