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How to do hypothesis testing

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attempting to answer a research question or hypothesis that you have set.

One method of evaluating this research question is via a process

called hypothesis testing, which is sometimes also referred to

assignificance testing. Since there are many facets to hypothesis testing, we

start with the example we refer to throughout this guide.

Two statistics lecturers, Sarah and Mike, think that they use the best method

to teach their students. Each lecturer has 50 statistics students who are

studying a graduate degree in management. In Sarah's class, students have

to attend one lecture and one seminar class every week, whilst in Mike's class

students only have to attend one lecture. Sarah thinks that seminars, in

addition to lectures, are an important teaching method in statistics, whilst Mike

believes that lectures are sufficient by themselves and thinks that students are

better off solving problems by themselves in their own time. This is the first

year that Sarah has given seminars, but since they take up a lot of her time,

she wants to make sure that she is not wasting her time and that seminars

improve her students' performance.

The first step in hypothesis testing is to set a research hypothesis. In Sarah

and Mike's study, the aim is to examine the effect that two different teaching

methods providing both lectures and seminar classes (Sarah), and providing

lectures by themselves (Mike) had on the performance of Sarah's 50

students and Mike's 50 students. More specifically, they want to determine

whether performance is different between the two different teaching methods.

Whilst Mike is skeptical about the effectiveness of seminars, Sarah clearly

believes that giving seminars in addition to lectures helps her students do

better than those in Mike's class. This leads to the following research

hypothesis:

Research Hypothesis:

addition to lectures, their performance increases.

Before moving onto the second step of the hypothesis testing process, we

need to take you on a brief detour to explain why you need to run hypothesis

testing at all. This is explained next.

Sample to population

If you have measured individuals (or any other type of "object") in a study and

want to understand differences (or any other type of effect), you can simply

summarize the data you have collected. For example, if Sarah and Mike

wanted to know which teaching method was the best, they could simply

compare the performance achieved by the two groups of students the group

of students that took lectures and seminar classes, and the group of students

that took lectures by themselves and conclude that the best method was the

teaching method which resulted in the highest performance. However, this is

generally of only limited appeal because the conclusions could only apply to

students in this study. However, if those students were representative of all

statistics students on a graduate management degree, the study would have

wider appeal.

In statistics terminology, the students in the study are the sample and the

larger group they represent (i.e., all statistics students on a graduate

management degree) is called the population. Given that the sample of

statistics students in the study are representative of a larger population of

statistics students, you can use hypothesis testing to understand whether any

differences or effects discovered in the study exist in the population. In

layman's terms, hypothesis testing is used to establish whether a research

hypothesis extends beyond those individuals examined in a single study.

Another example could be taking a sample of 200 breast cancer sufferers in

order to test a new drug that is designed to eradicate this type of cancer. As

much as you are interested in helping these specific 200 cancer sufferers,

your real goal is to establish that the drug works in the population (i.e., all

breast cancer sufferers).

As such, by taking a hypothesis testing approach, Sarah and Mike want

to generalize their results to a population rather than just the students in their

sample. However, in order to use hypothesis testing, you need to re-state your

research hypothesis as a null and alternative hypothesis. Before you can do

this, it is best to consider the process/structure involved in hypothesis testing

and what you are measuring. This structure is presented next.

Whilst all pieces of quantitative research have some dilemma, issue or problem that

they are trying to investigate, the focus in hypothesis testing is to find ways to structure

these in such a way that we can test them effectively. Typically, it is important to:

1.

2.

is, measure or operationally define) what you are studying and set out

thevariables to be studied.

3.

Set out the null and alternative hypothesis (or more than one hypothesis; in

other words, a number of hypotheses).

4.

5.

6.

Determine whether the distribution that you are studying is normal (this has

implications for the types of statistical tests that you can run on your data).

7.

defined and whether the distribution is normal or not.

8.

Run the statistical tests on your data and interpret the output.

9.

Whilst there are some variations to this structure, it is adopted by most thorough

quantitative research studies. We focus on the first five steps in the process, as well as

the decision to either reject or fail to reject the null hypothesis. You can get guidance on

which statistical test to run by using our Statistical Test Selector.

