Chapter-8 Sec 8.1-8.2 Nalanda 2

BITS Pilani
presentation
BITS Pilani Dr RAKHEE
Department of Mathematics
Pilani Campus
MATH F113
Probability and Statistics
BITS Pilani
Pilani Campus
BITS Pilani
Pilani Campus
Chapter 8
Test of Hypotheses Based on a
Single Sample
Hypotheses and Test
8.1 Procedures
Hypotheses and Test Procedures
A statistical hypothesis, or just hypothesis, is a claim or
assertion either about the value of a single parameter
(population characteristic or characteristic of a probability
distribution), about the values of several parameters, or
about the form of an entire probability distribution.
One example of a hypothesis is the claim  = 0.75, where

 is the true average inside diameter of a certain type of
PVC pipe.
Another example is the statement p < 0.10, where p is the

proportion of defective circuit boards among all circuit
boards produced by a certain manufacturer.
BITS Pilani, Pilani Campus
If 1 and 2 denote the true average breaking strengths of
two different types of twine, one hypothesis is the assertion
that 1 – 2 = 0, and another is the statement 1 – 2 > 5.
Yet another example of a hypothesis is the assertion that the

stopping distance under particular conditions has a normal
distribution.
In any hypothesis-testing problem, there are two

contradictory hypotheses under consideration. One
hypothesis might be the claim  = 0.75 and the other  ≠
0.75, or the two contradictory statements might be p  0.10
and p < 0.10.
The objective is to decide, based on sample information,
which of the two hypotheses is correct.
In testing statistical hypotheses, the problem will be

formulated so that one of the claims is initially favored.
This initially favored claim will not be rejected in favor of the

alternative claim unless sample evidence contradicts it and
provides strong support for the alternative assertion.

Definition
The null hypothesis, denoted by H0, is the claim that is
initially assumed to be true (the “prior belief” claim).
The alternative hypothesis, denoted by Ha, is the

assertion that is contradictory to H0.The null hypothesis will
be rejected in favor of the alternative hypothesis only if
sample evidence suggests that H0 is false.
If the sample does not strongly contradict H0, we will

continue to believe in the plausibility of the null hypothesis.
The two possible conclusions from a hypothesis-testing
analysis are then reject H0 or fail to reject H0.
A test of hypotheses is a method for using sample data to
decide whether the null hypothesis should be rejected.
Thus we might test H0:  = 0.75 against the alternative

Ha:  ≠ 0.75. Only if sample data strongly suggests that  is
something other than 0.75 should the null hypothesis be
rejected.
In the absence of such evidence, H0 should not be rejected,

since it is still quite plausible.

Sometimes an investigator does not want to accept a
particular assertion unless and until data can provide
strong support for the assertion.
As an example, suppose a company is considering putting

a new type of coating on bearings that it produces.
The true average wear life with the current coating is

known to be 1000 hours. With  denoting the true average
life for the new coating, the company would not want to
make a change unless evidence strongly suggested that 
exceeds 1000.

An appropriate problem formulation would involve testing
H0:  = 1000 against Ha:  > 1000.
The conclusion that a change is justified is identified with

Ha, and it would take conclusive evidence to justify
rejecting H0 and switching to the new coating.
Scientific research often involves trying to decide whether a

current theory should be replaced by a more plausible and
satisfactory explanation of the phenomenon under
investigation.

A conservative approach is to identify the current theory
with H0 and the researcher’s alternative explanation with
Ha.
Rejection of the current theory will then occur only when

evidence is much more consistent with the new theory.
In many situations, Ha is referred to as the “researcher’s

hypothesis,” since it is the claim that the researcher would
really like to validate.

The word null means “of no value, effect, or consequence,”
which suggests that H0 should be identified with the
hypothesis of no change (from current opinion), no
difference, no improvement, and so on.
Suppose, for example, that 10% of all circuit boards

produced by a certain manufacturer during a recent period
were defective.
An engineer has suggested a change in the production

process in the belief that it will result in a reduced defective
rate.

Let p denote the true proportion of defective boards
resulting from the changed process.
Then the research hypothesis, on which the burden of

proof is placed, is the assertion that p < 0.10. Thus the
alternative hypothesis is Ha: p < 0.10.
In our treatment of hypothesis testing, H0 will generally be

stated as an equality claim. If  denotes the parameter of
interest, the null hypothesis will have the form H0:  = 0,
where 0 is a specified number called the null value of the
parameter (value claimed for  by the null hypothesis).

