APPLIED STAT.IN BUS.+ECONOMICS
APPLIED STAT.IN BUS.+ECONOMICS
6th Edition
ISBN: 9781259957598
Author: DOANE
Publisher: RENT MCG
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Chapter 9, Problem 1CR

(a) List the steps in testing a hypothesis, (b) Why can't a hypothesis ever be proven?

a.

Expert Solution
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To determine

List the steps in testing a hypothesis.

Explanation of Solution

Steps in testing a hypothesis:

Step 1: Identify the claim and state the null and alternative hypotheses.

Step 2: Specify the decision rule. That is, identify the level of significance, critical values and rejection regions.

Step 3: Obtain the test statistic value.

Step 4: Make decisions about deciding whether to reject or fail to reject the null hypothesis

Step 5: Interpret the decision.

b.

Expert Solution
Check Mark
To determine

Explain why a hypothesis cannot ever be proven.

Explanation of Solution

The decisions that can be made by performing a hypothesis test are as follows:

  • Reject H0
  • Fail to reject H0.

The above decision indicates that,

  • If the null hypothesis is rejected, then the conclusion is that there is enough evidence to reject H0.
  • If the null hypothesis is not rejected, then the conclusion is that there is no enough evidence to reject or fail to reject H0.

From the decision, the hypothesis cannot ever be proven because,

  • The hypothesis will be fair today, but it could be disproved tomorrow for new data.
  • The hypothesis might be tested repeatedly when the null hypothesis is not rejected.

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An example of a hypothesis that is not refutable. Why is it not refutable?

Chapter 9 Solutions

APPLIED STAT.IN BUS.+ECONOMICS

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