Research Hypothesis

Content
Statistics for Business and

Economics
6. Large-Sample Test of Hypothesis about a

Population Proportion
7. Test of Hypothesis about a Population Variance
Chapter 7
Inferences Based on a Single Sample:
Tests of Hypotheses
2011 Pearson Education, Inc
8. Calculating Type II Error Probabilities: More about

*
Content
Learning Objectives
1. The Elements of a Test of Hypothesis
1. Test a specific value of a population

parameter (mean or proportion), called a
test of hypothesis
2. Formulating Hypotheses and Setting Up the

Rejection Region
3. Observed Significance Levels: p-Values
2. Provide a measure of reliability for the

hypothesis test, called the significance level
of the test
4. Test of Hypothesis about a Population Mean:

Normal (z) Statistic
5. Test of Hypothesis about a Population Mean:
Students t-Statistic
Learning Objectives
3.
4.
Hypothesis Testing
Test a specific value of a population

parameter (mean, proportion or variance)
called a test of hypothesis
Show how to estimate the reliability of a
test
Population
J
J
J J
J
J
I believe the
population mean
age is 50
(hypothesis).
Reject
hypothesis!
Not close.
Random
sample
Mean
JX = 20J
Whats a Hypothesis?
7.1
A statistical hypothesis is
a statement about the
numerical value of a
population parameter.
The Elements of
a Test of Hypothesis
I believe the mean GPA of

this class is 3.5!
1984-1994 T/Maker Co.
Null Hypothesis
Alternative Hypothesis
The null hypothesis, denoted H0, represents

the hypothesis that will be accepted unless the
data provide convincing evidence that it is false.
This usually represents the status quo or
some claim about the population parameter
that the researcher wants to test.
1. Opposite of null hypothesis

2. The hypothesis that will be accepted only if
the data provide convincing evidence of its
truth
3. Designated Ha
4. Stated in one of the following forms
Ha: (some value)
Ha: < (some value)
Ha: > (some value)
11
Identifying Hypotheses
Alternative Hypothesis
Example problem: Test that the population

mean is not 3
Steps:
The alternative (research) hypothesis,

denoted Ha, represents the hypothesis that
will be accepted only if the data provide
convincing evidence of its truth. This usually
represents the values of a population
parameter for which the researcher wants to
gather evidence to support.
State the question statistically ( 3)

State the opposite statistically ( = 3)
Must be mutually exclusive & exhaustive
Select the alternative hypothesis ( 3)
Has the , <, or > sign
State the null hypothesis ( = 3)

10
12
What Are the Hypotheses?

Is the population average amount of TV
viewing 12 hours?
Is the average cost per hat less than or equal

to $20?
State the question statistically: = 12
State the question statistically: 20
State the opposite statistically: 12
State the opposite statistically: > 20
Select the alternative hypothesis: Ha: 12
Select the alternative hypothesis: Ha: > 20
State the null hypothesis: H0: = 12
13
Is the population average amount of TV

viewing different from 12 hours?
Is the average amount spent in the bookstore

greater than $25?
State the question statistically: 12
State the question statistically: > 25
State the opposite statistically: = 12
State the opposite statistically: 25
Select the alternative hypothesis: Ha: 12
Select the alternative hypothesis: Ha: > 25
State the null hypothesis: H0: 25
15
14
16
Test Statistic
Type I Error
A Type I error occurs if the researcher
rejects the null hypothesis in favor of the
alternative hypothesis when, in fact, H0 is
true.
The probability of committing a Type I error
is denoted by .
The test statistic is a sample statistic,

computed from information provided in the
sample, that the researcher uses to decide
between the null and alternative hypotheses.
17
Test Statistic - Example
19
Rejection Region
The sampling distribution of assuming = 2,400.

