MIDTERM WEEK 4: HYPOTHESIS TESTING

LEARNING OUTCOMES

At the end of the lesson, the students should be able to:

1. recall steps in hypothesis testing;
2. perform hypothesis testing using six steps;
3. conduct tests using a statistical software; and
4. state in words the implications for rejecting or not rejecting the null hypothesis.
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INTRODUCTION

Recall that in the previous term, we discussed the two types of Statistics. The descriptive statistics was
discussed in Prelim and Midterm. For this final term, we will deal with the other type of Statistics which is
the Inferential Statistics.

Did you know?

Statistical inference as a distinct discipline began with
Francis Galton (1822–1911), a cousin of Charles Darwin,
who’s On the Origin of Species (1859) became the
inspiration of Galton's life.

Hypothesis Testing is a decision-making process for

evaluating claims about a population. This process involves
collecting data from a sample and evaluating the data. Then
the researcher makes a decision as to whether or not there is
sufficient evidence based upon analyses of data, to reject a
particular hypothesis.

What to check before performing the hypothesis testing?

First, check if the data is normally distributed or not through the normality test (Shapiro-wilk Test)

Parametric Test
- statistical tests for population parameters such as mean, variances, and proportions that involve
assumptions about the populations from which the samples were selected.

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 Things to consider…
✓ Data is normally distributed.
✓ Data have equal variance and same standard deviation.
✓ Data is continuous (interval/ratio).

Non-Parametric Test
- use when the population from which the samples are selected is not normally distributed.
Nonparametric statistics can also be used to test hypotheses that do not involve specific population
parameters, such as μ, σ, or ρ.

Things to consider…
✓ If the data do not meet the criteria for parametric test.
✓ Data are categorical (nominal/ordinal).

Second, in choosing the appropriate Statistical Analysis, check the following:

• What is the main research question?

• This needs to be defined with specific variables in mind.
• Which variables (types of measurement) will help answer the research question?

First Step: State the null and alternative hypotheses.

Remember that in every hypothesis testing begins with the statement of a hypothesis. A statistical
hypothesis is an inference about a population parameter. This inference may or may not be true.

The only sure way of finding the truth or falsity of a hypothesis is by examining the entire
population but that is impossible to do, so we opted to use a sample for the purpose of drawing conclusions.
Using a sample, we can save us time, energy, money and effort.

There are two Kinds of Hypothesis:

1. Alternative Hypothesis (Ha) states specific difference/relationship between a parameter and a

specific value or among parameters.

2. Null Hypothesis (Ho) states that no difference/relationship between a parameter and a specific
value or among parameters.

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 Special consideration is given to the null hypothesis because it is the hypothesis to be tested as to
whether it should be rejected or not. The alternative hypothesis, from the word itself, will be the choice if
the null hypothesis were to be rejected.

In order to state the hypothesis correctly, the researcher must translate correctly the claim into
mathematical symbols. There are three possible sets of statistical hypotheses:

Ho: parameter = specific value This is two-tailed test.

Ha: parameter ≠ specific value
Ho: parameter ≥ specific value This is a left-tailed test (one-tailed).
Ha: parameter < specific value
Ho: parameter ≤ specific value This is a right-tailed test (one-tailed).
Ha: parameter > specific value

Examples: State the null and alternative hypotheses of the following statements;

1. The average age of engineers is greater than 25.4 years old.

Ho: μ = 25.4
Ha: μ > 25.4

2. Filipino students achieved an average score of 353 points in Mathematical Literacy, which was
significantly lower than the OECD average of 489 points (Programme for International Student
Assessment [PISA], 2018).
Ho: μ = 489
Ha: μ < 489

3. The Philippines ranks 110th out of 139 countries in terms of mobile data speed, having an average
of 18.49 megabits per second (Mbps) (Ookla’s Speedtest Global Index, 2020).
Ho: μ = 18.49
Ha: μ ≠ 18.49

4. Kids and teens age 8 to 18 spend an average of more than seven hours a day looking at screens
(American Heart Association [AHA], 2018).
Ho : μ = 7
Ha : μ > 7

5. Filipino families earned Php 313, 000, on average (Philippine Statistics Authority [PSA], 2018).
Ho: μ = 313,000
Ha: μ ≠ 313,000

6. It added that the NCR logged an average of 1,025 new cases per day over the past seven days
covering February 28 to March 6 (OCTA Research, 2021)
Ho: μ = 1,025
Ha: μ ≠ 1,025

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 You should be able to master stating the statistical hypothesis because that is the first step in
hypothesis testing which will be your guide to make a good conclusion in the end.