As an example, consider the circuit board situation just
discussed. The suggested alternative hypothesis was
Ha: p < 0.10, the claim that the defective rate is reduced by
the process modification.
A natural choice of H0 in this situation is the claim that

p  0.10, according to which the new process is either no
better or worse than the one currently used.
We will instead consider H0: p = 0.10 versus Ha: p < 0.10.

The rationale for using this simplified null hypothesis is that
any reasonable decision procedure for deciding between
H0: p = 0.10 and Ha: p < 0.10 will also be reasonable for
deciding between the claim that p  0.10 and Ha.
The use of a simplified H0 is preferred because it has

certain technical benefits, which will be apparent shortly.

The alternative to the null hypothesis H0:  = 0 will look like one
of the following three assertions:
1. Ha:  > 0 (in which case the implicit null hypothesis is   0),
2. Ha:  < 0 (in which case the implicit null hypothesis is   0),
or
3. Ha:  ≠ 0 (in which case the implicit null hypothesis is  = 0).

For example, let  denote the standard deviation of the
distribution of inside diameters (inches) for a certain type of
metal sleeve.
If the decision was made to use the sleeve unless sample

evidence conclusively demonstrated that  > 0.001, the
appropriate hypotheses would be H0:  = 0.001. versus
Ha:  > 0.001.
The number 0 that appears in both H0 and Ha (separates

the alternative from the null) is called the null value.

Test Procedures

Test Procedures
A test procedure is a rule, based on sample data, for
deciding whether to reject H0.
A test of H0: p = 0.10 versus Ha: p < 0.10 in the circuit

board problem might be based on examining a random
sample of n = 200 boards.
Let X denote the number of defective boards in the sample,

a binomial random variable; x represents the observed
value of X.

Test Procedures
If H0 is true, E(X) = np = 200(.10) = 20, whereas we can
expect fewer than 20 defective boards if Ha is true.
A value x just a bit below 20 does not strongly contradict

H0, so it is reasonable to reject H0 only if x is substantially
less than 20.
One such test procedure is to reject H0 if x  15 and not

reject H0 otherwise.

Test Procedures
This procedure has two constituents:
(1) a test statistic, or function of the sample data used to

make a decision, and
(2) a rejection region consisting of those x values for which

H0 will be rejected in favor of Ha.
For the rule just suggested, the rejection region consists of

x = 0, 1, 2,…, and 15.
H0 will not be rejected if x = 16, 17,. . . ,199, or 200.

Test Procedures
A test procedure is specified by the following:
1. A test statistic, a function of the sample data on which

the decision (reject H0 or do not reject H0) is to be based
2. A rejection region, the set of all test statistic values for

which H0 will be rejected
The null hypothesis will then be rejected if and only if the

observed or computed test statistic value falls in the
rejection region.

Errors in Hypothesis Testing

Types of Errors
Decision H0 accepted H0 rejected
Reality
H0 true No error Type I error 
 (probability = α)
H0 false Type II error  No error

(probability = β) 
• H0: the null hypothesis and H1: the alternative hypothesis
• Type-I error: Rejecting null hypothesis when it is actually true; Prob(type-I) = α
• Type-II error: Failed to reject null hypothesis when it is false; Prob(type-II) = β
• Power of a test (1-β): Probability of rejecting null hypothesis when it is false
25
Types of Errors
Critical
Value
Accept H0 Reject H0
Reducing both type-I and type-II errors together is not

possible. Although, one can try to make either type of error
reasonably small! 26
The basis for choosing a particular rejection region lies in
consideration of the errors that one might be faced with in
drawing a conclusion.
Consider the rejection region x  15 in the circuit board

problem. Even when H0: p = 0.10 is true, it might happen
that an unusual sample results in x = 13, so that H0 is
erroneously rejected.
On the other hand, even when Ha: p < 0.10 is true, an

unusual sample might yield x = 20, in which case H0 would
not be rejected—again an incorrect conclusion.

Thus it is possible that H0 may be rejected when it is true or
that H0 may not be rejected when it is false.
These possible errors are not consequences of a foolishly

chosen rejection region.
Either error might result when the region x  14 is

employed, or indeed when any other sensible region is
used.

