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Objectives

At the end of the lesson, the students should be able to:

• illustrate:

(a) null hypothesis

(b) alternative hypothesis

(c) level of significance

(d) rejection region; and

(e) types of errors in hypothesis testing.

• calculate the probabilities of committing a Type I and Type II error.

• formulate the appropriate null and alternative hypotheses on a population mean.

• identify the parameter to be tested given a real-life problem.

02/07/19 Your Footer Here 3

Hypothesis

• A hypothesis is a hunch, assumption, suspicion,

assertion, or an idea about a phenomenon, relationship

or situation, the reality or truth of which we do not

know.

• “A premise or claim that we want to test”

Two Kinds of Hypothesis

1. Null Hypothesis (𝐻0 )

- is a statement that there is no difference between

a parameter and a specific value

- “a currently accepted value for a parameter”

2. Alternative Hypothesis (𝐻𝑎 𝑜𝑟 𝐻1 )

- is the opposite or negation of the null hypothesis

- “also called the research hypothesis”

- “involves the claim to be tested”

Examples

1. It is believed that a candy machine makes

chocolate bars that are on average 5g. A worker

claims that the machine after maintenance no

longer makes 5g bars. Write 𝐻0 and 𝐻𝑎 .

𝑯𝟎 : 𝝁 = 𝟓𝒈

𝑯𝒂 : 𝝁 ≠ 𝟓𝒈

2. Doctors believe that the average teen sleeps on

average no longer than 10 hours per day. A

researcher believes that teens on average sleep

longer. Write Ho and Ha.

𝑯𝟎 : 𝝁 ≤ 𝟏𝟎 𝒉𝒐𝒖𝒓𝒔

𝑯𝒂 : 𝝁 > 𝟏𝟎 𝒉𝒐𝒖𝒓𝒔

3. The school board claims that at least 60% of

students bring a phone to school. A teacher

believes this number is too high. Write the Ho and

Ha.

𝑯𝟎 : 𝒑 ≥ 𝟎. 𝟔𝟎

𝑯𝒂 : 𝒑 < 𝟎. 𝟔𝟎

4. Suppose Mike claims that the average price for

houses in Castle Hill is more $ 500,000. Write down

the null and alternative hypothesis.

𝑯𝟎 : 𝝁 ≤ $𝟓𝟎𝟎, 𝟎𝟎𝟎

𝑯𝒂 : 𝝁 > $𝟓𝟎𝟎, 𝟎𝟎𝟎

Two Types of Test

1. Directional Test ( One – tailed Test)

• A test of any statistical hypothesis where the alternative hypothesis

is expressed, using less than (<) or greater than (>) is called

directional or one – tailed test since the critical or rejection region

lies entirely in one tail of the distribution.

2. Non – Directional Test( Two Tailed Test)

• A test of any statistical hypothesis where the alternative hypothesis is

written with a not equal sign ≠ is called a nondirectional test or two

– tailed test since there is no assertion made on the direction of the

difference. The rejection region is split into two equal parts, one in

each tail of the sampling distribution.

Two Types of Error

1. Type I Error

• Type I Error occurs when we reject the null

hypothesis when it is true. It is also called alpha

error (∝ 𝑒𝑟𝑟𝑜𝑟)

2. Type II Error

• Type II Error occurs when we accept the null

hypothesis when it is false. It is also called beta

error. (𝛽 𝑒𝑟𝑟𝑜𝑟)

02/07/19 Your Footer Here 12

TYPE II ERROR TYPE I ERROR

Level of Significance

• The probability of committing Type I error is called

the level of significance.

• It is denoted by the Greek letter 𝛼 (𝑎𝑙𝑝ℎ𝑎)

• The choice for the value of the significance level is

determined by the researcher

• The commonly used levels of significance are 0.05

and 0.01

Example

1. At 0.01 level of significance means the researcher

is willing to take 1% of error in making a decision. It

also implies that he is 99% confident that he will

make a right decision. Likewise a 0.05 level of

significance means the researcher is willing to take

5% error in decision making. It also implies that he

is 95% confident that he will make a right decision.

