Running head: HYPOTHESIS TESTING

Hypothesis Testing
QNT/351
February 4, 2015

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Hypothesis Testing

The purpose of hypothesis testing is to allow an individual to choose between two

different hypotheses pertaining to the value of a population parameter. Learning team C has
conducted a hypothesis test surrounding the amount of time spent on homework by males and
females, and will address if there is a correlation between the variables. Additionally, learning
team C will determine if there is a positive or negative correlation, and how strong that
correlation is between both variables. Overall, statistics can be very challenging and we will
share some of the most puzzling concepts experienced in Quantitative Analysis for Business thus
far.
When conducting a hypothesis test, it is imperative that a null hypothesis is identified.
The null hypothesis is the hypothesis that is assumed to be true unless there is sufficient enough
evidence to prove that it is false (McClave, 2011). The null hypothesis for this experiment: Is the
mean amount of time spent on homework by females equal to the amount of time spent on
homework by males? The observed significance level is .05, which means that there is a five
percent chance that we will reject the null hypothesis, even when it is true. The activity data set
provided were eight data points for women and six data points for men. Because of the small
sample size, we have conducted a t-test for this experiment. The degrees of freedom equal
twelve, which we assign a critical value of 2.179 from a t-table. If the test statistic (t-statistic) is
less than -2.179, or greater than 2.179 we will reject the null hypothesis in favor of the
alternative. The t-statistic for the time spent on homework by men and women is -.4899. This
figure does not fall into the rejection region, so we fail to reject the null hypothesis. In other
words, the mean amount of time spent on homework by men and women are equal with a ninetyfive percent confidence level. We have also determined the correlation coefficient.

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The correlation coefficient (denoted by the letter r) is the measure of the degree of linear
relationship between two variables (Webster.edu, n.d.). The correlation coefficient can be any
value between negative one and one. If the correlation coefficient sign is negative, it means that
as one variable decreases the other variable increases. The opposite is true for a positive
correlation coefficient, if the value of one variable increases the other variable decreases. It is
important to note that correlation does not necessarily mean causation; we cannot assume a
correct conclusion based on correlation alone. For this experiment, the correlation between men
and women was 0.346102651. When data with values of r are close to zero, they show little to no
straight-line relationship (Taylor, 2015). Even though the correlation for this experiment was
positive, it is not a strong correlation. The closer the value of r to zero means that there is a
greater variation around the line of best fit (Laerd Statistics, 2015).
Statistics can be a very daunting subject, and there have been some concepts that have
proven to be difficult for each member of learning team C. Many team members struggle with
the proper selection of formulas in Microsoft Excel, while others struggle to substitute values
into the many equations involved in statistics. There are also numerous symbols to remember,
and properly identify when computing an equation. From a conceptual standpoint, probability is
tough topic to grasp. The concept itself seems unintuitive, and is difficult to understand an
intangible concept that is based on guessing and the best chance that an individual has to
experience one event or another is random (probability). When you take that concept and try to
make it tangible by putting it into an equation, things get quite confusing.
Hypothesis testing can be beneficial when an individual is trying decide on what
hypothesis to choose pertaining to the value of a population parameter. When deciding to
conduct hypothesis testing it is important to go through the five steps of the hypothesis testing

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procedure that include: making assumptions, stating the null and alternate hypothesis,
determining the correct test statistic and sampling distribution, computing the test results, and
interpreting the decision (Boston University, n.d.). Interpreting the decision can include
comparing the means for each of the groups can give a better understanding of where each group
falls as an average. Interpreting the decision also includes determining whether there is a
correlation between the two variables and determining whether the correlation is positive or
negative. For this experiment, the goal was to determine if there was a significant difference for
time spent doing homework by males and females. Hypothesis testing is used to determine if
there is enough statistical evidence to support a certain belief about a parameter.

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References

Boston University. (n.d.). The 5 steps in hypothesis testing. Retrieved from Boston
University, website.
Laerd Statistics. (2015). Pearson-product moment correlation. Retrieved from
https://statistics.laerd.com/statistical-guides/pearson-correlation-coefficient-statisticalguide.php
McClave, J. T. (2011). Statistics for business and economics (11th ed.). Boston, MA: Pearson
Education.
Taylor, C. (2015). How to calculate the correlation coefficient. Retrieved from
http://statistics.about.com/od/Descriptive-Statistics/a/How-To-Calculate-The-CorrelationCoefficient.htm
Webster.edu. (n.d.). Correlation. Retrieved from
http://www2.webster.edu/~woolflm/correlation/correlation.html