Hypothesis Testing

Statistic and Probability

Hypothesis Testing
▪Is a statistical method that is used in making
statistical decisions using experimental data.
Hypothesis testing is basically an assumption that
we make about the population parameter. There
are three methods used to test hypotheses by
traditional method, p-value method, or by
confidence interval method.
Procedure in Hypothesis Testing
▪All hypothesis testing situations start with stating
the statistical hypothesis. A statistical hypothesis
is a conjecture about the population parameter.
This conjecture may or may not be true. There
are two types of statistical hypothesis; the null
hypothesis and alternative hypothesis.
Null Hypotheses
▪
Alternative Hypothesis
▪
Level of Significance
▪Refers to the degree of significance in which we
accept or reject the null hypothesis. In hypothesis
testing, 100% accuracy is not possible for
accepting or rejecting a null hypothesis. So, we
therefore select a level of significance that is
usually 1% and 5%.
Level of Significance
▪After the significance level is chosen, a critical
value is selected from a table for the appropriate
test statistic. The critical value determines the
critical and non-critical regions.
Level of Significance
▪Critical Value – is a value that separates the
critical region from the noncritical region.
▪Critical/Rejection Region – is the range of the
values of the test value that indicates that there
is significance difference and that the null
hypothesis should be rejected.
Level of Significance
▪Noncritical/Nonrejection Region – is the range of
the values of the test value that indicates that the
difference was probably due to chance and that
the null hypothesis should not be rejected.
One-tailed VS. Two-tailed Test
▪A one-tailed test shows that the null hypothesis
be rejected when test value is in the critical
region on one side of the mean. It may be either
a right-tailed test or left-tailed test, depending
on the direction of the inequality of the
alternative hypothesis.
One-tailed VS. Two-tailed Test
▪A two-tailed test, the null hypothesis should be
rejected when the test value is in either of the
two critical regions.
 Relationship between Signs in
Hypothesis and the Tails of the Test
Two-tailed test Left-tailed test Right-tailed test

Rejection Region in both tails in the left tail In the right tail

Where k represent a specified number

Common Phrases in Hypothesis
Testing
Critical Value Approach to
Hypothesis Testing
▪The observed value of the statistic (sample
observation) is compared to critical values
(population observation). These critical values
are expressed as standard z values. For instance,
if we use a level f significance of 0.05, the size of
the rejection is 0.05.
Finding the Critical Values for a=0.05
(Right-Tailed Test)
Finding the Critical Values for a=0.05
(Left-Tailed Test)
Testing the Hypothesis about the
Mean at 0.05 Significance Level
One sample Z Test
▪
One sample Z Test
▪The observed value is the statistic (computed
sample mean) obtain in the sample data; while
the expected value is the parameter (population
mean) the one would expect to obtain if the null
hypothesis were true. The denominator
represents the standard error of the statistic
being tested.
Formula’s
▪
Example 1
▪A researcher reports that the average salary of
College Deans is more than 63,000. A sample of
35 College Deans has a mean salary of 65,700. At
a=0.01, test the claim that the College Deans
earns more than 63,000 a month. The standard
deviation of the population is 5,250.
Example 1
▪Given
▪State the hypotheses and identified the claim
▪The level of significance
▪Z critical value (table)
▪Compute
▪Decision rule
▪Conclusion
Example 2
▪The average baptismal cost include 50 guests. A
random sample of 32 baptismal during the past
year in the National Capital Region had a mean of
53 guests and a standard deviation of 10. is there
sufficient evidence at the 0.05 level of
significance that the average number of guests
differs from the national average?
Example 2
▪Given
▪State the hypotheses and identified the claim
▪The level of significance
▪Z critical value (table)
▪Compute
▪Decision rule
▪Conclusion
Example 3
▪A researcher claims that the monthly
consumption of coffee per person is more than
19 cups. In a sample of 60 randomly selected
people, the mean monthly consumption was 20.
the standard deviation of the sample was 4 cups.
Find the p-value of the test. On the basis of the
p-value, is the researchers claim valid at a=0.01?
Example 3
▪Given
▪State the hypotheses and identified the claim
▪The level of significance
▪Z critical value (table)
▪Compute
▪Decision rule
▪Conclusion