Md.

Nazir Uddin
Faculty of statistics-IUBAT

::::::::::::::::: HYPOTHESIS ::::::::::::::::::::

Statistical Hypothesis:
A statistical hypothesis is some statement or assertion about a population or
equivalently about the probability distribution characterizing a population, which
we want to verify on the basis of information available from a sample.
There are two types of hypothesis
1) Null hypothesis
2) Alternative hypothesis

Null hypothesis:
A null hypothesis is a statistical hypothesis which we want to test and reject. It is
denoted by . For example, if is a random sample of size n from a
Normal population with mean and variance where and are parameters.
Let us assume that has a specified value . One needs to verify whether
the assumption is true or false. Then the null hypothesis is

Alternative hypothesis:
Any hypothesis other than null hypothesis is alternative hypothesis. It is usually
denoted by . Thus if the null hypothesis regarding population parameter
is then the alternative hypothesis are
i.
ii.
iii.

Simple hypothesis:
A simple hypothesis is a statistical hypothesis which completely specifies the
distribution. Suppose is a random sample of size n from a Normal
population with mean and variance . Then

is called simple hypothesis.

Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

Composite hypothesis:
A composite hypothesis is a statistical hypothesis which does not completely
specifies all parameter of the distribution.
Suppose is a random sample of size n from a Normal population
with mean and variance Then

Here variance is not specified. So this is composite hypothesis.

Test of hypothesis:
A Test of statistical hypothesis is a two action decision problem after the
experimental sample values have been obtained, the two action being the
acceptance or rejection of the hypothesis under consideration.

One sided test:

A test of any statistical hypothesis where the alternative hypothesis is one tailed i,e
right or left tailed is called one sided test. For the following hypothesis

The test is one sided. It is of two types

i. Left tailed
ii. Right tailed

Types of error:
When we decide a hypothesis based on sample observation we may commit an
error. There are two type of error
i. Type –I error
ii. Type –II error
Type-I error:
On the basis of sample observation if we reject the null hypothesis which was
actually true then we commit an error which is known as type-I error. The
probability of type-I error is denoted by

Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

Type-II error:
On the basis of sample observation if we do not reject the null hypothesis which
was actually false then we commit an error which is known as type-I I error.
The probability of type-II error is denoted by

Decision from sample

Reject Accept
Null hypothesis Wrong correct
True statement
is true (Type-I error)
Null hypothesis correct Wrong
is false (Type-II error)

Level of significance :
The probability of rejecting a null hypothesis that is true and this probability is
fixed in advance. This probability is sometimes expressed as a percentage. So a test
of significance level is referred to as a level test.

Steps of hypothesis testing:

The major steps involved in the solution of a ‘testing of hypothesis’ problem may
be outlined as follows
1) Setting up of the null hypothesis and alternative hypothesis in terms
of the range of the parameter values.
2) Set up appropriate level of significance
3) The choice of a suitable test statistics and calculate
the value of test statistic.
4) Calculate the critical value of the test statistic.
5) Making decision. If the calculated value is greater than the critical value
reject the null hypothesis otherwise do not reject.

Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

Hypothesis testing about population mean :

Case-I:
If the following three conditions are fulfilled:
1. The population standard deviation ( is known
2. The sample size is small (i.e.
3. The population from which the sample is selected is normally distributed,
Then we use the normal distribution to perform a test of hypothesis
about .
Case-II:
If the following two conditions are fulfilled:
1. The population standard deviation is known
2. The sample size is large
Then, again, we use the normal distribution to perform a test of
hypothesis about
Hypothesis testing about population mean :

If the following three conditions are fulfilled:

1. The population standard deviation is not known
2. The sample size is small
3. The population from which the sample is selected is normally distributed,
Then we use the to perform a test of hypothesis about

Sample size
Large Small
Population Known z-test z-test
variance
Unknown z-test t-test

Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

:::::::::::::::Testing procedure::::::::::::::::::::

Case-I: (population standard deviation is known)

The hypothesis to be tested

is the level of significance.

Since population standard deviation is known, appropriate test statistic is

Where, z follows standard normal distribution.

Suppose is the tabulated value at level of significance.
If calculated value of z is greater than or equal to tabulated value then we reject
the null hypothesis and conclude that there is a significant difference between
the population mean and sample mean, otherwise do not reject.

Case-I: (population standard deviation is unknown)

The hypothesis to be tested

is the level of significance.

