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Chapter 9

HYPOTHESIS TESTING

How to state a null hypothesis and an

alternative hypothesis

How to identify type I and type II errors

or two-tailed test

How to make and interpret a decision

based on the results of a statistical test

DEFINITION OF TERMS

• Hypothesis testing is a process that uses sample

statistics to test a claim about the value of a

population parameter.

for chicken is 20%. A meat inspector reports that

the chicken produced by a company exceeds the

limit.

DEFINITION OF TERMS

• Hypothesis testing is a process that uses sample

statistics to test a claim about the value of a

population parameter.

• A one-tailed test of hypothesis is a test where the

alternative hypothesis specifies a difference that can

fall in one tail of the distribution.(one-directional)

• A two-tailed test of hypothesis is a test where the

alternative hypothesis specifies a difference that can

fall in either of the two tails of the distribution.(non-

directional)

DEFINITION OF TERMS

• Hypothesis is a statement about a population

parameter.

TYPES OF HYPOTHESES

• Null hypothesis (Ho) is a claim about a population

characteristic.

• Alternative hypothesis (Ha) is a competing claim.

for chicken is 20%. A meat inspector reports that

the chicken produced by a company exceeds the

limit.

EXAMPLES OF NULL HYPOTHESIS VS.

ALTERNATIVE HYPOTHESIS

1. One-tailed test of hypothesis

a. Ho: μ = 21 vs. Ha: μ > 21

b. Ho: μ = 21 vs. Ha: μ < 21

c. Ho: μ1 = μ2 vs. Ha: μ1 > μ2

d. Ho: μ1 = μ2 vs. Ha: μ1 < μ2

2. Two-tailed test of hypothesis

a. Ho: μ = 21 vs. Ha: μ ≠ 21

b. Ho: μ1 = μ2 vs. Ha: μ1 ≠ μ2

DEFINITION OF TERMS

TYPES OF ERRORS

• Type I error occurs if the null hypothesis is rejected

when it is true.

• Type II error occurs if the null hypothesis is not rejected

when it is false.

Statistical

Truth of Null Hypothesis

Decision

Ho is TRUE Ho is FALSE

DEFINITION OF TERMS

probability of making a type I error or type II error.

(α, β = 0.10, 0.05, 0.01)

• Level of confidence is the percent of accurateness.

parameter in the null hypothesis.

•

Z-TEST

If n ≥ 30, use the z-test formula:

A. One-sample mean

( x )( n )

z

s

B. Two-sample means

( x1 x 2 )

z

s12 2

s2

n1 n2

T-TEST

A. One-sample mean

( x )( n )

t

B. Two-sample means

s

x1 x2

t

s1 (n1 1)

2

s2 (n1 1)

2

1 1

n1 n2 2 n

1 n2

SIX STEPS IN HYPOTHESIS TESTING

1. Formulate the null and alternative hypotheses.

2. Specify the level of significance and decide whether

a one-tailed or a two-tailed test shall be used.

3. Decide the test statistic to be used. Find the critical

or tabular value and the degree of freedom.

4. Compute for the value of the test statistic using the

data from the population and the sample.

5. Make a decision.

computed value ≥ tabular value Reject Ho

computed value < tabular value Accept Ho

6. State the conclusion.

EXERCISES

procedures in hypothesis testing.

income of its customers is P30 000 per month.

One hundred fifty customers are randomly

selected and asked of their monthly income. The

sample mean is P30 500 per month and the

standard deviation is P4 200. Is there sufficient

evidence to indicate that the mean income of the

customers of the store is P30 000 per month?

Use α=0.05.

EXERCISES

Solve the problems by following the steps and

procedures in hypothesis testing.

mean household water usage for a particular

month is 45 cubic meters. The following year, a

countrywide water conservation campaign was

conducted. Fifty homes were randomly selected

and found that the mean consumption is 47 cubic

meters with a standard deviation of 2.5 cubic

meters. Is there enough evidence to accept the

claim that the mean household water usage per

month is 45 cubic meters at α=0.01?

EXERCISES

Solve the problems by following the steps and

procedures in hypothesis testing.

time that college students spent on their

personal computer is 7.5 hours per week. A

random sample of 28 college students showed

that they spent 7.1 hours per week using their

computers with a standard deviation of 0.7

hours. Test whether the average number of

hours spent by the 28 college students is

significantly lower than the national average of

7.5 hours. Use a level of significance, α=0.05.

EXERCISES

procedures in hypothesis testing.

weight of its bag of chemical is 30 kilograms

with a standard deviation of 1.1 kilograms. A

sample of 26 bags was taken and revealed a

mean weight of 29.5 kilograms. Shall we accept

the allegation of the chemical company? Use

α=0.01.

EXERCISES

Solve the problems by following the steps and

procedures in hypothesis testing.

investigated in two different factories. In the first

factory, the employees are on fixed shift system while

in the second factory, the workers have rotating shift

system. Using the data in the table below, determine if

there is a significant difference in job satisfaction

between the two groups of workers. Use α=0.01.

Work Mean Standard Sample size

Schedule deviation

EXERCISES

Solve the problems by following the steps and

procedures in hypothesis testing.

difference in salaries of professors in private and state

colleges. He claimed that the difference in the average

starting salaries of the MBA graduates of the two

colleges were relevant. An independent study of

simple random samples of the most recent MBA

graduates of both colleges revealed the following

statistics:

Statistics Private State

Arithmetic P38 820 per P32 080 per

mean month month

Standard 800 940

deviation

Sample size 50 50

EXERCISES

Solve the problems by following the steps and

procedures in hypothesis testing.

random of 10 rural families, the consumption of such

coffee was found to have an arithmetic mean of 30

ounces per family every month with a standard

deviation of 5 ounces. In another similar study for 17

urban families, consumption was found to average

28 ounces with a standard deviation of 4 ounces. At

0.01 level of significance, would you conclude that

there was a statistically significant difference in the

sample averages of consumption of instant coffee

between the rural and the urban families?

EXERCISES

Solve the problems by following the steps and

procedures in hypothesis testing.

brand A rope exceeds the average strength of

brand B rope. To test its claim, 25 pieces of each

brand are tested under similar conditions. Brand

A had an average strength of 87.6 kilograms with

a standard deviation of 6.82 kilograms, while

brand B had an average strength of 88.7

kilograms with a standard deviation of 5.64

kilograms. Test whether the claim of the

distributor is correct at 0.05 level of significance.

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