Tests of Hypothesis

Goal of Hypothesis Testing

- to make a judgement about the difference
between the sample statistic and the hypothesized
population parameter.
Use of Hypothesis Testing
- it enables a researcher to generalize population
from relatively small samples. In many instances , a
researcher can only rely on the information
provided by apart of the population.
Kinds of hypotheses
1. Scientific hypotheses – educated guesses based
on observations on how nature behaves under
certain conditions or circumstances .
• all have physical bases which can be verified through experiments
and other forms of investigations.
• therefore , maybe described as a suggested solution to a problem
about nature.
• Example: you may guess that it will rain tomorrow when you see the
dark clouds with occasional lightning in the day of March
Kinds of Hypotheses
2. Statistical hypotheses – is a statement about
an unknown population parameter which is
verified using the information from the sample.
• Example you may hypothesize that a correlation
exist between two variables.
• H : p ≠ 0 where p is the correlation coefficient.
Alternative hypothesis is a statistical hypothesis
which the researcher wants to prove. Null hypothesis
is a statistical hypothesis which a researcher doubts
to be true.
Basic Definitions in Hypothesis Testing

1. Statistical hypothesis – is an assumption or

statement ,which may or may not be true ,
concerning one or more population.
2. Null hypothesis (Ho) – known as a no
difference relationship hypothesis. It implies
neutrality and objectivity , which must be
present in any research undertaking.
Basic Definitions in Hypothesis Testing
3. Alternative hypothesis (Ha) – is the opposite of
the null hypothesis. It specifies an existence of a
difference , and is therefore non – directional. On
the other hand, this hypothesis is also called a
predictive hypothesis. The predictive hypothesis,
specifies that one group is better than the other
,and it is therefore sometimes directional.
Basic Definitions in Hypothesis Testing
4. Critical region - is a set of values of the test
statistic that is chosen before the experiment to
define the conditions under which the null
hypothesis will be rejected.
5. Significance level – is the maximum value of
the probability of rejecting the null hypothesis
when in fact it is true.
Directional and non directional hypothesis
Directional hypothesis –is an assertion that one measure is less
than ( or greater than ) another measure of similar nature.
- “ less than “ ( < ) or “Greater than” ( > )
-one – side hypothesis
Non-directional – is one which asserts that one value is different
from another ( or others )
-there is significant difference between two statistical
measures.
- “ not equal to “ ( ≠ )
Directional Hypothesis
In the Directional Hypothesis, the null
hypothesis is rejected if the test score
is too large (for right-tailed and too
small for left tailed). Thus, the rejection
region for such a test consists of one
part, which is right from the center.
Non-Directional Hypothesis
In a Non-Directional Hypothesis test, the Null
Hypothesis is rejected if the test score is either
too small or too large. Thus, the rejection region
for such a test consists of two parts: one on the
left and one on the right.
 
One tailed and two tailed tests

Acceptance
region Rejection
Rejection
Rejection Acceptance region region
region region

One Tailed Two Tailed

(Directional < >) (Non-equality ≠)
Examples of Statistical hypothesis
•1. Ho : The average annual income of all the families in
District 1 , is Php 145,000
(µ = Php 145,000 )
Ha: The average annual income of all the families
a

in District I , is not Php 145,000

(µ ≠ Php 145,000 )
2. Ho : There is no significant difference between
the average life of brand A light bulbs and that of
brand B light bulbs (µA = µB )
Ha: There is significant difference between the
average life of brand A light bulbs and that of brand
B light bulbs (µA ≠ µB )
3.Ho : The Proportion of college students who
prefer to taste PAPSE Cola is 1/3
( p = 1/3)
Ha: The Proportion of college students who
prefer to taste PAPSE Cola is less than
1/3
( p < 1/3 )
•3. Ho : The Proportion of TV Viewers who
watch shows from 9:00 to 10:00 in the
evening is the same on Wednesday and
Friday. ( p1 = p2)
• Ha:The Proportion of TV Viewers who
watch shows from 9:00 to 10:00 in the
evening is greater on Wednesday than
on Friday. ( p1 > p2)
Two types of error
Type I error - is when we reject the null
hypothesis when it is true.

Type II error - is when we accept or fail to reject

the null hypothesis when the alternative
hypothesis is true. Or if one does not reject the
null hypothesis when it is false.
 In the hypothesis testing situation, there are
four possible outcomes.
Ho true Ho false
____________________________________
Error Correct
Reject Ho Type I decision
______________________________________________
Correct Error
Do not reject Ho decision Type II
Critical Value is the cut off value between
Acceptance Zone and Rejection Zone. We compare
our test score to the critical value and if the test
score is greater than the critical value, that means
our test score lies in the Rejection Zone and we reject
the Null Hypothesis. On the opposite side, if the test
score is less than the Critical Value, that means the
test score lies in the Acceptance Zone and we fail to
reject the null Hypothesis.
CRITICAL REGIONS IN TESTING HYPOTHESIS
LEVEL OF ONE - TAILED TWO - TAILED
SIGNIFICANCE /
TYPE OF TEST

