7. Hypothesis Testing: Introduction to Hypothesis Testing
Connection Between Hypothesis Testing and Confidence Intervals
There exists a direct connection between a two-sided hypothesis test for #\mu# at the #\alpha = 0.05# level of significance and a #95\%# confidence interval for #\mu#:
- If #\mu_0# falls the #95\%\,CI# then the null hypothesis #H_0# is rejected.
- If #\mu_0# falls the #95\%\,CI# then the null hypothesis #H_0# is not rejected.
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