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DMBA301
RESEARCH METHODOLOGY
Unit 10
Testing of Hypothesis
Table of Contents
1. INTODUCTION
A hypothesis is, as we know, a supposition based on limited information. It is the reason why
research is conducted. Decision-makers regularly face situations wherein they are interested
in testing a hypothesis based on available information. They need to decide based on that
testing.
What is a Hypothesis?
Figure 10.1 indicates this process diagrammatically. It is only after analyzing the evidence
that it can be concluded whether the hypothesis was true or false. For concluding about a
hypothesis, a statement is made whether the hypothesis is true or ‘the hypothesis is false’. A
hypothesis has to be clear, specific and testable. The study design, sample, data collection
method(s), data analysis, and conclusions needs to be free of any bias.
and a single independent variable. For example, eat more Formulating a hypothesis
Collecting appropriate
vegetables, you will be healthier. Here, eating more
evidence Analyzing
vegetables is an independent variable, while healthier is a evidence to conclude its
validity
dependent variable.
For Example: Regular consumption sugary drinks or carbonated drinks leads obesity
• Complex Hypothesis
It indicates the relationship between two or more dependent and independent variables.
Eating more fruits and vegetables leads to glowing skin, weight loss, reducesthe risk of many
diseases, such as diabetes, heart disease, and some cancers.
For example:
Adults who 1) consume sugary beverages on a regular basis and 2. Genetic health issues are
more likely to 1) become obesity and 2) develop health issues or diabetics.
• Directional Hypothesis
For example The higher number of WhatsApp friends, the lower the life satisfaction score.
• Non-Directional Hypothesis
Here there is no theory involved. It is a statement that a relationship occurs between two
variables, without predicting the correct nature (direction) of the relationship.
For Example Eating smarties will have a relationship effect on a student’s singing ability.
• Null Hypothesis
It presents a statement that is reverse to the hypothesis. It is a negative statement, meaning
there is no relationship between the dependent and independent variables. The symbol used
to express this statement is HO.
For Example: Students in the College score an average of 80 out of 100 in exams.
to be valid. In hypothesis testing, the main question is: whether Steps for hypothesis
testing refer to all those
to accept the null hypothesis or not to accept the null hypothesis. procedures that are
undertaken for selecting
Steps for hypothesis testing refers to all those procedures that between the two actions –
that is, acceptance or
are undertaken for making a selection between the two actions—
rejection of a null
acceptance or rejection of a null hypothesis. The various steps hypothesis.
Step 1. Making a Formal Statement: This step comprises making a formal statementof
the null hypothesis (H0) and also of the alternative hypothesis (H1). This means that both the
hypotheses should be clearly specified, seeing the nature of the research problem. For
example, the average score in an aptitude test at the national level is 75. To assess a state’s
education system, the average score of 100 of the state’s students selected on random basis is
The state wants to know if there is any significant difference between the local scores andthe
national scores. The hypotheses may be stated as under:
Null hypothesis H0 : μ = 75
Alternative Hypothesis Ha : μ ≠ 75
Step 2. Selecting a Significance Level: The hypotheses are tested on a pre-determined level
of significance and the same can be specified. Normally in practice, either a 5% level or 1% level
is accepted for the purpose. The factors involved in selecting the level of significance are:
In short, the level of significance should be adequate with respect to the nature of enquiry.
Step 3. Deciding the Distribution to Use: The next step in hypothesis testing is to define the
correct sampling distribution. The choice usually remains between normal distribution and
the t-distribution.
Step 4. Selecting a Sample and Computing Value: The next step is to select random
sample(s) and calculate an appropriate value from the sample data about the test statistic
utilizing the relevant distribution. In other words, draw a sample to supply an empirical data.
Step 5. Calculating Probability: Calculate the probability that the sample effect would
diverge as widely as it has from expectations if the null hypothesis were true.
Step 6. Comparing Probability: Another step comprises comparing the probability thus
computed with the specific value for α, the significance level. If the determined probabilityis
equal to or smaller than a value—in the case of a one-tailed test and α/2 in the case of a two-
tailed test—then reject the null hypothesis. That is, accept the alternative hypothesis.
Whereas if the calculated probability is greater, then accept the null hypothesis. In case the null
hypothesis H0, is rejected, then the researcher runs the risk of (at most the level of
significance)Type I error. Whereas, if the null hypothesis H0, is accepted, then the researcher
runs some risk of committing Type II error.