α = .05 Z > 1.645 Z > 1.96 or

( or Z < - 1.645 ) Z < - 1.96

α = .01 Z > 2.33 Z > 2.575 or

( or Z < - 2.33 ) Z < - 2.575
Level of Significance
•When α = .05, the region of rejection will have
an area of 0.05 ; thus , the region of acceptance
will have an area of .95.
•When α = .01, the region of rejection will have
an area of 0.01 ; thus , the region of acceptance
will have an area of .99.
Steps in Hypothesis Testing
Step 1. Formulate or state the null hypothesis Ho
and the alternative hypothesis Ha .
Step 2. State the level of significance (α ).
Step 3: Determine the test to be used
Step 4. Find the critical value (s) from the table.
Step 5. Compute for the test statistic.
Step 6. Make the decision to reject or not to
reject the null hypothesis.
Steps in hypothesis Testing
• Formulate the null hypothesis that there is no significant
difference between items being compared. State the alternative
hypothesis which will be used in case Ho is rejected
• Set the level of significance (α )
• Determine the test to be used. Use z if population standard
deviation is given and t if sample standard deviation is given.
• Determine the tabular value. Use z tabular for z test
• For t tabular, compute degree of freedom (df) then look for the
tabular value from the table of t-distribution.
• Single sample df = n-1
• Two samples df = n1+n2 -2
• Compute for the z or t test
• Compare the computed with the tabular value
• Reject Ho if the absolute value is equal or greater than (≥) the absolute
tabular value
• Accept Ho if the absolute value is less than (<) the absolute tabular
value
What is the Z Test?
z  tests are a statistical way of testing a hypothesis
when either:
∙ We know the population variance, or
∙ We do not know the population variance but our
sample size is large n ≥ 30
Z - test (population standard deviation)

1/n1 + 1/n2
Z-test
•
Uses of z –test
- the sample is larger ( n ≥ 30 )
-Population standard deviation is
known
-When we want to test the significant
difference of sample data
-Advisable for one or two sample
cases or treatment
-z – test requires normality of
distribution
Z-test
•
T- test
•The sample size is small ( n ≤ 30 )
•Sample standard deviation is known
•Data follows a normal distribution
•When we want to test the significant
differences.
•Advisable for one or two sample cases or
treatments
ANOVA
Analysis of Variance
• Is a technique in inferential statistics designed to test whether or not
more than two samples ( or groups ) are significantly different from
each other.
• T-test is used to test non significance of difference between samples
, taking them one pair at a time for ANOVA simultaneous testing all
samples at a single time.
• T- test formula are applied as many time as there are pairs among
samples , ANOVA applies only once
Test on large Sample Mean
•A manufacturer claims that the average lifetime
of his lightbulbs is 3 years or 36 months. The
standard deviation is 8 months. Fifty bulbs are
selected, and the average lifetime is found to be
32 months. Should the manufacturer’s
statement be rejected at α = 0.01 ?
Solution
Step 1. State the hypothesis
Ho : µ = 36 months
Ha : µ ≠ 36 months
Step 2. Level of significance α = 0.01
Step 3. Determine the test to be used:
z - test
Step 3. Find the critical value
two tailed , critical value = ± 2.575
Step 4. Compute the test statistics
Step 4 con’t.
•
5. Make a decision
• the test statistic = -3.54 is less than the critical
value = - 2.575 and it falls in the rejection region
in the left tail. Therefore reject Ho and conclude
that the average lifetime of the lightbulbs is not
equal to 36 months.
Example2. of z - test
A researcher reports that the average salary of
sales managers in the province is more than
Php 39,500 per month. A sample of 30 sales
managers has a mean salary of Php 42 ,100. At =
5% , test the claim that sales mangers earn more
than PHP 39,500 per month. The standard
deviation is Php 5,200.00
Solution
Step 1. State the hypothesis
Ho : µ ≤ P 39,500
Ha : µ > P 39,500
Step 2. level of significance α = 5 % or 0.05
Step 3. Critical Value = 1.645
one – tailed ( directional )
Con’t. Example 2
•
Cont. Example 2
Step 5. Make a decision
Since the computed test value = 2.74 , is more
than the critical value = 1.645 , the decision is “
Reject the Null hypothesis “ , that the salary of
the sales managers in the province is more than
P 39,500.00.
Exercises : Problem 1
•A supplier sells rope. He claims that
the rope have a mean strength of 34
lbs. and a variance of 64 lbs. A
random sample of 32 ropes selected
from a shipment yields a mean
strength of 31 lbs. Are you going to
reject he claim of the supplier at .05
level?
Exercises: Problem 1
• A researcher wishes to find out whether or not there
is significant difference between the monthly
allowances of morning and afternoon students in his
school. By random sampling, he took a sample of 239
students in the morning session. These students
were found out to have a mean monthly allowance
of Php 142.00. The searcher also took a sample of
209 students in he afternoon session. They were
found to have a mean monthly allowance of Php
148.00 . The total population of students in that
school has standard deviation of Php 40.00. Is there
significant between the two samples.
Solution
• Ho : There is no significant between the samples.
( X 1 = X2 )
• Ha: There is significant between the samples)
( X 1 ≠ X2 )
level of Significance : .01
• Z – test- since the population standard
deviation is given
• Critical value : two – tailed z ± 2.58
 Z = X1 – X2______
σ 1/ n + 1/n

• Z = 142 – 148
40 √ 1/239 + 1/209
• = - 6_________
40 √ .0042 + .0048
= -6 / 40 ( .095 )
= - 1.579
The computed value / - 1.596 / is less than the tabular value 2.58.
Accept the null hypothesis.
There is no significant difference between two samples.