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Hypothesis testing is an important aspect of Research Methodology.Different aspects of hypothesis testing has been explained.Hypothesis testing of important non-Parametric tests has been explained.

Hypothesis testing is an important aspect of Research Methodology.Different aspects of hypothesis testing has been explained.Hypothesis testing of important non-Parametric tests has been explained.

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TESTING

Presented by

Sidhartha Mohapatra,Cuttack

What is Hypothesis ?

Hypothesis simply means mere assumptions.

Hypothesis are statements that can be

empirically tested.

Ex :1. A sales manager may hypothesize that

salespeople who show the highest job

satisfaction will be the most productive.

2. An advertisement manager may believe that

if consumer's attitude toward a product are

changed in a positive direction, consumption

of the product also increases.

Hypothesis Testing

Types of hypothesis commonly in business

research are

1. Relational Hypothesis-examine how changes

in one variable vary with changes in another

2. Hypothesis about difference between

groups-examine how some variable varies

from one group to another

3. Hypothesis about difference from some

standard-examine how some variable differs

from some preconceived standard

1.Hypothesis is derived from research

objectives

2. Sample is obtained and the relevant variable

is measured

3. If the value is consistent with the hypothesis ,

the hypothesis is accepted otherwise rejected

hypothesis

Null hypothesis & alternative Hypothesis

The level of significance

Error in hypothesis testing

Two-tailed and one tailed test

assumption that both methods are equally

good, then this assumption is termed as the

null hypothesis (H0)

If we think that the method A is superior or

the method B is inferior , we are then stating

what is alternative hypothesis(H1)

The level of significance is always some

with great care , thought, and reason. In case we

take the significance level at 5%, then this implies

that H0 will be rejected when the sampling result

has a less than 0.05 probability of occurrence if H 0

is true .Thus the significance level is the maximum

level of the probability of rejecting H0 when it is true

and usually determined before testing the

hypothesis.

Type I & Type II error

There are basically two types of error we can

hypothesis which should have been accepted

and Type II error means accepting the

hypothesis which should have been rejected

A two-tailed test rejects the null hypothesis if, the

the hypothesized value of the mean of the

population. Such a test is appropriate when the null

hypothesis is some specified value and the

alternative hypothesis is a value not equal to the

specified value of the null hypothesis.

Symbolically, the two tailed test is appropriate

when we have H0: = H0 and H0: H0 which may

mean > h0 or <H0

There are situations when only tailed test is

would be used when we are to test ,say

,whether the population mean is either lower

than or higher than some hypothesied value.

For instance, if our H0: = H0 and

H0: <

H0, then we are interested in what is known as

one-tailed test

Types of hypothesis

testing

1.Parametric test

2.Non-Parametric test

1.Parametric test

Parametric tests involves numbers with known ,Continuous

distributions. Parametric tests are based on the assumption that

the data in the study are drawn from a population with the

normal distribution. When the data are interval scale or ratio

scale & the sample size is large, parametric statistical are

appropriate.

Example :If the investigator has two interval-scaled measured

measures, such as gross national product(GNP)and industry

sales volume, parametric tests are appropriate .Possible

statistics tests include analysis of variance, regression, or a ttest for a hypothesis about a mean

2.Non-Parametric test

Nonparametric methods are used when the

distributed. Making the assumption that the

sampling distribution is normal is

inappropriate when the data are either ordinal

or nominal.

Sign test for paired data

Mann-Whitney U-test

One-sample run test

Rank correlation

The following is an arrangement of

25 Men, M, and 15 Women, W lined

up to purchase tickets for a

premiere picture show:

MWW MMM W MMW MW M

WWW MMM W MM

WWW MMMMMM WWW MMMMMM

Test for randomness at the 5 per

cent level of significance.

1=2n1n2/n1+n2 +1

1=22515/25+15 +1=750/40+1=19.75

1=2n1n2 (2n1n2-n1-n2) / (n1+n2)2(n1+n2-1)

= 22515(22515-25-15)/

(25+15)2(25+15-1)

Z=r- r/ r

=17-19.75/2.92=-0.94

level) the null hypothesis is accepted.

Hence there is no real evidence to

suggest that the arrangement is not

random.

It should be kept in view that testing are aid for

decision making .

Test do not explain the reasons to why the difference

exist, say between the means of the two sample.

Results of significance test are based on probabilities

and such cannot be expressed with full certainty.

All these limitation suggest that in problems of

statistical significance , the inference technique(or

the tests) must be combined with adequate

knowledge of the subject-matter of the subject

matter along with the ability of good judgment.

Bibliography

Kothari ,C.R, Research Methodology: Methods &

Gupta , S.P. ,Statistical Methods :Sultan Chand

Publication,1994

Krishnaswamy ,K.N , Sivakumar; and

Mathirajan,M,Management Research Methodology:

Integration of Principle, Methods And Techniques

Adhikary , A ,et al., Business Research Methods :A

South-Asian Perspective: engage Publication

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