The Z-Test is a hypothesis test that helps to test a Population Mean, μ, besides a supposed
population mean, μ0. The z-test assumes normally distributed variables quantity or large
sample size. Then, the Central Limit Theorem assures a normally distributed sampling
distribution. In addition, σ, the standard deviation of the population needs to be known. In
real-life applications, this assumption is nearly never fulfilled, and thus, the z-test is rarely
applied. Though, it is a simple hypothesis test and thus, a helpful subject to start with.
The following steps are to be followed in testing a hypothesis about a population mean:
Step 1. Data: Define variable, sample size (n), sample mean (x), population standard deviation or
–
̅
sample standard deviation (s) if (𝑋) is unknown.
• Case I : H0:μ = μ0
H a: μ ≠ μ 0
• Case II : H0: μ = μ0
H a: μ > μ 0
Situation 1: Population infinite, population normal, the sample size may be small or big
but variance of the population is known, Ha may be one-sided or two-sided:
In this situation, the z-test is used for the testing hypothesis of the mean and the test statistic
z is worked out as given:
𝑋̅ − 𝜇𝐻𝑜
𝑧=
𝜎𝑝 /√𝑛
Situation 2: Population finite, population normal, population finite, the sample size may
besmall or big but the variance of the population is known, Ha may be one-sided or
two-sided:
In this situation, the z-test is used and the test statistic z is worked out as given below (using
finitepopulation multiplier):
𝑋̅ − 𝜇𝐻𝑜
𝑧=
(𝜎𝑝 /√𝑛)𝑋√(𝑁 − 𝑛)/(𝑁 − 1)
Situation 3: Population infinite, population normal, sample size small, and variance of the
population unknown, Ha may be one-sided or two-sided:
In this situation, t-test is used and the test statistic t is worked out as given below:
𝑋̅ − 𝜇𝐻𝑜
𝑡=
𝜎𝑝 /√𝑛
Situation 4: Population finite, population normal, sample size small, and variance of the
population
In this situation, the t-test is used and the test statistic ‘t’ is worked out as given below
(using finite population multiplier):
s =
Situation 5: Population may not be normal but the sample size is high, the variance of
thepopulation may be unknown or known, and Ha may be one-sided or two-sided:
In this situation, use z-test and work out the test statistic z worked out as given below:
𝑋̅ − 𝜇𝐻𝑜
𝑡=
(𝜎𝑝 /√𝑛)𝑋√(𝑁 − 𝑛)/(𝑁 − 1)
While performing a hypothesis test of a single population mean µ — using a normal distribution
(it is always called a z-test) – a researcher can take a simple random sample from the
population. The population tested is normally distributed or the sample size is greater than
30, or both. use the standard deviation.
Rare Events
Assume a property of the population (this assumption is the null hypothesis). Then collect
sample data randomly. If the sample has properties that might be unlikely to arise if the
assumption is true, then conclude that the assumption about the population is incorrect.
Remember that assumption is just an assumption—it is not a fact and it may or may not
be true. But the sample data is true and it is showing a fact that appears to contradict the
assumption.
7. For a random sample of 9 women, the average resting pulse rate is x = 76 beats
perminute, and the sample standard deviation is s = 5. The standard error of
the samplemean is___ .
a) 0.557
b) 0.745
c) 1.667
d) 2.778
8. The shape of the binomial distribution wants to be similar to the shape of the
normal distribution. [True/False]
9. A hypothesis test of a single population means µ using a Student’s
_________distribution.
a) t
b) z
c) binominal
d) simple random
population and μ2 is population mean of the second population, if both the populations are
said to be normal populations. Alternative hypothesis might be:
Therefore, shall ascertain the acceptance or rejection areas for testing the hypotheses. There
might be different situations to assess the significance of the difference between the two
means,as follows:
In this situation, use the z-test for the difference in means and to solve or work out the
test statistic z, as given below:
𝑋̅1 − 𝑋̅2
𝑧=
2 2
𝜎𝑝1 𝜎𝑝2
√ +
𝑛1 𝑛2
In case σp1 and σp2 are not known, use σs and σ, respectively, in their places, calculating
2
∑(𝑋1𝑖 − 𝑋̅1 ) ∑(𝑋2𝑖 − 𝑋̅2 )
𝜎𝑠1 =√ 𝑎𝑛𝑑 𝜎𝑠1 = √
(𝑛1 − 1) (𝑛2 − 1)
2. Samples occur to be large but are assumed to have been taken from the same
population whose variance is known:
In this situation, use the z test for the difference in means and work out the test statistic z
given below:
Case σp is not known, use 𝜎𝑠1.2 (combined standard deviation of the two samples) n its
place, to calculate
𝑛1 𝑋̅1 + 𝑛2 𝑋̅2
𝑋̅1.2 =
𝑛1 + 𝑛2
3. Samples occur to be lesser or small, samples and population variances not known
but assumed to be equal:
In this situation, use t-test for difference in means and work out the test statistic t as given
below:
