Hypothesis testing with normal distribution

Click For Summary
SUMMARY

This discussion focuses on the significance level in hypothesis testing with normal distribution, emphasizing its importance over merely identifying outliers. The Central Limit Theorem establishes that the distribution of sample means approaches a normal distribution as sample size (n) increases. The significance level provides a statistical boundary to determine whether a sample mean is relevant to the parent population, rather than relying solely on the distance of the sample mean from the population mean. This approach allows for a more precise calculation of error probabilities in hypothesis testing.

PREREQUISITES
  • Understanding of the Central Limit Theorem
  • Familiarity with hypothesis testing concepts
  • Knowledge of significance levels in statistical analysis
  • Basic statistics, including mean and standard deviation
NEXT STEPS
  • Study the implications of the Central Limit Theorem in depth
  • Learn about calculating and interpreting significance levels in hypothesis testing
  • Explore the concept of Type I and Type II errors in statistical testing
  • Investigate the use of p-values in determining statistical significance
USEFUL FOR

Statisticians, data analysts, researchers, and students seeking to deepen their understanding of hypothesis testing and normal distribution applications.

Cheman
Messages
235
Reaction score
1
Hypothesis testing with normal distribution...

I've been learning about Hypothesis testing with normal distribution, but I don't understand the need for the significance level. By this I mean that i understand that according to the Central Limit Theorem a distribution of the means will be a normal distribution (for a sufficiently large value of n ) with a mean of the mean of the initial population and a standard deviation equal to the standard deviation of the population divided by the square root of n. However, to see whether we think a sample no longer fits the original popultion (as is the aim of hypothesis testing) I would have initially guessed that you would see if the mean of the sample being tested was an outlier - ie: its mean was 2 standard deviations out of the "mean distribution". However, this is apparently not the case - we instead use a significance level, and this should apparently tell us the boundary for whether the teasted sample is still relevant to the parent population or not - even if this significance level is above or below 2 sds of the mean; its is this significance level that matters not whether the mean of the tested sample is an outlier. Why is this the case?

Thanks in advance. :-p
 
Physics news on Phys.org
With hypothesis testing you can determine what the actual probability of making an error is. Saying "reject the hypothesis if the sample statistic is 2 st. dev. away from it" is just an arbitrary rule-of-thumb.
 

Similar threads

Replies
1
Views
1K
Replies
20
Views
3K
  • · Replies 31 ·
2
Replies
31
Views
5K
  • · Replies 7 ·
Replies
7
Views
3K
  • · Replies 43 ·
2
Replies
43
Views
7K
  • · Replies 9 ·
Replies
9
Views
2K
  • · Replies 3 ·
Replies
3
Views
2K
Replies
5
Views
6K
  • · Replies 4 ·
Replies
4
Views
2K
  • · Replies 11 ·
Replies
11
Views
3K