Hypothesis Testing
Prepared by: Leyla B. Malijan
MBAN1103
Persons who Introduced
Sir Ronald Fisher
Jerzy Newman
Karl Pearson
Egon Pearson (Karl Pearson’s son)
Hypothesis Testing
Isa statistical method that is used in making
statistical decisions using experimental data.
Itis basically an assumption that we make about the
population parameter.
Three Methods to Test Hypotheses
1. Traditional Method – is the most widely used especially in
statistics books and instructional manuals.
2. P-value
Method – becomes popular since the advent of
modern computer and high-powered statistical software’s.
3. Confidence Interval Method – is explained after the p-value
and some illustrative examples were discussed to show its
relationship with hypothesis testing.
Steps in Conducting Hypothesis Testing
1. State the null hypothesis (H0) and the alternative hypothesis
(H1).
Ex. To test the effect of modular instruction on the academic
performance of the students
H0: There is no significant difference on the academic performance of the students who are exposed to
modular instruction than those who are not exposed to the same.
H1: There is significant difference on the academic performance of the students who are exposed to modular
instruction than those who are not exposed to the same.
2. Choose the level of significance, a, and the sample size.
Level of significance – refers to the degree of significance in which we accept or
reject the null hypothesis (1% or 5%)
3. Determine the test statistic and sampling distribution.
4. Determine the critical values that divide the rejection and nonrejection
regions.
Critical value – expressed as z value
5. Collect the data and compute the value of the test statistic.
6. Make a statistical decision.
7. State the conclusion.
Thank you for listening!!!