HYPOTHESIS TESTING

A. HYPOTHESIS TESTING
Hypothesis is a statement with many faceted ideas that are
still to be resolved whether they are true or not.

Types of Hypothesis:
• Null hypothesis must always express the idea of non-significant
difference which is denoted by H₀.
• Alternative hypothesis is just a negation of the null hypothesis and
denoted by H₁.
 
Types of Errors:
• Type I – rejecting the null hypothesis when in fact it is true.
• Type II – accepting the null hypothesis when in fact it is false.
Level of Significance:
• The level of significance for type I error is denoted by Alpha
(α).
• The probability of committing a type II error is denoted by
Beta (β)
• The value of α is equal to the probability of making an error in
rejecting the null hypothesis when in fact it is true. Similarly,
the value of β is equal to the probability of committing an
error in accepting the H₀ when in fact it is false.
• Choice of the value of the significance level ranges from 0.01
to 0.05.
• Types of Tests:
– The one-sided (directional) tests hypothesis is
referred to as one-tailed test. The rejection region
lies in one tail of the distribution.
– If an alternative hypothesis is expressed In a non-
equality statement, it is a non-directional or a
two-tailed test. The rejection region is located at
both tail ends of the curve.
Z- test or t-test:
A Z-test is used when the population
standard deviation is known and the sample is
sufficiently large.
A t-test is used if the population standard
deviation is not known. It can be used even if n
is greater than 30.
Hypothesis Testing for Population Means:
 Sample problem #1
• A group of fishermen from a local community wished to
determine whether a fish population found only in one
area of the bay belonged to a certain specie. The only
morphological characteristic which appeared from that of
the unknown members of the specie was tail length. The
mean tail length of the specie was 15.4 millimeters with a
standard deviation of 2.3 millimeters. The fishermen
measured the tail length of 50 fishes and had a mean of
17.4 millimeters. Can the fishermen conclude, at the 0.05
level of significance, that the fishes are of different species?
•  
 Example Problem #3:

• A perfume company claims that the best

selling perfume contains at most 25% alcohol.
Twenty(20) bottles were selected and found to
have or mean of 29.7% and a standard
deviation of 4.8%. Test the claim of the
perfume company at the 0.05 level of
significance.
 Example Problem #4:
• A businessman prospects two possible locations for a new
restaurant. A study was conducted and focused on the pedestrian
traffic at both areas. At each location, the pedestrians are observed
in 1-hour units and, for each hour an index of desirable
characteristic is complied. The sample units are given below.

Mendiola Recto
n = 25 n=30
x̄ = 245 x= 438
s = 103 s= 79

• Test the claim that the characteristic mean indices in Mendiola are
less than the mean indices in Recto. Use 0.05 level of significance.