Hypothesis Testing
Hypothesis Testing
Hypothesis Testing
A test of a null hypothesis is simply a rule based on the results of a random sample
whereby we decide whether to accept or reject the particular null hypothesis (H0)
under question.
Test statistic depends on the nature of data and it helps in decision making since
the decision to reject or accept H0 depends on the magnitude of the test statistic.
Critical or Rejection region : is the set of all possible values of the test statistic
that lie to one side of the critical value. The values that lie to the other sides of the
critical value constitute the acceptance region. The critical value of a test statistic is
that value or values that lies on the boundary or boundaries of the critical region.
Significance level of a test: This is the probability that the test statistic lies in the
critical region under H0 and the most commonly used levels are 5% and 1%.
Decision rule for a statistical test is a model given values of a sample statistics (
not necessarily the test statistics) that will lead to either the acceptance or rejection
of the stated null hypothesis.
The decision rule tells us to reject H0 if the value of the test statistic lies in the
critical region. On the other hand, we accept H0 if the computed value of the test
Accept H0
Reject H0
H0 is false
Incorrect decision Type II
error
Correct Decision (1 )
Step 3: Determine the critical region using the cumulative distribution table from
the test statistic. This step involves specifying the values of the test statistic that
leads to the acceptance or rejection of H0.
Step 4: Compute the value of the test statistic based on the sample information.
Step 5: You make the statistical decision and interpretation.
Example 33.
It has been found from experience that the mean lifetime of a sample of 50 bulbs
produced by a company is computed to be 1570 hours with a standard deviation of
100 hours. If is the mean lifetime of all bulbs produced by the company. Test the
hypothesis: = 1000 hours against the alternative 1000 hours.
Solution.
H0 : = 1000 hours
H1 : 1000 hours
It is a two tailed test.
We reject the null hypothesis and conclude that the data does not support the
companys claim.
Example 35.
In the past, the tensile strength of the polythene bag produced by a businessman
was 4500kg. To determine whether the machine producing these polythene bags is
in proper working condition, a sample of 17 polythene bags are measured. The
sample mean was 4482kg and the standard deviation was 115kg.
Is the machine in proper working order at 0.05 level of significance?
Solution.
H0 : = 4500 (machine is in proper working order)
H1 : 4500 (machine is not in proper working order)
It is a two tailed test.
We reject the null hypothesis and conclude that the catalysts do not meet the
stipulated specifications.
Example 37.
A company manufactures fluorescent tubes which have life span that is normally
distributed with a mean of 700 hours and a standard deviation of 50 hours. A
random sample of 100 tubes showed an average life span of 720 hours.
Does this suggest at the 0.01 level of significance that the average life span of the
fluorescent tubes manufactured by the company has increased?
Solution.
H0 : = 700
H1 : > 700
It is a one tailed test.
We reject the null hypothesis and conclude that the mean life span of the
fluorescent tube manufactured by the company has increased.
Example 38.
It has been found from experience that the mean breaking strength of a particular
brand of thread is 9.72kg with a standard deviation of 1.4kg. Recently a sample of
36 pieces of the thread showed a mean breaking strength of 8.93kg. Can one
conclude at a significant level of 0.05 that the thread has become inferior?
Solution.
H0 : = 9.72 kg
H1 : < 9.72 kg
It is a one tailed test.
We accept the null hypothesis and conclude that the brand has not become inferior.