UNIT 4:

Hypothesis Testing

Introduction

W e shall now consider the most important part in statistical investigation – the
determination of the statistical significance of the results computed from the sample.
At the start of the investigation, some claims can be made about the population.
Such claims van be denied or confirmed by evidence from the sample.
In statistics, the term hypothesis is used to mean a statement about one or
more parameters of a population. Given two or more contending hypothesis, testing
the validity of one of these statements through statistical tests is known as
hypothesis testing.

Hypothesis testing is a procedure consisting of pertinent steps whose major

objective is to be able to decide based on the data gathered.

Learning Outcomes
At the end of this lesson, you are expected to:
1. Define hypothesis
2. Differentiate null and alternative hypotheses.
3. Differentiate directional and non – directional alternative hypothesis.
4. Differentiate critical and acceptance region of test statistic.
5. Differentiate Type I error and Type II error.
6. Differentiate one – tailed test and two – tailed test.
7. Identify the steps of hypothesis testing.

LESSON 1:
NULL AND ALTERNATIVE HYPOTHESES

A hypothesis is a statement that explains or predicts the relationship or

differences between two or more variable in terms of expected results or outcomes of
a study. For single populations, a hypothesis is a conjecture about the nature of the
parameters of such population. When making conjectures about population
parameters, we normally state two types of hypotheses, the null hypothesis and
alternative hypothesis.
 Directionl
Alternative
Hypothesis
Alternative
Hypothesis
Non-directionl
Hypothesis Alternative
Hypothesis
Null
Hypothesis

Null Hypothesis

The null hypothesis or statistical hypothesis denoted by Ho refers to the

statement about the absence of any effect claimed for a certain action. It commonly
involves a statement of “no difference” between the parameters of interest when
comparing two or more populations, or “no relationship” between variables measured
from the same population. Since a hypothesis cannot be proven, a null hypothesis is
usually formulated for the purpose of being rejected. This is done by gathering
sample data and investigating whether the sample data supports or does not support
the null hypothesis.

Alternative Hypothesis

The alternative hypothesis or research hypothesis denoted by Ha refers to

the assertion contradicting the null hypothesis. It is operational statement of the
researcher’s hypothesis and is accepted if the null hypothesis is rejected. The
alternative hypothesis can be directional or non – directional.

1. A directional alternative hypothesis states that the parameter is greater

than or less than the hypothesized value. It specifies the direction of the
difference of two or more parameters when comparing two or more
populations, or the direction of relationship between two variables
measured in a single population.

2. A non – directional alternative hypothesis, on the other hand, merely

states that the parameter is different from (not equal) the hypothesized
value. It does not specify the direction of the difference between two or
more parameters or direction of relationship between two variables.

Let us illustrate these ideas using the problem below.

Example 1: The mean temperature in a batch reactor is assumed to be 200°C. If a

sample of temperature readings from the reactor had a mean of 190°C,
would it be reasonable to assume that the mean temperature in the
reactor is still 200°C? Set up the null and alternative hypotheses for
this scenario.
 Ho: The mean temperature if reactor is 200°C (µ = 200°C).

Ha: The mean temperature if reactor is not 200°C (µ ≠ 200°C).

Note that the alternative hypothesis is non – directional. If a directional

alternative is desired, then we can formulate the following alternative
hypothesis.

Ha: The mean temperature if reactor is less than 200°C (µ < 200°C).
Ha: The mean temperature if reactor is greater than 200°C (µ >
200°C).

LESSON 2:
STATISTICAL TEST AND TEST STATISTIC

Statistical test refers to the procedure for testing a null hypothesis. Testing a
null hypothesis requires computing a test statistic using the data obtained from the
sample. A test statistic is a formula that is used to determine whether or not the null
hypothesis will be rejected. It is used to determine how close a specific sample result
falls to one of the hypotheses being tested.

The values of the test statistic can be classified in two sets:

1. Critical region or rejection region of a test is the set of values of the test
statistic that leads to the rejection of the null hypothesis.

2. Acceptance region is the set of values of the test statistic that leads to the
acceptance of the null hypothesis.

The critical value of the test statistic is the value which separates the
critical region from the acceptance region. In the figure below, the value 1.96 is a
critical value since it separates the rejection region (black region) from then
acceptance region.

Acceptance Region Rejection Region

1.96

LESSON 3:
ONE – TAILED VS TWO TAILED
 The type of test to be used depends on the nature of the research hypothesis.
In general, if the research hypothesis is directional, one tailed test is used; if the
research hypothesis is non - directional, two tailed test is used.
One tailed test is a statistical test in which the alternative hypothesis specifies
that the population parameter is entirely above or entirely below the value specified
by the null hypothesis. On the other hand, a two – tailed test is a statistical test in
which alternative hypothesis specifies that the population parameter can lie on either
side of the value specified by null hypothesis.

One – tailed test (left tailed) One – tailed test (right tailed)

Two – tailed test

LESSON 4:
TYPES OF ERROR IN DECISION MAKING

Nature of Hypothesis
Decision
True False
Accept Correct decision Type II error
Reject Type I error Correct decision

Type I error or α error is the probability of rejecting the null hypothesis when
in fact it is true.

Type II error or β error is the probability of rejecting the null hypothesis when
in fact it is false.

The α error is also called the level of significance of the test. This is
interpreted as the allowance for error in decision making. To be useful, the level of
significance of a test must be small. By tradition, the most common value of α is 0.05
or 0.01.

The confidence level of the test is (1 – α). This is the probability of accepting
the null hypothesis when in fact it is true. Thus, if α = 0.05, the corresponding
confidence level is 95%. If α = 0.01, the confidence level is 99%.
 When α = 0.05, the researcher is willing to accept a 5% chance of being
wrong when the null hypothesis is rejected. When α = 0.01, the researcher is willing
to accept a 1% chance of being wrong when the null hypothesis is rejected. When
the null hypothesis is rejected at the 0.05 level of significance, the result is said to be
“statistically significant” and if rejected at the 0.01 level of significance, the result is
LESSON
said to be “highly 5:
significant”.
HYPOTHESIS TESTING

Steps in Hypothesis Testing

1. State the null and alternative hypotheses.

2. Set the level of significance (α) to be used.
3. Identify and compute the appropriate test statistic to be used.
4. Determine the corresponding tabular value
5. Make the decision.

Decision Rule: Reject the null hypothesis if and only if, the absolute
value of the computed test statistic exceeds the tabular value.

p- values

Besides listing an α value, many computer statistical packages give a p-value

for hypothesis tests. The p-value is the actual probability of getting the sample mean
value or a more extreme sample mean value in the direction of the alternative
hypothesis (> or <) if the null hypothesis is true.

The p-value is the actual area under the standard normal distribution curve
(or other curve, depending on what statistical test is being used) representing the
probability of a particular sample mean or a more extreme sample mean occurring if
the null hypothesis is true.

If p-value ≤ α, reject the null hypothesis.

If p-value > α, do not reject the null hypothesis.

Chapter Exercises

Exercise 1: Differentiate
Directions: Differentiate the following items.

1. Null and alternative hypotheses

2. Directional and non – directional alternative hypotheses
3. Critical and acceptance regions
4. Type I and Type II errors
5. one – tailed test and two – tailed tests.
6. Test statistics and test statistical