After reading this chapter, you should be able to

• Define inferential statistics.
• Explain the difference between a sample and a population.
• Explain the difference between a statistic and a parameter.
• Recognize the symbols used for the mean, variance, standard deviation, correlation coefficient, proportion, and regression coefficient.
• Provide the definition of sampling distribution.
• Compare and contrast point estimation and interval estimation.
• Explain how confidence intervals work over repeated sampling.
• List and explain the steps in hypothesis testing.
• Explain the difference between the null hypothesis and the alternative hypothesis.
• Explain the difference between a nondirectional and a directional alternative hypothesis.
• Explain the difference between a probability value and the significance level.
• Draw the hypothesis-testing decision matrix and explain the contents.
• State how to decrease the probability of Type I and Type II errors.
• Explain the purpose of hypothesis testing.
• Explain the basic logic of significance testing.
• Explain the different significance tests discussed in the chapter.
• Explain the difference between statistical and practical significance.
• Explain what an effect size indicator is.