Chapter 9: Fundamentals

of Hypothesis Testing:
One-Sample Tests
Bunhayag, Ann Ortiz
Moncopa, Angelica Garciano
Tagpuno, Riki Jonas
9.1 Fundamentals of
Hypothesis-Testing
Methodology
Tagpuno, Riki Jonas A.
What is Hypothesis?
• It is nothing but an assumption which we make
by our observations.
• It begins with a theory, a claim, or an assertion
about a particular parameter of population.
The Null and Alternative Hypotheses
• Null hypothesis – a statistical theory which suggests that no statistical
relationship and significance exists in a set of given single observed
variable (H0)
• Alternative hypothesis – basically the opposite of the null hypothesis
(H1)
Example 1/2:
• The Sangguniang Panlungsod approves an average of 200 legislations
per month. But, an outsider believes that it is different and decides to
calculate for themselves.

H0 (Null): μ = 200
H1 (Alternative): μ ≠ 200
Example 2/2:
• Doc Cindy believes that at least 90% of the students will pass
Managerial Statistics. However, a student disagrees and decides to
conduct a test.

H0 (Null): P ≥ 0.90
H1 (Alternative): P ≤ 0.90
Key points:
• The null hypothesis, represents the current belief in a situation.
• The alternative hypothesis, is the opposite of the null hypothesis and represents a research claim or specific
inference you would like to prove.
• If you reject the null hypothesis, you have statistical proof that the alternative hypothesis is correct.
• If you do not reject the null hypothesis, you have failed to prove the alternative hypothesis.
• The failure to prove the alternative hypothesis, however, does not mean that you have proven the null
hypothesis.
• The null hypothesis, always refers to a specified value of the population parameter, not a sample statistic.
• The statement of the null hypothesis always contains an equal sign regarding the specified value of the
population parameter.
• The statement of the alternative hypothesis never contains an equal sign regarding the specified value of the
population parameter.
Test Statistic
• Allow us to quantify how close things are to our expectations or
theories.

𝑂𝑏𝑠𝑒𝑟𝑣𝑒𝑑 𝐷𝑎𝑡𝑎 − 𝑊ℎ𝑎𝑡 𝑤𝑒 𝑒𝑥𝑝𝑒𝑐𝑡 𝑖𝑓 𝑡ℎ𝑒 𝑛𝑢𝑙𝑙 𝑖𝑠 𝑡𝑟𝑢𝑒

𝑇𝑒𝑠𝑡 𝑆𝑡𝑎𝑡𝑖𝑠𝑡𝑖𝑐 =
𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑉𝑎𝑟𝑖𝑎𝑡𝑖𝑜𝑛
Critical Value
• A value of our test statistic that marks the limits of our extreme
values.
• A test statistic that is more extreme than these critical values (that is
towards the tails) causes us to reject the null.
Calculating Critical Value
𝛼 = 0.005
𝛼 = 0.01
𝛼 = 0.05
Regions of Rejection and Nonrejection:
Risks in Decision Making Using Hypothesis
Testing:
Risks in Decision Making Using Hypothesis
Testing:
Table used to summarize common errors:
Type I error:
Type II error:
Sidenote:
Hypothesis Testing Using the Critical Value
Approach:
Example:

A particular employee wanted to determine the population mean running time to

finish a Regular Session has changed in the past month from its previous population
mean value of 5 hours. Assume that the population is normally distributed with a
population standard deviation of 1.2 hours. The employee sampled the previous 30
Regular Sessions with a sample mean of 5.7 hours.
Solution:
STEP 1: IDENTIFY THE HYPOTHESES
H0 : µ = 5
H1 : µ ≠ 5
STEP 2: IDENTIFY THE SAMPLE AND THE LEVEL OF SIGNIFICANCE
n = 30
α = 0.05
STEP 3: BECAUSE α IS ASSUMED KNOWN, USE THE NORMAL
DISTRIBUTION ZSTAT TEST STATISTIC
𝛼 = 0.05:
Solution:
STEP 4: IDENTIFY THE CRITICAL VALUES
-1.96 and +1.96
The rejection region is ZSTAT < -1.96 or ZSTAT > +1.96
The nonrejection region is -1.96 ≤ ZSTAT ≤ +1.96
STEP 5: COLLECT THE SAMPLE DATA AND COMPUTE THE TEST
STATISTIC
ഥ−µ
𝒙 𝟓.𝟕 −𝟓
𝒁𝑺𝑻𝑨𝑻 = 𝝈 = 𝟏.𝟐 = +3.20
√𝒏 √𝟑𝟎
Solution:
• STEP 6:
Because ZSTAT = +3.20 > +1.96, you reject the null hypothesis.
Hypothesis Testing Using the p-Value
Approach:

