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Probability of an event occurring is low
- When the probability of an event occurring is low, and it happens, it is called a rare event. Rare events are important to consider in hypothesis testing because they can inform your willingness not to reject or to reject a null hypothesis.
philschatz.com/statistics-book/contents/m47044.htmlRare Events, the Sample, Decision and Conclusion · Statistics
Apr 2, 2023 · When the probability of an event occurring is low, and it happens, it is called a rare event. Rare events are important to consider in hypothesis testing because they can inform your willingness not to reject or to reject a null hypothesis.
A rare event is an event that is unlikely to occur. The probability of a rare event happening is very small. In a hypothesis test, we want to determine if the collected sample is a rare event.
When the probability of an event occurring is low, and it happens, it is called a rare event. Rare events are important to consider in hypothesis testing because they can inform your willingness not to reject or to reject a null hypothesis.
Rare Events. Suppose you make an assumption about a property of the population (this assumption is the null hypothesis). Then you gather sample data randomly. If the sample has properties that would be very unlikely to occur if the assumption is true, then you would conclude that your assumption about the population is probably incorrect.
A “rare event” has occurred (Didi getting the 💲100 bill) so Ali doubts the assumption about only one 💲100 bill being in the basket. Using the Sample to Test the Null Hypothesis. Use the sample data to calculate the actual probability of getting the test result, called the p-value.
Rare Events. The thinking process in hypothesis testing can be summarized as follows: You want to test whether or not a particular property of the population is true. You make an assumption about the true population mean for numerical data or the true population proportion for categorical data. This assumption is the null hypothesis.
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Identify rare events. Conduct and interpret hypothesis tests. Describe a decision and conclusion. Establishing the type of distribution, sample size, and known or unknown standard deviation can help you figure out how to go about a hypothesis test. However, there are several other factors you should consider when working out a hypothesis test.