Decision-Theoretic Hypothesis Testing: A Primer With R Package OptSig
Jae H. Kim
Abstract
This article is a primer for a decision-theoretic approach to hypothesis testing for students and teachers of basic statistics. Using three examples at an introductory level, this article demonstrates how decision-theoretic hypothesis testing can be taught to the students of basic statistics. It also demonstrates that students and researchers can make more sensible and unambiguous decisions under uncertainty by employing this particular approach. The examples are illustrated using R and its package “OptSig.”
Topics & Concepts
Statistical hypothesis testingComputer scienceStatisticsEconometricsMathematics educationManagement sciencePsychologyMathematicsEngineeringStatistics Education and MethodologiesData Analysis with RForecasting Techniques and Applications