Lesson 1: Introduction to Hypothesis Testing

Learning Objectives:
At the end of the learning module, you are expected to:

Quarter 2

Introduction to
Hypothesis Testing
1. illustrate: (a) null hypothesis; (b) alternative hypothesis; (c) level of
significance; (d) rejection region; and (e) types of errors in hypothesis
testing; and
2. identify the parameter to be tested given a real-life problem.

In your previous lessons, you learned about the significance of random sampling
distribution to estimate the population parameter and make a valid and reliable
conclusion. In order to determine your readiness for this lesson, fill in the blanks to
complete each statement.
1. An estimate is a value that approximates a __________.
2. An __________ estimate is a range of values that is used to estimate a
parameter.
3. The confidence level of an interval estimate of a parameter is the
__________ that the interval estimate contains the parameter.
 4. ___________ is a fraction expression where the favorable response is in the
numerator and the total number of respondents is in the denominator.
5. The notations 𝜇 and 𝜎 are __________ values.

LESSON

A hypothesis is an educated guess or proposition that attempts to explain a set

of facts or natural phenomenon. It is used mostly in the field of science, where
the scientific method is used to test it.
Examples:

1. By the end of the year, there will be a big increase in the number of recoveries of
COVID19 patients.
2. The change in climate temperature sets everyone in the community to be more
careful in their daily activities.

Hypothesis testing is another area of Inferential Statistics. It is a

decision making process for evaluating claims about a population based on the
characteristics of a sample purportedly coming from the population. The decision
is whether the characteristic is acceptable or not.
The process of hypothesis testing involves making a decision between two
opposing hypotheses (null and its alternative). If one is true, the other
hypothesis must be false. It means that if the improbability of occurrence can be
established in one hypothesis, then the other hypothesis is likely to occur.
Two Types of Hypotheses

NULL HYPOTHESIS, denoted by 𝐻0, is a statement that there is NO

difference between a parameter and a specific value, or that there is NO
difference between two parameters.

ALTERNATIVE HYPOTHESIS, denoted by 𝐻1, is a statement that there is

difference between a parameter and a specific value, or that there is a difference
between two parameters.

If there is NO DIFFERENCE between the two values, the relationship is written in

symbols as:
𝜇1 − 𝜇2 = 0 (for mean)

𝑝1 − 𝑝2 = 0 (for proportions)
A. The null hypothesis would be B. The alternative hypothesis would
written in symbols as: be written in symbols as:
𝑯𝟎: 𝑯𝟏:
𝑯𝟏:
 𝑯𝟎:

The null hypothesis is the starting point of the investigation. Thus, it is the first
statement to be made. At the end of the hypothesis exercise, based on the
evaluation of the data at hand, a decision is made about the null hypothesis.

“should 𝑯𝟎 be rejected or not rejected (accepted)?”

• If 𝑯𝟎 is accepted there is no need to consider 𝑯𝟏.

• If 𝑯𝟎 is rejected there is a stand by hypothesis to be accepted. That is the

role of alternative hypothesis.
Types of Alternative Hypothesis Definition
A non-directional alternative
hypothesis (two-tailed test) states
Alternative that the null hypothesis is wrong. It
(�1)
Hypothesis
does not predict whether the
� parameter of interest is larger or
smaller than the reference value
specified in the null hypothesis.
Non-
Directional
Directional
A directional alternative
hypothesis states that the null
hypothesis is wrong, and also
One-Tailed One-Tailed
Two-Tailed specifies whether the true value of
Right Left
the parameter is greater than
(onetailed test- right tail) or less
than (one-tailed test- left tail) the
reference value specified in null
hypothesis.

Level of Significance

The level of significance, also denoted as alpha or 𝛼, is a measure of the

strength of the evidence that must be present in your sample before you will
reject the null hypothesis and conclude that the effect is statistically significant.

experiment. To obtain the level of significance use the formula 𝜶 = 𝟏 −

The researcher determines the significance level before conducting the

𝒄𝒐𝒏𝒇𝒊𝒅𝒆𝒏𝒄𝒆 𝒍𝒆𝒗𝒆𝒍.

