Hypothesis testing (in a nutshell)
Hypothesis
statement about the value of a purpose parameter
Test statistic (X)
the result of the experiment, or the statistic that is calculated from the example
Null Hypothesis (H0)
the hypothesis you assume is correct
Alternative Hypothesis (H1)
tells you about the parameter if your assumption is shown to be wrong
Critical region
values where you reject H0
Critical value
the values on the boundary of the critical region
One-tailed testing
Two-tailed testing
same as doing two one-tailed tests but we half the significance level in either tail
e.g. 5% two-tailed test is equivalent to doing a 2.5% level lower and upper tail test