The decision rules for rejecting H0 in the p-value approach are

• If the p-value is greater than or equal to α do not reject the null hypothesis.
• If the p-value is less than α, reject the null hypothesis.
Example:
Example:

A particular employee wanted to determine the population mean

running time to finish a Regular Session has changed in the past month
from its previous population mean value of 5 hours. Assume that the
population is normally distributed with a population standard deviation
of 1.2 hours. The employee sampled the previous 30 Regular Sessions
with a sample mean of 5.7 hours.
Solution:
STEP 1: IDENTIFY THE HYPOTHESES
H0 : µ = 5
H1 : µ ≠ 5
STEP 2: IDENTIFY THE SAMPLE AND THE LEVEL OF SIGNIFICANCE
n = 30
α = 0.05
STEP 3: BECAUSE α IS ASSUMED KNOWN, USE THE NORMAL
DISTRIBUTION ZSTAT TEST STATISTIC
Solution:
STEP 4: COLLECT THE SAMPLE DATA AND COMPUTE THE TEST
STATISTIC
ഥ−µ
𝒙 𝟓.𝟕 −𝟓
𝒁𝑺𝑻𝑨𝑻 = 𝝈 = 𝟏.𝟐 = +3.20
√𝒏 √𝟑𝟎
The probability of a ZSTAT value less than -3.20 is 0.00069. The
probability of ZSTAT value below than +3.20 is 0.99931. Therefore, the
probability of a value above +3.20 is 1 – 0.99931 = 0.00069. Thus, the
p-value for this two-tail test is 0.00069 + 0.00069 = 0.00138.
STEP 5: p-value = 0.00138 < α = 0.05, reject the null hypothesis.
A Connection Between Confidence Interval
Estimation and Hypothesis Testing:
• Instead of testing the null hypothesis that µ = 368, you can reach the
same conclusion by constructing a confidence interval estimate of µ.
• If the hypothesized value of µ = 368 is within the interval, you do not
reject the null hypothesis. But, if it is not within the interval, reject
the null hypothesis.
Example:
• Using the equation for the confidence interval for the mean (𝝈 is known)
𝝈
𝑋 ± Z 𝑎Τ
2 √𝑛
ഥ = 372.5 grams, 𝝈 = 15 grams
n = 25, 𝑿

15
372.5 ± (1.96)
√25
372.5 ± 5.88
So that
366.62 ≤ µ ≤ 378.38
Can You Ever Know the Population Standard
Deviation?
• For most practical applications, it is unlikely that you use a
hypothesis-testing method that requires knowing σ.
• If you knew the population standard deviation, you would also know
the population mean and would not need to form a hypothesis about
the mean and then test that hypothesis.
• With a known population standard deviation, you can use the normal
distribution and compute p-values using the tables of the normal
distribution
Sources:
• Analytis Vidhya. (2021, August 6). The Concept Of Hypothesis Testing in Probability and Statistics!.
Retrieved January 24, 2021, from https://www.analyticsvidhya.com/blog/2021/08/the-concept-
of-hypothesis-testing-in-probability-and-statistics/
• The Original Chemistry Tutor. (2019, September 29). Hypothesis Testing – Null and Alternative
Hypotheses [Video]. YouTube. https://youtu.be/wiYJWyfdGg4
• CrashCourse. (2018, August 9). Test Statistics: Crash Course Statistics #26 [Video]. YouTube.
https://youtu.be/QZ7kgmhdIwA
• 365 Data Science. (2017, August 11). Type I error vs Type II error [Video]. YouTube.
https://youtu.be/a_l991xUAOU
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