WGU C723 Quantitative Analysis for Business – Complete Study Guide & Final Exam Revision Notes (PDF)

C723 Quantitative Analysis for Business-
Final WGU




Hypothesis
is an assumption about a population parameter such as a mean or a proportion




null hypothesis (H0)
-represents the status quo
-states a belief that the population parameter is ≤, =, or ≥ a specific value
-believed to be true unless there is overwhelming evidence to the contrary




alternative hypothesis (H1)
-represents the opposite of the null hypothesis
-believed to be true if the null hypothesis is found to be false
-always states that the population parameter is >, ≠, or < a specific value




pg. 1

, two-tail hypothesis test
is used whenever the alternative hypothesis is expressed as ≠




one-tail hypothesis test
is used when the alternative hypothesis is stated as < or >




Type I error
-occurs when the null hypothesis is rejected when it is true
-when it occurs the producer is looking for a problem in its process that does not
exist




Type II error
-occurs when we fail to reject the null hypothesis when it is not true
-when it occurs the customer is getting a product from a process that is not
performing properly




pg. 2