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1.6 Hypothesis Testing

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Another way to make statistical inferences about a population parameter such as the mean is to use hypothesis testing to make decisions about the parameter's value. Suppose that we are interested in a particular value of the mean single‐family home sale price, for example, a claim from a realtor that the mean sale price in this market is . Does the information in our sample support this claim, or does it favor an alternative claim?

Applied Regression Modeling

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