FATIMAH AZ ZAHRO

18202242016
INDIVIDUAL ASSIGNMENT WEEK 5

What Is Hypothesis Testing?

Hypothesis testing is an act in statistics whereby an analyst tests an assumption
regarding a population parameter. The methodology employed by the analyst depends
on the nature of the data used and the reason for the analysis.

How Hypothesis Testing Works

In hypothesis testing, an analyst tests a statistical sample, with the goal of providing
evidence on the plausibility of the null hypothesis. Statistical analysts test a hypothesis
by measuring and examining a random sample of the population being analyzed. All
analysts use a random population sample to test two different hypotheses: the null
hypothesis and the alternative hypothesis.
- The null hypothesis is usually a hypothesis of equality between population
parameters; e.g., a null hypothesis may state that the population mean return is
equal to zero.
- The alternative hypothesis is effectively the opposite of a null hypothesis (e.g.,
the population mean return is not equal to zero). Thus, they are mutually
exclusive, and only one can be true.

Types of Hypotheses
Before discussing the procedures underlying hypothesis testing, it is necessary to
distinguish between the research hypothesis and the null hypothesis.

Research Hypothesis
Hypotheses derived from the researcher's theory about some social phenomenon are
called research hypotheses. The researcher usually believes that his research hypotheses
are true, or that they are accurate statements about the condition of things he is
investigating. He believes that his hypotheses are true to the extent that the theory from
which they were derived is adequate.

Null Hypothesis
Null hypotheses are, in a sense, the reverse of research hypotheses. They are also
statements about the reality of things, except that they serve to deny what is explicitly
indicated in a given research hypothesis.

Testing Hypotheses
Testing hypotheses mean subjecting them to some sort of empirical scru- tiny to
determine if they are supported or refuted by what the researcher observes. Suppose a
researcher has collected data pertaining to her hypotheses and recorded what she has
found.

Level of Significance
When a difference in characteristics (e.g., IQ, verbal test, personality traits) between
two groups is observed, at what point do we conclude that the difference is a significant
one (i.e., not due to chance)? We are usually going to observe differences between
various people regarding commonly held characteristics. In order to introduce greater
objectivity into our interpretations of observations, we establish the level of
significance. To state a level of significance is to state a probability level at which the
researcher will decide to accept or reject the null hypothesis. In statistical terms, we say
that the observed outcome is statistically significant if the probability of the difference
occurring by chance is less than five times out of a hundred (i.e., we conclude that
something else other than chance has affected the outcome).

The Nature of Hypotheses: Test of Difference versus Test of Relationship

In choosing an appropriate statistical test, the first issue that the researcher must
consider is the nature of the hypothesis. Is the intention of the hypothesis to test for
differences in mean scores between groups, or is it testing for relationships between
pairs of variables?

Test of Difference
Testing for differences means that the researcher is interested in determining whether
differences in mean scores between groups are due to chance factors or to real
differences between the groups as a result of the study's experimental treatment.

Choice of Test
Once the researcher has decided on the nature of the hypothesis to be tested (test of
difference or test of relationship) and the levels of measurement of the variables to be
included in the analysis (nominal, ordinal, interval, ratio), the next step is to choose an
appropriate statistical test for analyzing the data.