5 views

Uploaded by Hemanth Kumar

Attribution Non-Commercial (BY-NC)

- First Edition - Geography, Economics and Economic Geography
- Basic Concepts of Hypothesis Testing (1)
- Hypothesis Test
- AshleyBriones Homework Module5
- Type I and II Errors
- Hypothesis Testing
- SMU MBA QUESTION PAPER
- Assignment 1 UTX
- 90156Hypothesis Testing
- Hypothesis Testing
- 609
- Quiz 2
- 0 Hypothesis Testing
- MCQ On Testing of Hypothesis 1111
- CHAPTER 9 Hypothesis Testing.pptx
- ECMT1020 - Week 04 Workshop Answers.docx
- 12. Business Mgmt - Ijbmr -An Analysis of the Interrelationships - Eric Bempong
- BIOSTAT (2)
- Balancing Errors Binomial Test
- Hypothesis Testing, Type I and Type II Errors

You are on page 1of 8

MEANING OF HYPOTHESIS Means an assumption or supposition about the state of affairs of a certain thing In the terminology of statistics , it means an estimation, or a set of inference that is drawn about certain values of a population E.g. for hypothesis: The number of defects in printing per page is 5 The average children per couple India is 3

Confidence interval: The confidence interval is the range into which the true population

parameter will fall, assuming a given level of confidence. If one is 90% confident that the means of the population of incomes of persons in a certain community will be between Rs. 8000 and Rs 24000, then the range is Rs 8000- Rs 24000 Is the confidence interval level.

Confidence level: The confidence level is the probability that a confidence interval will

include the population parameter. The most commonly used levels 90%, 95% & 99%.

SJBIT, Bangalore

Page 1

FORMULATION OF HYPOTHESIS

The test of the null hypothesis is a one-tailed test, because the alternative hypothesis is expressed directionally. If that is not the case, then a two-tailed test would be required, and the hypotheses would be expressed as:

SJBIT, Bangalore

Page 2

The next step is to compute an appropriate test statistic which is based on the appropriate probability distribution. The test statistic measures how close the sample has come to the null hypothesis and follows a well-known distribution, such as the normal, t, or chi-square. It is used to test whether the null hypothesis set up should be accepted or rejected.

A decision to accept or reject null hypothesis H0 is made on the basis of the information supplied by the sample data. There is always a chance of making an error. There are two possible types of error: 1. The hypothesis is true but the test rejects it. ( Type I error) 2. The hypothesis is false but the test accepts it ( Type II error) Type I Error ( Rejection Error) Type I error occurs when the sample results lead to the rejection of the null hypothesis when it is in fact true. Type I error is committed by rejecting the null hypothesis when it is true. The probability of type I error () is also called the level of significance. Type II Error ( Acceptance error) Type II error occurs when, based on the sample results, the null hypothesis is accepted when it is in fact false. The probability of type II error is denoted by .

SJBIT, Bangalore

Page 3

Step 4: Collect Data and Calculate Test Statistic The total area under a standard normal curve is representing a probability distribution. In the test of hypothesis the level of significance is set up in order to know the probability of making a type I error of rejecting a hypothesis which is true. The region of the standard normal curve that is not covered by the rejected region is called acceptance region. When the test statistic computed to test the hypothesis falls in the acceptance region , it is reasonable to accept the hypothesis.

The value of the test statistic computed to test the hypothesis is known as critical value. The critical value separates the rejection region from the acceptance region.

Critical value ( z) from the table is also found out at a particular level of significance

SJBIT, Bangalore

Page 4

Steps 6 & 7 : Compare the Probability (Critical Value) and Making the Decision

Compare the test statistic with the significance value. If the computed value of the test statistic is less than the critical value, the computed value test statistic fall in the acceptance region. & the null hypothesis is accepted. If the computed value of the test statistic is more than the critical value, the computed value test statistic fall in the rejected region. & the null hypothesis is rejected.

The conclusion reached by hypothesis testing must be expressed in terms of the marketing research problem.

