Download this Paper Open PDF in Browser

Substantiating vs. Refuting Claims in Hypothesis Testing: A Course Module

11 Pages Posted: 3 Sep 2016 Last revised: 1 Oct 2016

Hershey H. Friedman

City University of New York (CUNY) - Department of Business Management

Linda Weiser Friedman

Baruch College, CUNY - Zicklin School of Business; CUNY - The Graduate Center

Date Written: September 2, 2016

Abstract

This course module is for statistics instructors who want to teach students about the different approaches to setting up hypotheses, H0 and H1. Hypothesis tests might be conducted in order to substantiate a claim a company wants to make or might be used to refute a claim that a competitor is making about its product. When it comes to substantiating a claim, a company wants to set up the hypotheses, H0 and H1, in such a way that there is strong evidence that its claim is accurate. The cost of being mistaken is very high so the company wants to demonstrate that its claim is true. It does not want the sample evidence to be inconclusive (i.e., having no evidence to reject the claim). This is why the company’s claim belongs in the alternative hypothesis.

Keywords: statistics, hypothesis testing, null hypothesis, substantiating a claim, refuting a claim

JEL Classification: C00, C10, C40, I20

Suggested Citation

Friedman, Hershey H. and Friedman, Linda Weiser, Substantiating vs. Refuting Claims in Hypothesis Testing: A Course Module (September 2, 2016). Available at SSRN: https://ssrn.com/abstract=2834080 or http://dx.doi.org/10.2139/ssrn.2834080

Hershey H. Friedman (Contact Author)

City University of New York (CUNY) - Department of Business Management ( email )

Linda Weiser Friedman

Baruch College, CUNY - Zicklin School of Business ( email )

17 Lexington Avenue
New York, NY 10010
United States

HOME PAGE: http://cisnet.baruch.cuny.edu/friedman/

CUNY - The Graduate Center

365 Fifth Avenue
New York,, NY 10016
United States

Paper statistics

Downloads
23
Abstract Views
99