Definition
A type I error consists of rejecting the null hypothesis H0
when it is true.
A type II error involves not rejecting H0 when H0 is false.
In the nicotine scenario, a type I error consists of rejecting

the manufacturer’s claim that  = 1.5 when it is actually
true.
If the rejection region x  1.6 is employed, it might happen

that x = 1.63 even when  = 1.5, resulting in a type I error.

Alternatively, it may be that H0 is false and yet x = 1.52 is
observed, leading to H0 not being rejected (a type II error).
In the best of all possible worlds, test procedures for which

neither type of error is possible could be developed.
However, this ideal can be achieved only by basing a

decision on an examination of the entire population. The
difficulty with using a procedure based on sample data is
that because of sampling variability, an unrepresentative
sample may result, e.g., a value of X that is far from  or a
value of that differs considerably from p.
Instead of demanding error-free procedures, we must seek
procedures for which either type of error is unlikely to
occur.
That is, a good procedure is one for which the probability of

making either type of error is small.
The choice of a particular rejection region cutoff value fixes

the probabilities of type I and type II errors.

These error probabilities are traditionally denoted by  and
, respectively.
Because H0 specifies a unique value of the parameter,

there is a single value of .
However, there is a different value of  for each value of the

parameter consistent with Ha.

Example 1
A certain type of automobile is known to sustain no visible
damage 25% of the time in 10-mph crash tests. A modified
bumper design has been proposed in an effort to increase this
percentage.
Let p denote the proportion of all 10-mph crashes with this new
bumper that result in no visible damage.
The hypotheses to be tested are H0: p = 0.25 (no improvement)
versus Ha: p > 0.25.
The test will be based on an experiment involving n = 20

independent crashes with prototypes of the new design.
Example 1 cont’d
• Intuitively, H0 should be rejected if a substantial number of

the crashes show no damage. Consider the following test
procedure:
• Test statistic: X = the number of crashes with no visible

damage
• Rejection region: R8 = {8, 9, 10,…,19, 20}; that is, reject H0

if x  8, where x is the observed value of
the test statistic.

Example 1 cont’d
This rejection region is called upper-tailed because it

consists only of large values of the test statistic.
When H0 is true, X has a binomial probability distribution with

n = 20 and p = 0.25. Then
 = P(type I error) = P(H0 is rejected when it is true)
= P(X  8 when X ~ Bin(20, 0.25)) = 1 – B(7; 20, 0.25)
= 1 – .898
= .102

Example 1 cont’d
That is, when H0 is actually true, roughly 10% of all

experiments consisting of 20 crashes would result in H0
being incorrectly rejected (a type I error).
In contrast to , there is not a single . Instead, there is a

different  for each different p that exceeds 0.25.
Thus there is a value of  for p = 0.3 (in which case

X ~ Bin(20, 0.3)), another value of  for p = 0.5, and so on.

Example 1 cont’d
For example,
(0.3) = P(type II error when p = 0.3)
= P(H0 is not rejected when it is false because p = 0.3)
= P(X  7 when X ~ Bin(20, 0.3)) = B(7; 20, 0.3) = 0.772
When p is actually 0.3 rather than 0.25 (a “small” departure

from H0), roughly 77% of all experiments of this type would
result in H0 being incorrectly not rejected!

Example 1 cont’d
The accompanying table displays  for selected values of p

(each calculated for the rejection region R8).
Clearly,  decreases as the value of p moves farther to the

right of the null value 0.25.
Intuitively, the greater the departure from H0, the less likely
it is that such a departure will not be detected.

Example 1 cont’d
The proposed test procedure is still reasonable for testing

the more realistic null hypothesis that p  0.25.
In this case, there is no longer a single , but instead there

is an  for each p that is at most 0.25: (0.25), (0.23),
(0.20), (0.15), and so on. It is easily verified, though, that
(p) < (0.25) = 0.102 if p < 0.25.
That is, the largest value of  occurs for the boundary value
0.25 between H0 and Ha.
Thus if  is small for the simplified null hypothesis, it will

also be as small as or smaller for the more realistic H0.
Proposition
Suppose an experiment and a sample size are fixed and a
test statistic is chosen.
Then decreasing the size of the rejection region to obtain a

smaller value of  results in a larger value of  for any
particular parameter value consistent with Ha.

This proposition says that once the test statistic and n are
fixed, there is no rejection region that will simultaneously
make both  and all  ’s small.
A region must be chosen to effect a compromise between 

and .
Because of the suggested guidelines for specifying H0 and

Ha, a type I error is usually more serious than a type II error
(this can always be achieved by proper choice of the
hypotheses).

