Final Exam Information
12-3-08
Our final exam is scheduled for Thursday 12/11, 2 pm, in CFA 107. To prepare for the exam, you should read, and work to understand, the following sections: 6.1, 6.2, 6.3, 7.1. Also review the relevant homework exercises and related class work. Some of the key concepts are shown in the outline below.
Section 6.1: Introduction to Confidence Intervals for a Mean
What is the purpose of a confidence interval?
What is the exact meaning of the confidence level?
What is the basic form of a confidence interval?
How is the margin of error of a confidence interval affected by the confidence level? by the sample size? by the population standard deviation?
See cautions p.393.
Section 6.2: Introduction to Significance Testing for a Mean
What is the purpose of a test of significance?
What is the exact meaning of the P-value?
How do you use the STAT > TESTS menu for Z-intervals and Z-tests? [optional]
What should you conclude from a significance test? Note:
The null hypothesis is never established or proven; when P is large we simply fail to refute the null hypothesis.
The alternative hypothesis is never proven false or refuted; when P is large we simply do not have enough evidence to convince us the alternative is true.
Section 6.3: Use and Abuse of Statistical Tests
Under what circumstances are the Z procedures in chapter 6 valid and appropriate?
Consider the context when choosing a level of significance. Note that .05 is not a magical or sacred cut-off for significance: P = .0501 is about as significant as P = .0499.
Formal statistical inference cannot correct basic flaws in experimental design and data collection.
You cannot legitimately test a hypothesis on the same data that first suggested that hypothesis – you have to design a study specifically to test for the effect you now believe exists.
Statistical significance is different than practical significance (importance).
If you