The chance of observing more than 1.645 standard
deviations above 2,400 is only .05 if in fact the true
mean is 2,400.
The rejection region of a statistical test is the

set of possible values of the test statistic for
which the researcher will reject H0 in favor of
Ha .
18
20
Type II Error
Elements of a Test of Hypothesis

1. Null hypothesis (H0):
A Type II error occurs if the researcher accepts the

null hypothesis when, in fact, H0 is false.
A theory about the specific values of one or more

population parameters.
The theory generally represents the status quo, which
we adopt until it is proven false.
The probability of committing a Type II error is

denoted by .
2. Alternative (research) hypothesis (Ha):

A theory that contradicts the null hypothesis.
The theory generally represents that which we will
adopt only when sufficient evidence exists to
establish its truth.
21
Conclusions and Consequences

for a Test of Hypothesis
True State of Nature
Conclusion
H0 True
Accept H0
(Assume H0 True)
Correct decision Type II error

(probability )
Reject H0
(Assume Ha True)
Type I error
(probability )
23

3. Test statistic: A sample statistic used to decide whether to
reject the null hypothesis.
4. Rejection region:
The numerical values of the test statistic for which the null
hypothesis will be rejected.
The rejection region is chosen so that the probability is
that it will contain the test statistic when the null
hypothesis is true, thereby leading to a Type I error.
The value of is usually chosen to be small (e.g., .01, .05,
or .10) and is referred to as the level of significance of
the test.
Ha True
Correct decision
22
24

7. Conclusion:
5. Assumptions: Clear statement (s) of any

assumptions made about the population (s) being
sampled.
b. If the test statistic does not fall in the rejection

region, we do not reject H0. Thus, we reserve
judgment about which hypothesis is true. We do
not conclude that the null hypothesis is true
because we do not (in general) know the
probability that our test procedure will lead to
an incorrect acceptance of H0 (Type II error).
6. Experiment and calculation of test statistic: Performance

of the sampling experiment and determination of
the numerical value of the test statistic.
25
27
Determining the
Target Parameter

7. Conclusion:
a. If the numerical value of the test statistic falls in
the rejection region, we reject the null hypothesis
and conclude that the alternative hypothesis is
true. We know that the hypothesis-testing process
will lead to this conclusion incorrectly (Type I error)
only 100% of the time when H0 is true.
26
Parameter
Key Words or Phrases
Type of Data
Mean; average
Quantitative
Proportion; percentage;
fraction; rate
Qualitative
Variance; variability;
spread
Quantitative
28
Steps for Selecting the Null and

Alternative Hypotheses
7.2
Formulating Hypotheses and Setting
Up the Rejection Region
29
Steps for Selecting the Null and

31
One-Tailed Test
A one-tailed test of hypothesis is one in which
the alternative hypothesis is directional and
includes the symbol < or >.
1. Select the alternative hypothesis as that which the

sampling experiment is intended to establish. The
alternative hypothesis will assume one of three
forms:
a. One-tailed, upper-tailed
(e.g., Ha: > 2,400)
b. One-tailed, lower-tailed
(e.g., Ha: < 2,400)
c. Two-tailed
(e.g., Ha: 2,400)
2. Select the null hypothesis as the status quo, that

which will be presumed true unless the sampling
experiment conclusively establishes the alternative
hypothesis. The null hypothesis will be specified as
that parameter value closest to the alternative in
one-tailed tests and as the complementary (or only
unspecified) value in two-tailed tests.
(e.g., H0: = 2,400)
30
32
Rejection Region
(One-Tail Test)
Two-Tailed Test
A two-tailed test of hypothesis is one in which
the alternative hypothesis does not specify
departure from H0 in a particular direction and is
written with the symbol .
Sampling Distribution
Rejection
Region
H 0: = 0
Ho
Value
Ha: < 50
= 50
H0
H 0 : = 0
Level of Confidence
Ha: 0
Rejection
Region
... therefore, we
reject the
hypothesis that
= 50.
Rejection
Region
1/2
1/2
Fail to Reject
Region
... if in fact this were

the population mean
20
35
Rejection Regions
(Two-Tailed Test)
H0: = 50
Sample Statistic
33
Basic Idea
It is unlikely
that we would
get a sample
mean of this
value ...
Ha: < 0
Fail to Reject
Region
Critical
Value
Level of Confidence
Critical
Value
Sample Means
34
Ho
Value
Critical
Value
Sample Statistic
36
Rejection Regions
p-Value
LowerTailed
= .10 z < 1.28
UpperTailed
z > 1.28
Two-Tailed
= .05 z < 1.645
z > 1.645 z < 1.96 or z > 1.96
= .01 z < 2.33
z > 2.33
z < 1.645 or z > 1.645
The observed significance level, or p-value, for a

specific statistical test is the probability
(assuming H0 is true) of observing a value of the
test statistic that is at least as contradictory to
the null hypothesis, and supportive of the
alternative hypothesis, as the actual one
computed from the sample data.
z < 2.575 or z > 2.575
37
p-Value
7.3
Observed Significance Levels:

p-Values
Probability of obtaining a test statistic more

extreme ( or ) than actual sample value,
given H0 is true
Called observed level of significance
38
Smallest value of for which H0 can be

rejected
Used to make rejection decision
39
If p-value , do not reject H0

If p-value < , reject H0
40
Steps for Calculating the pValue for a Test of Hypothesis

