Hypothesis Testing for a Binomial Probability
Hypothesis Testing for a Binomial Probability
Binomial Distribution Basics
- A binomial distribution is utilised when an experiment is repeated a fixed number of times, each repetition being independent and has two possible outcomes or categories (success and failure).
- The binomial probability refers to the probability of getting a certain number of successes in a fixed number of trials of a binomial experiment.
- The binomial distribution is represented by two parameters: n (the number of trials) and p (the probability of success on any given trial).
Hypothesis Testing with Binomial Distribution
- The main objective of a binomial test is to test whether the probability of success, p, equals a specified value.
- Null Hypothesis(H0) in binomial tests often states that p equals a specified value, say p0.
- The Alternative Hypothesis(H1) posits that p does not equal the specified value, or that it’s less than or greater than p0.
Steps in Conducting a Binomial Test
- Step 1: Determine and state your Null Hypothesis(H0) and Alternative Hypothesis(H1).
- Step 2: Set your significance level. This is often set at 0.05.
- Step 3: Compute the test statistic. In binomial tests, this is the observed number of successes in n trials.
- Step 4: Compute the p-value, the probability of observing as many or more successes given that H0 is true.
- Step 5: Compare the p-value with the significance level. A p-value smaller than the significance level indicates strong evidence against the null hypothesis, and thus it can be rejected.
Interpreting the Result of the Binomial Test
- Reject H0 if p-value is less than the significance level. This shows significant evidence against null hypothesis.
- If the p-value is more than the significance level, then the null hypothesis cannot be rejected. It means that there isn’t enough evidence against it.
Assumptions for Binomial Tests
- The binomial hypothesis test assumes that each trial of the experiment is independent of each other.
- The probability of success is the same for each trial.
- There are a fixed number of trials.
Error Types in Binomial Tests
- Type I error is rejecting the null hypothesis when it is true, indicating a false positive.
- Type II error is failing to reject the null hypothesis when it is false, indicating a false negative.