Hypothesis

Testing
Hypothesis Testing
Hypothesis testing is a decision-making
process for evaluating claims about a
population.

Hypothesis testing refers to the formal

procedures used by statisticians to accept
or reject statistical hypotheses.
Hypothesis

A statistical hypothesis is a conjecture

about a population parameter. This
conjecture may or may not be true.
Null Hypothesis
The null hypothesis, symbolized by
H0, is a statistical hypothesis that
states that there is no difference
between a parameter and a
specific value, or that there is no
difference between two
parameters.
Alternative Hypothesis
The alternative hypothesis,
symbolized by H1, is a statistical
hypothesis that states the
existence of a difference between
a parameter and a specific value, or
states that there is a difference
between two parameters.
 How to set the
Hypothesis

1. The equality symbol is always

on the null hypothesis. =, ,
H0: =
H0: H1: = H0:
H1: < H1: >
No matter what the null hypothesis, is
assumed equal to k.
How to write the Hypothesis
2. contains <, , >
- The alternative hypothesis will determine the
kind of test and the direction of the critical region:

>-one tailed and region is to the right of the curve

<-one tailed and region is to the left of the curve
-two tailed and region is on both sides of the curve
Level of Significance
The level of significance is denoted
by . It determines the probability of
rejecting the null hypothesis.
Rejection Region:
The critical value separates the critical region from the
noncritical region. The symbol for critical value is C.V.
The critical or rejection region is the range of values of the
test value that indicates that there is a significant
difference and that the null hypothesis should be rejected.
The noncritical or non rejection region is the range of
values of the test value that indicates that the difference
was probably due to chance and that the null hypothesis
should not be rejected.
Rejection Regions
 Tests for Population Mean

1. z-test-if the population

standard deviation is given
2. t-test-if the population
standard deviation is not given
 Problem 1
A researcher wishes to see if the mean
number of days that a basic, low-price,
small automobile sits on a dealers lot is 29.
A sample of 30 automobile dealers has a
mean of 30.1 days for basic, low-price,
small automobiles. At = 0.05, test the
claim that the mean time is greater than 29
days. The standard deviation of the
population is 3.8 days.
1. H0: = 29 (The mean time is 29 days.)
H1: > 29 (CLAIM) (The mean time is greater than 29 days)
2. Level of Significance: = 0.05
3. Test: z test one tailed
Problem
4. Critical Region: 1.59 Text
z0.05 = 1.645

5. Solutions:


= /
30.129
=
3.8/ 30

= 1.59

6. Decision: Reject H0.

7. Conclusion: There is enough evidence to support the claim.
Types of Errors:
A type I error occurs if you reject the null
hypothesis when it is true.

A type II error occurs if you do not reject

the null hypothesis when it is false.
Types of Errors:
Relationship of &
= probability of
committing a Type I error
= probability of
committing a Type II error
Power of a Test

Power is defined as the

probability of correctly
rejecting a false null
hypothesis.
Question:
Why not choose = 0.000001?
Ans: If we choose a very small , we
will be making it really hard to
reject the null hypothesis thus
increasing the likelihood of a Type II
error
Ten randomly selected people were
asked how long they slept at night.
The mean time was 7.1 hours, and
the standard deviation was 0.78
hour. Find the 95% confidence
interval of the mean time. Assume
the variable is normally distributed.
A survey conducted by Sallie Mae
and Gallup of 1404 respondents
found that 323 students paid for
their education by student loans.
Find the 90% confidence of the true
proportion of students who paid for
their education by student loans.
A physician claims that joggers maximal
volume oxygen uptake is lower than the
average of all adults. A sample of 15
joggers has a mean of 40.6 millilitres
per kilogram (ml/kg) and a standard
deviation of 6 ml/kg. If the average of
all adults is 36.7 ml/kg, is there enough
evidence to support the physicians
claim at =0.05?