Discussion Post: Advanced Statistical Concepts and Business Analytics
• Define each of the following terms and provide a hypothetical example for each: hypothesis testing, null and alternative hypothesis, non-directional and directional hypothesis, type I error in testing hypothesis, type II error in testing hypothesis, probability of type I error (?), probability of type II error (ß), power of the test and its significance, the critical value(s) in a test, p value (significance level).
• What are the possible outcomes in testing a hypothesis? What are the determinant factors in deciding the critical value(s) in testing a hypothesis?
• When the z-statistic is appropriate to be used in testing a hypothesis? When the t-statistic is appropriate to be used in testing a hypothesis? What is the criterion for rejecting the null hypothesis for both non-directional and directional tests? How do you find the p-value in each case?
Textbook: Bowerman, B., Drougas, A. M., Duckworth, A. G., Hummel, R. M. Moniger, K. B., & Schur, P. J. (2019). Business statistics and analytics in practice (9th ed.). McGraw-Hill. ISBN 9781260187496.
The response should include a reference list. Using double-space, Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.