Chapter 4 - Hypothesis Testing
Chapter 4 - Hypothesis Testing
Chapter 4 - Hypothesis Testing
Hypothesis Testing
Statistics
Descriptive Inferential
** Hypothesis
** Conclusion
Inferential Statistics
(Hypothesis Testing)
Test
Objective Hypothesis Conclusion
Statistics
Steps in hypothesis testing
1. Formulate the null and alternative hypothesis
2. Choose a significance level, α ( usually 0.05 or 0.01 )
3. Determine the appropriate test statistic(t, z, or chi sq.)
4. Requisite in making Decision/Conclusion:
**Compare the computed value and critical value
or compare p-value and α value
**Decision : (Reject Ho) or (Do not reject Ho)
5. State the conclusion
Hypothesis
⚫ A statement of belief used in the evaluation of
population values.
Hypothesis
Null and Alternative
⚫ Null Hypothesis (Ho)
⚫ A claim that there is no significant difference ___
⚫ A claim that there is no significant relationship __
Solution:
H0:μ=14
Ha:μ≠14
Our null hypothesis states that the population has a mean equal to 14
milligrams. Our alternative hypothesis states that the population has a
mean that is different than 14 milligrams. This is two tailed.
Developing Null and Alternative Hypotheses
2. The school principal wants to test if it is true what teachers say --
that high school juniors use the computer an average 3.2 hours a day.
What are our null and alternative hypotheses?
H0:μ=3.2
Ha:μ≠3.2
Our null hypothesis states that the population has a mean equal to 3.2
hours. Our alternative hypothesis states that the population has a
mean that differs from 3.2 hours. This is two tailed.
Developing Null and Alternative Hypotheses
3. eHealthInsurance claims that in 2011, the average monthly premium
paid for individual health coverage was $183. Suppose you are
suspicious that the average, or mean, cost is actually higher. State the
null and alternative hypothesis you would use to test this.
H0:μ=183
Ha:μ>183
Level of significance
⚫ The level of probability at which the null hypothesis
can be rejected.
Decision: Reject Ho
Conclusion: (Ha)There is a significant difference…
Making decision by comparing the
p- value and the α- value
P - Value Less than α - Value Reject Ho
**There is a significant
relationship/difference
There is no significant
relationship/difference
ILLUSTRATIONS: p-value approach
If p- value is less than α , then reject Ho
0.00 α 1.00
Example: To determine if there is a significant relationship
between the age of students and the number of sticks of cigarettes
they smoked.
Ho: There is no significant relationship …
Ha: There is a significant relationship …
Test statistic : Correlation/ Persons’ r
α – value = 0.05
p-value = 0.112
Thank you!!!