10. When testing the null hypothesis, using the confidence interval estimate of
the difference between two means, one would reject the null hypothesis when
_________________.
A. The higher confidence limit is less than zero.
B. The lower confidence limit is less than zero.
C. The confidence interval does not include zero.
D. The confidence interval includes zero.
11. Null hypothesis testing the difference between means is normally stated as
H0 : μ1 = μ2 , (True/False)
If n is larger, the binomial distribution leans to become normal distribution, and as such, for
proportionately testing purposes, make use of the test statistic z as under:
√𝑝. 𝑞
𝑧=
𝑛
Where 𝑝̂ is the sample proportion.
For testing the proportion, formulate H0 and Ha and construct the rejection region. Assuming
13. The null hypothesis for testing of difference between means is normally stated as
H0 : μ1 ≠ μ2 . (True/False)
This procedure computes sample size and statistical power for analyzing a single proportion
using either the exact test or other approximate z-tests. The exact test results are
hypergeometric) based on calculations using the binomial (and distributions. Since the
analysis of many different test statistics is available, their statistical power might be compared
to find the most suitable test for a given situation.
This process has the capability of calculating power using both the normal estimates and
binomial records for all tests. Some sample size programs utilize only the normal
approximation to the binomial distribution for power and sample size assessments. The normal
approximation is exact for large sample sizes and proportions between 0.2 and 0.8, roughly.
Test Statistics
Many different test statistics have been suggested for testing a single proportion. Most of these
were suggested before computers or hand calculators were widely available. To make this
assessment easy, the power and significance of many tests of a single proportion are available.
Exact Test
The test statistic is r, the number of successes in n trials. This test should be the standard
against which other test statistics are judged. The significance level and power are computed
by enumerating the possible values of r, computing the probability of each value, and then
computing the corresponding value of the test statistic. Hence the values that are stated in the
output for these tests are exact, not approximate.
in sample one (p̂1) and the proportion of success in sample two (p̂2), is due to fluctuation or
variation of random sampling. In other words, take the null hypothesis as H0: p1 p2. For testing
the significance of difference, to find and check the test statistic as under:
Construct the rejection region(s), depending upon the Ha for a given level of significance. On
its basis, judge the significance of the sample result for accepting or rejecting H0.
Sample Problem
A research department’s New Research Experimental Unit is testing two drugs newly
developed to decrease Covid-19. The drugs are directed to two different sets of animals. In
group one, 350 of 600 animals tested reacted to Drug 1 and in group two, 260 of 500 animals
tested to respond to Drug 2. The research unit wants to test whether there is a difference
betweenthe efficacy of the said two drugs at 5 percent level of significance. How will you deal with
thisproblem?
Solution: The null hypothesis is that there is no significance difference between the two
drugs. That is,
and the given information can be stated as: p̂1 = 350/600 = 0.583
= 600
p̂2 = 260/500 = 0.520
q̂2 = 1 – p̂2 = 0.480
n2 = 500
R : | z | > 1.96
The z observed value is 2.093, which is the rejection region. Thus, H0 or Null hypothesis is
rejected in favor of Ha and as such concluded that the difference between the efficacy of the
14. Some sample size programs utilize only the normal approximation to the
binomial distribution for power and sample size assessments. (True/False)
15. There are 100 students in a Tamil Nadu government school. In the four
states, inclusive of this school, the number of students is 2000. In a random
sample study, 20were found smokers in the school. The proportion of smokers in
the school is 0.05. Is there a significant difference between the proportion of
smokers in the school and in Tamil Nadu? Test at 5 % level.
A. Accept hypothesis
B. Reject the hypothesis
11. SUMMARY
• The Hypothesis is usually studied as the main instrument in research. Its primary
functionis to suggest new tests and observations. Several experiments are taken out
with the deliberate object of testing hypotheses.
• To test a hypothesis, the process comprises three phases: One, Formulating a
hypothesis, Two, Collecting appropriate evidence, and three, Analyzing evidence to
concludeits validity.
