Hypothesis Testing

Hypothesis is a statement that something is true. It is a tentative explanation, a claim, or assertion about
people, objects, or events. It is an assumption or conjecture about a population parameter which may or
may not be true.
Hypothesis testing a procedure in making decisions based on sample evidence or probability theory used to
determine whether the hypothesis is accepted or rejected. It is basically testing an assumption that we
make about a population.
There are two types of hypotheses:
1. Null hypothesis
- denoted as H 0
- capital letter “H” stands for hypothesis and the subscript zero implies “no difference”
- an initial claim based on previous analyses, which the researcher tries to disprove, reject,
or nullify
- there is no difference, no changes, nothing happened, no relationship between a
parameter and a specific value, or the independent variable has no effect on the dependent
variable.
- It shows no significant difference between two parameters.

2. Alternative hypothesis
- denoted as H a
- considered as alternate of null hypothesis
- is a statement that states that there is a significant difference, an effect, change,
relationship between a parameter and a specific value, the independent variable has an effect on
the dependent variable, or something happened.

(Here are some examples on how to state the null and alternative hypothesis from the given statements.
Observe the following:

a) The average of bus drivers in Metro Manila is 38.8 years.

Ho: µ = 38.8 years
Ha: µ ≠ 38.8 years

b) The average number of calories of a low-calorie meal is lower than 300.

Ho: µ = 300 calories
Ha: µ < 300 calories

c) The average birth weight of the population is greater than 8.6 pounds.
Ho: µ = 8.6 pounds.
Ha: µ > 8.6 pounds.

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Types of error
Type 1 error: Rejecting the null hypothesis when in fact the null hypothesis is true (α)

Type 2 error: Not Rejecting the null hypothesis when in fact the null hypothesis is false (β)

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Some Terminologies to remember

Test Statistic: the statistics used as a basis for deciding whether the null hypothesis should be
rejected. (One-tailed or two-tailed)

Critical Value: the values of the

test statistics that separate the
rejection and rejection regions.

Rejection region: the set of values

of the test statistic that leads to
rejection of the null hypothesis

Non-rejection region: the set of values of the test statistics that leads to non-rejection of the null
hypothesis

One-tailed and Two-tailed Tests

A one-tailed test is used when the alternative hypothesis (Ha) is directional which means that the
value of the measures is either greater than (>) or less than (<) the other measure.

A one-tailed test is a hypothesis test for which the rejection region lies at only one tail of
distribution. One-tailed test is classified as left-tailed test or right-tailed test.
Left-tailed test Right-tailed test-
Rejection
Non- region
rejection
- 1.28 region 1.28
A two-tailed test is used when the alternative hypothesis is non-
directional which means that the values of two measures of the same kind
are not equal (≠).
A two-tailed test is a hypothesis test for which the rejection region
lies on both end tails of distribution, one on the left and one on the right.
- 1.65 1.65
Hypothesis testing Procedure

1. Formulate the null and the alternative hypothesis

2. Decide the level of significance, α
3. Choose the appropriate test statistic
4. Establish the critical region
5. Compute the value of the statistical test
6. Decide whether to accept or reject the null hypothesis
7. Draw a conclusion

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Hypothesis About Means (Comparing Sample Mean and Population Means)

x−µ x́−µ
1) z= σ 2) z= s
√n √n
Where:
z = z-test value
x = sample mean
µ = population mean or claimed in Ho
σ = population standard deviation
s = sample standard deviation
n = number of cases greater than or equal to 30

Problem 1:

The treasurer of a certain university claims that the mean monthly salary of their college professor
is P21,750 with a standard deviation of P6,000. A researcher takes a random sample
of 75 college professors were found to have a mean monthly salary of P19,375. Do the 75 college
professors have lower salaries than the rest? Test the claim at a = 0.05 level of significance.
Apply the different steps in testing hypothesis to solve the given problem.

Solution:
Step 1)Ho: The mean monthly salary of the college professor is P21,750. (µ = P21,750)

Ha: The mean monthly salary of the college professor is lower or less than P21,750. (µ <
P21,750)

Step 2) a = .05
Step 3) One-tailed test is used because Ha is directional.
Step 4) The critical value of z at 0.05 level of significance is - 1.65.
Step 5) Compute the z – value.
Given:
x = P19,375
µ = P21,750
σ = P6,000
n = 75

x−µ
z= σ
√n
19,375−21,750
= 6000
√75
−2,375
= 6000
8.66

−2,375
= 692.84

z = -3.43
Step 6) The computed value of z = -3.43 lies under the rejection region therefore reject
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 Ho.
Step 7) Conclusion
There is a significant difference between the salaries of college professors which means that
the 75 professors have lower salaries than the rest.

Problem 2:
The mean weight of the baggage carried into an airplane by individual passengers of Tuguegarao
City Airport is 19.8 kilograms. A statistician takes a random sample of 110 passengers and obtains a
sample mean weight of 18.5 kilograms with standard deviation of 8.5 kilograms. Test the claim at a = .01
level of significance.

Step 1) Ho: µ = 19.8 kg

Ha: µ < 19.8 kg

Step 2) a = .01
Step 3) The alternative hypothesis is expressed in a directional statement therefore use one-tailed
test.
Step 4) The critical value of z = - 2.33
Step 5) Compute z – value.
Given:
x = 18.5 kg
µ =19.8 kg
s = 8.5 kg
n = 110
Solution:
x−µ
z= s
√n
18.5−19.8
z= 8.5
110
−1.3
z= 8.5
10.49
−1.3
z= .81

z = - 1.60

Step 6) The computed value of z = -1.60 lies under the non-rejection, therefore do not reject the
null hypothesis (Ho).
Step 7) Conclusion
There is no significant difference between the weight of the baggage carried by individual
passengers.

Practice exercise:
 A researcher reports that the average salary of assistant professors in a university is more
than P42,000. A sample of 30 assistant professors has a mean salary of P43,260. At a
0.05, test the claim that assistant professors earn more than P42,000 per year. The
standard deviation of the population is P5230.
 A researcher reports that the average salary of company managers is more than

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P63,000. A sample of 35 company managers has a mean salary of P65,700. At a = 0.01,
test the claim that the company managers earn more than P63,000 a month. The standard
deviation of the population is P5,250.

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