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Presentation of Research Methodology

The document discusses hypothesis testing methodology. It defines a hypothesis as a statement about a population parameter that is tested. It then outlines the 5-step process for testing a hypothesis: 1) state the null and alternative hypotheses, 2) select the appropriate test statistic and significance level, 3) state the decision rules, 4) compute the test statistic and make a decision, 5) interpret the decision. It then provides an example where the null hypothesis that a car's population mean miles before first repair is 20,000 is tested against the alternative that it is not, using a sample mean of 18,700 miles, standard deviation of 8,600 miles, and z-test. The z-statistic is calculated to be 0.15

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336 views11 pages

Presentation of Research Methodology

The document discusses hypothesis testing methodology. It defines a hypothesis as a statement about a population parameter that is tested. It then outlines the 5-step process for testing a hypothesis: 1) state the null and alternative hypotheses, 2) select the appropriate test statistic and significance level, 3) state the decision rules, 4) compute the test statistic and make a decision, 5) interpret the decision. It then provides an example where the null hypothesis that a car's population mean miles before first repair is 20,000 is tested against the alternative that it is not, using a sample mean of 18,700 miles, standard deviation of 8,600 miles, and z-test. The z-statistic is calculated to be 0.15

Uploaded by

Simran
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Presentation of research

Methodology

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WHAT IS A HYPOTHESIS?
Hypothesis: A statement about the value of a population
parameter developed for the purpose of testing.
Examples of hypotheses, or statements, made about a
population parameter are:
The mean monthly income from all sources for systems
analysts is $3,625.
Twenty percent of all juvenile offenders ultimately are caught
and sentenced to prison.
Hypothesis testing

A procedure, based on sample evidence and probability theory,


used to determine whether the hypothesis is a reasonable
statement and should not be rejected, or is unreasonable and
should be rejected.
Following is a five-step procedure for
testing a hypothesis
 1. State the null hypothesis and the alternate hypothesis. Null
Hypothesis – statement about the value of a population
parameter. Alternate Hypothesis – statement that is accepted
if evidence proves null hypothesis to be false.

 2. Select the appropriate test statistic and level of


significance. When testing a hypothesis of a proportion, we
use the z-statistic or z-test.
 3. State the decision rules. The decision rules state the
conditions under which the null hypothesis will be accepted
or rejected. The critical value for the test-statistic is
determined by the level of significance. The critical value is
the value that divides the non-reject region from the reject
region.

 4. Compute the appropriate test statistic and make the


decision. Compare the computed test statistic with critical
value. If the computed value is within the rejection region(s),
we reject the null hypothesis; otherwise, we do not reject the
null hypothesis.
 5. Interpret the decision. Based on the decision in Step 4, we
state a conclusion in the context of the original problem.
QUESTION
A car manufacturer claims that its cars will run for an average of
20,000 miles before needing their first repair. To prove its claim,
it has tracked a random sample of 21 cars. It found that the
sample average number of miles before repair was 18,700, with a
standard deviation of 8,600 miles. Test the null hypothesis that
the population mean is 20,000 miles against the alternative that it
is not.
SOLUTION
 In this problem, we know the mean and standard deviation
 µ = 18700 and σ = 8,600
 H0: µ = 18700
 H1: µ < 18700
 x¯= 20000
FORMULA USED

x  0
z stat 
SEx
where  0  population mean assuming H 0 is true

and SEx 
n
 Z= 20000-18700
8600/ √ 21
Z= 300/1876.6
Z=0.15

HENCE WE HAVE TAKEN α = 0.05

Result
So, 0.15>0.05, SO NULL hypothesis is accepted.

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