• Simple Hypothesis indicates a relationship between one dependent variable and a single
independent variable.
• Complex Hypothesis indicates the relationship between two or more dependent and
independent variables.
• Non-Directional Hypothesis is a statement that a relationship occurs between two
variables, without predicting the correct nature (direction) of the relationship.
• Null Hypothesis is a negative statement, meaning there is no relationship between the
dependent and independent variables. The symbol is expressed as HO.
• If two samples are obtained from different populations, one may be interested in
knowing whether the difference between the proportion of successes is significant ornot
significant.
12. GLOSSARY
Causal Hypothesis: This is a statement hypothesizing that the independent variable impacts
the dependent variable in some way.
Dependent Variable: This is a variable that varies, at least in part, due to the effect of the
independent variable. In other words, its value or estimate `depends’ on the value of the
independent variable.
Group Behavior: Refers to the behaviors of a group as a unit, as well as the behavior of an
individual, as induced by his or her membership in a group.
Hypergeometric: The probability density function is the hypergeometric. This is the most
basic one because it is created by combining our knowledge of probabilities from Venn
diagrams, the addition and multiplication rules, and the combinatorial counting formula.
Internal Consistency: This is the area to which all questions or items measure the same
characteristic, skill, or quality.
One tailed test: A one-tailed test in hypothesis testing is a test defined so that it matchesa
one-sided hypothesis. The “tail” references one half of the frequency distribution of the
statistic one is using (e.g. a z score or a t score).
Participant: Individuals whose physiological and/or behavioral qualities and responses are
the objects of study in a research project.
Probability: Refers to the chance that an event will occur randomly. As a statistical measure,
it is expressed as p.
Random Sampling: Random sampling can be completed by first numbering the population,
then choosing the sample according to a table of random numbers or using a random-number
computer generator.
Rigor: The degree to which research methods are carefully and accurately carried out in order
to recognize important influences occurring in an experimental study.
Rejection regions: A rejection region (a.k.a. critical region) in a Null Hypothesis Statistical
Test is a part of the parameter space such that observing a result that falls under it will lead to
the rejection of the null hypothesis.
Sampling Error: This is the degree to which the results from the sample diverge from those
that would be acquired from the entire population.
Standard Deviation: Is a measure of variation that shows the typical distance among the
scores of a distribution and the mean.
Statistical Analysis: Is the application of statistical processes and theory to the compiling,
presentation, analysis, and interpretation of numerical data.
Type II Error: Refers to the failure of an investigator to reject a null hypothesis that is actually
false. This is also called beta error.
13.1 ANSWERS
1. Simple hypothesis
2. Non-Directional hypothesis
3. Directional hypothesis
4. False
5. True
6. Hypothesis
7. 1.667
8. True
9. Binomial distribution
10. the confidence interval does not include zero
11. 38
12. True
13. False
14. True
15. Reject
TERMINAL QUESTIONS
Answer 2: The three phases in the process of making a hypothesis are: One, Formulating a
hypothesis; two, Collecting appropriate evidence; and three, analyzing evidence to conclude
its validity.
Step 1. Making a formal statement Step 2. Selecting a significance level Step 3. Deciding the
distribution to use
The null hypothesis for testing the difference between means is normally stated as
H0 : μ1 = μ2 , where μ1 is population mean of one population and μ2 is population mean
of the second population, if both the populations are said to be normal populations.
Alternative
Therefore, shall ascertain the acceptance or rejection areas for testing the hypotheses. There
might be different situations to assess the significance of difference between the two means,
as follows:
Situation 1. Population variances are known or the samples occur to be large samples:
REFERENCES
• https://sphweb.bumc.bu.edu/otlt/mph-modules/bs/bs704_hypothesistest-means-
proportions/bs704_hypothesistest-means-proportions_print.html
• https://www.sagepub.com/sites/default/files/upm-binaries/40007_Chapter8.pdf
• https://stats.libretexts.org/Bookshelves/Introductory_Statistics/Book%3A_
Introductory_Statistics_(Shafer_and_Zhang)/08%3A_Testing_Hypotheses/8.01%3A_
The_Elements_of_Hypothesis_Testing
• https://opentextbc.ca/introductorybusinessstatistics/chapter/hypothesis-testing-2/
• https://courses.lumenlearning.com/wmopen -concepts-statistics/chapter/
hypothesis-test-for-a-difference-in-two-population-means-1-of-2/