Continuation of Hypothesis Testing

TYPES OF HYPOTHESES
Type I and Type II Error
DECISION
SITUATION
ACCEPT NULL REJECT NULL
Type I Error
Null is true Correct
(𝛼 error)
Type II Error
Null is false (  error)
Correct

A type I error occurs if you reject the null hypothesis when it is true.
A type II error occurs if you do not reject the null hypothesis when it is false.
 TYPES OF HYPOTHESES
Level of Significance
In testing a given hypothesis, the maximum probability with which we would be willing to
risk a Type I error is called the level of significance, or significance
level, of the test. This probability, often denoted by  , is generally specified before
any samples are drawn so that the results obtained will not influence our choice.

Significance means the percentage risk to reject a null hypothesis when it is true.
Generally it is taken as 1%, 5%, or 10% . (1 − 𝛼) is the confidence interval in
which the null hypothesis will exist when it is true.
TYPES OF HYPOTHESES
Level of Significance
In practice, a significance level of 0.05 or 0.01 is customary, although other values
are used. If, for example, the 0.05 (or 5%) significance level is chosen in designing
a decision rule, then there are about 5 chances in 100 that we would reject the
hypothesis when it should be accepted; that is, we are about 95% confident that we
have made the right decision. In such case we say that the hypothesis has been
rejected at the 0.05 significance level, which means that the hypothesis has a 0.05
probability of being wrong.
 TYPES OF HYPOTHESES
Hypothesis-Testing Common Phrases
= > < ≠
Is equal to Is greater than Is less than Is not equal to
Is the same as Is above Is below Is different from
Has not changed from Is higher than Is lower than Has changed from
Is the same as Is longer than Is shorter than Is not the same as
Is bigger than Is smaller than
Is increased Is decreased or reduced
from
 TYPES OF HYPOTHESES
Two-tailed test @ 5% Significance level
Acceptance and Rejection regions in case of a Two-tailed test

Suitable when 𝐻0 : 𝜇 = 𝜇0 and 𝐻𝑎 : 𝜇  𝜇0

𝑅𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑟𝑒𝑔𝑖𝑜𝑛 𝑠𝑖𝑔𝑛𝑖𝑓𝑖𝑐𝑎𝑛 𝑅𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑟𝑒𝑔𝑖𝑜𝑛/ 𝑠𝑖𝑔𝑛𝑖𝑓𝑖

𝑐𝑒 𝑙𝑒𝑣𝑒𝑙 Total 𝑐𝑎𝑛𝑐𝑒 𝑙𝑒𝑣𝑒𝑙
(𝛼 = 0.025 𝑜𝑟 2.5%) 𝐴𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑟𝑒𝑔𝑖𝑜𝑛 (𝛼 = 0.025 𝑜𝑟 2.5%)
𝑜𝑟 𝑐𝑜𝑛𝑓𝑖𝑑𝑒𝑛𝑐𝑒 𝑙𝑒𝑣𝑒𝑙
(1 − 𝛼) = 95%
𝐻0 : 𝜇 = 𝜇0
 TYPES OF HYPOTHESES
Forming Hypotheses:
Situation 1 (Two-tailed)
A medical researcher is interested in finding out whether a new medication will have any
undesirable side effects. The researcher is particularly concerned with the pulse rate of the
patients who take the medication. The mean pulse rate for the population under study is 82
beats per minute. Will the pulse rate increase, decrease, or remain unchanged
after a patient takes the medication?
 TYPES OF HYPOTHESES
Situation 1 (Two-tailed)
Since the researcher knows that the mean pulse rate for the population under study is 82
beats per minute, the hypotheses for this situation are

H0 : There is no change in the pulse rate after a patient takes the

medication
Ha : There is a change in the pulse rate after a patient takes the
medication
Mathematical Notation:

H0 :  = 82; Ha :   82
 TYPES OF HYPOTHESES
Right-tailed test @ 5% Significance level
Acceptance and Rejection regions in case of a right-tailed test

