The Logic of Hypothesis Testing

In classical tests of significance, two kinds of hypotheses are used which are
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The null hypothesis and the alternative hypothesis

The null hypothesis is used for testing.

It is a statement that no difference exists between the parameter (a measure taken by a census of the population), and the statistic being compared to it (a

6/12/12 –

6/12/12 . • Analysts usually test to determine whether there has been no change in the population of interest or whether a real difference exists. – • In the hybrid-car example. the null hypothesis states that the population parameter of 50 mpg has not changed.The Logic of HT contd. A null hypothesis is always stated in a negative form.

The Logic of HT contd. the sample statistic of 54 indicates the population value probably is no longer 50). The hybrid-car example can be explored further to show how these concepts are used to test for significance. 6/12/12 – • .e. • The alternative hypothesis holds that there has been a change in average mpg (i.. The alternative hypothesis is the logical opposite of the null hypothesis.

average mpg has increased – The 6/12/12 . depending on the objective of the researchers.The Logic of HT contd. The alternative (HA) may take several forms. • • • The null hypothesis (Ho): There has been no change from the 50 mpg average. The HA may be of the “not the same” or the “greater than” or “less than” form: – The average mpg has changed from 50.

– • 6/12/12 To test this hypothesis. . or It could be less than 50. • • These types of alternative hypotheses correspond with twotailed and one-tailed tests. A two-tailed test.The Logic of HT contd. or nondirectional test. considers two possibilities: – the average could be more than 50 mpg. the region of rejection are divided into two tails of the distribution.

The Logic of HT contd. • Such hypothesis can be expressed in the following form: – Null Ho:μ = 50 mpg – Alternative HA:μ ≠ 50 mpg (not the same case) (See figure on the next slide) 6/12/12 .

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