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Chapter 9

Hypothesis Testing

9-2

Outline

9-1 Introduction

9-2 Steps in Hypothesis Testing

9-3 Large Sample Mean Test

9-4 Small Sample Mean Test

9-5 Proportion Test

9-3

Outline

9-6 Variance or Standard

Deviation Test

9-7 Confidence Intervals and

Hypothesis Testing

9-4

Objectives

Understand the definitions used

in hypothesis testing.

State the null and alternative

hypotheses.

Find critical values for the z test.

9-5

Objectives

State the five steps used in

hypothesis testing.

Test means for large samples

using the z test.

Test means for small samples

using the t test.

9-6

Objectives

Test proportions using the z test.

Test variances or standard

deviation using the chi-square

test.

Test hypotheses using

confidence intervals.

9-7

9-2 Steps in Hypothesis Testing

A Statistical hypothesis is a conjecture

about a population parameter. This

conjecture may or may not be true.

The null hypothesis, symbolized by H0, is

a statistical hypothesis that states that

there is no difference between a parameter

and a specific value or that there is no

difference between two parameters.

9-8

9-2 Steps in Hypothesis Testing

symbolized by H1, is a statistical

hypothesis that states a specific

difference between a parameter

and a specific value or states that

there is a difference between two

parameters.

The McGraw-Hill Companies, Inc., 2000

9-9 9-2 Steps in Hypothesis Testing -

Example

finding out whether a new medication

will have any undesirable side effects.

The researcher is particularly concerned

with the pulse rate of the patients who

take the medication.

9-10 9-2 Steps in Hypothesis Testing -

Example

the pulse rate will be different from the

mean pulse rate of 82 beats per minute?

H0: = 82 H1: 82

This is a two-tailed test.

9-11 9-2 Steps in Hypothesis Testing -

Example

increase the life of an automobile

battery. If the mean lifetime of the

battery is 36 months, then his

hypotheses are

H0: 36 H1: > 36

This is a right-tailed test.

9-12 9-2 Steps in Hypothesis Testing -

Example

using a special type of insulation in houses.

If the average of the monthly heating bills is

$78, her hypotheses about heating costs will

be

H0: $78 H1: < $78

This is a left-tailed test.

9-13 9-2 Steps in Hypothesis Testing

obtained from a sample to make a

decision about whether or not the

null hypothesis should be

rejected.

9-14

9-2 Steps in Hypothesis Testing

from a statistical test is called the

test value.

In the hypothesis-testing

situation, there are four possible

outcomes.

9-15

9-2 Steps in Hypothesis Testing

or may not be true, and a

decision is made to reject or not

to reject it on the basis of the

data obtained from a sample.

9-16

9-2 Steps in Hypothesis Testing

H0 True H0 False

Error

Error Correct

Correct

Reject Type

Type II decision

decision

H0

Do not Correct

Correct Error

Error

decision

decision Type

Type II

II

reject

H0

The McGraw-Hill Companies, Inc., 2000

9-17

9-2 Steps in Hypothesis Testing

rejects the null hypothesis when

it is true.

A type II error occurs if one does

not reject the null hypothesis

when it is false.

9-18

9-2 Steps in Hypothesis Testing

maximum probability of committing

a type I error. This probability is

symbolized by (Greek letter alpha).

That is, P(type I error)=.

P(type II error) = (Greek letter beta).

9-19

9-2 Steps in Hypothesis Testing

0.10, 0.05, and 0.01.

For example, when = 0.10, there

is a 10% chance of rejecting a true

null hypothesis.

9-20

9-2 Steps in Hypothesis Testing

critical region from the noncritical

region.

The symbol for critical value is

C.V.

9-21

9-2 Steps in Hypothesis Testing

the range of values of the test

value that indicates that there is a

significant difference and that the

null hypothesis should be

rejected.

9-22

9-2 Steps in Hypothesis Testing

region is the range of values of the

test value that indicates that the

difference was probably due to

chance and that the null

hypothesis should not be rejected.

9-23

9-2 Steps in Hypothesis Testing

indicates that the null hypothesis

should be rejected when the test

value is in the critical region on

one side of the mean.

9-24

9-2 Finding the Critical Value for

= 0.01 (Right-Tailed Test)

Critical

0.9900 region

Noncritical

region = 0.01

0.4900

0 z = 2.33

9-25

9-2 Finding the Critical Value for

= 0.01 (Left-Tailed Test)

= 0.01, the critical value will be

2.33 and the critical region will

be to the left of 2.33.