Tests of Hypothesis

Hypothesis testing determines the validity of the assumption helps to decide on the basis of a sample data, whether a hypothesis about the population is likely to be true of false Statisticians have developed several tests of hypothesis for the purpose of testing

SJBIT, Bangalore

Page 5

Parametric Test

Usually assume certain properties of the parent population from which we draw samples Assumptions like Observations come from normal population Sample size is large Population is normally distributed Sample drawn is random sample Assumptions about the populations parameters like mean, variance must hold good Uses interval scale

Situations where Researcher can not or does not want to make assumptions Such tests are called non- parametric tests Dont depend on any assumptions about the parameters of the parent population Uses nominal or ordinal scale

z-test

Is based on normal probability distribution Is used for several statistical measures particularly mean

Used generally for comparing the mean of a sample to some hypothesized mean of the

population or when population variance is known

SJBIT, Bangalore

Page 6

t- test

Based on t-distribution Appropriate test for judging the significance of difference between two samples in case of small samples when population variance is not known In case of two related samples paired t-test is used for judging the significance of the mean of difference between two related samples

2 test

Is based on chi-square distribution Used for comparing a sample variance to theoretical population variance

F-test

Is based on F-distribution Used to compare the variance of two independent samples Test is also used in the contest of analysis if variance (ANOVA) for judging the significance of more than two sample means at same time

No assumptions are made in case of Non- parametric tests E.g.: while comparing two training methods A and B ,if we dont assume that the scores of the trainees are normally distributed or that the mean score of all trainees taking training would be a certain value

SJBIT, Bangalore

Page 7

Rank-Sum test

Rank Sum tests are whole family of tests The rank sum test is an alternative that can be applied when distributional assumptions are suspect. It can be used where t tests can not be applied However, it is not as powerful as the t-test when the distributional assumptions are in fact valid.

K-W test U test

SJBIT, Bangalore

Page 8

- First Edition - Geography, Economics and Economic GeographyUploaded byDr Swaamee Aprtemaanandaa Jee
- Basic Concepts of Hypothesis Testing (1)Uploaded byjudith matienzo
- Hypothesis TestUploaded byJung Miki
- AshleyBriones Homework Module5Uploaded bymilove4u
- Type I and II ErrorsUploaded byPratik Pachani
- Hypothesis TestingUploaded byPhaniraj Lenkalapally
- SMU MBA QUESTION PAPERUploaded bySAMDAVIDCB
- Assignment 1 UTXUploaded bySunny Patel
- 90156Hypothesis TestingUploaded byAvani Kukreja
- Hypothesis TestingUploaded byudit
- 609Uploaded byNijeesh Meethalearathi
- Quiz 2Uploaded bydiana_762131871
- 0 Hypothesis TestingUploaded byAishar Husin
- MCQ On Testing of Hypothesis 1111Uploaded bynns2770
- CHAPTER 9 Hypothesis Testing.pptxUploaded byXander Clock
- ECMT1020 - Week 04 Workshop Answers.docxUploaded byMinh Bui
- 12. Business Mgmt - Ijbmr -An Analysis of the Interrelationships - Eric BempongUploaded byTJPRC Publications
- BIOSTAT (2)Uploaded byCristy Belle
- Balancing Errors Binomial TestUploaded bycholbert
- Hypothesis Testing, Type I and Type II ErrorsUploaded bycoolarun86
- General biology 1Uploaded byDexter A Infiesto
- ch09.pptxUploaded byAnonymous yMOMM9bs
- Intro to Hypo TestingUploaded byfocus16hoursgmailcom
- Note13 - Hypothesis TestingUploaded byNicholas Pierce
- 139662275-Exercise-4-Chap-4.docUploaded byRheann Marie Bugtong
- Chapter 9.docxUploaded byTingTingZheng
- Research Methodology- MB0050 (1)Uploaded bysudhirasutkar12
- Bumba ClartUploaded byBenz101234
- stats_part3_week10_090507Uploaded byDr Richard Haddlesey
- l10Uploaded byWilver Muriel

