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Significance Testing for AP Statistics (page 3)

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By — McGraw-Hill Professional
Updated on Feb 4, 2011

Using Confidence Intervals for Two-Sided Alternatives

Consider a two-sided significance test at, say, α = 0.05 and a confidence interval with C = 0.95. A sample statistic that would result in a significant finding at the 0.05 level would also generate a 95% confidence interval that would not contain the hypothesized value. Confidence intervals for two-sided hypothesis tests could then be used in place of generating a test statistic and finding a P-value. If the sample value generates a C-level confidence interval that does not contain the hypothesized value of the parameter, then a significance test based on the same sample value would reject the null hypothesis at α = 1 – C.

You should not use confidence intervals for hypothesis tests involving one-sided alternative hypotheses. For the purposes of this course, confidence intervals are considered to be two sided (although there are one-sided confidence intervals).

Practice problems for these concepts can be found at:

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