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(Practical)
Hypothesis Testing
Statistics used for Hypothesis Testing
What is Alpha (α)
What is P – Value
20 18.3
Descriptive statistics 15
Turque
Collecting, summarizing, and 10
describing data. 5
0
Machine 1 Machine 2
Inferential Statistics
Drawing conclusions and/or
making decisions concerning a
population based only sample data.
Statistical Tests
µ = µ0 or µ1 - µ2 = 0
µ ≠ µ0 or µ1 - µ2 ≠ 0
H1 = µ > µ0
H1 µ < µ0
Statistically Hypothesis Testing
Z test compare one sample mean when standard
deviation is known and sample size n > 30.
Correlation/regression
Since 0.13 > 0.05, this means that the test is not significant
Steps of Hypothesis Testing
1. State the null and alternative hypothesis.
2. Randomly select a sample to test your hypothesis.
3. Specify the level of significance (α) for your analysis. (commonly
used 0.05 and 0.01).
4. Apply the appropriate statistical test find P – value and to test H0
For this note the following :
- Null hypothesis, H0
- Sample size
- Population information known (i.e. σ known or standard
deviation).
5. Make a decision regarding the null hypothesis (Reject or accept H0).
6. State the conclusion of the hypothesis test in terms of the claim.
Example 1
A company of sugar production from sugar beet say that the average
sucrose percent in its production not less than 22%. Eight measurements
of sucrose percent done in different times and found that the observations
were: yi: 20, 24, 19, 23, 18, 22, 21, 19 , test the claim of the company using
5% level of probability ?
If you look up in the table you will see that the P – value = 0.070
which is more than 0.05 (α).
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