2b. If the test is two-tailed, the p-value is equal to twice
the tail area beyond the observed z-value in the
direction of the sign of z that is, if z is positive, the
p-value is twice the area to the right of, or above,
the observed z-value. Conversely, if z is negative,
the p-value is twice the area to the left of, or below,
the observed z-value.
1. Determine the value of the test statistic z

corresponding to the result of the sampling
experiment.
41

2a. If the test is one-tailed, the p-value is equal to the tail
area beyond z in the same direction as the alternative
hypothesis. Thus, if the alternative hypothesis is of the
form > , the p-value is the area to the right of, or above,
the observed z-value. Conversely, if the alternative is
of the form < , the p-value is the area to the left of, or
below, the observed z-value.
42
43
Reporting Test Results as

p-Values: How to Decide Whether
to Reject H0
1. Choose the maximum value of that you are
willing to tolerate.
2. If the observed significance level (p-value) of
the test is less than the chosen value of ,
reject the null hypothesis. Otherwise, do not
reject the null hypothesis.
44
Two-Tailed z Test
p-Value Example
Two-Tailed Z Test
p-Value Solution
Does an average box of cereal

contain 368 grams of cereal? A
random sample of 64 boxes
showed x = 372.5. The
company has specified to be
25 grams. Find the p-Value.
p-value is P(z 1.44 or z 1.44)

1/2 p-Value
1/2 p-Value
.4251
1.44
368 gm.
45
Two-Tailed z Test
p-Value Solution
1.44
From z table:
lookup 1.44
.5000
.4251
.0749
z
z value of sample
statistic (observed)
47
Two-Tailed z Test
p-Value Solution
p-value is P(z 1.50 or z 1.50) = .1498
1/2 p-Value
.0749
1.44
1.44
1/2 p-Value
.0749
1.44
z value of sample
statistic (observed)
46
48
Two-Tailed z Test
p-Value Solution
One-Tailed z Test
p-Value Solution
p-Value = .1498 = .05

Do not reject H0.
1/2 p-Value = .0749
1/2 p-Value = .0749
Reject H0
Reject H0
1/2 = .025
1/2 = .025
1.44
1.44
Test statistic is in Do not reject region
49
z value of sample
statistic
One-Tailed z Test
p-Value Example
contain more than 368 grams
of cereal? A random sample
of 64 boxes showed x = 372.5.
The company has specified
to be 25 grams. Find the pValue. How does it compare
to = .05?
1.44
51
One-Tailed z Test
p-Value Solution
p-Value is P(z 1.44)
Use
alternative
hypothesis
to find
direction
p-Value
.4251
0
368 gm.
50
From z table:
lookup 1.44
1.44
.5000
.4251
.0749
z
z value of sample
statistic
52
One-Tailed z Test
p-Value Solution
p-Value
Thinking Challenge
p-Value is P(z 1.44) = .0749
p-Value
.0749
Use
alternative
hypothesis
to find
direction
.4251
0
From z table:
lookup 1.44
.5000
.4251
.0749
1.44
Youre an analyst for Ford. You

want to find out if the average
miles per gallon of Escorts is less
than 32 mpg. Similar models
have a standard deviation of 3.8
mpg. You take a sample of 60
Escorts & compute a sample
mean of 30.7 mpg. What is the
value of the observed level of
significance (p-Value)?
z value of sample
statistic
53
One-Tailed z Test
p-Value Solution
p-Value
Solution*
(p-Value = .0749) ( = .05).