In addition to that, there are four possible outcomes. In reality, the null hypothesis may or may not
be true. The decision to reject or not to reject is on the basis of the data obtained from the sample of the
population.

Reject Ho Do not Reject Ho

Ho is true Type I Error Correct decision
P=α
Ho is false Correct decision Type II Error
P=β

A Type I Error occurs if one rejects the null hypothesis when it is true. A Type II Error occurs
if one does not reject the null hypothesis when it is false.

The decision is made on the basis of probabilities. That is, if there is a large difference between the
value of the parameter obtained from the sample and the hypothesized parameter, the null hypothesis is
probably not true. The next question the researcher would ask is “How large a difference is necessary to
reject the null hypothesis?” Here is where the level of significance is used.

Second Step: Select the level of significance

How large is necessary to reject the null hypothesis?

The level of significance, denoted by the Greek letter α (Alpha) is the maximum probability of
committing a Type I Error which is P(type I error) = α. The probability of Type II Error is denoted by
Greek letter β (Beta) which is P(type II error) = β.

Generally, statisticians agree on using arbitrary significance levels: 0.10, 0.05 and 0.01. That is, if
the null hypothesis is rejected, the probability of a Type I Error will be 10%, 5% or 1% and the probability
of a correct decision will be 90%, 95% or 99% depending on the level of significance is used. It means that
if the α = 0.05, there is a 5% chance of rejecting a true null hypothesis.

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 Third Step: Identify the appropriate test-statistic and determine whether it is one-tailed or two-tailed.

One way of determining the type of test used in hypothesis testing is based on how the alternative
hypothesis is formulated. A one-tailed test is used when the alternative hypothesis is directional which
means that the value of the means is greater than (>) or less than (<) the other measure. A one-tailed test is
a hypothesis test for which the rejection lies at only one tail of the distribution. One tailed test is classified
as left-tailed or right tailed. If the population mean (µ) is less than the specified value of 𝜇0 , then it is a left
tailed test for which the alternative hypothesis can be expressed as µ < 𝜇0 . It is a right-tailed test if the
population mean (µ) is greater than the specified value of 𝜇0 for which the alternative hypothesis can be
expressed as µ > 𝜇0 .

A two-tailed test is used when the alternative hypothesis is non-directional which means that the
values if two measures of the same kind are not equal. A two-tailed test has a not equal sign (≠) in the
alternative hypothesis. When the population mean (µ) is not equal to specified value of 𝜇0 , then alternative
hypothesis can be expressed as µ ≠ 𝜇0 . A two-tailed test is a hypothesis for which the rejection region lies
on both ends of distribution, one on the left and one on the right.

A statistical test uses the data obtained from a sample to make a decision about whether the null hypothesis
should be rejected.

Test value/computed value - the numerical value obtained from a statistical test.

Descriptive Statistics

Test of Difference

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 Test of Relationship or Association

Fourth Step: Determine the p-value.

The p-value (probability value) is the probability of getting a value of the test statistic that is at least as
extreme as the one representing the sample data, assuming that the null hypothesis is true.

The null hypothesis is rejected if the P-value is very small, such as 0.05 or less.

Fifth Step: State the decision rule and interpret it

To summarize, here are the steps in Hypothesis testing:

1. State the null and alternative hypothesis.
2. Select the level of significance.
3. Identify the statistical test.
4. Determine the p- value
5. State the decision rule and interpret it.

The steps will be used for the succeeding lessons based on the different statistical tests.

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 The table below will be utilized for all activities in hypothesis testing.

Table Number: Title of the Table

a. Hypotheses (2 pts) Ha:

Ho:

b. Level of Significance. (1pt.) 𝛼=

c. Statistical test (2pts) *Normality test (Shapiro Wilk)
p-value =
Interpretation:

*Homogeneity Test (Levine’s Test)

p-value =
Interpretation:

Statistical test:
d. Complete the table. (7 pts.)

Variables mean standard mean t-value p-value Decision

deviation difference

Add columns as needed.

e. Interpretation (3pts)

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