Hypothesis Testing

Prepared by: Mr. John AAron D. Alcantara, LPT

Hypothesis Testing

It is a process that uses sample

statistics to test a claim about the
value of a population parameter.
TYPES OF HYPOTHESIS
 
NULL HYPOTHESIS (Ho)
- Is a claim that denotes “absence” such as absence of
difference, absence of relationship or equality of a
certain value, and the like.
- A statistical hypothesis that contains a statement of
equality such as: =, or when written in symbol.
TYPES OF HYPOTHESIS

 
ALTERNATIVE HYPOTHESIS (Ha)

- Is a claim that denotes “presence” such as presence of

difference, a presence of relationship or inequality of a
certain value, and the like, it usually comes with , or >, when
written in symbol.
 
NOTE: A hypothesis that uses < or > is
called directional (one tailed) while a
hypothesis that uses is called non-
directional (two tailed).
Write the claim as a mathematical sentence. State the null
and alternative hypotheses, and identify which represents
the claim.

A car dealership announces that the mean time for an

oil change is less than 15 minutes.
Write the claim as a mathematical sentence. State the null
and alternative hypotheses, and identify which represents
the claim.

A company advertises that the mean life of its furnaces

is more than 18 years.
Write the claim as a mathematical sentence. State the null
and alternative hypotheses, and identify which represents
the claim.
A school publicizes that the proportion of its students who are
involved in at least one extracurricular activity is 61%.
Seat Work#2
State the null and alternative hypotheses (MATHEMATICAL AND
VERBAL STATEMENT), and identify which represents the claim.
1. A consumer analyst reports that the mean life of a certain type
of automobile battery is not 74 months.

2. An electronics manufacturer publishes that the variance of the

life of its home theater systems is less than or equal to 2.7.

3. A realtor publicizes that the proportion of homeowners who feel

their house is too small for their family is more than 24%.
Seat Work#1
State the null and alternative hypotheses (mathematical and verbal
statement), and identify which represents the claim.

4. A university claims that the proportion of its students who

graduate in four years is 82%.

5. A cereal company claims that the mean weight of the contents of

its 20 ounces size cereal boxes is more than or equal to 20 ounces.
NOTE: No matter which hypothesis
represents the claim, you always begin a
hypothesis test by assuming that the
equality condition in the null hypothesis is
true.
TYPES OF ERRORS

TYPE I ERROR
-occurs if the null hypothesis is rejected when its actually true.

TYPE II ERROR
-occurs if the null hypothesis is not rejected when it is actually
false.
The following table shows the four possible outcomes of a hypothesis test.
The USDA limit for salmonella contamination for
chicken is 20%. A meat inspector reports that the
chicken produced by a company exceeds the USDA
limit. You perform a hypothesis test to determine
whether the meat inspector’s claim is true. When will a
type I or type II error occur? Which is more serious?
A type I error will occur if the actual proportion of contaminated chicken is
less than or equal to 0.2, but you reject Ho.

A type II error will occur if the actual proportion of contaminated chicken is

greater than 0.2, but you do not reject Ho
With a type I error, you might create a health scare and
hurt the sales of chicken producers who were actually
meeting the USDA limits.

With a type II error, you could be allowing chicken that

exceeded the USDA contamination limit to be sold to
consumers. A type II error is more serious because it could
result in sickness or even death.
LEVEL OF SIGNIFICANCE- is the degree of uncertainty (doubt) about
the statistical statement under the same conditions used to determine the
confidence level.

LEVEL OF CONFIDENCE- is the degree of assurance (belief) that a

particular statistical statement is correct under the specified condition.

REJECTION REGION- of the sampling distribution is the range of

values for which the null hypothesis is not probable. If a test statistic falls
in this region , the null hypothesis is rejected.

CRITICAL VALUE- separates the rejection region from the non-

rejection region.
 Left-Tailed Test
z
0.10 -1.282
0.05
0.05 -1.645
-1.645
0.01
0.01 -2.326
-2.326
 Right-Tailed Test
z
0.10 1.282
0.05
0.05 1.645
1.645
0.01
0.01 2.326
2.326
 Two-Tailed Test
z
0.10 1.645
0.05
0.05 1.960
1.960
0.01
0.01 2.576
2.576
 
Employee in a large accounting firm claims that the
population mean salary of the firm’s accountant is less
than P45 000. A random sample of 30 of the firms
accountants has a sample mean salary of P43 500 with
a standard deviation of P5 200. At test the CEO’s
claim.
 Step 1: H0 and Ha
Step 2: Level of Significance
Step 3: Sample Size (n)
Tail
Step 4: Rejection Region
Critical z-Value
Step 5: Computed z-Value
Step 6: Decision
Step 7: Interpretation
Step 1:
 

H0: The mean salary of the firm’s accountant is greater than or

equal to P45 000.
Ha: The mean salary of the firm’s accountant is less than P45
000.

Step 2:
= 0.05

Step 3:
n = 30
Tail: One Tailed Test/ Left Tailed Test
Step 4:
 Step 5:

43,500 − 45,000
 
 
´𝑥 − 𝜇
𝑧= 𝑧=
𝜎 5200
√𝑛 √30
𝑧=− 1.579
 
Step 6:

Since the computed z value of

-1.579 is greater than the critical z
value of -1.645. Do not reject the
null hypothesis.
 Step 7:
 

There is not enough evidence at 5% level of

significance to support the claim that the
population mean salary of the firms is less
than