FUNDAMENTALS

OF TESTING
 STATISTICAL HYPOTHESIS

hypothesis is defined as a formal
statement, which gives the explanation
about the relationship between the two
or more variables of the specified
population. It helps the researcher to
translate the given problem to a clear
explanation for the outcome of the
study.
 EXAMPLES FOR HYPOTHESIS

If I water plants daily they will grow
faster.
Adults can more accurately guess the
temperature than children can.
Butterflies prefer white flowers to
orange ones.
 NULL HYPOTHESIS

The null hypothesis is a kind of
hypothesis which explains the population
parameter whose purpose is to test the
validity of the given experimental data.
This hypothesis is either rejected or not
rejected based on the viability of the
given population or sample. It is denoted
by H0.
 EXAMPLE

If a medicine reduces the risk of cardiac
stroke,
then the null hypothesis should be “the
medicine does not reduce the chance of
cardiac stroke”.
 ALTERNATIVE
HYPOTHESIS

The alternative hypothesis is a
statement used in statistical
inference experiment. It is
contradictory to the null
hypothesis and denoted by Ha or
H1. We can also say that it is
simply an alternative to the null.
 EXAMPLES


 Null Hypothesis: H0: There is no difference in the
salary of factory workers based on gender.
 Alternative Hypothesis: H1: Male factory workers
have a higher salary than female factory workers.

 Null Hypothesis: H0: There is no relationship

between height and shoe size.
 Alternative Hypothesis: H1: There is a positive
relationship between height and shoe size.
No Null Hypothesis
The null hypothesis is a
statement. There exists no
1
relation between two
variables
2 Denoted by H0
The observations of this
3 hypothesis are the result of
chance
The mathematical
4 formulation of the null
hypothesis is an equal sign
Alternative Hypothesis
Alternative hypothesis a
statement, there exists some
relationship between two
measured phenomenon
Denoted by H1
The observations of this
hypothesis are the result of real
effect
The mathematical formulation
alternative hypothesis is an
inequality sign such as greater
than, less than, etc.
HYPOTHESIS TESTING
Hypothesis testing 
is a form of statistical
method that uses data from a sample to
draw conclusions about a population
parameter . First, a tentative assumption
is made about the parameter . This
assumption is called the null hypothesis
and is denoted by H0. An alternative
hypothesis (denoted H1), which is the
opposite of what is stated in the null
hypothesis, is then defined.
 
The hypothesis-testing procedure
involves using sample data to
determine whether or not H0 can
be rejected. If H0 is rejected, the
statistical conclusion is that the
alternative hypothesis H1 is true.
 TEST STATISTIC

The test statistic is a number
calculated from a statistical test of a
hypothesis. It shows how closely
your observed data match the
distribution expected under the
null hypothesis of that statistical
test.
 CRITICAL REGION

 critical region (rejection region) is a set
of values for the test statistic for which
the null hypothesis is rejected.
i.e. if the observed test statistic is in the
critical region then we reject the null
hypothesis and accept the alternative
hypothesis.
 ACCEPTANCE REGION


Acceptance region(A confidence interval)
is a set of values for the test statistic for
which the null hypothesis is accepted. i.e.
if the observed test statistic is in the
confidence interval then we accept the
null hypothesis and reject the alternative
hypothesis.
 TYPE 1 ERROR

A type I error appears when the null
hypothesis (H0) of an experiment is
true, but still, it is rejected.
 A type I error is often called a false
positive.
 TYPE II ERROR

A type II error appears when
the null hypothesis is false but
mistakenly fails to reject.
type-II error are also known as
“false negative”
 THE LEVEL OF SIGNIFICANCE

The level of significance is defined as
the fixed probability of wrong
elimination of null hypothesis when in
fact, it is true. The level of significance
is stated to be the probability of type I
error and is preset by the researcher
with the outcomes of error.
α (alpha)-level

α = p (type I error)
= p (reject H0/H0 is true)

β(beta) –level

β = p (type II error)
= p (accept H0/H1 is true)
 POWER OF A TEST

The power of a test is the
probability of rejecting the null
hypothesis when it is false; in other
words, it is the probability of
avoiding a type II error.
 
Power of a test = p(reject H0/H0 is false)
= 1-p(accept H0/H1 is true)
=1-β
 ONE TAILED TEST


A one-tailed test is a statistical test in
which the critical area of a distribution
is one-sided so that it is either greater
than or less than a certain value, but
not both. If the sample being tested falls
into the one-sided critical area, the
alternative hypothesis will be accepted
instead of the null hypothesis.
Right tailed

Left tailed

 TWO TAILED TEST

 A hypothesis test that is designed to show whether
the mean of a sample is significantly greater than
and significantly less than the mean of a population
is referred to as a two-tailed test. The two-tailed test
gets its name from testing the area under both tails of
a normal distribution. By convention two-tailed tests
are used to determine significance at the 5% level,
meaning each side of the distribution is cut at 2.5%.
 SAMPLING DISRTIBUTIONS

 A sampling distribution is a probability distribution
of a statistic that is obtained through repeated
sampling of a specific population.
 It describes a range of possible outcomes for a
statistic, such as the mean or mode of some variable
of a population.
 The majority of data analyzed by researchers are
actually samples, not populations.
 STUDENT’S t- DISRTIBUTION

The t-distribution, also known as the
Student’s t-distribution, is a type of
probability distribution that is similar to the
normal distribution with its bell shape but
has heavier tails. It is used for estimating
population parameters for small sample sizes
or unknown variances. t-distributions have a
greater chance for extreme values than
normal distributions, and as a result have
fatter tails.
 

 DEGREES OF FREEDOM

Degrees of freedom are the number of
independent values that a statistical
analysis can estimate. You can also
think of it as the number of values that
are free to vary as you estimate
parameters.
 A chi-square (χ2) distribution


A chi-square (χ2) distribution is a
continuous probability distribution that
is used in many hypothesis tests.

The shape of a chi-square distribution

is determined by the parameter k.
 F -DISTRIBUTION

The F-distribution is extensively used
to test for equality of variances from
two normal populations.