Introduction
Hypothesis testing is one of the most heavily examined topics in Statistics 2. This subtopic builds directly on the framework introduced in §6.4 (Introduction to Hypothesis Testing) and applies it to two key discrete distributions: the Binomial and the Poisson. The core skill is to take a single observed value, calculate the probability of obtaining a result "at least as extreme" under a null hypothesis, and compare it with a stated significance level to reach a conclusion. Examiners reward precise language, correct tail identification, and an explicit comparison — every step must be shown.
Core Concept
The Hypothesis-Testing Framework
A hypothesis test for a Binomial or Poisson parameter follows five stages:
- State and — the null hypothesis fixes the parameter; the alternative states the direction of interest.
- Choose significance level (e.g. 5%, 1%, 10%) — given in the question.
- Identify the critical region / compute the -value — using exact probabilities or a normal approximation.
- Compare — if , reject ; otherwise do not reject .
- Conclude in context — a statement referring to the original scenario.
Binomial Tests
If a random variable under , a single observation is made. The -value is the probability of obtaining a value at least as extreme as in the direction of :
- One-tailed (upper): →
- One-tailed (lower): →
- Two-tailed: → , or find both critical regions and check which tail falls in.
Poisson Tests
If under , the same logic applies with the Poisson probability formula:
Cumulative Poisson probabilities are evaluated directly (or read from tables if permitted).
Normal Approximation
When is large and and , approximate by .
When (approximately), approximate by .
Apply a continuity correction in both cases.
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