Statistics Dictionary

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Critical Parameter Value

In a hypothesis test, the power of the test refers to the probability that the test will reject the null hypothesis when the null hypothesis is false.

To compute the power of the test, one offers an alternative guess about the "true" value of the population parameter, assuming that the null hypothesis is false. On this website, we refer to that value as the critical parameter value.

For example, suppose the null hypothesis states that a population mean is equal to 100. A researcher might ask: What is the probability of rejecting the null hypothesis if the true population mean is equal to 90? In this example, the critical parameter value would be 90.

See also:   How to Compute the Power of a Hypothesis Test