TEST OF

HYPOTHESIS
HANDOUTS

HYPOTHESIS
is a proposed explanation, assertion, or assumption about a population parameter or the distribution of a
random variable. It is a supposition in advance as a basis for argument. It is tested using statistical
methods, generally using experimental samples.
TYPES OF HYPOTHESES

The null hypothesis, denoted by H 0, is a statement that there is no difference between a parameter and a
sample value or that there is no difference between two parameters.
The alternative hypothesis, denoted by 𝐻_1, is a statement that there is a difference between a parameter
and a specific value, or that there is a difference between two parameters. The null hypothesis is always
tested.
DIRECTIONAL ALTERNATIVE HYPOTHESIS
The symbol ≠ in the alternative hypothesis suggest either a greater than (>) relation or a less than (<)
relation. When the alternative hypothesis utilizes the ≠ symbol, the test is said to be non-directional or
two-tailed test.

When the alternative hypothesis utilizes the > or the < symbol, the test is said to be directional or either
right-tailed or left-tailed test.

The words like greater, efficient, improves, effective, increases, and the like suggest a right-tailed
direction in the formulation of the alternative hypothesis. Words like decrease, less than, smaller and the
like suggest a left-tailed direction.

FORMULATING NULL AND ALTERNATIVE HYPOTHESES

EXAMPLE 1
Formulate a null hypothesis and its alternative hypothesis, in words and in symbols, for each of the
following situations
(Examples 1 & 2 are just describing.)
1. The average TV viewing time of all five-year old children is 4 hours daily.
 H 0 : The average viewing time of all five-year old children is 4 hours daily.

H 1: The average TV viewing time of all five-year old children is not 4 hours daily.

H 0 : μ=4 H1: μ ≠ 4
2. A college librarian claims that 20 storybooks on the average, are borrowed daily.
H 0 : The average storybooks borrowed daily is 20 storybooks.

H 1: The average storybooks borrowed daily is not 20 storybooks.

H 0 : μ=20 H 1 : μ ≠ 20
3. The school’s record management reveals that the average score of incoming freshmen during
admission tests is 73. The teacher wishes to find out if the students in her class have the same
average score of 73. (Comparing two groups)
H 0 : There is no significant difference between the mean admission score of students in her class
and the mean admission score of all students who took the test.
H 1: There is a significant difference between the mean admission score of students in her class
and the mean admission score of all students who took the test.
H 0 : x=μ H1: x ≠ μ

FORMULATING NULL AND ALTERNATIVE HYPOTHESES

DIRECTIONAL!

EXAMPLE 2
1. The average TV viewing time of all five-year old children is not 4 hours daily.
Right-tailed: The average TV viewing time of all five-year old children is greater than 4 hours
daily. H 1 : μ >4

Left-tailed: The average TV viewing time of all five-year old children is less than 4 hours daily.
H 1 : μ <4
2. The average storybooks borrowed daily is not 20 storybooks.
 Right-tailed: The average storybooks borrowed daily is higher than 20 storybooks. H 1 : μ >20

Left-tailed: The average storybooks borrowed daily is lower than 20 storybooks. H 1 : μ <20

3. There is a significant difference between the mean admission score of students in her class and
the mean admission score of all students who took the test.

Right-tailed: The mean admission score of students in her class is significantly higher than the
mean admission score of all students who took the test. H 1 : x> μ

Left-tailed: The mean admission score of students in her class is significantly lower than the
mean admission score of all students who took the test. H 1 : x< μ

HYPOTHESIS TESTING

Hypothesis testing is hypothesizing about the population parameter and subjecting this hypothesis to a
test. Estimation is concerned with determining specific parameter values.
Hypothesis testing is a decision-making process for evaluating claims about a population based on the
characteristics of a sample purportedly coming from that population. The decision is whether the
characteristic is acceptable or not.

2 TYPES OF HYPOTHESIS TESTING

Z-TEST
If the sample is large, the test statistic is the z . The z statistic or z-test measures
the number of standard deviations between the observed value of the sample mean and the null
hypothesized value of the population mean. It has two cases.
1. The sample is large (n ≥ 30). Apply the Central Limit Theorem and use the normal curve as a
model.
2. When the CLT is applied, the sample standard deviation s may be used as an estimate of the
population standard deviation σ when the value of σ is unknown.

x−μ
z=
σ
√n
T-TEST
If the sample is small (n<30), the CLT cannot be applied, then t statistic or t-test will be
used. Generally, a t-test is used when the population standard deviation is unknown. Nonetheless, a t-
distribution approaches z-distribution when the sample size becomes larger.
x−μ
t=
σx
√n

FINDING THE T-SCORE

The following steps will be observed in identifying the confidence coefficient for the t-distribution.
1. Determine the alpha error (α ¿

2. Identify which of the two tests must be used. The term two-tailed corresponds to the estimated values
of parameters can manifest from both ends of the distribution. It is also possible that all deviations only
manifest from one end of the distribution, then the one-tailed test is to be used.
3. Determine the degree of freedom df= n - 1
4. Find the intersection of the degree of freedom and of the alpha error and tailed distribution.

