HYPOTHESIS

TESTING
GROUP IV
 LEARNING OBJECTIVES
• DEFINE WHAT IS HYPOTHESIS AND HYPOTHESIS TESTING
• DISCUSS WHAT IS STATISTICAL HYPOTHESIS
• IDENTIFY TYPES OF ERRORS
• DISCUSS WHAT IS CRITICAL REGION
• IDENTIFY STEPS IN HYPOTHESIS TESTING
• DISCUSS TESTS CONCERNING POPULATION MEANS
 DEFINITION OF TERMS

 HYPOTHESIS - is an assumption, an idea that is proposed for the

sake of argument so that it can be tested to see if it might be true.

TYPES OF HYPOTHESIS:

 NULL HYPOTHESIS - is a typical statistical theory which suggests that no

statistical relationship and significance exists in a set of given single
observed variable, between two sets of observed data and measured
phenomena.

 ALTERNATIVE HYPOTHESIS - proposes that there is a difference between

two or more variables
 DEFINITION OF TERMS
• HYPOTHESIS TESTING - the theory, methods, and practice of testing a hypothesis
by comparing it with the null hypothesis. The null hypothesis is only rejected if its
probability falls below a predetermined significance level, in which case the hypothesis
being tested is said to have that level of significance.
• POPULATION  is the pool of individuals from which a statistical sample is
drawn for a study.
• SAMPLE  refers to a smaller, manageable version of a larger group. It is a
subset containing the characteristics of a larger population.
• Parameter  a number that describes a whole population. A characteristic of
population, e.g., population mean µ
 DEFINITION OF TERMS

• LEVEL OF CONFIDENCE- tells you how sure you can be. It is expressed
as a percentage and represents how often the true percentage of the
population who would pick an answer that lies within the confidence interval.
• LEVEL OF SIGNIFICANCE - is the probability that the event could have
occurred by chance.
• Statistic  is a number that describes a sample. It is calculated from data
in the sample, e.g., sample mean
 What is Hypothesis Testing?

• Hypothesis testing is a procedure, based on

sample evidence and probability theory, used to
determine whether the hypothesis is a reasonable
statement and should not be rejected, or is
unreasonable and should be rejected.
 What is Statistical Hypothesis?

• It is a guess or conjecture about the numeral

value of some unknown population
parameters.
• It is usually denoted by Ho.
 Test of a Statistical Hypothesis

• It is a rule on deciding how to reject a

hypothesis. The information that we
gather from the sample will be used to
decide whether the hypothesis is to be
rejected or not.
 Types of Errors

• Type I Error – • Type II Error – Not

Rejecting the null rejecting the null
hypothesis when it is hypothesis when it is
true false
Example:
1. Let’s say that the null hypothesis Ho is : John’s used car is safe to drive. (a) Which statement
represents a type I error? (b) Which statement represents a type II error? (c) Which type of error has
greater consequence?
• John thinks that his car may be safe, in fact, it is not safe.
• John thinks that his car may be safe, in fact, it is safe.
• John thinks that his car may NOT be safe, in fact, it is not safe.
• John thinks that his car may NOT be safe, in fact, it is safe.