Week 3 Discussion BUS3059

Single Sample Hypothesis Testing

The procedure for conducting a hypothesis test on a single sample consists of �ve steps. The �rst step

is to state the two hypotheses (null and alternative). The second step is to create a decision rule which

speci�es the level of strength of the evidence that will be required for us to reject the null hypothesis.

The third step is to collect data and to calculate the necessary statistic that will be required to conduct the statistical test. Since this is a test on a single sample, the statistic calculated will be compared to

some known benchmark value. The fourth step is to make a decision as to whether or not to reject the

null hypothesis based on the comparison of the statistic to the benchmark value. The �nal step is to

take action based on the results of the statistical test.

When conducting a hypothesis test on a single sample, there are three different types of tests that can

be conducted. These are known as the left-tailed test, the right-tailed test, and the two-tailed test.

In a left-tailed test, the assumption of the null hypothesis is that the statistic to be measured is greater

than or equal to some value. The alternative hypothesis is that the statistic is less than that value.

In a right-tailed test, the assumption of the null hypothesis is that the statistic to be measured is less

than or equal to some value. The alternative hypothesis is that the statistic is greater than that value.

In a two-tailed test, the assumption of the null hypothesis is that the statistic to be measured is equal

to some value. The alternative hypothesis could mean either that the statistic is greater than that value

or that the statistic is less than that value.

A more thorough discussion of each of the �ve steps of conducting a hypothesis test can be found in

the supplemental material entitled "One Sample Hypothesis Testing." This supplemental material

provides an explanation of how to compare statistical values calculated during one sample tests to

critical values found in statistical tables, and provides an example of a left-tailed test.

Additional Materials

View a Pdf Transcript of One-Sample Hypothesis Testing Procedure (media/week3/SU_BUS3059_W3_L3_S1_G1.pdf?

_&d2lSessionVal=Nz07slaVixhPccgaUScBguGXa&ou=84108)

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