- shudha dairy summer projectUploaded byAbhishek Kumar
- NorwayUploaded byHemanth Kumar
- Ibpspo Invoice 1241391810Uploaded byHemanth Kumar
- Charles Darwin - The Origin of Species - 6th EditionUploaded byRoss Franklin
- Aptitude BookUploaded byvenugopal
- sbi po 2013Uploaded byBadvel Sasidhar Reddy
- Mm Report Part AUploaded byHemanth Kumar
- Weekly SeenanilUploaded byHemanth Kumar
- Product ProfileUploaded byHemanth Kumar
- Comparaction Statement of the TataUploaded byHemanth Kumar
- jjhdfbdkvUploaded byHemanth Kumar
- supply chainUploaded byHemanth Kumar
- Mba IV Rural Marketing [10mbamm415] NotesUploaded byHemanth Kumar
- Empolee Satisfaction in HyliconUploaded bynaorange
- BrochUploaded byHemanth Kumar
- ppt for IMMUploaded byHemanth Kumar
- Vodafone ProjectUploaded byHemanth Kumar
- haiUploaded byHemanth Kumar
- IntroductionUploaded byHemanth Kumar
- Animal Brochure Project Info Sheet.docUploaded byHemanth Kumar
- Questioner iUploaded byHemanth Kumar
- QUESTIONS.docxUploaded byHemanth Kumar
- JobsUploaded byHemanth Kumar
- Part A Paka.docxUploaded byHemanth Kumar
- TVS_ProjectUploaded bysibeshdas

- Investigation of Effective Adaptation of Lean Manufacturing System in Apparel Manufacturing LinesUploaded byIshara Dissanayake
- CHAPTER 3 ProbabilityUploaded byyahska1305
- esa notes gsdggbUploaded byVigneshShunmugam
- ESTIMATION THEORYUploaded byRoshan Khan
- Statistics in MedicineUploaded byfffvvv123
- ETC1010_2010_S1 Exam Solutions All TopicsUploaded byMohammad Rashman
- finalexamsession1_2010Uploaded byStavros Mouslopoulos
- BiostatisticsUploaded byNaji Mohamed Alfatih
- Presentation 1Uploaded byDashrathsinh Rathod
- statppt.pptxUploaded byAlmira Romero
- Cfa L1 Session03Uploaded byFernando Fraga
- Testing of HypothesisUploaded byravi_124a
- Statistics for ManagersUploaded byLeo Prabhu
- Advertising 3Uploaded bysonia
- In and Out of the BedroomUploaded byhybrida
- Six Sigma.dumps.icgb.v2015!08!06.by.exampass.144qUploaded byAnonymous YkEOLlju
- Marketing Research - Data Processing, Fundamental Data Analysis & PresentationUploaded byDr Rushen Singh
- Lecture 18Uploaded byrk_dharmani5305
- Hypothesis-Testing-Notes and samlping.docUploaded bymbapriti
- HypothesisUploaded byAnonymous kTVBUxr
- Chapter 3Uploaded byAbdii Dhufeera
- fstats_ch3Uploaded byFawad Ali Khan
- 41 Questions on Statisitics for Data Scientists & AnalystsUploaded byMurali Dharan
- Lab 03 - Duo-Trio, Triangle, Tetrad TestUploaded byEdison Sutiono
- “a Quality Function Deployment QFD Approach in Determining the Employer’s Selection in KAMCO” 1Uploaded byInternational Journal of Innovative Science and Research Technology
- 4092 Metodo Global EnglishUploaded byAxe Alexandra
- 15901-50073-1-SM (1).pdfUploaded byfraud12345
- Statistics RevisionUploaded bySukrut Parikh
- QNT 561 Weekly Learning Assessments | Questions and Answers @ UOP E AssignmentsUploaded byuopeassignments
- dlp (1).pdfUploaded byDwarika-prasad Raturi