When we make inferences

while reading, we are using the

evidence that is available in the
text to draw a logical conclusion.
STATISTICAL INFERENCE
is concerned with either estimation
or evaluation of a statement or claim
about a parameter or a distribution

Evaluation of a claim about a

parameter or a distribution is done
through a statistical test of hypothesis.
Statistical Hypothesis
- a claim or a conjecture
that may either be true or false
CLAIM – to say that (something) is
true when some people may
say it is not true

CONJECTURE – an opinion or idea

formed without proof or sufficient
evidence
There are two possible actions that
one can do with the statement:
1. to ACCEPT
2. to REJECT
These actions are brought about
by a decision whether the
statement is true or false.
 As discussed earlier, this
statement can either be true or
false. Hence, one can accept or
reject this statement. The validity of
this statement can be accessed
through a series of steps known as
test of hypothesis.
A Test of Hypothesis
- is a procedure based on a
random sample of observations with
a given level of probability of
committing an error in making the
decision, whether the hypothesis is
true or false.
 In hypothesis testing, we first
formulate the hypotheses to be
tested.

There are two kinds of a statistical

hypothesis:

1. NULL HYPOTHESIS
2. ALTERNATIVE HYPOTHESIS
Null Hypothesis
- is a statement or claim or
conjecture to be tested
- is represented by the symbol “Ho”

Alternative Hypothesis
- is a statement or claim that is
accepted in case the null
hypothesis is rejected
- is represented by the symbol “Ha”
In formulating the hypotheses, we can use
the following guidelines:
1. A null hypothesis is generally a
statement of no change. Thus, a
statement of equality or one which
involves the equality is usually
considered in the null hypothesis.
Possible forms of the null hypothesis
include (a) equality; (b) less than or
equal; and (c) greater than or equal.
The statistical hypothesis is about a
parameter or distribution of the
population values. The parameter is
represented by a symbol, like for the
population mean, we use “μ”.
The null and alternative hypotheses
are complementary and must not
overlap. The usual pairs are as
follow:
(a) Ho: Parameter = Value versus
Ha: Parameter ≠ Value;
(b) Ho: Parameter = Value versus
Ha: Parameter < Value;
(c) Ho: Parameter = Value versus
Ha: Parameter > Value;
(d) Ho: Parameter ≤ Value versus
Ha: Parameter > Value; and
(e) Ho: Parameter ≥ Value versus
Ha: Parameter < Value
 Hypothesis Hypothesis
is is
ACTION
TRUE FALSE
Reject the
Error Committed No Error
hypothesis Committed
( Type I Error )

Fail to reject
(accept) the No Error Error Committed
hypothesis Committed ( Type II Error )
 ASSESSMENT

As an assessment, choose one of the

following problems and ask learners to
formulate the appropriate null and
alternative hypotheses. You can also
ask them to identify situations where
Type I and Type II errors are committed.
Have them state its possible
consequences.
 As mentioned earlier, for every action that
one takes, there are consequences. When we
commit an error, there are consequences, too.
Since it is an error in decision making,
the consequences may be tolerable or too
severe, severe enough to cause lives. In
Statistics, we measure that chance of
committing the error so we will have a basis
in making a decision.
1.) A manufacturer of IT gadgets
recently announced they had
developed a new battery for a
tablet and claimed that it has an
average life of at least 24 hours.
Would you buy this battery?
ANSWER

Ho: The average life of the newly developed battery for

a tablet is at least 24 hours.
Ha: The average life of the newly developed battery for
a tablet is less than 24 hours.
Type I error is committed when you did not buy the
battery and a possible consequence is you lost
the opportunity to have a battery that could last
for at least 24 hours.
Type II error is committed when you did buy the battery
and found out later that the battery’s life was less
than 24 hours. A possible consequence of this is
that you wasted your money in buying the battery.
2.) Alden is exclusively dating
Maine. He remembers that on their
first date, Maine told him that her
birthday was this month. However,
he forgot the exact date. Ashamed
to admit that he did not remember,
he decides to use hypothesis
testing to make an educated guess
that today is Maine’s birthday. Help
Alden do it.
ANSWER

Ho: Today is Maine’s birthday .

Ha: Maine’s birthday is on another day and not today.
Type I error is committed when Alden’s guess of Maine’s
birthday is not on this day and a possible
consequence is that Alden failed to greet or give
Maine a birthday gift today.
Type II error is committed when Alden guessed that
today is Maine’s birthday. A possible consequence
of this Type II error is that Alden made the mistake
of greeting Maine a happy birthday on that day.
ANSWER

Ho: Life of fulfillment and happiness awaits her after

obtaining a degree in Statistics.
Ha: Life of fulfillment and happiness does not happen
after obtaining a degree in Statistics.
Type I error is committed when Lilifut does not pursue a
degree in Statistics and a possible consequence
is that she’ll miss the promised life of fulfilment
and happinness after obtaining a degree in
Statistics.
Type II error is committed when Lilifut decides to obtain
a degree in Statistcs.
4.) An airline company regularly does quality
control checks on airplanes. Tire inspection is
included since tires are sensitive to the heat
produced when the airplane passes through the
airport’s runway. The company, since its operation,
uses a particular type of tire which is guaranteed to
perform even at a maximum surface temperature
of 107⁰C. However, the tires cannot be used and
need to be replaced when surface temperature
exceeds a mean of 107⁰C. Help the company
decide whether or not to do a complete tire
replacement.
3.) After senior high school, Lilifut is
pondering whether or not to pursue a
degree in Statistics. She was told that if
she graduates with a degree in
Statistics, a life of fulfilment and
happiness awaits her. Assist her in
making a decision.
ANSWER

Ho: The surface temperature of the tires is at most 107 ⁰C.

Ha: The surface temperature of the tires is greater than
107 ⁰C.
Type I error is committed when the airline company
orders a tire replacement when in fact it is not
needed. A possible consequence of this is that
the company will waste money in replacing the
tires.
Type II error is committed when the airline company does
not order tire replacement. A possible consequence
of this Type II error is an accident that may happen
because of non replacement of the tires.