MODULE 3 INFERENTIAL STATISTICS: Hypothesis Testing

LESSON 1 Research Terminology

Learning Objectives:

At the end of the lesson, you should be able to:

1. Understand the role of statistical analysis in the research process;

2. Differentiate a parameter from a statistics;
3. Differentiate a null hypothesis rom an alternative hypothesis;
4. Discuss the types of possible errors in hypothesis testing;
5. Explain the importance of tests of statistical significance; and,
6. Distinguish between parametric and nonparametric statistics.

Keywords and Phrases:

Inferential statistics Type I error

Parameter Type II error
Statistics One-tailed test
Hypothesis Two-tailed test
Null hypothesis Parametric statistic
Alternative hypothesis Non-parametric statistics
Statistical significance
Level of significance (ρ)

Introduction

Frequency distribution and descriptive measures such as the measures of central

tendency, measures of dispersion and measures of skewness are very useful in describing sets of
data. There are a number of techniques which are usually designated as inferential statistics.
Inferential statistics are more complex than descriptive statistics. Inferential techniques allow the

Inferential Statistics: Hypothesis Testing [Research Terminology]

45
researcher to draw from data taken from a sample some inferences which may have wider
generalizability. That means, inferences may be applied to the total population. Inferential
procedures are only valid where there is a target population to which the inferences can be made
and when appropriate random sampling have been utilized.

POPULATIONS AND SAMPLES

The purpose of inferential statistics is to allow the researcher to make estimates based on
sample statistics regarding population phenomena. A measure based on a population is called a
“statistic”. One rarely has access to parameters. For example, the sample mean is called a
“statistics” and is represented by x́. The population mean is called a parameter and is represented
by µ (greek letter) in various situations be it in education, industry, government and
nongovernment situations, not only it is difficult to obtain data from an entire population; it is
also a waste of time, effort and energy to obtain parameters directly.

If a researcher could determine for example, the standard deviation of the ages of all
college professors in the world, that standard deviation would be called a parameter.

To be able to draw legitimate inferences about populations from samples, a researcher

must be certain that the sample really represents the population. Inferential statistics demand that
the samples be drawn by random sampling methods for one to be able to draw valid inferences.
Sampling techniques are discussed in Module V. There might be a risk that the inference is
wrong. Statistical significance is very important. To be significant, relationship, association,
difference or comparison must be due to planned interventions rather than by chance.

STATISTICAL SIGNIFICANCE

Statistical significance is often interpreted as a result that occurs by chance, while a ρ

value is the probability of obtaining the results of a statistical test by chance. When the chance
probability is 5 in 100, we say that the occurrence is statistically significant at the 0.05 or 5
percent level. The same is true with 0.10, 0.01, 0.001 probability levels. The symbol ρ is used as
follows: ρ<0.05 indicates that the probability of the event’s occurrence (by chance) is less than
(<) 0.05. Conversely, the symbol ρ>0.05 would indicate that the event’s occurrence (by chance)
is greater than (>) 0.05.

Inferential Statistics: Hypothesis Testing [Research Terminology]

45
HYPOTHESIS TESTING

The word hypothesis comes from the Greek words hypo, which means “under” and

tithenai which means “to place”.

A hypothesis is a preconceived idea, assumed to be true but has to be tested for its truth

or falsity. Suppose a researcher is concerned with testing the relationship between variables.

Through inferential statistical measures, he can discover important information even if no

relationship was established between the variables. It is possible for the researcher to discover

differences and therefore may test individual or group differences.

It is therefore helpful for the researcher to think of inferential statistics n terms of whether

they test for relationship or association or whether they test for comparison or difference.

There are two types of hypotheses: the null hypothesis and the alternative hypothesis.

The null hypothesis is denoted by Ho and the alternative hypothesis is denoted by H1 . The

null hypothesis is the one that is always tested by a researcher. The null hypothesis indicates that

there is no difference between the group means in the comparison. The alternative hypothesis on

the other hand, indicates that there is a true difference between the group means.

The results will show that either there is a meaningful difference between the two groups,

thus we reject the null hypothesis or the difference between the two groups is not large enough to

conclude that the groups are different thus we fail to reject the null hypothesis. If the null

hypothesis (Ho) is rejected, then the alternative hypothesis (H1 ) us accepted.

Inferential Statistics: Hypothesis Testing [Research Terminology]

45
Errors in Decision Making

There are two types of error involved with hypothesis testing. Type I error is committed
when a researcher rejected a null hypothesis when in fact it is true. The second type of error,
Type II error, is the error that occurs when the data from the sample produce results that fail to
reject the null hypothesis when in fact the null hypothesis is false and should be rejected.

Parametric and nonparametric Statistics

Two types of significance tests are usually used by researchers: parametric and
nonparametric. Parametric tests are used for interval and ratio measurements. It is also required
that the samples and observations are drawn from normally distributed populations and that the
selection of each case should be independent of the other. The populations should have equal
variances.

Nonparametric tests do not specify normally distributed populations and similarity of

variances nonparametric tests are the only test used with nominal data or ordinal data.

Reading Assignment:

 E-Journals/ E-Books:
 PUP website: infotrac.galegroup.com/itweb/pup
 Password:powersearch

Exercises/ Written Assignments:

1. Distinguish between
1.1. Parametric and nonparametric tests
1.2. Null and alternative hypothesis
1.3. Statistical significance and practical significance
1.4. Type I and Type II Errors
2. Discuss the possibility of committing Type I and Type II errors in hypothesis testing.
3. Explain the importance of tests of statistical significance.

Inferential Statistics: Hypothesis Testing [Research Terminology]

45
4. You are interested in finding out whether young adults (25-34 years old) are more likely to
view basketball games on TV than older adults (35 or more years old). State your null
hypothesis. Write also the alternative hypothesis accompanying the null hypothesis.
5. Give five (5) examples of a null hypothesis accompanied by an alternative hypothesis.

References/ Bibliography:

Downie, N. M. & Health, Robert W. Basic Statistical Methods (Fifth Edition). 1984

Field, Maurice H. Statistics for Graduate Research Projects. Tennessee. 1997

Guilford, J.P. Fundamental Statistics in Psychology and Education. New York: McGraw-
Hill. 1985

Kumar, R. Research Methodology, pp.1-15. Busy Book Distributors. 1996

Leedy, P.D. and Ormrod, Jean E. Practical Research Planning and Design, 8th edition, pp.
1-6, Prentice Hall, 2005

Naval, Victoria C. Et al. General Statistics. Conanan Publishing.1988

Inferential Statistics: Hypothesis Testing [Research Terminology]

45