3 a) The procedure of testing hypothesis requires a researcher to adopt several steps. Describe in brief all such steps. b) Explain the components of time series. ( a) Hypothesis testing procedure b) Components of time series )
Answer:- a) Hypothesis testing procedure
There are five steps involved in testing on hypothesis while are as follows:
- Formulate a Hypothesis: The first step is to set up two hypothesis instead of one in such a way that if one hypothesis is true, the other is false. Alternatively; if one hypothesis is false or rejected then the other is true or accepted.
- Set up a suitable significance level: After formulating the hypothesis, the next steps is to test its validity at a certain level of significance. The confidence with which a null hypothesis is rejected or accepted depends on the significance level used for the purpose.
- Select test criterion: The next steps in hypothesis testing in the selection of an appropriate statistical technique as a test criterion. There are many techniques from which one is to be chosen. For example, when the hypothesis partners to a large of more than 30, the Z test implying normal distribution is used for population mean. If the sample is small (n<30) the t test will be more appropriate. The test criteria that are frequently used in hypothesis testing are Z, t, f and x2.