Do not reject H0.
p-Value is P(z -2.65) = .004.

p-Value < ( = .01). Reject H0.
p-Value = .0749
Use
alternative
hypothesis
to find
direction
Reject H0
= .05
1.44
p-Value
.004
54
.5000
.4960
.0040
.4960
2.65 0
Test statistic is in Do not reject region

55
z value of sample
statistic
From z table:
lookup 2.65
56
Large-Sample Test of Hypothesis

about
Converting a Two-Tailed
p-Value from a Printout to a OneTailed p-Value
if Ha is of the form > and z is positive
or Ha is of the form < and z is negative
if Ha is of the form > and z is negative
Ha is of the form < and z is positive
57
Two-Tailed Test
H 0 : = 0
Ha : 0
Test Statistic:
Test Statistic:
59

about
7.4
One-Tailed Test
Rejection region:
z < z
(or z > z when Ha: > 0)
where z is chosen so that
P(z > z) =
Test of Hypotheses about a

Population Mean:
Normal (z) Statistic
One-Tailed Test
H0: = 0
Ha: < 0
(or Ha: > 0)
58
60

about
Possible Conclusions for a Test

of Hypothesis
Two-Tailed Test
Rejection region:
|z| > z/2
where z/2 is chosen so that
P(|z| > z/2) = /2
Note: 0 is the symbol for the numerical value assigned
to under the null hypothesis.
61
Conditions Required for a Valid

Large-Sample Hypothesis Test for
1. If the calculated test statistic falls in the

rejection region, reject H0 and conclude that
the alternative hypothesis Ha is true. State
that you are rejecting H0 at the level of
significance. Remember that the confidence
is in the testing process, not the particular
result of a single test.
63
Possible Conclusions for a Test

of Hypothesis
1. A random sample is selected from the target

population.
2. The sample size n is large (i.e., n 30). (Due to the
Central Limit Theorem, this condition guarantees
that the test statistic will be approximately normal
regardless of the shape of the underlying probability
distribution of the population.)
2. If the test statistic does not fall in the

rejection region, conclude that the sampling
experiment does not provide sufficient
evidence to reject H0 at the level of
significance. [Generally, we will not accept
the null hypothesis unless the probability of
a Type II error has been calculated.]
62
64
Two-Tailed z Test Thinking

Challenge
Two-Tailed z Test Example

Does an average box of
cereal contain 368 grams of
cereal? A random sample of
25 boxes had x = 372.5. The
company has specified to
be 25 grams. Test at the .05
level of significance.
Youre a Q/C inspector. You want to find out if

a new machine is making electrical cords to
customer specification: average breaking
strength of 70 lb. with = 3.5 lb. You take a
sample of 36 cords & compute a sample mean
of 69.7 lb. At the .05 level of significance, is
there evidence that the machine is not
meeting the average breaking strength?
368 gm.
65
Two-Tailed z Test Solution

H0: = 368
Ha: 368
= .05
n = 25
Critical Value(s):
Reject H 0
.025
1.96
.025
0 1.96
Two-Tailed z Test Solution*
Test Statistic:
Reject H 0
Decision:
Do not reject at = .05
Conclusion:
No evidence average
is not 368
67
H0: = 70
Ha: 70
= .05
n = 36
Critical Value(s):
Decision:
Reject H 0
Reject H 0
.025
.025
1.96 0 1.96 z
66
Test Statistic:
Since -1.96 < z = -0.51 <1.96

Conclusion:
No evidence average is not 70
68
One-Tailed z Test
Example
One-Tailed z Test Thinking

Challenge

contain more than 368 grams
of cereal? A random sample of
25 boxes showed x = 372.5.
The company has specified to
be 25 grams. Test at the .05
Youre an analyst for Ford. You

want to find out if the average
miles per gallon of Escorts is at
least 32 mpg. Similar models have
a standard deviation of 3.8 mpg.
You take a sample of 60 Escorts &
compute a sample mean of 30.7
mpg. At the .01 level of significance,
is there evidence that the miles per
gallon is less than 32?
368 gm.
69
One-Tailed z Test Solution
H0: = 368
Ha: > 368
= .05
n = 25
Critical Value(s):
Reject
.05
0 1.645
One-Tailed z Test Solution*
Test Statistic:
Decision:
H0: = 32
Ha: < 32
= .01
n = 60
Critical Value(s):
Reject
.01
Conclusion:
No evidence average is
more than 368
71
-2.33
70
Test Statistic:
Decision:
Reject at = .01
Conclusion:
There is evidence average
is less than 32
72
Small-Sample Test of Hypothesis

about
7.5
Two-Tailed Test
H0: = 0
H a: 0
Test of Hypothesis about a

Population Mean:
Students t-Statistic
Test statistic:
Rejection region: |t| > t/2
73
Small-Sample Test of Hypothesis

about
75

Small-Sample Hypothesis Test for
One-Tailed Test
H0: = 0
Ha: < 0 (or Ha: > 0)

