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ASSOC. PROF.DR.GOH HOCK SENG

BY,

CHAN SIANG JACK (P20181000839)

AND

JEEVITRA A/P SENTNA RAJA (M20181001220)

Inferential Statistics

Inferential statistics use a

RANDOM SAMPLE of data

taken from a population to

describe and make

inferences about the

POPULATION.

Inferential statistics are

VALUABLE when

Ex : measuring examination of each

the diameter of member of an entire

each nail that is

population is NOT

manufactured in

a factory is CONVENIENT OR

impractical. POSSIBLE.

us/minitab-express/1/help-and-how-to/basic-statistics/inference/supporting-

topics/basics/what-are-inferential-statistics/

sampling distribution

of the sample

approaches a normal

distribution

larger

Statistics How To. (2018). Retrieved from Central Limit Theorem: Definition and Examples in

Easy Steps: https://www.statisticshowto.datasciencecentral.com/probability-and-

statistics/normal-distributions/central-limit-theorem-definition-examples/#CLTWHAT

Statistics How To. (2018). Retrieved from Central Limit Theorem: Definition and Examples in

Easy Steps: https://www.statisticshowto.datasciencecentral.com/probability-and-

statistics/normal-distributions/central-limit-theorem-definition-examples/#CLTWHAT

Video

SAMPLING AND STATISTICAL

SIGNIFICANCE

If you want to GENERALIZE the

findings of your RESEARCH on a

small SAMPLE to a WHOLE

POPULATION, your sample size

should at least be of a size that

could meet the SIGNIFICANCE

LEVEL, given the expected

effects.

out from pilot studies, common

sense-thinking or by comparing

similar experiments.

Siddharth Kalla (Jun 18, 2009). Statistical Significance And Sample Size. Retrieved Oct 14,

2018 from Explorable.com: https://explorable.com/statistical-significance-sample-size

When a finding is significant, it

Statistical significance helps simply means you can feel

quantify whether a result is confident that’s it real, not

likely due to chance or to that you just got lucky (or

some factor of interest. unlucky) in choosing the

sample.

conduct a survey, take a poll, or Most good statistical packages

analyze a set of data, you’re will report the significance

taking a sample of some along with the results. There

population of interest, not are online tools that will

looking at every single data calculate it for you.

point that you possibly can.

https://hbr.org/2016/02/a-refresher-on-statistical-significance

STATISTICAL SIGNIFICANCE

• Significant differences ~ reject the NULL

HYPOTHESIS occur by chance

• Significant if larger random sample

• Can be found in even with very small

differences if the sample size is large

enough.

Hypothesis Testing

Hypothesis Testing – method for testing a claim of hypothesis

about a parameter (ideas, claims) of a group or population

Null Form

H0

Alternative Form

H1

Terms & Definitions

Null hypothesis – a statement about a population

parameter (claims, ideas), that is assumed to be true.

- Null hypothesis is a starting point – test whether the value stated

in the null hypothesis is likely to be true

*reason null hypothesis are used with inferential statistics is that

we never prove something to be true; we only fail to disprove it.

contradicts a null hypothesis by stating that the actual value

of a population parameter is less than (<), greater than (>),

or not equal (≠) to the value stated in the null hypothesis.

Alternative hypothesis states what we think is wrong about the null

hypothesis.

Terms & Definitions

P-values (Calculated Probability)

The level of marginal significance within a statistical hypothesis

test representing the probability of the occurrence of a given

event (Investopedia, 2018)

Simpler term – p-values tell you how strongly your sample data

contradicts the null hypothesis.

Use in conjunction with Significance Level to determine whether

the date favor the null or alternative hypothesis

The probability of rejecting the null hypothesis when it is true.

Level of significance or criterion for a hypothesis test.

Standard alpha level are set at .05 or 5%.

If P < 0.05, reject null hypothesis; If P > 0.05, retain null

hypothesis

How To 101– Hypothesis Testing

The goal of hypothesis testing – determine the likelihood that

a population parameter, is likely to be true.

Step 1 – State the hypothesis

Step 2 – Set the criteria for a decision

Step 3 – Compute the test statistic

Step 4 – Make a decision

Decision to retain the null hypothesis

Decision to reject the null hypothesis

An Example of Hypothesis Testing

https://www.sagepub.com/sites/default/files/upm-

binaries/40007_Chapter8.pdf

Statistical Test:

One Tailed Test and Two Tailed Test

One-tailed Test

A statistical hypothesis in which alternative hypothesis has only one end

Represents the estimated test parameter is greater (>) or less than (<)

the critical value.