So far, we have simply referred to the outcome of the teaching methods as the

"performance" of the students, but what do we mean by "performance". "Performance"

could mean how students score in a piece of coursework, how many times they can

answer questions in class, what marks they get in their exams, and so on. There are

three major reasons why we should be clear about how we operationalize (i.e.,

measure) what we are studying. First, we simply need to be clear so that people reading

our work are in no doubt about what we are studying. This makes it easier for them to

repeat the study in future to see if they also get the same (or similar) results; something

called internal validity. Second, one of the criteria by which quantitative research is

assessed, perhaps by an examiner if you are a student, is how you define what you are

measuring (in this case, "performance") and how you choose to measure it. Third, it will

determine which statistical test you need to use because the choice of statistical test is

largely based on how your variables were measured (e.g., whether the variable,

"performance", was measured on a "continuous" scale of 1-100 marks; an "ordinal"

scale with groups of marks, such as 0-20, 21-40, 41-60, 61-80 and 81-100; or some of

other scale; see the statistical guide, Types of Variable, for more information).

It is worth noting that these choices will sometimes be personal choices (i.e., they are

subjective) and at other times they will be guided by some other/external information.

For example, if you were to measure intelligence, there may be a number of

characteristics that you could use, such as IQ, emotional intelligence, and so forth.

What you choose here will likely be a personal choice because all these variables are

proxies for intelligence; that is, they are variables used to infer an individual's

intelligence, but not everyone would agree that IQ alone is an accurate measure of

intelligence. In contrast, if you were measuring company performance, you would find a

number of established metrics in the academic and practitioner literature that would

determine what you should test, such as "Return on Assets", etc. Therefore, to know

what you should measure, it is always worth looking at the literature first to see what

other studies have done, whether you use the same measures or not. It is then a matter

of making an educated decision whether the variables you choose to examine are

accurate proxies for what you are trying to study, as well as discussing the potential

limitations of these proxies.

In the case of measuring a statistics student's performance there are a number of

proxies that could be used, such as class participation, coursework marks and exam

marks, since these are all good measures of performance. However, in this case, we

choose exam marks as our measure of performance for two reasons: First, as a

statistics tutor, we feel that Sarah's main job is to help her students get the best grade

possible since this will affect her students' overall grades in their graduate management

degree. Second, the assessment for the statistics course is a single two hour exam.

Since there is no coursework and class participation is not assessed in this course,

exam marks seem to be the most appropriate proxy for performance. However, it is

worth noting that if the assessment for the statistics course was not only a two hour

exam, but also a piece of coursework, we would probably have chosen to measure both

exam marks and coursework marks as proxies of performance.

Variables

The next step is to define the variables that we are using in our study (see the statistical

guide, Types of Variable, for more information). Since the study aims to examine the

effect that two different teaching methods providing lectures and seminar classes

(Sarah) and providing lectures by themselves (Mike) had on the performance of

Sarah's 50 students and Mike's 50 students, the variables being measured are:

Dependent variable:

Independent variable:

Exam marks

Teaching method ("seminar" vs "lecture only")

By using a very straightforward example, we have only one dependent variable and one

independent variable although studies can examine any number of dependent and

independent variables. Now that we know what our variables are, we can look at how to

set out the null and alternative hypothesis on the next page.

In order to undertake hypothesis testing you need to express your research hypothesis

as a null and alternative hypothesis. The null hypothesis and alternative hypothesis are

statements regarding the differences or effects that occur in the population. You will use

your sample to test which statement (i.e., the null hypothesis or alternative hypothesis)

is most likely (although technically, you test the evidence against the null hypothesis).

So, with respect to our teaching example, the null and alternative hypothesis will reflect

statements about all statistics students on graduate management courses.

The null hypothesis is essentially the "devil's advocate" position. That is, it assumes that

whatever you are trying to prove did not happen (hint: it usually states that something

equals zero). For example, the two different teaching methods did not result in different

exam performances (i.e., zero difference). Another example might be that there is no

relationship between anxiety and athletic performance (i.e., the slope is zero). The

alternative hypothesis states the opposite and is usually the hypothesis you are trying to

prove (e.g., the two different teaching methods did result in different exam

performances). Initially, you can state these hypotheses in more general terms (e.g.,

using terms like "effect", "relationship", etc.), as shown below for the teaching methods

example:

Null Hypotheses (H0):

performance.

Alternative Hypothesis

(HA):

students' performance.

Depending on how you want to "summarize" the exam performances will determine how

you might want to write a more specific null and alternative hypothesis. For example,

you could compare the mean exam performance of each group (i.e., the "seminar"

group and the "lectures-only" group). This is what we will demonstrate here, but other

options include comparing the distributions, medians, amongst other things. As such,

we can state:

Null Hypotheses (H0):

"lecture-only" teaching methods is the same in the

population.

"lecture-only" teaching methods is not the same in

the population.

