Hypothesis Testing
Hypothesis testing typically begins with a theory a claim or an assertion about a particular parameter (mean or proportion) of a population.
The Federal Trade Commission (FTC) is an independent agency of the U.S. federal government charged with preventing unfair or deceptive trade practices. It regulates advertising marketing and consumer credit practices and also prevents antitrust agreements and other unfair practices.
The FTC publishes press releases regularly about health and fitness claims athttps://www.ftc.gov/news-events/media-resources/truth-advertising/health-claims
Health and Fitness Claims. Retrieved fromhttps://www.ftc.gov/news-events/media-resources/truth-advertising/health-claims
Find a claim about a product or service from one of the press releases listed in the FTC website.
Read through these and select one of interest to you that has not been picked by anyone else yet in class.
Initial Response: Formulating the Hypothesis
See Example post.
First response: Review one of your classmates post. In the context of their hypothesis test discuss what the Type I Error and Type II Error would mean using a Decision Table as your guide. What level of significance would you suggest based on what a Type I Error or Type II Error would mean?
Recall that:
Type I Erroris defined as rejecting the null hypothesis when in fact it should be accepted. (i.e. False Positive False Alarm defendant found guilty when in fact innocent)
Type II Erroris defined as accepting the null hypothesis when in fact it should be rejected. (i.e. False Negative defendant found not guilty when in fact guilty)