Since population standard deviation is unknown, appropriate test statistic is

Where, - - .
Suppose is the tabulated value at level of significance.
If calculated value of z is greater than or equal to tabulated value then we reject the
null hypothesis otherwise do not reject.

Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

Applications
1) A psychologist claims that the mean age at which children start walking is
12.5 months. Carol wanted to check if this claim is true. She took a random
sample of 18 children and found that the mean age at which these children
started walking was 12.9 months with a standard deviation of 0.80 month. It
is known that the ages at which all children start walking are approximately
normally distributed. Test whether his claim is true or not at 5% level of
significance and make a conclusion.

Solution:
Let be the mean age at which all children start walking, and let be the
corresponding mean for the sample. From the given information,

The claim of the psychologist is that the mean age at which children start walking
is months. we apply the following steps to test the hypothesis

Step 1. State the null and alternative hypotheses.

We are to test if the mean age at which all children start walking is different from
12.5 months.
Hence, the null and alternative hypotheses are

(The mean walking age is 12.5 months.)

(The mean walking age is not 12.5 months.)
Step 2. Hypothesis is to be tested at 5% level of significance.
Step 3: Select appropriate test statistic
Since the population standard deviation is unknown and the sample size is small so
the appropriate test statistic is

Or,

Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

Or,

Step 4: Calculate critical value

Critical value of with df at 5% level of significance is
(calculated from - table)
Step 5: Make decision
Since reject the null hypothesis of mean walking age is 12.5 months ie
it can be concluded that there is a significance difference between population mean
and sample mean.

Example:
The mayor of a large city claims that the average net worth of families living in
this city is at least 300,000 tk. A random sample of 25 families selected from this
city produced a mean net worth of 288,000tk. Assume that the net worth of all
families in this city have a normal distribution with the population standard
deviation of 80,000tk. Using the 2.5% significance level, can you conclude that the
mayor’s claim is false?

Solution:
Let be the mean net worth of families living in this city and be the
corresponding mean for the sample. From the given information,

The hypothesis is to be tested

Since the population variance is known and it is normally distributed so the

appropriate test statistic is

Or,
Or,
Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

This is a left tailed test so the critical value of at level of significance is

The
The calculated value of the test
statistic is greater than the critical
value so we do not reject the null
hypothesis. So it can be concluded that
mayor’s claim is true.

Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

Application of z-test

Example (two tailed test)

The mean annual expenditure per year old consumer for health care is
Students at a large university took a survey, and it was found for a sample
of 60 students, the mean health care expense was $1520, and the population
standard deviation is $198. Is there sufficient evidence at to conclude
that their health care expenditure differs from the national average of $1468?

Solution:
The hypothesis is to be tested

From the given information

Hypothesis is to be tested at level of significance.

The appropriate test statistic is

Or,

Critical value of Z at level of significance for two sided test

.
Since the calculated value is less than the critical value so the null hypothesis
cannot be rejected. There is not enough evidence to support the claim that average
expenditure differs from

Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

Example (Right tailed test)

The average production of peanuts in the Manikgonj District is 3000 pounds per
acre. A new plan food has been developed and is tested on 60 individual plots of
land. The mean yield with the new plant food is 3120 pounds of peanuts per acre
with a standard deviation of 578 pounds. At α= 0.05, can one conclude that the
average production has increased?

Solution:
The hypothesis is to be tested

From the given information

Hypothesis is to be tested at level of significance.

The appropriate test statistic is

Critical value of Z at level of significance for right sided test

.
Since the test value does not fall within the critical region, we don’t reject the null
hypothesis. Therefore, there is not enough evidence to support the claim that the
average production of peanuts in the Manikgonj District has increased.

Details at :::::::::::::::::::::http://goo.gl/7Dztn
 Md. Nazir Uddin
Faculty of statistics-IUBAT

Example (Left tailed test)

A health researcher read that a 200-pound male can burn an average of 546
calories per hour playing tennis. Thirty-six males were randomly selected and
tested. The mean of the number of calories burned per hour was 544.8. Test the
claim that the average number of calories burned is actually less than 546.The
standard deviation of the sample is 3. Can it be concluded that the average number
of calories burned is less than originally thought? Use 1% level of significance.

Solution:
Hypothesis is to be tested

From the given information

Hypothesis is to be tested at level of significance.

The appropriate test statistic is

Critical value of Z at level of significance for right sided test

Since the test value falls within the critical region, we reject the null hypothesis.
Therefore, there is enough evidence to support the claim that the average number
of calories burned per hour is less than 546.

Details at :::::::::::::::::::::http://goo.gl/7Dztn