Scribd
Upload
26 views

Hypothesis Testing: The Various Steps

The document outlines the steps for hypothesis testing: 1) Formulate the null and alternative hypotheses 2) Calculate the t-statistic test value 3) Determine the critical cutoff values based on the significance level 4) Check if the t-statistic falls in the rejection region to conclude whether to reject the null hypothesis

Uploaded by

Prottoy
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
26 views

Hypothesis Testing: The Various Steps

The document outlines the steps for hypothesis testing: 1) Formulate the null and alternative hypotheses 2) Calculate the t-statistic test value 3) Determine the critical cutoff values based on the significance level 4) Check if the t-statistic falls in the rejection region to conclude whether to reject the null hypothesis

Uploaded by

Prottoy
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 27

Hypothesis Testing the various steps

Hypothesis Testing the various steps


Hypothesis Testing the various steps
Hypothesis Testing the various steps
Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis


Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis

Null Hypothesis H0:


Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis

Null Hypothesis H0:


Alternate Hypothesis HA:
Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis

Null Hypothesis H0: µ = 200


Alternate Hypothesis HA: µ ≠ 200
Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis

Null Hypothesis H0: µ = 200


Alternate Hypothesis HA: µ ≠ 200
Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis

Null Hypothesis H0: µ = 200 Two tailed


Alternate Hypothesis HA: µ ≠ 200 test
Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis

Null Hypothesis H0: µ = 200 Two tailed


Alternate Hypothesis HA: µ ≠ 200 test
Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis

Null Hypothesis H0: µ = 200 Two tailed


Alternate Hypothesis HA: µ ≠ 200 test

Step 2 : Calculate the t-statistic


Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis

Null Hypothesis H0: µ = 200 Two tailed


Alternate Hypothesis HA: µ ≠ 200 test

Step 2 : Calculate the t-statistic


Hypothesis Testing the various steps

Step 1 : Formulate Hypothesis

Null Hypothesis H0: µ = 200 Two tailed


Alternate Hypothesis HA: µ ≠ 200 test

Step 2 : Calculate the t-statistic

Sample mean 199 way above 200 t-statistic -3.9528 way above 0
Sample mean 199 way below 200 t-statistic -3.9528 way below 0
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.

tn-1 distribution

α/2 probability α/2 probability


Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.

t-cutoff = +/- |T.INV(α/2, n-1)|


tn-1 distribution

α/2 probability α/2 probability


Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.

t-cutoff = +/- |T.INV(α/2, n-1)|


tn-1 distribution
= +/- |T.INV(0.05/2, 10-1)|
= +/- 2.622

α/2 probability α/2 probability


Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.

t-cutoff = +/- |T.INV(α/2, n-1)|


tn-1 distribution
= +/- |T.INV(0.05/2, 10-1)|
= +/- 2.622

α/2 probability α/2 probability

-2.622 +2.622
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Step 4 : Check whether t-statistic falls in the rejection region

tn-1 distribution

-2.622 +2.622
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Step 4 : Check whether t-statistic falls in the rejection region

tn-1 distribution

t-statistic = -3.9528

-2.622 +2.622
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Step 4 : Check whether t-statistic falls in the rejection region

tn-1 distribution Conclusion:


 We reject the Null hypothesis

t-statistic = -3.9528

-2.622 +2.622
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Step 4 : Check whether t-statistic falls in the rejection region

tn-1 distribution Conclusion:


 We reject the Null hypothesis
 Our evidence is not consistent
with the claim made
t-statistic = -3.9528

-2.622 +2.622

You might also like