Slide: One-sided test 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0  p.d.f. of Null distribution area = p-value  TN > t  p-value <   area = (5%, 1% etc) significance level 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5  TN threshold t  critical region  - If H0 is the truth, the value of TN should follow the null distribution. - If H1 is the truth, the value of TN should be very large. - Set the threshold with risk . - The threshold depends on the distribution of the data. V-58
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