Suitable when 𝐻0 : 𝜇 = 𝜇0 and 𝐻𝑎 : 𝜇 > 𝜇0

𝑅𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑟𝑒𝑔𝑖𝑜𝑛/ 𝑠𝑖𝑔𝑛𝑖

Total 𝑓𝑖𝑐𝑎𝑛𝑐𝑒 𝑙𝑒𝑣𝑒𝑙
𝐴𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑟𝑒𝑔𝑖𝑜𝑛 (𝛼 = 0.05 𝑜𝑟 5%)
𝑜𝑟 𝑐𝑜𝑛𝑓𝑖𝑑𝑒𝑛𝑐𝑒 𝑙𝑒𝑣𝑒𝑙
(1 − 𝛼) = 95%
𝐻0 : 𝜇 = 𝜇0
 TYPES OF HYPOTHESES
Forming Hypotheses:
Situation 2 (Right-tailed)
A chemist invents an additive to increase the life of an automobile battery. The mean lifetime of the
automobile battery without the additive is 36 months.

In this situation, the chemist is interested only in increasing the lifetime of the batteries.
With the mean of 36 months, the hypotheses are

H0 : There is no increase in the lifetime of batteries with additive

Ha : There is an increase in the lifetime of batteries with additive
Mathematical Notation: H0 :  = 36 Ha :  > 36
 TYPES OF HYPOTHESES
Left-tailed test @ 5% Significance level
Acceptance and Rejection regions in case of a left-tailed test

Suitable when 𝐻0 : 𝜇 = 𝜇0 and 𝐻𝑎 : 𝜇 < 𝜇0

𝑅𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑟𝑒𝑔𝑖𝑜𝑛 𝑠𝑖
𝑔𝑛𝑖𝑓𝑖𝑐𝑎𝑛𝑐𝑒 𝑙𝑒𝑣𝑒𝑙 (𝛼 Total
= 0.05 𝑜𝑟 5%) 𝐴𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑟𝑒𝑔𝑖𝑜𝑛
𝑜𝑟 𝑐𝑜𝑛𝑓𝑖𝑑𝑒𝑛𝑐𝑒 𝑙𝑒𝑣𝑒𝑙
(1 − 𝛼) = 95%
𝐻0 : 𝜇 = 𝜇0
 TYPES OF HYPOTHESES
Forming Hypotheses:
Situation 3 (Left-tailed)
A contractor wishes to lower heating bills by using a special type of insulation in houses. The
average of the monthly heating bills is $78,
Since the contractor is interested only in lowering heating costs, the hypotheses are

H0 : There is no decrease in the heating bills using insulation

Ha : There is a decrease in the heating bills using insulation
Mathematical Notation: H0 :  = 78 Ha :  < 78
 TYPES OF HYPOTHESES
Forming Hypotheses:
More examples:
State the null and alternative hypotheses for each conjecture.
1. A manufacturer of IT gadgets recently announced they had
developed a new battery for a tablet and claimed that it has an
average life of at least 24 hours. Would you buy this battery?
H0 : The average life of the newly developed Mathematical Notation:
battery for a tablet is at least 24 hours.
H0 :  ≥ 24;
Ha : The average life of the newly developed Ha :  < 24
battery for a tablet is less than 24 hours.
 TYPES OF HYPOTHESES
EXERCISES:
State the null and alternative hypotheses for each conjecture.
a. A researcher thinks that if expectant mothers use vitamin pills, the
birth weight of the babies will increase. The average birth weight of
the population is 8.6 pounds.
H0 : There is no significant increase in
the birth weight of babies if Mathematical Notation:
expectant mothers use vitamin pills H0 :  = 8.6;
Ha : There is a significant increase in the Ha :  > 8.6
birth weight of babies if expectant
mothers use vitamin pills
 TYPES OF HYPOTHESES
EXERCISES:
State the null and alternative hypotheses for each conjecture.
b. An engineer hypothesizes that the mean number of defects can be
decreased in a manufacturing process of USB drives by using robots
instead of humans for certain tasks. The mean number of defective
drives per 1000 is 18.
H0 : There is no significant decrease in the number
of defects if USB drives are manufactured Mathematical Notation:
using robots instead of humans.
Ha : There is a significant decrease in the number H0 :  = 18;
of defects if USB drives are manufactured Ha :  < 18
using robots instead of humans.
 TYPES OF HYPOTHESES
EXERCISES:
State the null and alternative hypotheses for each conjecture.
c. A psychologist feels that playing soft music during a test will change
the results of the test. The psychologist is not sure whether the grades
will be higher or lower. In the past, the mean of the scores was 73.