population.
2. The population from which the sample is
selected has a distribution that is
approximately normal.
Test statistic:
Rejection region: t < t
(or t > t when Ha: > 0)
where t and t/2 are based on (n 1) degrees of
freedom
74
76
Two-Tailed t Test
Example
cereal contain 368 grams of
cereal? A random sample
of 36 boxes had a mean of
372.5 and a standard
deviation of 12 grams. Test
at the .05 level of
significance.
Two-Tailed t Test
Thinking Challenge
You work for the FTC. A manufacturer
of detergent claims that the mean
weight of detergent is 3.25 lb. You
take a random sample of 64
containers. You calculate the sample
average to be 3.238 lb. with a
standard deviation of .117 lb. At the
.01 level of significance, is the
manufacturer correct?
368 gm.
3.25 lb.
77
Two-Tailed t Test
Solution*
Two-Tailed t Test
Solution
H0: = 368
Ha: 368
= .05
df = 36 1 = 35
Critical Value(s):
Reject H0
.025
.025
-2.030
0 2.030
Test Statistic:
Reject H 0
Decision:
Reject at = .05
Conclusion:
There is evidence population
average is not 368
79
78
H0: = 3.25
Ha: 3.25
= .01
df = 64 1 = 63
Critical Value(s):
Test Statistic:
Reject H 0
Reject H0
.005
.005
-2.656
0 2.656
Decision:
Conclusion:
There is no evidence
average is not 3.25
80
One-Tailed t Test
Example
One-Tailed t Test
Thinking Challenge
Is the average capacity of

batteries less than 140
ampere-hours? A random
sample of 20 batteries had a
mean of 138.47 and a standard
deviation of 2.66. Assume a
normal distribution. Test at the
.05 level of significance.
Youre a marketing analyst for WalMart. Wal-Mart had teddy bears on

sale last week. The weekly sales ($ 00)
of bears sold in 10 stores was:
8 11 0 4 7 8 10 5 8 3
At the .05 level of significance, is there
evidence that the average bear sales
per store is more than 5 ($ 00)?
81
One-Tailed t Test
Solution*
One-Tailed t Test
Solution
H0: = 140
Ha: < 140
= .05
df = 20 1 = 19
Critical Value(s):
.05
-1.729
Test Statistic:
Decision:
Since t = -2.57 < -1.729, reject
H0 at = .05
Reject H0
H 0: = 5
H a: > 5
= .05
df = 10 1 = 9
Critical Value(s):
Test Statistic:
Reject H0
.05
Conclusion:
0
There is evidence population

average is less than 140
83
82
0 1.833
Decision:
Conclusion:
average is more than 5
84

about p
7.6
Two-Tailed Test
H0: p = p0
H a: p p 0

about a Population Proportion
Test statistic:
Rejection region: |z| > z /2
Note: p0 is the symbol for the numerical value of p
assigned in the null hypothesis
85

about p
87

Large-Sample Hypothesis Test for
p
One-Tailed Test
H0: p = p0
Ha: p < p0 (or Ha: p > p0)
1. A random sample is selected from a binomial

population.
2. The sample size n is large. (This condition will
be satisfied if both np0 15 and nq0 15.)
Test statistic:
Rejection region:
z < z (or z > z when Ha: p > p0)
Note: p0 is the symbol for the numerical value of p
assigned in the null hypothesis
86
88
One-Proportion z Test
Example
One-Proportion z Test Thinking

Challenge
The present packaging system

produces 10% defective
cereal boxes. Using a new
system, a random sample of
200 boxes had 11 defects.
Does the new system produce
fewer defects? Test at the .05
Youre an accounting manager. A

year-end audit showed 4% of
transactions had errors. You
implement new procedures. A
random sample of 500 transactions
had 25 errors. Has the proportion of
incorrect transactions changed at the
.05 level of significance?
89
One-Proportion z Test Solution*
One-Proportion z Test Solution
H0: p = .10
Ha: p < .10
= .05
n = 200
Critical Value(s):
Reject H0
.05
-1.645 0
Test Statistic:
Decision:
Since z = -2.12 < -1.645
Reject at = .05
Conclusion:
There is evidence new
z
system < 10% defective 90
91
H0: p = .04
Ha: p .04
= .05
n = 500
Critical Value(s):
Test Statistic:
Reject H 0
Reject H 0
.025
.025
-1.96 0 1.96 z
Decision:
Conclusion:
There is evidence
proportion is not 4%
92
Test of a Hypothesis about 2
7.7
One-Tailed Test
H0: 2 = 02
Ha: 2 < 02 (or Ha: 2 > 02)
Test of Hypothesis about a