Types of Errors
Type I Error: If the null hypothesis is true and rejected, the decision is
incorrect.
Type II Error: If the null hypothesis is false and accepted, the decision
is incorrect.
Illustrative Example:

A person is on trial for a criminal offense and the judge needs to provide a
verdict on his case. Now, there are four possible combinations in such a case:
 Four Possible Outcomes in Decision-Making

Error in Decision Type Probabilit Correct Decision Type Probabilit

y y
Reject a true 𝑯𝒐 I 𝛼 Accept a true 𝐻𝑜 A 1−𝛼
𝛽 Reject a false 𝐻𝑜 1−𝛽
𝑯𝒐
Accept a false II B

*Types of Errors: The Probability with which decisions occur.

Rejection Region
Under the normal curve, the rejection region refers to the region where the
value of the test statistic lies for which we will reject the null hypothesis. This
region is also known as critical region.

A. Non- Directional (Two-Tailed Test) – The probability is found on both

tails of the distribution.

1—α
α/2 α/2

B. Directional (One-Tailed, Left Tail) – The probability is found at the

left tail of the distribution.
 1—α
α

μ
C. Directional (One-Tailed, Right Tail) – The probability is found at the
right tail of the distribution.

1—α

Note: The shaded part of each distribution above refers to the rejection
region.
Other Elements of Hypothesis Testing

Population refers to the totality of objects, individuals, characteristics, or

reactions of interest (e.g. based on the total count of votes in the national level
Grace Poe was proclaimed as the number 1 senator.)

Sample is a group of subjects carefully selected from a population of

interest (e.g. As of May 15, 8:15pm, 10% of the votes have been counted and
Nancy Binay is in the 5th spot.)

Parameter is the numerical value that describes characteristics of a

population (e.g. total votes)

Statistic is the numerical value that describes a particular sample (e.g.

10% of votes)

Illustrative Examples:
Situation Population Paramete Sample Statistic
r
 1. An Evaluation of the All BSHS The total Selected 200
Effectiveness of Online students number of BSHS randomly
Learning enrolled in BSHS students selected
online class. students enrolled BSHS
The researcher wants to enrolled in in online students
know if online learning has online class. enrolled in
significantly increased the class. online class.
average GPA of students in
BSHS from the known GPA
which is 85. The GPA of
200 randomly selected
students was found to be
88.

2. Percentage of School School Total Selected 5% of school

Children Suffering from Children in number of school children
Vitamin A Deficiency the School children from 3
Philippines. Children in from 3 schools in
A study was conducted to the schools every region.
determine the percentage Philippines.
in every
of school children who are region.
suffering from vitamin A
deficiency in the country;
5% of school children in
every 3 schools per region
were selected as
respondents on this study.

ACTIVITIES:

A. Determine whether the test is two-tailed or one-tailed. If it is one-tailed,

identify if left-tailed or right tailed.

_____________ 1. A virologist claims that the developed vaccine is enriched with

amino acid supplements.
_____________ 2. An online seller thinks that time of day influences the sale of
products.
_____________ 3. A librarian wants to prove that reading books to students
improves their thinking process.
_____________ 4. A psychologist believes that listening to music decreases the
patients’ level of stress.
_____________ 5. The study habits of students affect their performance in
class.

B. Identify the term that is being described in the given statement.

_____________ 1. Accepting a false null hypothesis.
_____________ 2. Rejecting a true null hypothesis.
_____________ 3. The region where the value of the test statistic lies for which we
will reject the null hypothesis.
_____________ 4. It is a measure of the strength of the evidence that must be
present in your sample before you will reject the null hypothesis
and conclude that the effect is statistically significant.
_____________ 5. It refers to the probability of committing a type I error.

C. Answer the following questions:

1. What is the difference between the null hypothesis 𝐻0 and alternative

hypothesis 𝐻1?
2. What are the different types of alternative hypothesis and their
characteristics?
3. What is the use of level of significance in determining the rejection or
critical region?
4. How are you going to determine if there is an error committed in the
process of decision-making?