A simpler way of stating the H0 and Ha would be:

Mathematical Notation:

H0: The result of the test is equal to 73. H0 :  = 73;

Ha: The result of the test is not equal to 73. Ha :   73
 CHARACTERISTICS OF HYPOTHESIS

1. Clear and precise.

2. Capable of being tested.
3. Stated relationship between variables.
4. Limited in scope and must be specific.
5. Stated as far as possible in most simple terms so that the same is easily
understand by all concerned (But one must remember that simplicity of
hypothesis has nothing to do with its significance).
 CHARACTERISTICS OF HYPOTHESIS

6. Consistent with most known facts.

7. Responsive to testing with in a reasonable time. One can’t spend a life time
collecting data to test it.
8. Explain what it claims to explain; it should have empirical reference
WHEN TO USE z – TEST
The z – test is used when
• means of population are statistically tested
• Population is normally distributed
• n ≥ 30
•  is known
Formula: Where:
X = sample mean
z = X s- m  = hypothesized population mean
n  = population standard deviation
n = sample size
WHEN TO USE t – TEST
The t – test is used when
• means of population are statistically tested
• Population is normally or approximately distributed
• n < 30
•  is unknown, rather is given or computed
Formula: Where: X = where sample mean
X- m  = hypothesized population mean
t= s = sample standard deviation
s
n = sample size
n
The degrees of freedom are d.f. = n -1.
 STEPS IN TESTING HYPOTHESIS

Procedure for Hypothesis Testing (10-step Rule)

1. Formulate the null (𝐻0)
2. Formulate the alternative hypotheses (𝐻a).
3. Determine the type of Test (Left-tailed, Right-tailed or Two-tailed)
4. Specify the level of significance ( level):
1%, 5%, 10% etc.
5. Decide a test statistics: z-test, t- test, F-test, etc.
 STEPS IN TESTING HYPOTHESIS

Procedure for Hypothesis Testing (10-step Rule)

6. Use appropriate formula.
7. Find the test statistic value (zc or tc)
8. Find the critical value from the t-table (tabular value).
9. Make the decision on whether to reject or not to reject (accept) H0.
10. Formulate conclusion based from the decision.
 STEPS IN TESTING HYPOTHESIS
Degrees of Freedom
For z-distribution,
𝑑. 𝑓. = not required

For t-distribution,
𝑑. 𝑓. = 𝑛1 − 1
(for single population)
𝑑. 𝑓. = 𝑛1 + 𝑛2 − 2
(for two population)
 STEPS IN TESTING HYPOTHESIS

Tabular Value (Critical Value)

• Selected from the table for the appropriate test.
• Determines the critical and noncritical regions.
• Critical region or the rejection region is the range of the values of
the test value that indicates that there is a significant difference and
that the null hypothesis should be rejected.
 STEPS IN TESTING HYPOTHESIS
Tabular Value (Critical Value)
Example 1
Using the z table, find the critical value of the two-tailed test with 𝛼 =
0.05
Solution:
Since this is a two-tailed test, there are two areas equivalent to 𝛼/2
or 0.05/2=0.025.
Subtract 0.025 from 0.5 to get 0.475. Find the z value that
corresponds to 0.475, which is ±1.96
 STEPS IN TESTING HYPOTHESIS
Tabular Value (Critical Value)

