Hypothesis testing

What you'll learn

• Understand the nature of a hypothesis test, including one-tailed and two-tailed tests, null hypothesis, alternative hypothesis, significance level, critical region, acceptance region, and test statistic.
• Formulate hypotheses and carry out a hypothesis test for a single observation from a binomial distribution using direct probability evaluation.
• Formulate hypotheses and carry out a hypothesis test for a single observation from a binomial distribution using a normal approximation.
• Interpret outcomes of hypothesis testing in context.
• Understand the terms Type I error and Type II error in relation to hypothesis testing.
• Calculate the probabilities of making Type I and Type II errors in specific situations involving tests based on a normal distribution or direct evaluation of binomial probabilities.

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