Regression and Hypothesis Testing

Question 1

Hypothesis for a positive correlation one tailed test

Answer 1

H0: p = 0
H1: p > 0

Question 2

Hypothesis for a negative correlation one tailed test

Answer 2

H0: p = 0
H1: p < 0

Question 3

Hypothesis testing for a correlation two tailed test

Answer 3

H0: p = 0
H1: p ≠ 0

Question 4

Method for Correlation Test

Answer 4

• State H0 and H1
• Use: Significance Level and sample size to find the critical value using the PMCC table
• REMEMBER IF TWO TAILED ÷ Sig Level by 2
• Draw a diagram and shade the critical region
• If r is in the critical region -> Reject H0 and accept H1
• If r is not in the critical region -> Accept H0 and reject H1
• Write a conclusion in context

Question 5

Method for Hypothesis Testing

Answer 5

• State the test statistic
• State the distribution of X
• State the Null and Alternative hypothesis
• Find the probability and compare it to the significance level
• State the conclusion in context
• If the probability < significance level:
• Reject the H0 and accept H1
• If the probability > significance level:
• Accept the H0 and Reject H1
• If the observed value falls into the critical region, reject H0 and accept H1. Otherwise, accept H0 and reject H1.