9-26

9-2 Finding the Critical Value for

= 0.01 (Two-Tailed Test)

hypothesis should be rejected

when the test value is in either of

the two critical regions.

9-27

9-2 Finding the Critical Value for

= 0.01 (Two-Tailed Test)

/2 = 0.005

Critical

Critical 0.9900 region

region

Noncritical

region /2 = 0.005

z = 2.58 0 z = 2.58

9-28

9-3 Large Sample Mean Test

the mean of a population. It can

be used when n 30, or when

the population is normally

distributed and is known.

The formula for the z test is

given on the next slide.

The McGraw-Hill Companies, Inc., 2000

9-29

9-3 Large Sample Mean Test

X

z=

n

where

X = sample mean

= hypothesized population mean

= population deviation

n = sample size

9-30 9-3 Large Sample Mean Test -

Example

salary of assistant professors is more

than $42,000. A sample of 30 assistant

professors has a mean salary of $43,260.

At = 0.05, test the claim that assistant

professors earn more than $42,000 a

year. The standard deviation of the

population is $5230.

9-31 9-3 Large Sample Mean Test -

Example

identify the claim.

H0: $42,000 H1: > $42,000 (claim)

Step 2: Find the critical value. Since

= 0.05 and the test is a right-tailed test,

the critical value is z = +1.65.

Step 3: Compute the test value.

9-32 9-3 Large Sample Mean Test -

Example

= 1.32.

Step 4: Make the decision. Since the test

value, +1.32, is less than the critical

value, +1.65, and not in the critical

region, the decision is Do not reject the

null hypothesis.

9-33 9-3 Large Sample Mean Test -

Example

not enough evidence to support the

claim that assistant professors earn

more on average than $42,000 a year.

See the next slide for the figure.

9-34 9-3 Large Sample Mean Test -

Example

1.65

Reject

= 0.05

1.32

9-35 9-3 Large Sample Mean Test -

Example

average college student watches less

television than the general public. The

national average is 29.4 hours per week,

with a standard deviation of 2 hours. A

sample of 30 college students has a mean

of 27 hours. Is there enough evidence to

support the claim at

= 0.01?

The McGraw-Hill Companies, Inc., 2000

9-36 9-3 Large Sample Mean Test -

Example

identify the claim.

H0: 29.4 H1: < 29.4 (claim)

Step 2: Find the critical value. Since

= 0.01 and the test is a left-tailed test, the

critical value is z = 2.33.

Step 3: Compute the test value.

9-37 9-3 Large Sample Mean Test -

Example

Step 4: Make the decision. Since the test

value, 6.57, falls in the critical region,

the decision is to reject the null

hypothesis.

9-38 9-3 Large Sample Mean Test -

Example

enough evidence to support the claim

that college students watch less

television than the general public.

See the next slide for the figure.

9-39 9-3 Large Sample Mean Test -

Example

-6.57

Reject

-2.33

9-40 9-3 Large Sample Mean Test -

Example

Foundation reports that the average cost

of rehabilitation for stroke victims is

$24,672. To see if the average cost of

rehabilitation is different at a large

hospital, a researcher selected a random

sample of 35 stroke victims and found that

the average cost of their rehabilitation is

$25,226.

The McGraw-Hill Companies, Inc., 2000

9-41 9-3 Large Sample Mean Test -

Example

is $3,251. At = 0.01, can it be

concluded that the average cost at a

large hospital is different from $24,672?

Step 1: State the hypotheses and

identify the claim.

H0: = $24,672 H1: $24,672 (claim)

9-42 9-3 Large Sample Mean Test -

Example

= 0.01 and the test is a two-tailed test,

the critical values are z = 2.58 and

+2.58.

Step 3: Compute the test value.

Step 3: z = [25,226 24,672]/[3,251/35]

= 1.01.

9-43 9-3 Large Sample Mean Test -

Example

the null hypothesis, since the test value

falls in the noncritical region.

Step 5: Summarize the results. There is

not enough evidence to support the

claim that the average cost of

rehabilitation at the large hospital is

different from $24,672.

9-44 9-3 Large Sample Mean Test -

Example

1.01

Reject Reject

-2.58 2.58

The McGraw-Hill Companies, Inc., 2000

The McGraw-Hill Companies, Inc., 2000

The McGraw-Hill Companies, Inc., 2000

The McGraw-Hill Companies, Inc., 2000

The McGraw-Hill Companies, Inc., 2000

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