(𝛼/2 = 0.025 𝑜𝑟 2.5%) (𝛼/2 = 0.025 𝑜𝑟 2.5%)

0.475 0.475

-3 -2 -1 0 1 2 3

-1.96 -1.96
 STEPS IN TESTING HYPOTHESIS
From the Standard Normal Distribution table,
A(z=1.96)
= 0.4750
Thus,
z = 1.96 0.4750

0.475
0
 STEPS IN TESTING HYPOTHESIS
Alternate Method
 STEPS IN TESTING HYPOTHESIS

Exercises:
Using the z table, find the critical value/s for each:
1.  = 0.01, two tailed test 2.575
2.  = 0.10, left tailed test 1.282
3.  = 0.025, right tailed test 1.960

Ooops! Seatwork first before we proceed…

 SAMPLE PROBLEMS

Example 1:
A principal at a certain school claims that the students in his school are above average
intelligence. A random sample of thirty students IQ scores have a mean score of
112.5. Is there sufficient evidence to support the principal’s claim? The mean
population IQ is 100 with a standard deviation of 15. IQ’s are normally distributed.
 SAMPLE PROBLEMS
Solution:
Step 1: State the Null Hypothesis.
H0: The accepted fact is that the population mean is 100, so:
H0: μ = 100
Step 2: State the Alternate Hypothesis.
Ha: The claim is that the students have above average IQ
scores, so: Ha: μ > 100.
Step 3: State the type of test: One-tailed
(or simply right-tailed to be more definite)
Step 4: State the level of significance (alpha level). 0.05
(Note 0.05 shall be used unless otherwise indicated in the problem)
 SAMPLE PROBLEMS

Solution:
Step 5: Establish Test statistic. z-test
Step 6: Use appropriate formula z = X s- m
n
Step 7: Compute Test statistic value z = 4.56
Solution:
Step 8: Illustrate tabular value. First set our critical value. It
is simpler to determine the z-score from our SND table. For
the significance level  5% in a one-tailed test is 1.645,
Solution:
Step 8: The critical value z may also be obtained using the
z-table.

45%
5%

1.645
45% (0.4500) is so far midway between P(z=1.64) = 0.4495 and
P(z=1.65) = 0.4505 and we can say that P(z=1.645) = 0.4500.
Solution:
Step 8: The critical value
z may also be obtained
P(z=1.640) = 0.4495
using the z-table.
P(z=1.645) = 0.4500
P(z=1.650) = 0.4505
P(z=1.64) = 0.4495
and
P(z=1.65) = 0.4505
We can say that Z = 1.64 Z = 1.65
P(z=1.645) = 0.4500.
Solution:
Step 8: Hence, Acceptance 4.56 lies to the
region right of the critical
value 1.645

Rejection region

1.645
4.56

NOTE: In this case, the computed value zc is greater

(4.56 > 1.645). Thus, it lies on the rejection region
Solution:
Step 9: Establish decision. Since 4.56 > 1.645. Reject the
null hypothesis. That is to Reject H0.

Step 10: Make conclusion

The claim that the students are
above average intelligence is correct
 SAMPLE PROBLEMS
Example 2:
The price of a popular tennis racket at a national chain store is $179. Portia bought five of
the same racket at an online auction site for the following prices:
$155 $179 $175 $175 $161
Assuming that the auction prices of rackets are normally distributed, determine whether
there is sufficient evidence in the sample, at the 5% level of significance, to conclude that
the average price of the racket is less than $179 if purchased at an online auction.
 SAMPLE PROBLEMS

Example 2:
Note: Using calculators, the computed standard deviation
s is 10.39 is and mean 𝑥 is 169.
Establish the given data:
n =5
d.f. = n -1 =4
𝑋 = 169 (Average of the 5 data)
0 = 179
s = 10.39 (Computed from calculator)
 SAMPLE PROBLEMS