The approach adhered to by most statistical practitioners is
then to specify the largest value of  that can be tolerated
and find a rejection region having that value of  rather
than anything smaller.
This makes  as small as possible subject to the bound on

. The resulting value of  is often referred to as the
significance level of the test.
Traditional levels of significance are 0.10, 0.05, and 0.01,

though the level in any particular problem will depend on
the seriousness of a type I error—the more serious this
error, the smaller should be the significance level.
The corresponding test procedure is called a level  test
(e.g., a level .05 test or a level .01 test).
A test with significance level  is one for which the type I

error probability is controlled at the specified level.

Example 5
Again let  denote the true average nicotine content of
brand B cigarettes. The objective is to test Ho:  = 1.5
versus Ha:  > 1.5 based on a random sample
X1, X2,. . . , X32 of nicotine content.
Suppose the distribution of nicotine content is known to be

normal with  = 0.20.
Then X is normally distributed with mean value x =  and

standard deviation x = 0.20/ = 0.0354.

Example 5 cont’d
Rather than use X itself as the test statistic, let’s

standardize X, assuming that H0 is true.
Test statistic: Z =
Z expresses the distance between X and its expected value

when H0 is true as some number of standard deviations.
For example, z = 3 results from an x that is 3 standard

deviations larger than we would have expected it to be
were H0 true. Rejecting H0 when x “considerably” exceeds
1.5 is equivalent to rejecting H0 when z “considerably”
exceeds 0.
Example 5 cont’d
That is, the form of the rejection region is z  c. Let’s now

determine c so that  = 0.5. When H0 is true, Z has a
standard normal distribution. Thus
 = P(type I error) = P(rejecting H0 when H0 is true)
= P(Z  c when Z ~ N(0, 1))
The value c must capture upper-tail area 0.05 under the z

curve. So, directly from Appendix Table A.3,
C = z0.05 = 1.645.
Example 5 cont’d
Notice that z  1.645 is equivalent to

x – 1.5  (0.0354)(1.645), that is, x  1.56. Then  involves
the probability that X  1.56 and can be calculated for any 
greater than 1.5.

Tests About a Population
8.2 Mean
Tests About a Population Mean
Confidence intervals for a population mean  focused on
three different cases.
We now develop test procedures for these cases.

Case I: A Normal Population with
Known 

Case I: A Normal Population with Known 
Although the assumption that the value of  is known is

rarely met in practice, this case provides a good starting
point because of the ease with which general procedures
and their properties can be developed.
The null hypothesis in all three cases will state that  has a
particular numerical value, the null value, which we will
denote by 0 . Let X1,…, Xn represent a random sample of
size n from the normal population.





As we have discussed earlier, the cutoff value c should be
chosen to control the probability of a type I error at the
desired level .
This is easily accomplished because the distribution of the
test statistic Z when H0 is true is the standard normal
distribution (that’s why 0 was subtracted in standardizing).
The required cutoff c is the z critical value that captures
upper-tail area  under the z curve.

As an example, let c = 1.645, the value that captures tail
area 0.05(z0.05 = 1.645). Then,
 = P(type I error) = P(H0 is rejected when H0 is true)
=P(Z  1.645 when Z ~ N(0,1)) = 1 – F(1.645) = 0.05
More generally, the rejection region z  z has type I error
probability .
The test procedure is upper-tailed because the rejection
region consists only of large values of the test statistic.
 = 0.05



Thus c is such that 1 – F(c), the area

under the z curve to the right of c, is
0.025 (and not 0.05!).
From Appendix Table A.3, c = 1.96,

and the rejection region is
z  1.96 or z  –1.96.
For any , the two-tailed rejection

region z ≥ z/2 or z ≤ z/2 has type I
error probability  (since area /2 is
captured under each of the two tails of
the z curve).
Again, the key reason for using the standardized test

statistic Z is that because Z has a known distribution when
H0 is true (standard normal), a rejection region with desired
type I error probability is easily obtained by using an
appropriate critical value.

Rejection regions for z tests: (a) upper-tailed test; (b) lower-tailed test; (c) two-tailed test
Figure 8.2


Use of the following sequence of steps is recommended

when testing hypotheses about a parameter.
1. Identify the parameter of interest and describe it in the

context of the problem situation.
2. Determine the null value and state the null hypothesis.
3. State the appropriate alternative hypothesis.

