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Hypothesis Testing

The document outlines the process of hypothesis testing, including the formulation of null and alternative hypotheses, the identification of Type I and Type II errors, and the steps involved in testing hypotheses. It emphasizes the importance of clearly stating claims and translating them into mathematical statements, as well as the significance of setting a level of significance to minimize errors. The document also provides examples and exercises to illustrate the concepts discussed.

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Renelyn
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7 views21 pages

Hypothesis Testing

The document outlines the process of hypothesis testing, including the formulation of null and alternative hypotheses, the identification of Type I and Type II errors, and the steps involved in testing hypotheses. It emphasizes the importance of clearly stating claims and translating them into mathematical statements, as well as the significance of setting a level of significance to minimize errors. The document also provides examples and exercises to illustrate the concepts discussed.

Uploaded by

Renelyn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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HYPOTHESIS TESTING

HYPOTHESIS TESTING
Objectives

Construct hypothesis.

Identify Type I and Type II error.

Discuss the steps in testing hypothesis.

Test hypotheses.
Null and Alternative
Hypothesis
Stating a Hypothesis

• A hypothesis test is a process that uses sample statistics to test


a claim about the value of a population parameter.

• A statement about a population parameter is called a statistical


hypothesis. To test a population parameter, you should carefully
state a pair of hypotheses—one that represents the claim and the
other, its complement. When one of these hypotheses is false, the
other must be true. Either hypothesis—the null hypothesis or
the alternative hypothesis—may represent the original claim.
Stating a Hypothesis
• Additional information about Null and Alternative hypotheses:

• The Null hypothesis () indicates that no difference exists between conditions, groups, or
variables. While Alternative or Alternate hypothesis (), also called a research hypothesis, is the
statement that predicts a difference or relationship between conditions, groups or variables.

• Alternative hypothesis may be directional or nondirectional, depending on the context of the


research.

• A directional, or one-tailed, hypothesis a statistically significant change in a particular direction


(Example: A treatment that predicts an improvement).

• A nondirectional, or two-tailed, hypothesis predicts statistically significant change, but in no


particular direction (Example: A researcher may compare two new conditions and predict a
difference between them. However, he or she would not predict which condition would show
the largest result.).
Stating a Hypothesis
Stating a Hypothesis

• To write the null and alternative hypotheses, translate the claim


made about the population parameter from a verbal statement
to a mathematical statement. Then, write its complement. For
instance, if the claim value is k and the population parameter is ,
then some possible pairs of null and alternative hypotheses are
Stating a Hypothesis

• Regardless of which of the three pairs of hypotheses you use,


you always assume and examine the sampling distribution on
the basis of this assumption. Within this sampling distribution,
you will determine whether or not a sample statistic is unusual.
Examples

Write the claim as a mathematical statement. State the null and


alternative hypotheses and identify which represents the claim.
1. A school publicizes that the proportion of its students who are involved in at least one
extracurricular activity is 61%.

2. A car dealership announces that the mean time for an oil change is less than 15 minutes.
Examples

Write the claim as a mathematical statement. State the null and


alternative hypotheses and identify which represents the claim.
3. A company advertises that the mean life of its furnaces is more than 18 years.
Try It Yourself!

Write the claim as a mathematical statement. State the null and alternative hypotheses and
identify which represents the claim.

a. Identify the verbal claim and write it as a mathematical statement.

b. Write the complement of the claim.

c. Identify the null and alternative hypotheses and determine which one represents the
claim.
1. A consumer analyst reports that the mean life of a certain type of automobile battery is not 74 months.

2. An electronics manufacturer publishes that the variance of the life of its home theater systems is less than
or equal to 2.7.

3. A realtor publicizes that the proportion of homeowners who feel their house is too small for their family is
more than 24%.
Identifying Type
I and Type II
Error
Types of Errors

No matter which hypothesis represents the claim, you always begin a hypothesis
test by assuming that the equality condition in the null hypothesis is true. So, when
you perform a hypothesis test, you make one of two decisions:

1. reject the null hypothesis or

2. fail to reject the null hypothesis.

Because your decision is based on a sample rather than the entire population,
there is always the possibility you will make the wrong decision.
Types of Errors
Types of Errors

Hypothesis testing is sometimes compared to the legal system.


1. A carefully worded accusation is written.

2. The defendant is assumed innocent ( until proven guilty. The burden of proof lies
with the prosecution. If the evidence is not strong enough, then there is no
conviction. A “not guilty” verdict does not prove that a defendant is innocent.

3. The evidence needs to be conclusive beyond a reasonable doubt. The system


assumes that more harm is done by convicting the innocent (type I error) than
by not convicting the guilty (type II error).
Examples

1. The DOH limit for salmonella contamination for chicken is 20%. A meat inspector
reports that the chicken produced by a company exceeds the DOH limit. You
perform a hypothesis test to determine whether the meat inspector’s claim is
true. When will a type I or type II error occur? Which error is more serious?
Examples

2. A company specializing in parachute assembly states that its main parachute


failure rate is not more than 1%. You perform a hypothesis test to determine
whether the company’s claim is false. When will a type I or type II error occur?
Which error is more serious?

a. State the null and alternative hypotheses.

b. Write the possible type I and type II errors.

c. Determine which error is more serious.


Level of Signifi cance

By setting the level of significance at a small value, you are saying that you want
the probability of rejecting a true null hypothesis to be small. Three commonly used
levels of significance are and.
Testing the
Hypothesis
Steps in Hypothesis Testing

1. State the Null and the Alternative Hypothesis.

2. Set the level of risk (or the level of significance) associated with the Null hypothesis.

3. Choose the appropriate statistic.

4. Compute the test statistic.

5. Determine the value needed for rejection of the Null hypothesis using the appropriate
table of critical values for the particular statistic.

6. Compare the obtained value to the critical value.

7. Interpret the results.

8. Report the results.


Thank You!!!

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