Chapter 1 · §1.2 – §1.3

Reject H₀? Let the curve decide.

Drag, slide and toggle your way through rejection regions, p-values, confidence-interval duality and power.

Example 1.1 · one-sided z test

The Rejection Zone

H₀: μ₁ ≤ μ₂ vs. H_A: μ₁ > μ₂ (directional). Drag z into the coral zone to reject H₀.

REJECT H₀
-3-2-101231.645z = 1.86
z
1.86
z_crit
1.645
p-value
0.0314

P = P(Z ≥ 1.86) = 0.0314 is ≤ α = 0.05. Same verdict as comparing z to the critical value.

Direction: P = 0.0314 in favor of a larger μ₁. Try the two-sided toggle: at z = 1.86 it doubles to 0.0628, which is no longer ≤ 0.05.

Decisions & errors

Type I vs. Type II

Tap any cell. Rejecting H₀ supports H_A more convincingly than failing to reject supports H₀.

Fail to reject H₀Reject H₀H₀ trueH₀ false
Type I error: Reject a true H₀

A false alarm. Its probability is the significance level α, also called the size of the test.

Sorter

Simple or Composite?

A simple hypothesis names a single value; a composite one names more than one.

1 / 6Score 0🔥 0

H: μ₁ − μ₂ ≤ 0

4-step decision flow

From Data to Decision

State how the data were collected (e.g. a random sample) and, for a parametric test, the distribution assumed. Nonparametric tests relax the distributional assumption — that is the whole point of this course.

Duality inspector

Confidence Interval ⇄ Hypothesis Test

  1. 1. Suppose your sample gave a 95% confidence interval of [60, 80] (the green band).
  2. 2. Someone claims the true value is θ₀. Drag the dot to try different claims.
  3. 3. Inside the band → the data are consistent with the claim, so you fail to reject H₀. Outside → reject H₀ (two-sided test, α = 0.05).
θ₀ = 70
405060708090100
Fail to Reject H₀θ₀ = 70 is inside [60, 80], so it's a plausible value.
Power & efficiency

Statistical Power Dial

01
80.4%
Power (1 − β), α = 0.05
Effect size (d)

Power rises with a larger n, a larger α (at the cost of more Type I error), and a larger true effect. ✅ Meets the conventional 80% power target.

Relative efficiency calculator

For the same H₀, H_A, α and β, the relative efficiency of test A to test B is nB / nA. ARE (Pitman efficiency) is the limit as n → ∞.

RE(A to B) = 105 / 110 = 0.955 — B is more efficient: it needs the smaller sample.

Statistical vs. practical

Significant… but does it matter?

Imagine a drug that lowers blood pressure by only 0.3 mm Hg on average (σ = 10). The true difference never changes, only the sample size does.

z
0.30
P value
0.3821
Effect
0.3 mm Hg
Not significant: the sample is too small to detect it

Very large samples detect tiny, useless differences; small samples can miss practically important ones. Only someone knowledgeable in the field can judge practical significance.

✅ “There is a significant difference between the sample means.”
❌ “The population means are significantly different.”

Up next

§1.3 Estimation Lab →