Level of significance - hypothesis testing , Operation Research

Level of Significance

In testing a given  hypothesis  the maximum  probability with which  we would  be willing  to take  risk is called  level of  significance of the  test. This probability  often  denoted by  is generally specified before sample  are draw.

The level of significance  usually  employed in  testing of significance  are 0.05 ( or 5%) and 0.01 ( or 1%). If  for example  a 0.05 or 5% level of  significance  is chosen  in deriving a test of hypothesis  then there  are about  5 chances in 100 that we  would  reject the  hypothesis  when it  should  be accepted ( i .e.). we are about 95% confident that we made the right  decision. In  such a case we say that the hypothesis  has been  rejected at 5 % level  of significance which  means that we  could  be wrong  with  probability 0.05.

Note : Critical Region : A region  in the sample  space S which  amounts  to rejection of HO is termed  as critical region or region of  rejection.

 

Posted Date: 2/26/2013 5:16:54 AM | Location : United States







Related Discussions:- Level of significance - hypothesis testing , Assignment Help, Ask Question on Level of significance - hypothesis testing , Get Answer, Expert's Help, Level of significance - hypothesis testing Discussions

Write discussion on Level of significance - hypothesis testing
Your posts are moderated
Related Questions
process of operation research

Question 1 What is intrinsic quality? Explain key dimensions of a quality product or service Question 2 Explain any five sources of standards Question 3 What is Critical

After testing the model and its solution the next step of the study is to establish control over the solution by proper feedback of the information on variables which deviated

Methods of Survey and Study:   Some methods of collecting information about the organisation and about the information requirement of potential users are mentioned below. No si

CONSTRUCTION PROCEDURE The construction of an interview schedule or questionnaire is a time consuming task requiring considerable attention to all the details. The investig

Solve the following Linear Programming Problem using Simple method. Maximize Z= 3x1 + 2X2 Subject to the constraints: X1+ X2 = 4 X1 - X2 = 2 X1, X2 = 0

Calculation  of Standard Deviation - Discrete Series   There are three methods for  calculating  standard  deviation  in discrete series": a. Actual Mean Methods: It inc

A paper mill produces two grades of paper viz., X and Y because of raw material restrictions, it cannot produce more than 400 tons of grade X paper and 300 tons ot grade Y paper in

MEAN DEVIATION Mean  deviation of a series is the arithmetic  average of the  deviations of various  items  from the  median  or mean  of that series. Median is preferred

solve the LPP using simple method, maximize z= 3x1+2x2 subject to constraints