4. Give the formula for the computed value of the test

statistic (substituting the null value and the known values
of any other parameters, but not those of any
sample based quantities).
5. State the rejection region for the selected significance

level .
6. Compute any necessary sample quantities, substitute

into the formula for the test statistic value, and compute
that value.

7. Decide whether H0 should be rejected, and state this
conclusion in the problem context.
The formulation of hypotheses (Steps 2 and 3) should be

done before examining the data.

Example 6
A manufacturer of sprinkler systems used for fire protection
in office buildings claims that the true average
system-activation temperature is 130°.
A sample of n = 9 systems, when tested, yields a sample

average activation temperature of 131.08°F.
If the distribution of activation times is normal with standard

deviation 1.5°F, does the data contradict the manufacturer’s
claim at significance level  = 0.01?

Example 6 cont’d
1. Parameter of interest:  = true average activation

temperature.
2. Null hypothesis: H0:  = 130 (null value = 0 = 130).
3. Alternative hypothesis: Ha:  ≠ 130 (a departure from the

claimed value in either direction is of concern).
4. Test statistic value:

Example 6 cont’d

Example 6 cont’d
7. The computed value z = 2.16 does not fall in the

rejection region (–2.58 < 2.16 < 2.58), so H0 cannot be
rejected at significance level .01. The data does not give
strong support to the claim that the true average differs
from the design value of 130.

Case II: Large-Sample Tests

When the sample size is large, the z tests for case I are
easily modified to yield valid test procedures without
requiring either a normal population distribution or
known .
Earlier we used the key result to justify large-sample

confidence intervals:
A large n implies that the standardized variable
has approximately a standard normal distribution.

Substitution of the null value 0 in place of  yields
the test statistic
which has approximately a standard normal distribution

when H0 is true.

The use of rejection regions given previously for case I
(e.g., z  z when the alternative hypothesis is Ha:  > 0)
then results in test procedures for which the significance
level is approximately (rather than exactly) .
The rule of thumb n > 40 will again be used to characterize

a large sample size.

Example 8
A dynamic cone penetrometer (DCP) is used for measuring
material resistance to penetration (mm/blow) as a cone is
driven into pavement or subgrade.
Suppose that for a particular application it is required that

the true average DCP value for a certain type of pavement
be less than 30.
The pavement will not be used unless there is conclusive

evidence that the specification has been met.

Example 8 cont’d
Let’s state and test the appropriate hypotheses using the

following data (“Probabilistic Model for the Analysis of
Dynamic Cone Penetrometer Test Values in Pavement
Structure Evaluation,” J. of Testing and Evaluation, 1999:
7–14):

Example 8 cont’d
1.  = true average DCP value
2. H0:  = 30
3. Ha:  < 30(so the pavement will not be used unless the
null hypothesis is rejected)
4.

Example 8 cont’d
Rejection
region
0
-1.645

Case III: A Normal Population
Distribution

Case III: A Normal Population Distribution
When n is small, the Central Limit Theorem (CLT) can no
longer be invoked to justify the use of a large-sample test.
Our approach here will be the same one used there: We

will assume that the population distribution is at least
approximately normal and describe test procedures whose
validity rests on this assumption.

If an investigator has good reason to believe that the
population distribution is quite nonnormal, a distribution-
free test can be used.
Alternatively, a statistician can be consulted regarding

procedures valid for specific families of population
distributions other than the normal family. Or a bootstrap
procedure can be developed.

The key result on which tests for a normal population mean
are based was used to derive the one-sample t CI:
If X1, X2,…, Xn is a random sample from a normal
distribution, the standardized variable
has a t distribution with n – 1 degrees of freedom (df).

Consider testing against H0:  = 0 against Ha:  > 0
by using the test statistic
That is, the test statistic results from standardizing

under the assumption that H0 is true (using the
estimated standard deviation of , rather than ).
When H0 is true, the test statistic has a t distribution with

n – 1 df.

Knowledge of the test statistic’s distribution when H0 is true
(the “null distribution”) allows us to construct a rejection
region for which the type I error probability is controlled at
the desired level.
In particular, use of the upper-tail t critical value

to specify the rejection region implies that
P(type I error) = P(H0 is rejected when it is true)

= P(T  t,n – 1 when T has a t distribution
with n – 1 df)
=
The test statistic is really the same here as in the
large-sample case but is labeled T to emphasize that its
null distribution is a t distribution with n – 1 df rather than
the standard normal (z) distribution.
The rejection region for the t test differs from that for the z
test only in that a t critical value t, n – 1 replaces the z critical
value z .
Similar comments apply to alternatives for which a

lower-tailed or two-tailed test is appropriate.

