Parameter Estimation and Evaluation Introduction to Hypothesis Testing Introduction to Hypothesis Testing Remarks: .A null hypothesis is a statement about the population or some at- tributes of the population.The alternative hypothesis is that the statement in the null hypothesis is false. The goal of hypothesis testing is to decide,based on an observed data set x"generated from a population,which of two complementary hy- potheses is true. Suppose a random sample Xm is generated from a population distri- bution f(x,0)with some unknown value of parameter 0 O,where is a known finite-dimensional parameter space.In hypothesis test- ing,the parameter space is divided into two mutually exclusive and collectively exhaustive subsetsΘoandΘA,namelyΘo∩A=gand Θ0UΘA=Θ. Hypothesis Testing Introduction to Statistics and Econometrics July7,2020 6/110Parameter Estimation and Evaluation Hypothesis Testing Introduction to Statistics and Econometrics July 7, 2020 6/110 Introduction to Hypothesis Testing Introduction to Hypothesis Testing Remarks: