Unit 5: Hypothesis Testing

1. Statistical Hypothesis is an assertion or conjecture concerning one or more

populations.
2. Null Hypothesis: It refers to any hypothesis which we wish to test. A definite
statement about the population parameter, i.e., Hypothesis of no difference is called
Null Hypothesis. It is denoted by 𝐻0 .
3. Alternate Hypothesis: Any Hypothesis which is different (complementary) to the
null Hypothesis. Rejection of 𝐻0 leads to acceptance of an alternative hypothesis. It is
denoted by 𝐻1 .
4. Test of a Statistical Hypothesis: It is a two action decision problem after the
experimental sample values have been obtained, the two actions being the acceptance
or rejection of the hypothesis under consideration.

 Reject 𝑯𝟎 in favour of 𝐻1 because of sufficient evidence in the data or Fail to

reject 𝑯𝟎 because of insufficient evidence in the data.
5. Types of Error

 Type-I error: Rejection of null hypothesis when it is true. It is denoted by 𝛼.

 Type-II error: Acceptance of null hypothesis when it is false. It is denoted by 𝛽.

The probability of committing both types of errors can be reduced by increasing the
sample size.
6. Critical Region: Region of the outcome set where 𝐻0 is rejected if the sample point
falls in that region and is called critical region. Region of rejection of 𝐻0 when it is
true is known as critical region.
7. Level of Significance(𝜶): Maximum probability with which we are prepared to
reject 𝐻0 when it is true. Total area of the region of rejection expressed as %age is
called level of significance.
8. Types of Tests:
 One-tailed Test: A test of any statistical hypothesis where the alternative
hypothesis is one tailed (left-tailed or right tailed) is called one-tailed test.
  Two-tailed Test: A test of any statistical hypothesis where the alternative
hypothesis is two-tailed.

9. Critical value: The value of test statistic which separates the critical region and
acceptance region. It depends upon:

 The level of significance used.

 The alternative hypothesis, whether it is two tailed or one-tailed.
Tests of Significance for Large Samples (Z-test)

For larger value of 𝑛, almost all the distributions are very closely approximated by
normal distribution.

Critical Values (discussed in class)

Z-Test
Representation of regions
Acceptance region Rejection region
𝑋̅ − 𝜇
𝑃 (−𝑧𝛼 ≤ 𝜎 ≤ 𝑧𝛼 ) = 1 − 𝛼

𝐻1 : 𝜇 ≠ 𝜇0 √𝑛 𝑃(|𝑧| > 𝑧𝛼 ) = 𝛼
𝑜𝑟

𝑃(|𝑧| < 𝑧𝛼 ) = 1 − 𝛼

𝐻1 : 𝜇 > 𝜇0 𝑃(𝑧 < 𝑧𝛼 ) = 1 − 𝛼 𝑃(𝑧 > 𝑧𝛼 ) = 𝛼

𝐻1 : 𝜇 < 𝜇0 𝑃(𝑧 > −𝑧𝛼 ) = 1 − 𝛼 𝑃(𝑧 < −𝑧𝛼 ) = 𝛼
𝑋1 , 𝑋2 , 𝑋3 , … , 𝑋𝑛 be a sample from a population with mean 𝜇 and variance 𝜎 2 .

 Test of significance for single mean

𝐻0 : 𝜇 = 𝜇0
𝑋̅ − 𝜇
𝑍= , 𝑖𝑓 𝜎 𝑖𝑠 𝑘𝑛𝑜𝑤𝑛
𝜎/√𝑛
 𝑋̅ − 𝜇
𝑍= , 𝑖𝑓 𝜎 𝑖𝑠 𝑢𝑛𝑘𝑛𝑜𝑤𝑛,
𝑠/√𝑛

𝐻𝑒𝑟𝑒 𝑠 𝑟𝑒𝑝𝑟𝑒𝑠𝑒𝑛𝑡𝑠 𝑠𝑎𝑚𝑝𝑙𝑒 𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛.

 Test of significance for difference of means

𝐻0 : 𝜇1 = 𝜇2

𝑥
̅̅̅1 − ̅̅̅
𝑥2
𝑍= , 𝑖𝑓 𝜎12 , 𝜎22 𝑎𝑟𝑒 𝑘𝑛𝑜𝑤𝑛 𝑎𝑛𝑑 𝜎12 ≠ 𝜎22
𝜎2 𝜎2
√ 1 + 2
𝑛1 𝑛2

𝑥
̅̅̅1 − ̅̅̅
𝑥2
𝑍= , 𝑖𝑓 𝜎12 , 𝜎22 𝑎𝑟𝑒 𝑘𝑛𝑜𝑤𝑛 𝑎𝑛𝑑 𝜎12 = 𝜎22 = 𝜎 2
1 1
𝜎√𝑛 + 𝑛
1 2

𝑥1 − ̅̅̅
̅̅̅ 𝑥2
𝑍= , 𝑖𝑓 𝜎12 , 𝜎22 𝑎𝑟𝑒 𝑢𝑛𝑘𝑛𝑜𝑤𝑛 𝑎𝑛𝑑 𝜎12 ≠ 𝜎22
𝑠2 𝑠2
√ 1+ 2
𝑛1 𝑛2
𝑥1 − ̅̅̅
̅̅̅ 𝑥2 𝑛1 𝑠12 + 𝑛2 𝑠22
𝑍= , 𝑤ℎ𝑒𝑟𝑒 𝑠 = 2
𝑖𝑓 𝜎12 , 𝜎22 𝑎𝑟𝑒 𝑢𝑛𝑘𝑛𝑜𝑤𝑛 𝑎𝑛𝑑 𝜎12 = 𝜎22
1 1 𝑛1 + 𝑛2
𝑠√𝑛 + 𝑛
1 2

Q1.

Q2. A sample of 900 members has a mean 3.4 cms and s.d. 2.61 cm. Is the sample
from population of mean 3.25 cms and s.d. 2.61 cms? If the population is normal and
its mean is unknown, find the 95% and 98% fiducial limits of true mean.
Q3. A storekeeper wanted to buy a large quantity of light bulbs from two brands
labelled one and two. He bought 100 bulbs from each brand and found by testing that
brand one had mean lifetime of 1120 hours and the standard deviation of 75 hours; and
brand two had mean life time of 1062 hours and standard deviation of 82 hours.
Examine whether the difference of means is significant.
Q4. 50 pieces of two types of thread were tested under similar conditions. Type A
thread had an average tensile strength of 86.7 kg with standard deviation of 6.28 kg,
while type B thread had an average tensile strength of 77.8 kg with standard deviation
of 5.61 kg. Is it reasonable to believe that average tensile strength of thread A exceeds
tensile strength of thread B by at least 12 kg at 5% level of significance?
Student's t-Test
This test is applicable when sample size is small.

 t-Test for Single Mean

 t-Test for Difference of Means
 Paired t-Test

Different regions for t-test will be in the form

Critical region Acceptance region
 For 𝐻1 : 𝜇 ≠ 𝜇0 , |𝑡| > 𝑡𝛼,𝜈 |𝑡| < 𝑡𝛼 ,𝜈
 For 𝐻1 : 𝜇 < 𝜇0 , 𝑡 < −𝑡𝛼 ,𝜈 𝑡 > −𝑡𝛼 ,𝜈
 For 𝐻1 : 𝜇 > 𝜇0 , 𝑡 > 𝑡𝛼 ,𝜈 𝑡 > 𝑡𝛼 ,𝜈

Tabulated value of 𝑡 for ν degree of freedom at 𝛼 level of significance for one-tailed

test is the same as value of t for ν 𝑑. 𝑓. at 2𝛼 level of significance for two tailed test.
Here 𝜈 represents degree of freedom.
t-Test for Single Mean: There are few assumptions for this test.
 The parent population from which the sample is drawn is normal.
 The sample observations are independent.
 The population standard deviation is unknown.

𝐻0 ∶ 𝜇 = 𝜇0
𝑛
𝑋̅ − 𝜇 2
(𝑥𝑖 − 𝑥̅ )2
𝑡= , 𝑤ℎ𝑒𝑟𝑒 𝑆 = ∑
𝑆/√𝑛 𝑛−1
𝑖=1
 𝑋̅−𝜇
Also (𝑛 − 1 )𝑆 2 = 𝑛𝑠 2 , so above can be written as 𝑡 = 𝑠/ . 𝜈 = (𝑛 − 1)
√𝑛−1
t-Test for Difference of Means

Assumptions for test

 The parent population from which the sample is drawn is normal.

 The population variances are equal and unknown.

 The two samples are random and independent of each other.

𝐻0 : 𝜇1 = 𝜇2
𝑥1 − ̅̅̅
̅̅̅ 𝑥2 2
𝑛1 𝑠12 + 𝑛2 𝑠22
𝑡= , 𝑤ℎ𝑒𝑟𝑒 𝑆 =
1 1 𝑛1 + 𝑛2 − 2
𝑆√𝑛 + 𝑛
1 2

𝜈 = (𝑛1 + 𝑛2 − 2)

Paired T-test
When two samples are not independent but sample observations are paired together.
 Sample size is same.
 Sample observations are not independent.
𝐻0 : 𝜇1 = 𝜇2
𝑑𝑖 = 𝑥𝑖2 − 𝑥𝑖1
𝑑̅ 𝑑̅
𝑡= = , 𝜈 = (𝑛 − 1)
𝑆𝑑 /√𝑛 𝑠𝑑 /√𝑛 − 1
Q5. The mean weekly sale of soap bars in departmental stores was 146.3 bars per store.
After advertising campaign the mean weekly sales in 22 stores for a typical week
increased to 153.7 and showed a standard deviation of 17.2. Was the advertising
campaign successful? [Given: 𝑃((𝑡21 > 1.721) = 0.05) 𝑜𝑟 𝑃(|𝑡21 | > 1.72) =
0.10]

Q6. A reading test is given to an elementary school class that consists of 12 Anglo-
American children and 10 Mexican-American children. The results of the test are:
Angelo American Mexican American
𝑥
̅̅̅1 = 74 𝑥
̅̅̅2 = 70
𝑠1 = 8 𝑠2 = 10
Is the difference between the means of the two groups significant at the 0.05 level?
[Given: 𝑃((|𝑡20 | > 2.086) = 0.05)]

Q7. Eleven school boys were given a test in Statistics. They were given a month's
tuition and a second test was held at the end of it. Do the marks give evidence that the
students have benefited by the extra coaching?
Boys 1 2 3 4 5 6 7 8 9 10 11
Marks in 23 20 19 21 18 20 18 17 23 16 19
1st test
Marks in 24 19 22 18 20 22 20 20 23 20 18
2nd test
Given: [𝑃(𝑡10 > 1.812) = 0.05]

Q8. Two independent groups of 10 children were tested to find how many digits they
could repeat from memory after hearing them. The results are as follows:
Group A 8 6 5 7 6 8 7 4 5 6
Group B 10 6 7 8 6 9 7 6 7 7

Is the difference between the mean scores of the two groups significant?