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Estimating Confidence Intervals: Statistical Significance

  • Are M1 & M2 significantly different?
    • Compute t. Select significance level (e.g. sig = 5%)
    • Consult table for t-distribution: Find t value corresponding to k-1 degrees of freedom (here, 9)
    • t-distribution is symmetric: typically upper % points of distribution shown → look up value for confidence limit z=sig/2 (here, 0.025)
    • If t > z or t < -z, then t value lies in rejection region:
      • Reject null hypothesis that mean error rates of M1 & M2 are same
      • Conclude: statistically significant difference between M1 & M2
    • Otherwise, conclude that any difference is chance

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