Here are the essential concepts you must grasp in order to answer the question correctly.
Hypothesis Testing
Hypothesis testing is a statistical method used to make decisions about a population based on sample data. It involves formulating two competing hypotheses: the null hypothesis (H0), which represents a statement of no effect or no difference, and the alternative hypothesis (H1), which indicates the presence of an effect or difference. The goal is to determine whether there is enough evidence in the sample data to reject the null hypothesis in favor of the alternative.
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Types of Hypothesis Tests
Hypothesis tests can be classified as left-tailed, right-tailed, or two-tailed based on the direction of the alternative hypothesis. A left-tailed test is used when the alternative hypothesis states that a parameter is less than a certain value, while a right-tailed test is used when it states that the parameter is greater. A two-tailed test is appropriate when the alternative hypothesis indicates that the parameter is simply different from a certain value, without specifying a direction.
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P-value and Normal Distribution
The P-value is a measure that helps determine the strength of the evidence against the null hypothesis. It represents the probability of obtaining a test statistic as extreme as, or more extreme than, the observed value under the assumption that the null hypothesis is true. In the context of a normal distribution, the P-value corresponds to the area under the curve in the tail(s) of the distribution, which is shaded to visually represent the likelihood of observing the sample data if the null hypothesis holds.
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