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STAT Statistical Inference
Topic: Testing of hypothesis

Lecture# 16,17
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Preamble (Past Lesson Brief)

 Interval Estimation

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Learning Outcomes

By the end of the lesson Students will able to

understand:
 Hypothesis testing

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Hypothesis Tests

 A hypothesis test is a process that uses sample statistics to test a claim about the value of a population parameter.
If a manufacturer of rechargeable batteries claims that the batteries they produce are good for an average of at least 1,000
charges, a sample would be taken to test this claim.
 A verbal statement, or claim, about a population parameter is called a statistical hypothesis.
To test the average of 1000 hours, a pair of hypotheses are stated – one that represents the claim and the other, its complement.
When one of these hypotheses is false, the other must be true.
Or
Hypothesis is simple quantitative statement about population.
OR
There are the assumption through whih we can prove or disprove something with the help of research

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 Stating a Hypothesis

“H subzero” or “H naught”
A null hypothesis H0 is a statistical hypothesis that contains a statement of equality such
as , =, or .
“H sub-a”
Is tested for possible rejection under the assumption its true
A alternative hypothesis Ha is the complement of the null hypothesis. It is a statement that
must be true if H0 is false and contains a statement of inequality such as >, , or <.

To write the null and alternative hypotheses, translate the claim made about the
population parameter from a verbal statement to a mathematical statement.
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Testing of Hypothesis when sd is known

 Simple and Composite hypothesis

 A simple hypothesis is one in which all parameters of the distribution are specified. It is
also called exact hypothesis. Its select unique values

 Composite hypothesis also known as inexact it indicate more than one possible values

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One-tailed Test(Left)

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One-tailed Test(Right)

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Two-tailed Test

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 Level of significance
Margin of error

Type I Error= P(Reject the H0/Ho is true)=a

Any hypothesis which is to be tested for possible rejection under the assumption it is true
Type II Error = P(Accept the H1/ H0 is true )=b

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Hypothesis testing for Population Mean (μ)

Procedure to perform a Hypothesis test:

1.Formulation of Hypothesis

Two-tail One-tail(Left) One-tail(Right)

H0: µ = µ0 , H0: µ ≥ µ0 H0: µ ≤ µ0,
H1: µ ≠ µ0 H1: µ < µ0 H1: µ > µ0.

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Hypothesis Testing

2. Write down the value of α

3.Decision Rule: Reject H0 if

Alternative Hypothesis Suppose we are using Z-test

H1: µ ≠ µ0 ( two tailed) Z < - Z α/2 or Z < + Z α/2

H1: µ < µ0 ( one tailed) Z<-Zα

H1: µ > µ0 ( one tailed) Z >{ Z α

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Steps

1. Set up hypothesis
2. Set up suitable significance level
3. Test statistics (Formula)
4. Calculations
5. Conclusion

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Practice Questions

   sample of size 40 from a non-normal population yielded the sample mean and = 200
A
test aginst using a 0.01 significance level.
 The IQ‘s of the college students are known to be normally distributed with a mean of 123.
a random sample of 49 students showed an average IQ of and S = 8.44.thest the
hypothesis that µ = 123 against the alternative that is less. Let α = 0.05

 A random sample of 25 values gives this sample be regarded as drawn from normal with
µ = 80 and pop sd=7

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Q &A

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References

 Probability and Statistics for Engineers and Scientists by Ronald E. Walpole,

Raymond H. Myers, Sharon L. Myers and Keying E. Ye, Pearson; 9th Edition
(January 6, 2011). ISBN-10: 0321629116 2
 Walpole, P.E., Myers R.H., Myers S.L. (1998), “Probability and Statistics for
Engineers and Scientists”, 7th Ed. Prentice Hall.
 Introduction to Statistical Theory Part 1,Prof Sher Muhammad Chaudhry

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