ECN 221: Exam 3 – Arizona State University –
Hypothesis Testing, ANOVA, and Regression
Concepts Explained
mean square total another term for the variance of the sample data
Sum of Squares Regression measures the variation in the dependent variable that is
explained by the independent variable in simple regression analysis.
null hypothesis (H0) -represents the status quo.
-is believed to be true unless there is overwhelming evidence to the contrary.
alternative hypothesis (H1) -represents the opposite of the null hypothesis (research
hypothesis)
-Is believed to be true if the null hypothesis is found to be false
Type I error -occurs when the null hypothesis is rejected when it is true
- known as the producer's risk
Type II error -occurs when we fail to reject the null hypothesis when it is not true
- known as the consumer's risk
two-tail hypothesis test used whenever the alternative hypothesis is expressed as μ≠ μ0
one-tail hypothesis test used when the alternative hypothesis is stated as < or >
Hypothesis Testing, ANOVA, and Regression
Concepts Explained
mean square total another term for the variance of the sample data
Sum of Squares Regression measures the variation in the dependent variable that is
explained by the independent variable in simple regression analysis.
null hypothesis (H0) -represents the status quo.
-is believed to be true unless there is overwhelming evidence to the contrary.
alternative hypothesis (H1) -represents the opposite of the null hypothesis (research
hypothesis)
-Is believed to be true if the null hypothesis is found to be false
Type I error -occurs when the null hypothesis is rejected when it is true
- known as the producer's risk
Type II error -occurs when we fail to reject the null hypothesis when it is not true
- known as the consumer's risk
two-tail hypothesis test used whenever the alternative hypothesis is expressed as μ≠ μ0
one-tail hypothesis test used when the alternative hypothesis is stated as < or >
