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Elements of Hypothesis-Testing Theory

In: Mathematical Statistics for Economics and Business

Author

Listed:
  • Ron C. Mittelhammer

    (Washington State University, Program in Statistics and Department of Agricultural Economics)

Abstract

A primary goal of scientific research often concerns the verification or refutation of assertions, conjectures, currently accepted laws, or descriptions relating to a given economic, sociological, physical, or biological process or population. Statistical hypothesis testing concerns the use of a random sample of observations from the process or population being studied, together with probability and mathematical statistics principles, to judge the validity of stated assertions, conjectures, laws, or descriptions in such a way that the probability of making incorrect decisions can be controlled. The precise nature of the types of errors that can be made and how, and in what sense, the probabilities of such errors can be controlled is the subject of this chapter.

Suggested Citation

  • Ron C. Mittelhammer, 1996. "Elements of Hypothesis-Testing Theory," Springer Books, in: Mathematical Statistics for Economics and Business, chapter 9, pages 509-593, Springer.
    • Handle: RePEc:spr:sprchp:978-1-4612-3988-8_9
    DOI: 10.1007/978-1-4612-3988-8_9
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