The One-Sample t Test
Null hypothesis: H0:  = 0
Test statistic value:
Alternative Hypothesis Rejection Region for a Level 

Test

Example 9
Glycerol is a major by-product of ethanol fermentation in
wine production and contributes to the sweetness, body,
and fullness of wines.
The article “A Rapid and Simple Method for Simultaneous

Determination of Glycerol, Fructose, and Glucose in Wine”
(American J. of Enology and Viticulture, 2007: 279–283)
includes the following observations on glycerol
concentration (mg/mL) for samples of standard-quality
(uncertified) white wines: 2.67, 4.62, 4.14, 3.81, 3.83.
Suppose the desired concentration value is 4.
Does the sample data suggest that true average

concentration is something other than the desired value?
Example 9 cont’d
The accompanying normal probability plot from Minitab

provides strong support for assuming that the population
distribution of glycerol concentration is normal.
Normal probability plot for the data of Example 9

Figure 8.4
Let’s carry out a test of appropriate hypotheses using the

one-sample t test with a significance level of .05.
Example 9 cont’d
1.  = true average glycerol concentration
Rejection region
2. H0:  = 4
3. Ha:  ≠ 4
4.
-2.776 2.776
5. The inequality in Ha implies that a two-tailed test is
appropriate, which requires t = (3.814 – 4)/0.321 = –0.58.
Thus H0 will be rejected if either t  2.776 or t  –2.776.

Example 9 cont’d
6. , and from which = 3.814

s = .718, and the estimated standard error of the mean
is The test statistic value is then
t = (3.814 – 4)/0.321 = –0.58.
7. Clearly t = –0.58 does not lie in the rejection region for a

significance level of 0.05.
It is still plausible that  = 4. The deviation of the sample

mean 3.814 from its expected value 4 when H0 is true
can be attributed just to sampling variability rather than
to H0 being false.

One-tailed or two-tailed?
Ex.1. From long experience of coca-cola company, it is known that
yield is normally distributed with mean of 500 units and standard deviation
96 units. For a modified process, yield is 535 units for a sample of size 50.
At 5% significance level, does the modified process increased the yield?
Sol. Here H 0 :   500  this specifies a single value for the parameter 
Actually, we shall assume H 0 :   500
H1 :   500  this is what we want to test 
 one-tailed test; test for  and  known
Is calculated value
greater than the
critical value ?

Ex.2. A department store manager determines that a new billing system will be
cost effective only if the mean monthly account is more than $170. A random sample
of 400 monthly accounts is drawn, for which the sample mean is $178. It is known
that the accounts are approximately normally distributed with s.d. of $65.
At   5%, can we conclude that the new system will be cost-effective?
Sol.
System is cost effective if the mean account balance for all customers (population)
is greater than $170, that is, if   $170.
Our null hypothesis thus H 0 :   170
H1 :   170  this is what we want to test 
 one-tailed test; test for  and  known

Ex.3. A drug is given to 10 patients, and the increments in their blood pressure
were recorded as 3, 6,  2, 4,  4, 1,  6, 0, 0, 2. Is it reasonable to believe that the
drug has no effect on change of the mean blood pressure? Test at 5% significance
level, assuming that the population is normal with variance 1.
Sol. Formulate the hypothesis: H 0 :   0
H1 :   0
 Two-tailed test; test for  and  known.
Does calculated
value fall in the
rejection region of
Acceptan H0 (that is beyond
ce region the critical values)
?
Ex.4. The mean weakly sales of a magazine was 146 units. After an advertisement
campaign, mean of weakly sales in 22 stores for a typical week increased to 154 with
a standard deviation of 17 units. Was the advertisement successful at 5% significance
level? It is given that the weakly sales of magazine follows normal distribution.
H1 :   146
 One-tailed test; test for  and  unknown, small sample from normal.
Ex.5. A state highway patrol periodically samples vehicles speeds at various
locations on a particular highway. The sample of vehicle speeds is used to test the
hypothesis H 0 :   65. A sample of 64 vehicles shows a mean speed of 66.2 kmph
with a s.d. of 4.2 kmph. Use   0.05 to test H 0 . Assume normality of population.
Sol. Formulate the hypothesis: H 0 :   65
H1 :   65  One-tailed test; test for  ,  unknown (large sample).