Find the critical value/s of t for each set of information.

1. n = 6, 90% confidence 2. n = 24, α = 1%

df =n−1=5 df =n−1=23
α =0.10 α =0.01
t = ± 2.015 t = ± 2.807

3. n = 12, α = 5% to the right tail 4. n = 20, 99 % to the right tail

df =12−1=11 df =20−1=19
α =0.05 α =0.01
t = 1.796 t = −2.539
Find the area under the t-distribution as indicated in each item.

1.) t = - 2.447 to t = 2.447 w/ df = 6

α = 0.05. The area is 0.95 or 95%.

2.) to the left of t = 2.447 w/ df = 6

α = 0.025. The area is 0.975 or 97.5%.

POINT ESTIMATE AND CONFIDENCE INTERVAL USING T-DISTRIBUTION

Since the population standard deviation σ and the standard deviation of the sampling distribution
of means σ x are rarely known, the procedure involving one is typically used in setting confidence
intervals. Two-tailed distribution will also be observed.
The point estimate of μ is the sample mean.

The formula for the confidence interval using the t – distribution is: X−t
( (√ ) σx
n
< μ< X + t ( √ )) =
σx
n

( ( √ ) ( √ ))
X−t
σx
n
, X+ t
σx
n

Where:

x=sample mean n=sample ¿ ¿ t (√ )

σx
n
maximum error E

μ= population meanσ x =sample standard deviation

Note: z and t are interchangeable here. Use z if the sample is large, use t if the sample is small.
EXAMPLE 3
The average weight of 25 chocolate bars selected from a normally distributed population is 200 g
with a standard deviation of 10 g. Find the point and the interval estimate using 90% confidence level.

X =200 g s = 10 g n = 25 df = 24 α = 0.10

( ( √ ) ( √ )) (
X−t
s
n
, X+ t
s
n
= 200−1.711 ( √1025 ) , 200+1.711( √1025 ))
¿ ( 196.58 , 203.42 )
The point estimate is 200 g and the 90% confidence interval that the true population mean is between
196.58 g and 203.42 g.

EXAMPLE 4
What is the confidence interval at 95% confidence level for the mean of 9.5 points per game with a
standard deviation of 3.5 points per game taken from the performance of 12 randomly selected basketball
players in the NBA.

GIVEN:
X =¿ 9.5 pts./game s = 3.5 pts./game n = 12 df = 11 α = 0.05

( √n √ n ) (
(
X−t
s
) , X+ t
( s
) 9.5−2.201
= ( 3.5
√ 12 ) , 9.5+2.201
( √12 ))
3.5

¿ ( 7.28 , 11.72 )

With 95% confidence, the interval between 7.28 points per game and 11.72 points per game contain the
true population mean of the points per game based on the 12 random selected basketball players in the
NBA.

TEST STATISTIC
A test statistic is a value used to determine the probability needed in decision-making.
Two ways to test hypothesis:
Traditional or classical method – the test statistics is the value determined by a computational formula
compared with a confidence coefficient.
P-value method – the test statistics is the value determined by the probability of committing a Type I
error compared to the alpha level. It has become popular with easy access to computer software and high-
powered statistical calculators.

A one sample test is conducted on one sample purportedly coming from a population
with mean μ.

TYPES OF ERROR
Type I – rejecting the H0 when it is actually true (false rejection).
Type II- failing to reject H0 that is false (false acceptance).

Test Rejects Null Test Fails to Reject Null

Null is True TYPE 1 ERROR Correct Decision

Null is False Correct Decision TYPE 2 ERROR

EXAMPLE 1
Donated blood is tested for infectious diseases and other contaminants. Since most donated blood is safe,
it saves time and money to test batches of donated blood rather than test individual samples. A certain test
is performed to see if a certain toxin is present, and the entire batch is discarded if the toxin is detected.
This is similar to using a null and an alternative hypothesis to determine whether to discard or keep the
batch. The hypotheses being tested could be stated as:
H0: The batch does not contain the toxin.
H1: The batch contains the toxin.
What would be the consequence of a Type I error in this context?
A. The batch is discarded when it actually contains the toxin.
B. The batch is discarded when it actually doesn't contain the toxin.
C. The batch is kept when it actually contains the toxin.
D. The batch is kept when it actually doesn't contain the toxin.