Population Variance
Test statistic:
Rejection region:
(or 2 > 2 when Ha: 2 > 02 )
where 02 is the hypothesized variance and the
distribution of 2 is a chi-square distribution with (n 1)
degrees of freedom.
93
95
Test of a Hypothesis about 2
Variance
Two-Tailed Test
H0: 2 = 02
H a: 2 0 2
Although many practical problems involve

inferences about a population mean (or
proportion), it is sometimes of interest to make
an inference about a population variance, 2.
Test statistic:
Rejection region:
where 02 is the hypothesized variance and the
distribution of 2 is a chi-square distribution with (n 1)
degrees of freedom.
94
96

Hypothesis Test for s 2
Part of Table VI: Critical Values

of Chi Square

population.
2. The population from which the sample is
selected has a distribution that is
approximately normal.
97
Several 2 probability
Distributions
Finding Critical Value Example

What is the critical 2 value given:
Ha: 2 > 0.7
Reject
n=3
=.05?
= .05
df = n - 1 = 2
2 Table
(Portion)
99
98
DF .995
1
...
2 0.010
5.991
Upper Tail Area
.95
0.004
0.103
.05
3.841
5.991
100
Chi-Square (2) Test Example
Is the variation in boxes of

cereal, measured by the
variance, equal to 15 grams?
A random sample of 25
boxes had a variance of
17.7 grams. Test at the .05

Ha: 2 < 0.7
n=3
What do you do
=.05?
if the rejection
region is on the
left?
101
Chi-Square (2) Test

Solution

Ha: 2 < 0.7 Reject H
0
n=3
= .05
=.05?
df = n - 1 = 2
2 Table
(Portion)
0 .103
DF .995
1
...
2 0.010
Upper Tail Area

for Lower Critical
Value = 1.05 = .95
Upper Tail Area
.95
0.004
0.103
103
H0: 2 = 15
Ha: 2 15
= .05
df = 25 1 = 24
Test Statistic:
(n 1) s 2 (25 1) 17.7 2
=
=
02
152
= 28.32
2
Critical Value(s):
/2 = .025
.05
3.841
5.991
0 12.401
102
39.364
Decision:
Since 12.401<28.32<39.364
Conclusion:
2 is not 15
104
Steps for Calculating for a LargeSample Test about
7.8
1. Calculate the value(s) of x corresponding to

the border(s) of the rejection region. There
will be one border value for a one-tailed test
and two for a two-tailed test. The formula is
one of the following, corresponding to a test
with level of significance :
Calculating Type II Error

Probabilities: More about
105
107
Type II Error
The Type II error probability is calculated assuming
that the null hypothesis is false because it is defined
as the probability of accepting H0 when it is false.
The situation corresponding to accepting the null
hypothesis, and thereby risking a Type II error, is not
generally as controllable.
For that reason, we adopted a policy of nonrejection
of H0 when the test statistic does not fall in the
rejection region, rather than risking an error of
unknown magnitude.
106
Upper-tailed test:
Lower-tailed test:
Two-tailed test:
108
2. Specify the value of a in the alternative

hypothesis for which the value of is to be
calculated. Then convert the border value(s)
of to z-value(s) using the alternative
distribution with mean a. The general
formula for the z-value is
Probability of rejecting false H0

Correct decision
Equal to 1
Used in determining test adequacy
Affected by
109
True value of population parameter

Significance level
Standard deviation & sample size n
110
111
Two-Tailed z Test Example

cereal contain less than 368
grams of cereal? A random
sample of 25 boxes had x =
372.5. The company has
specified to be 15 grams.
Test at the .05 level of
significance.
Sketch the alternative distribution (centered

