Probability and

Statistics

Topic : Hypothesis
Testing
 TARGETS
 Illustrates null hypothesis, alternative hypothesis, level of
significance, rejection region, and type of errors in
hypothesis testing

 Calculates the probabilities of committing a type 1 and type

2 error

 Identifies the parameter to be tested given a real life

problem
 TARGET OBJECTIVES

 Formulates the appropriate null and alternative

hypothesis on a population mean

 Identifies the appropriate form of the test-statistic

when
a. Population variance is assumed to be known
b. The population variance is assumed to be unknown
c. The Central Limit Theorem is to be used
 TARGET OBJECTIVES

 Identifies the rejection region for a given level of significance

when:
a. The population variance is known
b. The population variance is unknown
c. The Central Limit Theorem is to be used.

 Computes for the test-statistic value (population mean)

 TARGET OBJECTIVES
 Drawn conclusion about the population mean based
on the test –statistic value and the rejection region.

 Solve problems involving test of hypothesis on the

population mean

 Formulates the appropriate null and alternative

hypotheses on a population proportion
 TARGET OBJECTIVES

 Identifies the appropriate form of the test-statistic

when the Central Limit Theorem is to be Used

 Identifies the appropriate rejection region for a

given level of significance when the Central Limit
Theorem is used.

 Computes for the test- statistic value (population

proportion)
 TARGET OBJECTIVES
 Draw conclusion about the population proportion
based on the test –statistic value of the rejection
region

 Solve problems involving test of hypothesis on the

population proportion.
 Descriptive Statistics

 Inferential Statistics
 Hypothesis
 A statistical hypothesis is a
conjecture or a supposition
about a population
parameter.
 Hypothesis Testing
 A process of evaluating claims about the population based on
the characteristics of the samples.

 Hypothesis need to be resolved, whether to accept it or reject it.

 Making a decision about two opposing hypotheses (the null and

the alternative)
 Types
 Null Hypothesis (Ho)
= a statistical hypothesis that states that there is
no difference between a parameter and a particular
value

= equal (assumption that mean, proportion and

standard deviation is equal to a specific parameter
value)
 Types
 Alternative hypothesis (Ha)

= a statistical hypothesis that states that a

parameter and a particular value has a difference
 Stating the Hypotheses

 Ho :  = k
 Ha :  ≠ k
or
>k
<k
 Type of Tests
 Non- Directional (two tailed-test)
Ha :  ≠ k

 Directional (one tailed-test)

Ha :  > k (right tailed test)
Ha :  < k (left tailed test)
 Two tailed and direction tests

≠k <k >k

 Stating the Hypothesis

Stating Ho and H1
 Example 1

 A maternity hospital claims that the mean weight

of babies delivered in their charity ward is 2.5 kg.

H0 : The mean weight of babies is 2.5 kg.

H1 : The mean weight of babies is not equal to 2.5 kg.

H0 :  = 2.5 H1 :   2.5
 Example 2
 A parents’ organization in a school is concerned about the
proportion of fat content of the burgers sold in the school
canteen. The canteen claims that the proportion is only
about 18%.

H0 : The fat content proportion of burgers is 18%.

H1 : The fat content proportion of burgers is not 18%.

H0 : p = 18% H1 : p  18%
 Example 3
 A farmer believes that using organic fertilizers on his plants will
yield greater income. His average income from the past was P
200,000 per year.

H0 : The average income is P 200,000.

H1 : The average income is greater than P 200,000.

H0 :  = P 200,000 H1 :  > P 200,00

 Example 4

 The average weight loss for a sample of people who exercise

30 minutes per day for 6 weeks is greater than 3.7 kg.

H0 : The average weight loss is 3.7 kg .

H1 : The average weight loss is greater than 3.7 kg .

H0 :  = 3.7 kg H1 :  > 3.7 kg

 Write the null hypothesis and the alternative hypothesis
Decisions
in words and in symbols for each of the following:

1. The net weight of a packet of a snack brand is 130 g. A

sample of 80 packets yielded a sample mean weight of 112 g
with a standard deviation of 15 g.
 Write the null hypothesis and the alternative hypothesis
Decisions
in words and in symbols for each of the following:

2. A healthcare provider saw that 48% of their members

received their flu shot in a recent year. The healthcare
provider tried a new advertising strategy in the following
year, and they took a sample of members to test if the
proportion who received their flu shot had changed.
 FOUR POSSIBILITIES
IN DECISION MAKING
Decision H0 is true H0 is false

Reject Ho Type 1 Error Correct

Decision

Do not Correct Type II Error

Reject Ho Decision
(Accept Ho)
Decision H0 is true H0 is false
NOT GUILTY
GUILTY

GUILTY

NOT
GUILTY
Decision H0 is true H0 is false
NOT GUILTY
GUILTY

GUILTY Type 1
Error

NOT
GUILTY
Decision H0 is true H0 is false
NOT GUILTY
GUILTY

GUILTY Type 1 Correct

Error Decision

NOT
GUILTY
Decision H0 is true H0 is False
NOT GUILTY
GUILTY

GUILTY Type 1 Correct

Error Decision

NOT Correct
GUILTY Decision
Decision H0 is true H0 is false
NOT GUILTY
GUILTY

GUILTY Type 1 Error Correct

Decision

NOT Correct Type II Error

GUILTY Decision
Think about criminal cases that result in
wrong decisions because of making
mistakes in judgement. What do you think
is worse, to convict an innocent man or set
the guilty free.
Errors in Hypothesis Testing

Type I error, decision of reject the Ho when

it fact it is true.

Type II error, decision of accepting the Ho

when it fact it is false.
 Drills : Type 1 or Type II Errors

1. Maria insists that she is 30years old when,

in fact she is 32 years old.
2. On a moonlit night, a young man declares
that there are two moons.
 Drills : Type 1 or Type II Errors

3. Thousands of years ago, Ptolemy declared

that the earth is flat.
4. On a campus, a signage reads, “This school is
an environment-friendly school.” A few yards
away are rubbish scattered.
 Hypothesis

 H0 ,if found to be statistically true, if

not rejected (is accepted).
Decision H0 is true H0 is false

Reject Ho Type 1 Error Correct

p = Decision
p = 1-
Correct Type II Error
Failed to Decision p=
Reject Ho p=1-
(Accept Ho)
 Errors
 Level of significance () is the maximum allowable
probability of committing a type I error.

 The probability of committing a type II error is denoted by

.
 Errors
 Level of significance () is the maximum allowable
probability of committing a type I error.
A 0.01 level of significance means that the researcher is
willing to take 1% error in making decisions. This further
implies that he is 99% confident that he will make a right
decision.
 Errors

 The probability of committing a Type I error is

called the significance level of a test.
 For any hypothesis test,
p-value = probability of committing a
Type I error
 Errors