(A. Discarding a batch when it contains the toxin would be a correct conclusion, so it would not be
considered an error.
B. This would be the consequence of a Type I error—H0 is true, but we reject it
C. This would be the consequence of a Type II error—H0 is true, but we fail to reject H0
D. Keeping a batch when it doesn't contain the toxin would be a correct conclusion, so it would not be
considered an error.)

(its better if you identify the correct decision choices. This will narrow down the choices that have errors
on it)

EXAMPLE 2
Regulations from the Environmental Protection Agency say that soil used in play areas should not have
lead levels that exceed 400 parts per million (ppm). Before beginning construction at a new site, an agent
will take a sample of soil and run a significance test on the mean lead level in the soil. If the mean lead
level in the sample is significantly higher than 400 ppm then the soil is deemed unsafe and construction
cannot continue. Here are the hypotheses for this test:
H0: μ ≤ 400 ppm (soil is safe)
H1: μ > 400 ppm (soil is unsafe)
What would be the consequence of a Type II error in this context?
A. Construction continues when the soil is actually safe.
B. Construction stops when the soil is actually safe.
C. Construction continues when the soil is unsafe.
 D. Construction stops when the soil is actually unsafe.

A. Continuing of construction when it is safe would be a correct conclusion, so it would not be considered
an error.
B. This would be the consequence of a Type I error—H0 is true, but we reject it
C. This would be the consequence of a Type II error—H0 is false, but we fail to reject H0
D. Discontinuing of construction when it is not safe would be a correct conclusion, so it would not be
considered an error.

TESTING HYPOTHESIS:
Traditional or classical method
– Rejection region

EXAMPLE 1
Tell if the following z-values are in the rejection region or in the acceptance region.
1. z = 2, 95% confidence
At 95% confidence,
Two-tailed z-score = ±1.960
Since z = 2 is outside the shaded area (Acceptance Region) or 2 > + 1.960,
then z = 2 is in the Rejection Region.

P-VALUE METHOD
WORD PROBLEMS
A researcher used a developed problem solving test to randomly select 50 Grade 6 pupils. In this sample,
X = 80 and s = 10. The mean μ and the standard deviation of the population used in the standardization
of the test were 75 and 15 respectively. Using 95% confidence level, does the sample mean differ
significantly from the population mean?
(to make this easier do this step by step)
1. What are given in the problem?

X = 80 σ x = 10 μ = 75 σ = 15 n = 50
2. Is the sample small or large?
Large
3. Does the problem require a one-tailed or a two-tailed distribution?
Two-tailed distribution
4. What are the appropriate hypotheses for the problem?
• Null hypothesis: There is no significant difference between the sample mean, and the population
mean.
• Alternative hypothesis: There is a significant difference between the sample mean and the
population mean.
Based on the information from the problem in motivation, the appropriate test
statistic is z. The following information are also implied in the problem:

z critical values=± 1.960 α =0.05

Using the traditional method:
 x−μ 80−75
z= = =2.36
σ 15
√n √50

The computed z is greater than the critical value, 2.36 > 1.960. The result
suggests that the null hypothesis stating that there is no significant difference between the sample mean
and the population mean is rejected. This implies that the difference between the means is significant and
the sample does not belong to the population.

The z-score is in the rejection region

Using the p-value method:
x−μ 80−75
z= = =2.36
σ 15
√n √50
B= P(-2.36 < z < 2.36) = 0.4909 + 0.4909 = 0.9818
Power-value = 1 – P(-2.36 < z < 2.36) = 1 – 0.9818 = 0.0182

The power-value is less than the p-value or alpha level, 0.0182 < 0.05. The result
suggests that the null hypothesis stating that there is no significant difference between the sample mean
and the population mean is rejected. This implies that the difference between the means is significant and
the sample does not belong to the population.
EXAMPLE 2
Drinking water has become an important concern among people. The quality of drinking water must be
monitored as often as possible during the day for possible contamination. Another variable of concern is
the pH level, which measures the alkalinity or the acidity of the water. A pH below 7.0 is acidic while a
pH above 7.0 is alkaline. A pH of 7.0 is neutral. A water-treatment plant has a target pH of 8.0. Based on
16 random water samples, the mean pH and their standard deviation were 7.6 and 0.4 respectively. Does
the sample mean provide enough evidence that it differs significantly from the target mean at two-tailed
distribution under α = 0.05?

Since the sample size is small, t-test will be used.

