Finals Reviewers | S11SP
HYPOTHESIS TESTING | the use of statistics to
determine the probability that a given
hypothesis is true
10 Steps in Hypothesis Testing
1. State the null hypothesis (Ho).
Null Hypotheses always use the equal (=)
sign.
2. State the alternative hypothesis (Ha).
Alternative Hypotheses always use either
of the greater than (>), less than (<), greater
than or equal to (≥), less than or equal to
(≤), or the not equal sign (≠).
3. Identify the type of test to be used.
One-Tailed | the sign used in the Ha is
directional; left-tailed for (<), right-tailed
for (>)
Two-Tailed | the sign used in the Ha is the
(≠) sign
4. Determine the level of significance (α).
If the α is not given in the problem, the
default level of significance is at 5%.
5. Identify the test statistic to use.
Z-Test | if either n ≥ 30 or the σ is given
T-Test | if n < 30 and σ is not given
Chi-Square | if the problem involves
frequencies
Degree of Freedom ( df ) | number of ways
random variables can be arranged; solved
by n -1
6. Determine the formula to use.
For Z-Score | the following formula is used
(𝑥̅ − 𝜇)√𝑛
𝑧=
𝜎
𝜎 and 𝑠 are interchangeable depending
on the context of the problem.
For Chi-Square | see Chi-Square Test
7. Identify the tabular value. Use the
corresponding table to look for this value.
8. Solve for the computed value. Use the
formula in no. 6 to solve.
9. Graph both the critical and computed
values and determine the decision (reject/
do not reject Ho).
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Prepared by Kenneth Opoc
Z-Test / T-Test | graphs are always normal
curves.
Chi Square | graphs are always skewed to
the right.
If the computed value falls under the
rejection region (area from the tabular
value infinitely to the extremes of the
graph), then the decision will be Reject Ho.
Otherwise, Do Not Reject Ho.
10. State the conclusion based on the
decision.
Suffix the conclusion with “at n level of
significance”.
Chi-Square Test | used to compare the observed
frequency of a certain observation with an
expected frequency
• Goodness-of-Fit | used if the frequency
distribution fits a specific pattern
• Independence | used to test for the
existence of a relationship between
observed and expected frequencies
• Homogeneity | used to test homogeneity
of data with respect to a categorical
variable
Contingency Table | tabular
representation of categorical data
Formula | the following are the formula
used during hypothesis testing using Chi-
Square Test
1. Expected Value (per frequency)
(𝑡𝑜𝑡𝑎𝑙 𝑜𝑓 𝑐𝑒𝑙𝑙 ′ 𝑠 𝑟𝑜𝑤)(𝑡𝑜𝑡𝑎𝑙 𝑜𝑓 𝑐𝑒𝑙𝑙 ′ 𝑠 𝑐𝑜𝑙𝑢𝑚𝑛)
𝐸𝐹 =
𝑔𝑟𝑎𝑛𝑑 𝑡𝑜𝑡𝑎𝑙
2. Computed Value
(𝑂 − 𝐸)2
𝑥2 = ∑
𝐸
CORRELATION AND LINEAR REGRESSION
Correlation | relationship between two variables
(dependent and independent)
Correlation Coefficient ( r ) | the direction and
strength of the correlation
Finals Reviewers | S11SP Prepared by Kenneth Opoc

• Direction
Direct / Positive Correlation ( +r ) |
independent and dependent variables are
directly proportional
Inverse / Negative Correlation ( -r ) |
independent and dependent variables are
inversely proportional

• Strength

-1 0 +1

+1 Perfect Positive
+1 > x > 0 Some Positive
0 No Correlation
-1 < x < 0 Some Negative
-1 Perfect Negative

Trend Line / Best Fitting Line | used to find

dependent variable once correlation is
proven
In line with the formulation of linear
equations, the formula for the best fitting
line is 𝑦 = 𝐴 + 𝐵𝑥, where 𝐴 is the slope and
𝐵 is the y-intercept

Coefficient of Determination ( r2 ) | the

proportion of variance that is predictable
from the independent variable

A SHORT BACKGROUND

Analysis of Variance | also called f-ratio; a

comparison test to determine the significant
difference among population mean

The comparison in means of 3 or more

populations which follow normal distributions
can be taken simultaneously in just one
application of this test