Significance Testing

6-Step Method for Tests of Significance ........................................................................ 1 Estimation versus Testing ............................................................................................... 2 Overview of Tests of Significance .................................................................................. 3 Purpose of Significance Testing ................................................................................. 3 The Logic of Significance Testing .............................................................................. 3 Tests of Hypothesis ..................................................................................................... 4 The Jury-Trial/Hypothesis-Testing Analogy .............................................................. 5 Example A: Significance Test, using the 6-step method ................................................ 7 Scientific Method ............................................................................................................ 9 Details of the Six Step Method ..................................................................................... 10 BStep 1: The Model .................................................................................................. 10 BStep 2: Specifying the Hypotheses ......................................................................... 10 Exercises on stating hypotheses .................................................................................... 12 Step 3: Formulate the Test Statistic .......................................................................... 13 Step 4: Design ........................................................................................................... 14 Step 5: Gather the data and Analyze ......................................................................... 16 Step 5d: P-value ........................................................................................................ 16 Exercise on Determination of P-Value ......................................................................... 25 Interpretation of P-values .............................................................................................. 25 Step 5e Decision, Verbal characterization of the Results, and Step 6, Verbal Conclusion ................................................................................................................ 26 Exercises on Interpretation of P-Value ......................................................................... 27 Example B: The 1-Sample T-Test, using the 6-Step Method ....................................... 28 Significance Testing Exercises on the 6-Step Method ................................................. 30 References ..................................................................................................................... 31