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Chapter 8 Hypothesis Testing

This document discusses hypothesis testing using the classical or critical value method. It covers the key elements of hypothesis testing including formulating the null and alternative hypotheses, selecting the appropriate test statistic, establishing the critical region, computing the test statistic, making a decision by comparing the test statistic to the critical value, and drawing a conclusion. An example is provided to demonstrate how to conduct a hypothesis test using the classical method in a one-sample case. The document also discusses conducting hypothesis testing using the probability value approach as an alternative method.

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Manzanilla Florian
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233 views34 pages

Chapter 8 Hypothesis Testing

This document discusses hypothesis testing using the classical or critical value method. It covers the key elements of hypothesis testing including formulating the null and alternative hypotheses, selecting the appropriate test statistic, establishing the critical region, computing the test statistic, making a decision by comparing the test statistic to the critical value, and drawing a conclusion. An example is provided to demonstrate how to conduct a hypothesis test using the classical method in a one-sample case. The document also discusses conducting hypothesis testing using the probability value approach as an alternative method.

Uploaded by

Manzanilla Florian
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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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CONDUCTING HYPOTHESIS TEST USING

CLASSICAL( Critical Value) METHOD


(ONE –SAMPLE CASE)
I. OBJECTIVES
A. Content Standards The learner demonstrates understanding of
  key concepts of tests of hypotheses on the
population mean and population proportion.
B. Performance Standards The learner is able to perform appropriate tests of
hypotheses involving the population mean and
population proportion to make inferences in real-life
problems in different disciplines
C. Learning At the end of the session, learners are expected to
Competencies/Objectives 1. Understand the underlying procedures in
Hypothesis testing
2. Conduct a statistical test using the Critical value or
classical method for one-sample case
ACTIVITY SHEET # 1.
Read the following statements. Choose the letter of the
best answer.
1. An Intelligent guess about the characteristics of a
population is called: hypothesis
2. The important numerical value in hypothesis
testing is: parameter
3. Under the normal curve, the middle part represents:
acceptance region

0.05
5. Which of the following serves as a guide in deciding
whether to reject or accept Ho : Decision rule
6. Under the normal curve, when lines are drawn through
this value, they separate the rejection region from the
acceptance region confidence coefficient

-1.645
8. In hypothesis testing, the probability of committing
an error in rejecting a null hypothesis that is true is
denoted by:
0.01
10. Which of the following best represents a set of
numerical data? variance
ELEMENTS
OF
HYPOTHESIS
TESTING
ELEMENTS OF HYPOTHESIS
1. TESTING
Statistical Hypothesis 
ELEMENTS OF HYPOTHESIS
TESTING
1. Statistical Hypothesis
Characteristics of Statistical Hypothesis 
ELEMENTS OF HYPOTHESIS TESTING
1. Statistical Hypothesis
Types of Statistical Hypothesis 
A. NULL
HYPOTHESIS

B. ALTERNATIVE
HYPOTHESIS

Non- directional
right directional
left directional
Central Limit Theorem (CLT)
It states in part, that as sample size increases,
the sampling distribution of the mean
approaches the normal distribution provided that
the sampling is random.

Accepting or Rejecting the Null Hypothesis


Making decision to accept or reject the
hypothesis depends on the test statistic value
compared with the confidence coefficient (critical
values)
ELEMENTS OF HYPOTHESIS TESTING
2. Significance Level is the probability of making
Type I error
ELEMENTS OF HYPOTHESIS TESTING
2. Significance Level is the probability of making
Type I error
ELEMENTS OF HYPOTHESIS TESTING
3. Type of
Test 
One-tailed test –if the rejection region lies on
one extreme side of the distribution. 

Right tailed , symbol used : > Left tailed , symbol used : <
ELEMENTS OF HYPOTHESIS TESTING
3. Type of
Test 
Two-tailed test –if the rejection region is
located on both ends of the distribution.
ELEMENTS OF HYPOTHESIS TESTING
4. Critical values of Z 
ELEMENTS OF HYPOTHESIS TESTING
METHODS
OF
Components of Critical Value and P-value
Method of Hypothesis Testing
Traditional Method P-value Method
1. Hypotheses 1. Hypotheses
2. Assumptions 2. Assumptions

4. Test Statistics (z, t, etc.) 4. Test Statistics (z, t, etc.)


Computation of the test statistics Computation of the test statistics
Computation of the p-value

6. Compare computed value and critical value 6. Compare computed value and critical value
Make a decision Make a decision
Interpretation / Conclusion Interpretation / Conclusion
1
TRADITIONAL
(Critical value)
METHOD
THE STEPS IN HYPOTHESIS TESTING
USING THE TRADITIONAL
(CRITICAL VALUE) METHOD

STEPS
Ho and H1 , the two statements should be
1. Formulate the
formulated in such a way that if one is
hypothesis
true, the other is necessarily false)
(If the level of significance is not
identified it will always be set to be at .
05)

3. Select appropriate
test statistic
THE STEPS IN HYPOTHESIS TESTING
USING THE CLASSICAL
(CRITICAL VALUE) METHOD

STEPS
Depending on the type of alternative
4. Establish the hypothesis, the critical region may be lying
critical region entirely on one tail or split into two equal parts
on both tails of the distribution.

5. Compute for the value of Identify all the given and substitute to
the statistical test. the appropriate statistic to find the value.
(if the CV is within the region of rejection,
6. Make a decision and, we reject Ho and accept H1, if it lies
if possible draw a
conclusion outside the region of rejection, we accept
H o)
EXAMPLE # 1
Solutions
STEPS ANSWERS

1. Formulate the
hypothesis

3. Select appropriate
test statistic
SOLUTIONS:
STEPS
4. Establish the
critical region Z >1.96 or Z < -1.96

5. Compute for the value of


the statistical test.

The computed value of z is outside the region


of rejection (-1.33 > -1.96). Therefore, we may
6. Make a decision and, accept the Ho. There is enough evidence
if possible draw a
conclusion to support the claim of the manufacturer that
the average life of the bulbs it produces is
1000 hours.
EVALUATION 1
2
PROBABILITY VALUE
(p-value approach)
METHOD
CONDUCTING HYPOTHESIS TEST USING THE
PROBABILITY VALUE APPROACH
(ONE –SAMPLE CASE)
OBJECTIVES
a. Differentiate traditional approach from probability
value approach of hypothesis testing; and

b. Conduct significance test using the probability


value approach
EXAMPLE # 2

Bryan administered a Mathematics achievement test to a


random sample of 50 graduating students. In this sample ,
the mean is equal to 90 and the standard deviation is 10.
The population mean is 83 and the population standard
deviation is equal to 15. Does the sample come from the
average population?
THE STEPS IN HYPOTHESIS TESTING
USING THE P-VALUE APPROACH
1. Hypotheses
2. Assumptions The central limit theorem applies since, n = 50

4. Test Statistics (z, t, etc.)


Computation of the test statistics
Computation of the p-value
THE STEPS IN HYPOTHESIS TESTING
USING THE P-VALUE APPROACH
5. Decision Rule

6. Compare computed value and


critical value. Make a decision

Conclusion

Interpretation
Evaluation 2
CLOSURE
“ There are two possible outcomes:
if the result confirms the hypothesis,
then you've made a measurement.
If the result is contrary to the
hypothesis, then you've made a
discovery.”
~ Enrico Fermi

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