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Hypothesis Testing Definitions

The document defines and explains key statistical concepts including simple and composite hypotheses, levels of confidence, critical ranges, Type 1 and Type 2 errors. It provides clear definitions, explanations, and examples for each term, illustrating their significance in hypothesis testing. The summary table at the end concisely encapsulates the definitions and examples for quick reference.

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Somshubhra Bhanja
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2 views5 pages

Hypothesis Testing Definitions

The document defines and explains key statistical concepts including simple and composite hypotheses, levels of confidence, critical ranges, Type 1 and Type 2 errors. It provides clear definitions, explanations, and examples for each term, illustrating their significance in hypothesis testing. The summary table at the end concisely encapsulates the definitions and examples for quick reference.

Uploaded by

Somshubhra Bhanja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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1.

Simple Hypothesis

Definition:

A simple hypothesis is a hypothesis that makes a specific prediction about a population


parameter. It states the exact value or a single condition of the population under study.

Explanation:

• A simple hypothesis defines a clear relationship between an independent variable


and a dependent variable.
• It specifies the expected outcome without any ambiguity.
• It involves only one population parameter (such as mean, proportion, or variance).

Example:

• A factory claims that its light bulbs last exactly 1,000 hours.
o Null Hypothesis ( H0): The average lifespan of the light bulbs is 1,000 hours.
o Alternative Hypothesis ( H1 ): The average lifespan of the light bulbs is not
1,000 hours.

2. Composite Hypothesis

Definition:

A composite hypothesis is a hypothesis that does not specify the exact value of a
population parameter but instead states a range or a condition.

Explanation:

• Unlike a simple hypothesis, a composite hypothesis allows for multiple possible


values of the parameter.
• It does not define a single outcome but includes a broader range of possibilities.
Example:

• A pharmaceutical company claims that its drug is more effective than 70% but does
not specify an exact effectiveness rate.
o Null Hypothesis ( H0 ): The effectiveness of the drug is 70% or less.
o Alternative Hypothesis ( H1 ): The effectiveness of the drug is greater than
70%.

3. Level of Confidence

Definition:

The level of confidence refers to the probability that a statistical test will correctly accept
the null hypothesis when it is true. It represents how sure we are about our results.

Explanation:

• It is expressed as a percentage (e.g., 90%, 95%, or 99%).


• A 95% confidence level means that if we repeated the experiment multiple times,
95% of the time, the results would fall within the estimated range.
• The complement of the significance level (α), where: Confidence
Level=1−α\text{Confidence Level} = 1 - \alpha
o If α = 0.05 (5%), then confidence level = 95%.
o If α = 0.01 (1%), then confidence level = 99%.

Example:

• A researcher conducts a study on student test scores and uses a 95% confidence
level. This means the researcher is 95% confident that the calculated confidence
interval contains the true average test score.
4. Critical Range (Rejection Region)

Definition:

The critical range (or rejection region) is the set of values for a test statistic that leads to
the rejection of the null hypothesis.

Explanation:

• It depends on the significance level (α).


• If the test statistic falls within the critical range, we reject the null hypothesis.
• The boundaries of the critical region are called critical values.
• In a one-tailed test, the rejection region is on one side of the distribution.
• In a two-tailed test, the rejection region is on both sides.

Example:

• A company tests whether its machines produce bolts with an average length of 5
cm.
o The null hypothesis ( H0 ) states the average length is 5 cm.
o If the critical range is below 4.8 cm or above 5.2 cm, then the null
hypothesis is rejected.
o If a sample bolt measures 4.7 cm, it falls in the critical range → Reject H0 .

5. Type 1 Error

Definition:

A Type 1 Error occurs when the null hypothesis ( H0 ) is true, but we incorrectly reject it.

Explanation:

• Also known as a false positive.


• Denoted by α (alpha), which is the probability of making this error.
• The lower the significance level (α), the lower the chance of Type 1 Error.
Example:

• A court trial assumes that a defendant is innocent ( H0 ).


o A Type 1 Error occurs if the innocent person is wrongly convicted.

6. Type 2 Error

Definition:

A Type 2 Error occurs when the null hypothesis ( H0 ) is false, but we fail to reject it.

Explanation:

• Also known as a false negative.


• Denoted by β (beta), which is the probability of making this error.
• A lower Type 2 Error increases the power of the test.

Example:

• In a medical test, a Type 2 Error occurs if a test fails to detect a disease when the
patient actually has it.
o Null Hypothesis ( H0 ): The patient does not have the disease.
o If the test fails to detect the disease, but the patient actually has it, that’s a
Type 2 Error.

Summary Table

Term Definition Example


Simple Specifies an exact value or a single
"The average test score is 75."
Hypothesis condition.
Composite Specifies a range or multiple "The average test score is more
Hypothesis conditions. than 75."
The probability that the null A 95% confidence level means
Level of
hypothesis is correctly accepted results are reliable 95% of the
Confidence
when true. time.
Critical The region where the null hypothesis If a test score is too low or too
Range is rejected. high, we reject H0 .
Rejecting a true null hypothesis (false
Type 1 Error Convicting an innocent person.
positive).
Failing to reject a false null hypothesis A faulty medical test missing a
Type 2 Error
(false negative). disease.

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