at a) and shade the area in the acceptance
(nonrejection) region. Use the z-statistic(s)
and Table IV in Appendix B to find the shaded
area, which is .
Power of Test
368 gm.
112
Finding Power
Step 1
Finding Power
Step 4
Reject H0
Hypothesis:
H0: 368
Ha: < 368
Do Not
Draw
Reject H0
= .05
0 = 368
= .05
True
Situation:
a = 360 (Ha)
360Education,
363.065
a2011=Pearson
Inc
Finding Power
Steps 2 & 3
Reject H0
Do Not
Draw
Reject H0
Specify
Draw
1
360
a2011= Pearson
Education, Inc
115
Reject H0
Hypothesis:
H0: 368
Ha: < 368
Do Not
Draw
Reject H0
= .05
0 = 368
x
True
Situation:
a = 360 (Ha)
Specify
Finding Power
Step 5
0 = 368
True
Situation:
a = 360 (Ha)
113
= .05
Draw
Specify
Hypothesis:
H0: 368
Ha: < 368
Do Not
Draw
Reject H0
0 = 368
Reject H0
Hypothesis:
H0: 368
Ha: < 368
114
Draw
z Table
1 =.846
= .154
363.065
360Education,
a2011=Pearson
Inc
116
Properties of and Power
Properties of
and Power
3. For fixed and values of 0 and a, the value of

decreases (the power increases) as the sample size
n is increased.
1. For fixed n and ,

the value of
decreases (the
power increases) as
the distance
between the
specified null value
0 and the specified
alternative value a
increases.
117
Properties
of and
Power
119
Key Ideas
Key Words for Identifying the Target Parameter
Mean, Average
2. For fixed n and

values of 0 and
a, the value of
increases (the
power decreases)
as the value of
is decreased.
p Proportion, Fraction, Percentage, Rate, Probability

2 Variance, Variability, Spread
118
120
Key Ideas
Key Ideas
Elements of a Hypothesis Test
Forms of Alternative Hypothesis
1. Null hypothesis (H0)

Lower-tailed : Ha : < 50
2. Alternative hypothesis (Ha)

3. Test statistic (z, t, or 2)
Upper-tailed : Ha : > 50
4. Significance level ()
Two-tailed : Ha : 50
5. p-value
6. Conclusion
121
Key Ideas
123
Key Ideas
Errors in Hypothesis Testing
Using p-values to Decide
Type I Error = Reject H0 when H0 is true

(occurs with probability )
1. Choose significance level ( )
Type II Error = Accept H0 when H0 is false

(occurs with probability )
3. If > p-value, reject H0
2. Obtain p-value of the test
Power of Test = P(Reject H0 when H0 is false)

=1
122
124
Assignments
#97,#121,#130, #132, #133, #142
125

Research Hypothesis

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Statistics for Business and

6. Large-Sample Test of Hypothesis about a

2011 Pearson Education, Inc

8. Calculating Type II Error Probabilities: More about

1. The Elements of a Test of Hypothesis

1. Test a specific value of a population

2. Formulating Hypotheses and Setting Up the

2. Provide a measure of reliability for the

4. Test of Hypothesis about a Population Mean:

2011 Pearson Education, Inc

2011 Pearson Education, Inc

2011 Pearson Education, Inc

Test a specific value of a population

2011 Pearson Education, Inc

2011 Pearson Education, Inc

I believe the mean GPA of

1984-1994 T/Maker Co.

2011 Pearson Education, Inc

2011 Pearson Education, Inc

The null hypothesis, denoted H0, represents

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1. Opposite of null hypothesis

Example problem: Test that the population

The alternative (research) hypothesis,

State the question statistically ( 3)

Must be mutually exclusive & exhaustive

Select the alternative hypothesis ( 3)

Has the , <, or > sign

State the null hypothesis ( = 3)

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What Are the Hypotheses?

What Are the Hypotheses?

Is the average cost per hat less than or equal

State the question statistically: = 12

State the question statistically: 20

State the opposite statistically: 12

State the opposite statistically: > 20

Select the alternative hypothesis: Ha: 12

Select the alternative hypothesis: Ha: > 20

State the null hypothesis: H0: = 12

State the null hypothesis: H0: = 20

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What Are the Hypotheses?

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What Are the Hypotheses?

Is the population average amount of TV

Is the average amount spent in the bookstore

State the question statistically: 12

State the question statistically: > 25

State the opposite statistically: = 12

State the opposite statistically: 25

Select the alternative hypothesis: Ha: 12

Select the alternative hypothesis: Ha: > 25

State the null hypothesis: H0: = 12

State the null hypothesis: H0: 25

2011 Pearson Education, Inc

2011 Pearson Education, Inc

The test statistic is a sample statistic,

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Test Statistic - Example

The sampling distribution of assuming = 2,400.

2011 Pearson Education, Inc

2011 Pearson Education, Inc