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Statistics · Hypothesis testing

Chapter 1 · 4

The idea

Critical regions and actual significance level

The critical-region method for a one-tailed test: the critical value is the boundary and the critical region is the set of outcomes that would lead to rejecting H0. How to find it (the smallest c with P(X ≥ c) ≤ α for an upper test, the largest c with P(X ≤ c) ≤ α for a lower test), why the discreteness of the binomial means the actual significance level is usually below the nominal α, and how to use the region to conclude.

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Statistics · Hypothesis testing

Critical regions and actual significance level

The critical-region method for a one-tailed test: the critical value is the boundary and the critical region is the set of outcomes that would lead to rejecting H0. How to find it (the smallest c with P(X ≥ c) ≤ α for an upper test, the largest c with P(X ≤ c) ≤ α for a lower test), why the discreteness of the binomial means the actual significance level is usually below the nominal α, and how to use the region to conclude.

Why it works

Deciding in advance

A factory tests a batch every hour against the same claim — recomputing a tail probability sixty times a day would be absurd. Instead, work out in advance which outcomes would cause us to reject H0H_0. That set is the critical region (CR), and its boundary value is the critical value. Then the test is just: is the observed value in the critical region?

Finding the critical value

Assume H0:p=p0H_0 : p = p_0, so X∼B(n,p0)X \sim B(n, p_0).
  • Upper test (H1:p>p0H_1 : p > p_0): the CR is X≥cX \ge c, where cc is the smallest value with P(X≥c)≤αP(X \ge c) \le \alpha.
  • Lower test (H1:p<p0H_1 : p < p_0): the CR is X≤cX \le c, where cc is the largest value with P(X≤c)≤αP(X \le c) \le \alpha.

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