Steps in Testing the Hypothesis

1. Identify the claim and formulate the null and

alternative hypothesis

2. Set the level of significance and determine

whether the test is one – tailed or two – tailed

by looking at how the alternative hypothesis is

expressed. Decide on the test statistic to be

used and find the critical value for the test.

Draw or illustrate the rejection region.

3. Compute the test value, using the test statistic or

formula for the test.

4. Make a decision whether to accept or reject the

null hypothesis.

5. Formulate a conclusion by answering the

research question.

Lesson 2

Comparing the Sample Mean

and the Population Mean in a

Large Sample Size

The Z – Test is used when the following conditions

are satisfied.

given.

2. The population standard deviation is unknown

but the sample size is sufficiently large, (i.e.,

greater than or equal to thirty, n≥ 𝟑𝟎). In this

case, we use the sample standard deviation (s)

to replace the population standard deviation.

The Z – test of One – Sample Mean

• The z – test of one – sample mean is

used when we want to test if the sample

mean 𝑋ത differs significantly from a

population mean or hypothesized mean 𝜇.

• To illustrate, suppose that the mean of

population is known to be 𝜇0 . If we take a

random sample size n from this population

and obtain a sample 𝑋ത which is somewhat

different from 𝜇0 , so there a reason to

believe that there is a significant difference

between the 𝜇0 and 𝑋. ത

Z – test of One – Sample Mean

Formula:

ഥ − 𝝁) 𝒏

(𝑿

𝒛=

𝝈

Where

ഥ = mean of the sample

𝑿

𝝁 = mean of the population

n = size of the sample

𝝈= standard deviation of the population

Your Date Your Footer Here 22

Critical Value for z

Level of Significance

Type of Test

𝛼 = 0.01 𝛼 = 0.05

Example 1

A new drug on the market is claimed by its

manufacturers to reduce overweight women by

4.55 kg per month with a standard deviation of 0.91

kg. Ten women chosen at random have reported

losing an average losing an average of 4.05 kg

within a month. Does this data support the claim of

the manufacturer at 0.05 level of significance?

Solution:

Step 1

𝑯𝟎 : The average weight loss per month using a new drug is equal

to 4.55kg (𝜇 = 4.55)

𝑯𝒂 : The average weight loss per month using a new drug is not

equal to 4.55 kg (𝜇 ≠ 4.55)

Step 2

Type of test: two – tailed or nondirectional test

Critical value: 𝛼 = 0.05, 𝑡𝑤𝑜 𝑡𝑎𝑖𝑙𝑒𝑑 𝑡𝑒𝑠𝑡, the critical value is 𝑧 =

± 1.96

Your Date Your Footer Here 25

Step 3

Compute the test value, using the formula or test statistic.

Given:

𝑋ത = 4.05

𝜇 = 4.55

n = 10

𝜎 = 0.91

(𝑋ത − 𝜇) 𝑛

𝑧=

𝜎

(4.05 − 4.55) 10

𝑧=

0.91

𝒛 = −𝟏. 𝟕𝟒

Your Date Your Footer Here 26

Step 4

Decision: Since the computed or test value does not fall

within the rejection region, we accept the null hypothesis.

Step 5

Conclusion: There is no significant difference between the

sample mean and population mean. Thus, the

manufacturer is correct in claiming that the new drug in

the market can reduce overweight women by 4.55 kg per

month.

Example 2

A sociologist believes that it costs more than

Php 90,000 to raise a child from birth to age one. A

random sample of 49 families, each with a child is

selected to see if this figure is correct. The average

expenses for these families reveal a mean of Php

92,000 with a standard deviation of Php 4,500.

Based on these sample data, can it be concluded

that the sociologist is correct in his claim? Use 0.05

level of significance.

Your Date Your Footer Here 28

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