Hypothesis Testing

Example
You are the production manager at a beverage manufacturer and you
receive a bottling unit that has been recently re-adjusted so that it puts
200 milliliter of beverage in disposable plastic bottles.
You need to test that indeed the bottling unit puts in 200 milliliter of
beverage.
For that you fill out 10 bottles using the unit at different times so as to
obtain a random sample and very carefully measure the amount of
beverage inside each bottle.
Hypothesis Testing
Example
You are the production manager at a beverage manufacturer and you
receive a bottling unit that has been recently re-adjusted so that it puts
200 milliliter of beverage in disposable plastic bottles.
You need to test that indeed the bottling unit puts in 200 milliliter of
beverage.
For that you fill out 10 bottles using the unit at different times so as to
obtain a random sample and very carefully measure the amount of
beverage inside each bottle.
Hypothesis Testing
Example
You are the production manager at a beverage manufacturer and you
Population mean
receive a bottling unit that has been recently re-adjusted so that it puts
claimed by the
bottling
200 milliliter of beverage in disposable unit bottles.
plastic
You need to test that indeed the bottling unit puts in 200 milliliter of
beverage.
For that you fill out 10 bottles using the unit at different times so as to
obtain a random sample and very carefully measure the amount of
beverage inside each bottle.
Hypothesis Testing
The Central Limit Theorem
Hypothesis Testing
The Central Limit Theorem

Population Sample (of size n)

Hypothesis Testing
The Central Limit Theorem

Population Sample (of size n)

Hypothesis Testing
The Central Limit Theorem

Population Sample (of size n)

Hypothesis Testing
The Central Limit Theorem

Population Sample (of size n)

Hypothesis Testing
The Central Limit Theorem

Population Sample (of size 10)

all possible number

random sample
of bottles that the of 10 bottles
unit can fill
Hypothesis Testing
The Central Limit Theorem

Population Sample (of size 10)

all possible number

random sample
of bottles that the of 10 bottles
unit can fill
Hypothesis Testing
The Central Limit Theorem

Population Sample (of size 10)

all possible number

random sample
of bottles that the of 10 bottles
unit can fill
Hypothesis Testing
The Central Limit Theorem

Population Sample (of size 10)

all possible number

random sample
of bottles that the of 10 bottles
unit can fill
Hypothesis Testing
The Central Limit Theorem

Population Sample (of size 10)

all possible number

random sample
of bottles that the of 10 bottles
unit can fill

If the claim is correct:

Hypothesis Testing
The Central Limit Theorem

Population Sample (of size 10)

all possible number

random sample
of bottles that the of 10 bottles
unit can fill

If the claim is correct:

Hypothesis Testing
Distribution of sample mean if the claim is correct

200 ml
Hypothesis Testing
Distribution of sample mean if the claim is correct

higher probability
around the mean

200 ml
Hypothesis Testing
Distribution of sample mean if the claim is correct

higher probability
around the mean

lower probability in the tails

200 ml
Hypothesis Testing
Distribution of sample mean if the claim is correct

rejection regions

200 ml
Hypothesis Testing
Distribution of sample mean if the claim is correct

If the sample mean falls

in rejection region, we
reject the claim

rejection regions

200 ml
Hypothesis Testing
Distribution of sample mean if the claim is correct

If it does not, we do
not reject the claim

If sample mean falls in

rejection region, we
reject the claim

rejection regions

200 ml
Hypothesis Testing
Distribution of sample mean if the claim is correct

α/2 probability α/2 probability

rejection regions

200 ml
Hypothesis Testing
Distribution of sample mean
Hypothesis Testing
Distribution of sample mean
Hypothesis Testing
Distribution of sample mean
Hypothesis Testing
Distribution of sample mean
Hypothesis Testing
Distribution of sample mean

⇒
Hypothesis Testing
Distribution of sample mean z-statistic

⇒
Hypothesis Testing
Distribution of sample mean z-statistic

Sample mean falling The z-statistic falling

in rejection region in rejection region
Hypothesis Testing
Distribution of sample mean
t-statistic
(n-1 degrees of freedom)

⇒
Hypothesis Testing
Distribution of sample mean
t-statistic

Sample mean falling The z-statistic falling

in rejection region in rejection region