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Testing of Hypothesis - Note

Inferential statistics involves drawing conclusions about a population based on sample data, focusing on parameter estimation and hypothesis testing. The hypothesis testing process includes defining null and alternative hypotheses, determining significance levels, calculating test statistics, and making decisions based on p-values. Errors in hypothesis testing can lead to Type I and Type II errors, and the power of the test is the probability of correctly rejecting a false null hypothesis.

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17 views6 pages

Testing of Hypothesis - Note

Inferential statistics involves drawing conclusions about a population based on sample data, focusing on parameter estimation and hypothesis testing. The hypothesis testing process includes defining null and alternative hypotheses, determining significance levels, calculating test statistics, and making decisions based on p-values. Errors in hypothesis testing can lead to Type I and Type II errors, and the power of the test is the probability of correctly rejecting a false null hypothesis.

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Testing of Hypothesis

Inferential statistics
ᴥ Inferential statistics is concerned with drawing conclusions and/or making
decisions concerning a population based only on sample data.
ᴥ Inferential analysis otherwise known as inferential statistics or statistical
inference is the process of estimating the values of unknown parameters of the
population and testing of hypothesis for drawing inferences.
Main functions of inferential Statistics
1. Estimation of parameters.
2. Test statistical hypotheses.

ESTIMATION
 The process by which one makes inferences about a population, based on
information obtained from a sample.
 Sample statistics to estimate population parameters.
 An estimate of a population parameter may be expressed in two ways: Point
estimate & Interval Estimate.

TESTING OF HYPOTHESIS
In the second situation, some information about a parameter is either known or
specified and the researcher tries to verify whether that information holds good
for the sample drawn from the population as well. This is known as testing of
hypothesis.
 Tests of significance
The mathematical methods which measure the probability of an observed
difference occurring by chance are known as ‘Statistical tests of significance’.
 Purpose of Hypothesis Testing
The purpose of hypothesis testing is to aid the clinician, researcher or
administrator in reaching a conclusion concerning a population by examining a
sample from that population.
 Hypothesis
A statistical hypothesis is an assumption or statement, which may or may not
be true, concerning one or more populations.
Or in other words, an assumption or a statement about a population is called
hypothesis.
General steps in Hypothesis testing
Step 1:- Decide the Null Hypothesis (H0)
Step 2:- Decide the Alternative Hypothesis (H1)
Step 3:- Decided on Significant level
Step 4:- Calculate appropriate test Statistic
Step 5:- p- Value
Step 6:- Conclusion

Step 1:- Decide the Null Hypothesis (H0)


ᴥ The null Hypothesis generally express the idea of “no significant difference.”
ᴥ Or in other words, Null hypothesis is a hypothesis which is tested for
possible rejection.
ᴥ Which is denoted by H0
OR
ᴥ The term 'null' is used as we test the hypothesis on the assumption that there
is no difference between the value of a parameter and the statistic obtained
from a random sample taken from the population.

Example:
H0: There is no difference.

Step 2:- Decide the Alternative Hypothesis (𝐇𝐀 or H1)


ᴥ It express the idea about “some difference.”
ᴥ Or in other words, the hypothesis witch we accept when the null hypothesis
(𝐇𝟎 ) we reject.
ᴥ A null hypothesis is to be tested against an appropriate alternative
hypothesis.
ᴥ Any hypothesis that contradicts a null hypothesis is known as an alternative
hypothesis.
Example: Paracetamol is good for fever.
𝐇𝟏 : There is some difference.
Step 3:- Decided on Significant level
 Level of significance [Alpha (α)]
 The null hypothesis is accept or reject depends on what is significant.
 The probability with which we may reject a null hypothesis when it is true
is called level of significance.
Or
• Level of significance is the maximum probability of rejecting a correct null
hypothesis.
Level of significance is normally expressed in percentage. Usually, the level
of significance is taken as 5% (0.05) or 1% (0.01).

» If Setting the significant level α = 0.05 means that there is a 5% chance that
you will accept your alternative hypothesis when your null hypothesis is
actually true.

Decision are based on sample where the possibility of making errors can be
described as below:
Actual Situation
Decision
Null Hypothesis (H0) is True Null Hypothesis (H0) is False

Correct decision Type II error (FN)


Null Hypothesis (H0)is accepted
1- 

Type I error (FP) Correct decision


Null Hypothesis (H0)is rejected
 1- 

» Type I error: If we reject the null hypothesis (H0) when it is true, is called
type 1 error. α = P [Type I error]
» Type II error: If we accept the null hypothesis (H0) when it is false, is called
type II error. β = P [Type II error]
» Power of the Test: Probability of rejecting the null hypothesis (H0) if the null
hypothesis is false. OR 1- β. (β = Probability of type II error)
Power = 1- β = 1 - P [ Type II error ]
Step4:- Calculate appropriate test Statistics
 This means that the researcher should choose the right type of data
analytical tool for testing the hypothesis
 This is the value that we calculated from the sample data.
 An approximate function of sample used for taking decision regarding the
acceptance or rejection of null hypothesis is called ‘test statistic’.
 Test Statistic or test criterion may include Z-test, t- test, x2 test, F- test, etc.
 The choice of a particular data analytical tool depends on several factors
such as the type of variable, the objective, and the sample size (small or
large; note that the sample is said to be small if it contains less than 30
elements whereas the number of elements in a large sample is 30 or more).

Step 5:- p value(critical value)


 Compare the calculated test statistic to the critical table value of that test for a
1% or 5% level of significance.
ᴥ A p-value is measures that how much evidence we have against the null
hypothesis.
ᴥ Smaller the p-value grater the evidence the null hypothesis. [We reject H0].

If the calculated test statistic is greater than the appropriate critical table value
of the test, then reject the null hypothesis at a particular level of significance.

If the calculated test statistic is less than the appropriate critical table value,
accept the null hypothesis at a particular level of significance.

Statistical significance testing


 A p-value of 0.05 is an arbitrary cutoff for statistical significance.
 If p-value is < 0.05, we may say results are unlikely to be due to chance
and reject H0 in favor of H1 (i.e. we reject H0).
 If p-value >0.05, we say that the chance is a likely explanation for the
finding and we do not reject H0 (i.e. we accept H0).

Critical region & Acceptance region


Acceptance region: When the value of test statistic falls in acceptance region,
we accept the null hypothesis. The value of acceptance region means that the
difference was probably due to chance and null hypothesis should not be rejected.
Critical region: When the value of the test statistic or rejection falls in the critical
area, the null hypothesis is rejected. It is shown by shaded area. Size of the critical
region is also known as the level of significance.
• Level of significance is denoted by α (Alpha). Then acceptance region will
be 1- α
• If we are testing hypothesis at 5% level of significant, the size of the
acceptance region is 0.95(95%) and rejection region is 0.05(5%) or
0.025(2.5%) on each side.

Step 6:- Conclusion


A decision is made based on the size of the p-value. If the p- value is small we
reject H0 and if the p- value is greater than the critical p- value we accept H0.

One tailed and two tailed test


The rejection region represented by a portion of the area under the normal curve
can be expressed in two ways.
1. Two tailed test
2. One tailed test
→ The test of hypothesis based on critical region represented by both tail is
called two tailed test. Right tailed or Left tailed.
→ If the rejection region is represented by only one tail, it is called one tailed
test.
Critical value / Table value
The value of the test separates the rejection region from the acceptance region is
called critical value. It depends on the level of significant (α) and alternative
hypothesis.
When Z test id applied the critical value of different level of significant.
level of significant Two tailed test One tailed
5% (95 % CI) 1.96 1.645
1% (99 %CI) 2.58 2.33

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