Hypothesis Testing

A decision procedure used to decide whether or not to reject a null hypothesis. The logic of hypothesis testing is as follows:

1) State the null hypothesis. E.G., She does not like me

2) State the decision rule. E.G., If she kisses me more than 10 times on our first date, conclude she likes me

3) Make attendant assumptions. E.G., She is of sound mind, she is not after my money

4) Collect data. E.G., Go on the first date and observe the number of kisses

5) Calculate the p-value (or observed value of the statistic). E.G., She kissed me 13 times (the probability of this is low IF she does not like me)

6) Make a decisioin. E.G., Since 13 kisses is more than 10 kisses, conclude/decide she likes me