X = 7.6 σ x = 0.4 μ = 8.0 n = 16 df = 15 α = 0.05

t critical values = ± 2.131

Null hypothesis: There is no significant difference between the mean pH of water samples and the target
pH.
Alternative hypothesis: There is a significant difference between the mean pH of water samples and the
target pH.

Using the traditional method:

x−μ 7.6−8.0
t= = =−4
σx 0.4
√n √16

The computed t is less than the critical value, - 4 < - 2.131. The result suggests that the null
hypothesis stating that there is no significant difference between the mean pH of water samples and the
target pH is rejected. This implies that there is sufficient evidence to reject the null hypothesis. In
addition, the result shows that the sample does not belong to the population
 The t-score is in the rejection region
Using the p-value method:
x−μ 7.6−8.0
t= = =−4
σx 0.4
√n √16

Based on the t-table, it is not possible to identify the exact two tailed alpha error for t = - 4 at df =
15. Since 0.01 < 0.05, then p-value (t = - 4) < 0.05.

The p-value of t = -4 is less than the alpha level, p-value (t = - 4) < 0.05. The
result suggests that the null hypothesis stating that there is no significant difference between the mean pH
of water samples and the target pH is rejected. This implies that there is sufficient evidence to reject the
null hypothesis. In addition, the result shows that the sample does not belong to the population.

EXAMPLE 3

A sample of five measurements, randomly selected from an approximately

normally distributed population, resulted in the summary statistics x = 4.6 and s = 1.5. Test the null
hypothesis that the mean of the population is 6 against the alternative hypothesis μ < 6 at α = 0.05.

x = 4.6 μ = 6.0 σ x = 1.5 n=5 α = 0.05 df = 4

t critical values = −¿ 2.132
Null hypothesis: There is no significant difference between the mean of the samples and of the
population.
Alternative hypothesis: The mean of the samples is less than the mean of the population.
Using the traditional method:

x−μ 4.6−6.0
t= = =−2.087
s 1.5
√n √5

The computed t is greater than the critical value, - 2.087 > - 2.131. The result suggests that the
null hypothesis stating that there is no significant difference between the mean of the samples and of the
population is accepted. This implies that there is no sufficient evidence to reject the null hypothesis. In
addition, the result shows that the sample belongs to the population with mean of 6.

The t score is in the acceptance region

Using the p-value method:

x−μ 4.6−6.0
t= = =−2.087
σx 1.5
√n √5

The alpha error for t = - 2.087 at df = 4 cannot be determined from the table. However, it
can be concluded that p-value (t = - 2.087) > 0.05.
 The p-value of t = - 2.087 is greater than the alpha level, p-value (t = -
2.087) > 0.05. The result suggests that the null hypothesis stating that there is no significant difference
between the mean of the samples and of the population is accepted. This implies that there is no sufficient
evidence to reject the null hypothesis. In addition, the result shows that the sample belongs to the
population with mean of 6.

EXAMPLE 4
The owner of a factory that sells a particular bottled fruit juice claims that the average capacity of
their product is 250 ml. To test the claim, a consumer group gets a sample of 100 such bottles, calculates
the capacity of each bottle, and then finds the mean capacity to be 248 ml. The standard deviation s is 5
ml. Is the claim true at one-tailed α = 0.05?

X = 248 mlσ x = 5 ml μ = 250 ml n = 100 α = 0.05

Null hypothesis: There is no significant difference between the mean capacities of the sample bottled fruit
juice and of the production claim.

Alternative hypothesis: The mean capacity of the sample bottled fruit juice is less than that of the
production claim.
The owner of a factory that sells a particular bottled fruit juice claims that the
average capacity of their product is 250 ml. To test the claim, a consumer group gets a sample of 100 such
bottles, calculates the capacity of each bottle, and then finds the mean capacity to be 248 ml. The standard
deviation s is 5 ml. Is the claim true at one-tailed α = 0.05?

Using z-test:
z critical value = -1.645
 x−μ 248−250
z= = =−4
σx 5
√n √100
The computed z is less than the critical value, - 4 < - 1.645. The result suggests
that the null hypothesis stating that there is no significant difference between the mean capacities of the
sample bottled fruit juice and of the production claim is rejected. This implies that the difference between
the samples and the production claim is significant. In addition, the result shows that the claim is not true.

Using t-test:

df = 99 t critical value = - 1.645

x−μ 248−250
z= = =−4
σx 5
√n √100

The computed t is less than the critical value, - 4 < - 1.645. The result suggests
that the null hypothesis stating that there is no significant difference between the mean capacities of the
sample bottled fruit juice and of the production claim is rejected. This implies that the difference between
the samples and the production claim is significant. In addition, the result shows that the claim is not true.