Solution:
Step 1: State the Null Hypothesis.
H0: μ = μ0  H0: μ =179
Step 2: State the Alternate Hypothesis.
Ha: μ < μ0  Ha: μ < 179
Step 3: State the type of test: Left-tailed
Step 4: State the level of significance (alpha level). 0.05
(Note 0.05 shall be used unless otherwise indicated in the problem)
 SAMPLE PROBLEMS

Solution:
Step 5: Test statistic. t-test
Since n = 5 (n<30), so t-test is used.
X- m
Step 6: Use appropriate formula t=
s
Step 7: Compute Test statistic value. t = -2.152 n

169 - 179
z= = - 2.152
10.39
5
 SAMPLE PROBLEMS
Solution:
Step 8: Illustrate tabular value. The critical value from the t-table
gives is −2.1318 (left-tailed, use negative value).
 SAMPLE PROBLEMS
Solution:

t = 2.1318
d.f = n ̶ 1
=5 ̶ 1
=4
 SAMPLE PROBLEMS

Solution: Acceptance
region -2.152 lies to the
left of the critical
Rejection region value −2.1318

−2.1318
− 2.152
NOTE: In this case, the computed value tc it is less than the critical
value, (-2.152 < −2.1318). Thus, it lies on the rejection region
 SAMPLE PROBLEMS

Solution:
Step 9: Establish decision. Since (− 2.152 < −2.1318), we
reject the null hypothesis. That is to reject H0.

Step 10: Make conclusion:

The average price of the racket is less than $179 if purchased
at an online auction.
 SAMPLE PROBLEMS

01
The average weekly earnings for female social workers is $670. Do men in the
same positions have average weekly earnings that are higher than those for
women? A random sample of n = 40 male social workers showed x = $725
and σ = $102. Test the appropriate hypothesis using  = .01.
 SAMPLE PROBLEMS

02
The manufacturer of electric bulb has established that the average life of the bulb
that his firm produces is 800 hours with a standard deviation of 40 hours. The
production of bulbs are closely monitored so that the bulb lifetime are maintained
close to the average. Occasionally, he takes a random sample bulbs to see if the
average lifetime of bulbs may have significantly changed. On one particular occasion,
he took a sample of 30 bulbs and found that the average to be 788 hours. At
10% level of significance, does the manufacturer have reasons to believe that the
average lifetime of bulbs manufactured by his company has decreased?
 SAMPLE PROBLEMS

03
In the past, the average length of outgoing telephone calls from a business office has
been 143 seconds. A manager wishes to check whether that average has
decreased after the introduction of new policies. A sample of 100 telephone
calls produced a mean off 133 seconds with a standard deviation of 35
seconds. Perform the relevant test of hypothesis using 1% level of significance
to test if the length of average calls have decreased.
 SAMPLE PROBLEMS

04
The average number of days to complete a recovery from a particular knee operation
is 123.7 days. From his experience, a Physician suspects that the use of topical
pain medication might be lengthening the recovery time. He randomly selects the
records of 7 surgery patients who used the topical medication obtaining a mean of
132.29 and a standard deviation of 10.98. Assuming a normal distribution of
recovery time, perform the relevant test of hypothesis at 5% level of significance.
 SAMPLE PROBLEMS

05
A manufacturing process produces ball bearings with diameters that have a normal
distribution with known standard deviation of 0.04 cm. Ball bearings with
diameters that are too small or too large are undesirable. In order to test the claim
that the population mean is 0.50, perform a two–tailed hypothesis test at the 5%
level of significance. Assume that a random sample of 25 gave a mean diameter of
0.51 cm.
 SAMPLE PROBLEMS

06
A new process for producing synthetic diamonds can be operated at a profitable
level only if the average weight of the diamonds is greater than 0.5 karat. To
evaluate the
profitability of the process, six diamonds are generated, with recorded weights
0.46, 0.61, 0.52, 0.48, 0.57, and 0.54 karat. Do the six measurements
present sufficient evidence to indicate that the average weight of the diamonds
produced by the process is in excess of 0.5 karat?