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Chapter 2. Topics in Hypothesis Testing - Pg. 23

C H A P T E R 2 Topics in Hypothesis Testing 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Significance Levels ..................................................................... 23 Power ...................................................................................... 25 One-Tailed and Two-Tailed Tests ................................................. 26 p-Values ................................................................................... 27 Sample Size Determination ........................................................ 27 Multiple Testing ........................................................................ 30 Summary ................................................................................. 40 2.1 Significance Levels When conducting hypothesis testing, an erroneous conclusion is made if the null hypothesis is rejected when it is really true. This error is called a Type I error, and its probability is denoted by , which is known as the `significance level' of the test.