Testing of Hypothesis

Hypothesis:
Hypothesis is an assumption or statement or asserting about certain characteristics of a
population.
Simple hypothesis: If statistical hypothesis specifies the population completely then it is
termed as simple hypothesis.
For example X1 , X2 , ….. Xn is a random sample of size n from a normal population with
mean µ and variance σ2 then hypothesis

Ho: µ= µo , σ2 = σo2
Is Simple hypothesis.
Composite hypothesis: It is just opposite to the simple hypothesis.
For example
1) µ = µo 2) σ2 = σo2 3) µ > µo , σ2 = σo2 4) µ < µo , σ2 = σo2 5) µ =µo , σ2 > σo2 6) µ =
µo , σ2 < σo2
is composite hypothesis.
Null Hypothesis: A null hypothesis is a type of hypothesis that proposes that there is no
difference between certain characteristics of a population Or A null hypothesis is a
statement, in which there is no relationship between two variables.

Alternative hypothesis: An alternative hypothesis is complimentary to the null hypothesis or

An alternative hypothesis is statement in which there is some statistical significance between
two measured phenomenons.

For Example:

One tailed test: A test of any hypothesis where the alternatives hypothesis is one tailed ( left
tailed or right tailed ) is called One tailed test.

Two tailed test: A test of any hypothesis where the alternatives hypothesis is two tailed is
called Two tailed test.

Types of Error

Type I Error: The error of rejecting Ho (Null hypothesis) when Ho is true is called type I error.

Type II Error: The error of accepting Ho (Null hypothesis) when Ho is false is called type II
error.
 Decision from sample

  Reject Ho Accept Ho
Wrong (Type I
True Ho Error) Correct
False Ho/ True Wrong (Type II
True state H1 Correct Error)

α = Probability of type I error

= Probability of rejection of Ho when Ho is true.

β = Probability of type II error

= Probability of accepting of Ho when Ho is false.