Hypothesis Testing

Introduction
Define the
variable State Calculate
State and Make
Rejection Test
Conclusion
Rule Statistic
SAMM students at NEWCASTLE College have been reported to
have an average IQ  of 115. A teacher believes this has
increased. She samples 30 students and obtains a sample mean
of 121. Given the population variance of IQ is 152, conduct a
confidence test at the 5% significance level.

Write  down what we know 

The IQ of the population is Normally Distributed with

population mean of 115 and variance of 152
  
IQ ~ N(115, 152 )      
n = 30 ( sample size)  
x̄ = 121  ( sample mean) 
μ is 115  (population mean )
and standard deviation  σ =15
.

State H0 and H1
• H0 – the null hypothesis, the theory of no change.

• H1 – the alternative hypothesis, what you are predicting or

testing – this is based on the question.
• Null Hypothesis,
• Alternative Hypothesis,
 .

State Rejection Rule

• This is based on the significance level and the corresponding
z-value.
• In this case if z > 1.645, we would reject the null in favour
of the alternative hypothesis.
• We call this z-value the critical z-value
Calculate the Test Statistic

this is when we use the sample mean and n

to calculate the z score  

• Substituting the values we have into the  formula

the z score will be 2.19  
 .

Make a Conclusion
• Because our test statistic of 2.19 is more than our critical z-
value of 1.645, we will reject the null hypothesis. 
• This means we have evidence to suggest the average IQ of
SAMM  Students at Newcastle College is higher than 115.
• Although we still don’t know what the actual average is….
One-tailed or Two-tailed
• When we decide on our alternative hypothesis we have to
choose between a one-tailed or two-tailed test.

• Better, worse • Change

• Increase, decrease • Different

• Bigger, smaller • Affected

One-tailed or Two-tailed
• When we decide on our alternative hypothesis we have to
choose between a one-tailed or two-tailed test.

• •
•
One-tailed or Two-tailed