Ex.6. A marketing research firm conducted a survey 10 years ago and found that
the average household income of Pilani is Rs. 12000. Mr. Agrawal, who has recently
joined the firm wants to verify the accuracy of data. For this, the firm decides to take
a random sample of 200 households. Sample mean and sample s.d. are Rs. 13000 and
Rs. 100. Verify Mr. Agrawal's doubt at   0.05, assuming normality of population.
H1 :   12000
 Two-tailed test; test for  and  unknown  sample size n  200  .
Ex.7. A CFL manufacturing company supplies its products to various retailers. The
company has received complaints from retailers that the average life of its CFL is not
24 months, as the company claims. For verifying, the company collected a random sample
of 150 CFLs and found that the average life is 23 months. Assuming   5 months, test the
average population life of CFLs at   0.08.
Sol. Formulate the hypothesis: H 0 :   24, H1 :   24  Two-tailed; test for  ,  known.
Ex.8. In a golf course, over the past years, 20% of the players were women. In an effort
to increase the proportion of women players, a special promotion was implemented. Now the
manager likes to see whether the promotion helped to increase the proportion of women
players. A random sample of 400 players was selected, and 100 of the players were women.
Test the hypothesis at 5% significance level.
Sol. Formulate the hypothesis: H 0 : p  0.2
H1 : p  0.2
 One-tailed test; test for p.
Ex.9. A marketing company claims that it receives 8% responses from its mailing. To test this
claim, a random sample of 500 were surveyed with 25 responses. Test the hypothesis at  =0.05
Sol. Formulate the hypothesis: H 0 : p  0.08
H1 : p  0.08
 Two-tailed test; test for p.

Thank You

Chapter-8 Sec 8.1-8.2 Nalanda 2

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BITS Pilani

One example of a hypothesis is the claim  = 0.75, where

Another example is the statement p < 0.10, where p is the

Yet another example of a hypothesis is the assertion that the

In any hypothesis-testing problem, there are two

In testing statistical hypotheses, the problem will be

This initially favored claim will not be rejected in favor of the

BITS Pilani, Pilani Campus

The alternative hypothesis, denoted by Ha, is the

If the sample does not strongly contradict H0, we will

Thus we might test H0:  = 0.75 against the alternative

In the absence of such evidence, H0 should not be rejected,

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As an example, suppose a company is considering putting

The true average wear life with the current coating is

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The conclusion that a change is justified is identified with

Scientific research often involves trying to decide whether a

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Rejection of the current theory will then occur only when

In many situations, Ha is referred to as the “researcher’s

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Suppose, for example, that 10% of all circuit boards

An engineer has suggested a change in the production

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Then the research hypothesis, on which the burden of

In our treatment of hypothesis testing, H0 will generally be

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A natural choice of H0 in this situation is the claim that

We will instead consider H0: p = 0.10 versus Ha: p < 0.10.

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The use of a simplified H0 is preferred because it has

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3. Ha:  ≠ 0 (in which case the implicit null hypothesis is  = 0).

BITS Pilani, Pilani Campus

If the decision was made to use the sleeve unless sample

The number 0 that appears in both H0 and Ha (separates

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BITS Pilani, Pilani Campus

A test of H0: p = 0.10 versus Ha: p < 0.10 in the circuit

Let X denote the number of defective boards in the sample,

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A value x just a bit below 20 does not strongly contradict

One such test procedure is to reject H0 if x  15 and not

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(1) a test statistic, or function of the sample data used to

(2) a rejection region consisting of those x values for which

For the rule just suggested, the rejection region consists of

H0 will not be rejected if x = 16, 17,. . . ,199, or 200.

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1. A test statistic, a function of the sample data on which

2. A rejection region, the set of all test statistic values for

The null hypothesis will then be rejected if and only if the

BITS Pilani, Pilani Campus

BITS Pilani, Pilani Campus

H0 false Type II error  No error

Reducing both type-I and type-II errors together is not

Consider the rejection region x  15 in the circuit board

On the other hand, even when Ha: p < 0.10 is true, an

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These possible errors are not consequences of a foolishly

Either error might result when the region x  14 is

BITS Pilani, Pilani Campus