Step 1
Hypothesis testing or significance testing is a method for testing a claim or hypothesis about a parameter in a population, using data measured in a sample.
It is used to assess the plausibility of a hypothesis by using sample data.
Step 2
Large sample:-
The sample size n is greater than
Small sample:-
If the sample size n is less than
Test of Significance:-
The theory of test of significance consists of various test Statistic. The theory had been developed under two broad heading
Test of significance for large sample
Large sample test or Asymptotic test or Z test
Test of significance for small samples
Small sample test or Exact test-t, F and
It may be noted that small sample tests can be used in case of large samples also.
The Wall Street Journal reported that the age at first startup for
a. Suppose a sample of 200 entrepreneurs will be taken to learn about the most important qualities of entrepreneurs. Show the sampling distribution of
b. Suppose a sample of 200 entrepreneurs will be taken to learn about the most important qualities of entrepreneurs. Show the sampling distribution of
c. Are the standard errors of the sampling distributions different in parts (a) and (b)?