# International Journal of Business, Economics and Management

Online ISSN: 2312-0916
Print ISSN: 2312-5772

# No. 12

#### Teaching Hypothesis Test in an Easy Way

Pages: 241-247

DOI: 10.18488/journal.62/2015.2.12/62.12.241.247

M. Shafiqur Rahman

Export to    BibTeX   |   EndNote   |   RIS

1. Anderson, D.R., D.J. Sweeny and T.A. Williams, 2011. Statistics for business and economics. 11th Edn., Australia: South Western, Cengage Learning.
2. Bain, L.J. and M. Engelhardt, 1992. Introduction to probability and mathematical statistics. 2nd Edn., California: Duxbury Press.
3. Bickel, P.J. and K.A. Doksum, 1977. Mathematical statistics. California: Holden-Day, Inc.
4. Lehmann, E.L. and J.P. Romano, 2010. Testing statistical hypotheses. Springer texts in statistics. 3rd Edn., New York: Springer Science+ Business Media Inc.
5. McClave, J.T., P.G. Benson and T. Sincich, 2005. Statistics for business and economics. 9th Edn., New Jersey: Pearson Prentice Hall.
6. Rao, C.R., 1973. Linear statistical inference and its application. 2nd Edn., New York: John Wiley & Sons.
7. Shi, N. and J. Tao, 2008. Statistical hypothesis testing: Theory and methods. New Jersy: World Scientific Publishing Company Pte. Ltd.
This paper introduced an easy way for selecting null (H0) and alternative hypotheses (H1), finding p-values and taking decisions. Should a research hypothesis or a claim be H0 or H1? This paper proposed a new method to select H0 and H1. Considering two sets of hypotheses (a) H0: θ ≤ θ0 against H1: θ > θ0 and (b) H0: θ ≥ θ0 against H1: θ < θ0 for testing a location parameter θ if the absolute value of the test statistic obtained from a sample is less than the absolute critical value then the two decisions corresponding to two sets of hypotheses (a) and (b) are contradictory. This paper proposed new methods to overcome these issues and making consistent decisions. This paper also introduced a general formula for finding P-value. These new methods and formula have been applied in an undergraduate class. It is observed that the performances of the proposed methods are significantly better than that of the traditional methods.
Contribution/ Originality
The paperâ€™s primary contribution is finding an easy way for selecting null and alternative hypotheses. This study uses new three region hypothesis testing method and introduces a new formula for finding P-values. It is one of very few studies which have investigated practically the effectiveness of the proposed method.