Now that you have identified the null and alternative hypotheses, you need to find

evidence and develop a strategy for declaring your "support" for either the null or

alternative hypothesis. We can do this using some statistical theory and some arbitrary

cut-off points. Both these issues are dealt with next.

Significance levels

The level of statistical significance is often expressed as the so-called p-value.

Depending on the statistical test you have chosen, you will calculate a probability (i.e.,

the p-value) of observing your sample results (or more extreme) given that the null

hypothesis is true. Another way of phrasing this is to consider the probability that a

difference in a mean score (or other statistic) could have arisen based on the

assumption that there really is no difference. Let us consider this statement with respect

to our example where we are interested in the difference in mean exam performance

between two different teaching methods. If there really is no difference between the two

teaching methods in the population (i.e., given that the null hypothesis is true), how

likely would it be to see a difference in the mean exam performance between the two

teaching methods as large as (or larger than) that which has been observed in your

sample?

So, you might get a p-value such as 0.03 (i.e., p = .03). This means that there is a 3%

chance of finding a difference as large as (or larger than) the one in your study given

that the null hypothesis is true. However, you want to know whether this is "statistically

significant". Typically, if there was a 5% or less chance (5 times in 100 or less) that the

difference in the mean exam performance between the two teaching methods (or

whatever statistic you are using) is as different as observed given the null hypothesis is

true, you would reject the null hypothesis and accept the alternative hypothesis.

Alternately, if the chance was greater than 5% (5 times in 100 or more), you would fail to

reject the null hypothesis and would not accept the alternative hypothesis. As such, in

this example where p = .03, we would reject the null hypothesis and accept the

alternative hypothesis. We reject it because at a significance level of 0.03 (i.e., less than

a 5% chance), the result we obtained could happen too frequently for us to be confident

that it was the two teaching methods that had an effect on exam performance.

Whilst there is relatively little justification why a significance level of 0.05 is used rather

than 0.01 or 0.10, for example, it is widely used in academic research. However, if you

want to be particularly confident in your results, you can set a more stringent level of

0.01 (a 1% chance or less; 1 in 100 chance or less).

When considering whether we reject the null hypothesis and accept the alternative

hypothesis, we need to consider the direction of the alternative hypothesis statement.

For example, the alternative hypothesis that was stated earlier is:

Alternative Hypothesis (HA):

effect on students' performance.

The alternative hypothesis tells us two things. First, what predictions did we make

about the effect of the independent variable(s) on the dependent variable(s)? Second,

what was the predicted direction of this effect? Let's use our example to highlight these

two points.

Sarah predicted that her teaching method (independent variable: teaching method),

whereby she not only required her students to attend lectures, but also seminars, would

have a positive effect (that is, increased) students' performance (dependent variable:

exam marks). If an alternative hypothesis has a direction (and this is how you want to

test it), the hypothesis is one-tailed. That is, it predicts direction of the effect. If the

alternative hypothesis has stated that the effect was expected to be negative, this is

also a one-tailed hypothesis.

Alternatively, a two-tailed prediction means that we do not make a choice over the

direction that the effect of the experiment takes. Rather, it simply implies that the effect

could be negative or positive. If Sarah had made a two-tailed prediction, the alternative

hypothesis might have been:

Alternative Hypothesis (Ha):

students' performance.

In other words, we simply take out the word "positive", which implies the direction of our

effect. In our example, making a two-tailed prediction may seem strange. After all, it

would be logical to expect that "extra" tuition (going to seminar classes as well as

lectures) would either have a positive effect on students' performance or no effect at all,

but certainly not a negative effect. However, this is just our opinion (and hope) and

certainly does not mean that we will get the effect we expect. Generally speaking,

making a one-tail prediction (i.e., and testing for it this way) is frowned upon as it usually

reflects the hope of a researcher rather than any certainty that it will happen. Notable

exceptions to this rule are when there is only one possible way in which a change could

occur. This can happen, for example, when biological activity/presence in measured.

That is, a protein might be "dormant" and the stimulus you are using can only possibly

"wake it up" (i.e., it cannot possibly reduce the activity of a "dormant" protein). In

addition, for some statistical tests, one-tailed tests are not possible.

Let's return finally to the question of whether we reject or fail to reject the null

hypothesis.

If our statistical analysis shows that the significance level is below the cut-off value we

have set (e.g., either 0.05 or 0.01), we reject the null hypothesis and accept the

alternative hypothesis. Alternatively, if the significance level is above the cut-off value,

we fail to reject the null hypothesis and cannot accept the alternative hypothesis. You

should note that you cannot accept the null hypothesis, but only find evidence against it.

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