IF sample tested falls in the region of rejection; either on the left or right

side, we reject the null hypothesis

Two-tailed Test

A significance test in which alternative hypothesis has two ends

The region of rejection or critical area is on both the ends of the normal

distribution

IF the calculated value falls in either the two tails of the probability

distribution, an alternative hypothesis

One-tailed Test VS Two-tailed Test

Basis of Comparison One-tailed Test Two-tailed Test

Meaning A statistical hypothesis in A significance test in

which alternative which alternative

hypothesis has only ONE hypothesis has TWO

END ENDS

Hypothesis Directional Non-directional

Region of Rejection Either Left or Right Both Left and Right

Determines If there is a relationship If there is relationship

between variables in between variables in

single direction either directions

Result Greater or less than Greater or less than

certain value certain range of values

Sing in Alternative

(>) or (<) ≠

hypothesis

One-tailed Test VS Two-tailed Test

Types of Error : Error in

Decision Making

decide to either retain or reject the null

hypothesis based on the criterion that

we have set in step 2.

test called Type I and Type II errors.

Type I Error (α Error) & Type II

Error (β Error)

Type I error or α error is the error in statistical decision

making that occurs if the Null hypothesis (H0) is

rejected when actually it is true in the population

A.K.A False Positives

making that occurs if the null hypothesis is NOT

rejected when actually it is false in the population, and

the alternative hypothesis (H1) is true.

A.K.A False Negative

Four (4) Outcomes for Making

a Decision

Decision

decision:

H0 True

P=1-α P=α

Truth in the

Population Type II Error: Correct

decision:

H1 True

P=β P=1-β

Sagepub, 2017

Inference Technique: Parametric VS

Nonparametric

Parametric Test Nonparametric Test

A statistical test, in A statistical test used in

Taken And Adopted which specific

From: Surbhi, 2016. the case of non-metric

assumptions are made independent variables

about the population

parameter

Basis of Test Statistic Distribution Arbitrary

Measurement Level Interval or ratio Nominal or Ordinal

Measure of central tendency Mean Median

Information about Completely known Unavailable

population

Variables Variables and Attributes

applicability

Pearson Spearman

Correlation test

Normal Any

Assumed Distribution

Can draw more conclusions Simplicity; less affected by

Benefits

outliers

Hypothesis Tests for Parametric

Test & Nonparametric Test

Taken And Adopted

From: Surbhi, 2016.

Parametric Test Nonparametric Test

One Sample

One Sample

Chi-square

T-Test

Kolmogorov-Smirnov

Z Test

Runs

Two Sample Binomial

Two Sample

Independent Paired

Samples Samples Independent Samples Paired Samples

Two-group T- Paired T-Test Chi-square Sign

Test Mann-Whitney Wilcoxon

Median McNemar

Z Test

Chi-Square

Kolmogorov-Smirnov

REFERENCES

• Fraenkel, J. R., Wallen, N. E., Hyun, H. H. (2015). How To Design

And Evaluate Research in Education (8th ed.) Mc Graw Hill Education

from https://hbr.org/2016/02/a-refresher-on-statistical-significance

https://support.minitab.com/en-us/minitab-express/1/help-and-how-

to/basic-statistics/inference/supporting-topics/basics/what-are-inferential-

statistics/

REFERENCES

Size. Retrieved Oct 14, 2018 from

Explorable.com: https://explorable.com/statistical-significance-

sample-size

• Statistics How To. (2018). Retrieved from Central Limit Theorem:

Definition and Examples in Easy Steps:

https://www.statisticshowto.datasciencecentral.com/probability-and-

statistics/normal-distributions/central-limit-theorem-definition-

examples/#CLTWHAT

Retrieved from http://www. pearsonassessments.com/research

FURTHER READING

• https://www.sagepub.com/sites/default/files/upm-

binaries/40007_Chapter8.pdf (Hypothesis Testing)

• https://stats.idre.ucla.edu/other/mult-

pkg/faq/general/faq-what-are-the-differences-between-

one-tailed-and-two-tailed-tests/ (One-tailed test and two-

tailed test)

• https://www.khanacademy.org/math/statistics-

probability/significance-tests-one-sample/more-

significance-testing-videos/v/one-tailed-and-two-tailed-

tests (more on one-tailed and two-tailed test)

• http://sphweb.bumc.bu.edu/otlt/MPH-

Modules/BS/BS704_Nonparametric/index.html

(Nonparametric test)

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