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  Procedure testing of hypothesis 1.       Setting up of hypothesis – Null hypothesis and Alternative hypothesis. 2.       Defining the level of significance (α) 3.       Computation of test statistic  The test statistics is a statistic based on appropriate probability distribution. It is used to test                     whether the null hypothesis set up should be accepted or rejected. Z – Distribution: Use z- distribution under normal curve for large sample (i.e., if the sample size n≥    30). The Z – statistic is defined as 4.       Critical region or critical value. The rejection region or critical region is the region of the standard normal curve corresponding to a predetermined level of significance (α). The value of the sample statistics defines the region of acceptance and rejection is call...

  Inferential Statistics Definitions: Hypothesis : Hypothesis is a statement about the values of the population parameter. It is made on the basis of the information obtained by experimentation. Testing of hypothesis is a procedure for deciding whether to accept or reject the hypothesis. Procedures which enable us to decide whether to accept or reject hypothesis are called tests of hypothesis, also known as test of significance.   Statistical hypothesis : a statistical hypothesis is a statement about the parameters of one or more populations. Example: (i) The average IQ of normal human beings is 113. (ii) The teaching methods in both the schools are effective. There are two types of hypotheses. They are Null hypothesis and alternative hypothesis. N ull hypothesis: A null hypothesis is a statistical hypothesis formulated for the sole purpose of rejecting it. Example: if we wish to decide whether one procedure is better than the other, then we formulate ...