STATISTICS AND PROBABILITY

TEST OF
HYPOTHESIS
 LEARNING OUTCOMES
At the end of this lesson, the students are expected
to:

1. illustrate null hypothesis, alternative hypothesis,

level of significance, rejection region, and types if
errors in hypothesis testing; and
2. calculate the probabilities of committing a Type I
and Type II error.
 STATISTICAL HYPOTHESIS
 A statistical hypothesis is a statement about the numerical value of a
population parameter. It is a statement or tentative assertion which
aims to explain facts about a certain phenomenon. A hypothesis needs
to be resolved whether it is true or not. Thus, it must be subjected to
statistical testing procedure known as test of hypothesis or
hypothesis testing. If the hypothesis is found to be true, it is
accepted; if it is found to be false, it is rejected.
 Null hypothesis (denoted by Ho) – It is a statement that there is
no difference between a parameter and a specific value.
 Alternative hypothesis (denoted by Ha) – It is the opposite or
negation of the null hypothesis. It is a statement that there exists a
difference between a parameter and a specific value.
 EXAMPLES
Claim 1: The average monthly income of Filipino families who belong to
low income bracket is Php 8 000.
Ho : The average monthly income of Filipino families who belong to low
income bracket is Php 8 000. ()
Ha : The average monthly income of Filipino families who belong to low
income bracket is not equal to Php 8 000. ()
Claim 2: The average number if hours that it takes a ten-year-old child to
learn a certain task in a specific subject is less than 0.52 hour.
Ho : The average number if hours that it takes a ten-year-old child to learn
a certain task in a specific subject is equal to 0.52 hour. ()
Ha : The average number if hours that it takes a ten-year-old child to learn
a certain task in a specific subject is less than 0.52 hour. ()
 EXAMPLES
Claim 3: The average weight loss for a sample of people who exercise 30
minutes per day for 6 weeks is greater than 3.7 kg.
Ho : The average weight loss for a sample of people who exercise 30
minutes per day for 6 weeks is equal to 3.7 kg. ()
Ha : The average weight loss for a sample of people who exercise 30
minutes per day for 6 weeks is greater than 3.7 kg. ()
 TYPES OF TESTS
DIRECTIONAL TEST

A test of any statistical hypothesis where the alternative hypothesis is expressed,

using less than () or greater than () is called directional test or one-tailed test
since the critical or rejection region lies entirely in one tail of the sampling
distribution.
Example 1
Claim: The average weekly allowance of college students is less than Php 1 500.

Ho : The average weekly allowance of college

students is equal to Php 1 500. ()
Ha : The average weekly allowance of college
students is less than Php 1 500. ()
 TYPES OF TESTS
DIRECTIONAL TEST

A test of any statistical hypothesis where the alternative hypothesis is expressed,

using less than () or greater than () is called directional test or one-tailed test
since the critical or rejection region lies entirely in one tail of the sampling
distribution.
Example 2
Claim: The average weekly allowance of college students is greater than
Php 1 500.
Ho : The average weekly allowance of college
students is equal to Php 1 500. ()
Ha : The average weekly allowance of college
students is greater than Php 1 500. ()
 TYPES OF TESTS
NONDIRECTIONAL TEST

A test of any statistical hypothesis where the alternative hypothesis is written with
a not equal sign () is called a nondirectional test or two-tailed test since there is no
assertion made on the direction of the difference. The rejection region is split into
two equal parts, one in each tail of the sampling distribution.
Example 3
Claim: The average weekly allowance of college students is Php 1 500.

Ho : The average weekly allowance of college

students is equal to Php 1 500. ()
Ha : The average weekly allowance of college
students is not equal to Php 1 500. ()
 TYPES OF ERROR
Type I Error
- occurs when we reject the null hypothesis when it is true. It is
also called alpha error ().

Type II Error
- occurs when we accept the null hypothesis when it is false. It is
also called beta error ().
 LEVEL OF SIGNIFICANCE
 The probability of committing Type I error is called the level of
significance. It is denoted by the Greek letter (alpha). Thus, the
value of tells us the probability of making an error in rejecting
the null hypothesis when it is actually true.
 The choice for the value if the significance level is determined by
the researcher. This depends on the risk or degree of confidence
the researcher is willing to take in committing Type I error.
 The commonly used levels of significance are 0.05 and 0.01.
The level of significance should be set before testing the
hypothesis.
 STEPS IN TESTING THE HYPOTHESIS
Step 1: Identify the claim and formulate the null (H o) and alternative
(Ha) hypothesis.
Step 2: Set the level of significance and determine whether the test is
one-tailed or two-tailed by looking at how the alternative hypothesis is
expressed. Decide on the test statistics to be used and find the critical
value for the test. Draw and illustrate the rejection region.
Step 3: Compute the test value, using the test statistic or formula for
the test.
Step 4: Make a decision whether to accept or reject the null
hypothesis.
Step 5: Formulate a conclusion by answering the research question.
 ACCEPTING OR REJECTIONG THE NULL
HYPOTHESIS
1. Determine the critical value, using appropriate statistical tables.
2. Draw the rejection region and the critical value.
3. If the test value or the computed value falls in the rejection
region, then reject the null hypothesis; otherwise, accept the
null hypothesis.
 EXAMPLE 1
The director of a secretarial school believers that its graduates can type
more than 75 words per minute. A random sample of 12 graduates has
been found to have an average of 77.2 words per minute with a standard
deviation of 7.9 words per minute in a typing test. Using the 0.05 level of
significance, test the claim of the director.

Step 1: Formulate the null and alternative hypotheses.

Ho : The average number of words that graduates can type is 75 words
per minute (
Ha : The average number of words that graduates can type is greater
than 75 words per minute (
 EXAMPLE 1
Step 2: Type of Test: The test is one-tailed (right-tailed).
Critical Value: With the use of the table for t-distribution, the critical value of t at
0.05 level, one tailed test, is .

Rejection region:

Step 3: Compute the test value.

Given:
 EXAMPLE 1
Step 4: Decision: Accept the null hypothesis because the computed value or the
test value falls outside the rejection region.

Step 5: Conclusion: There is no significant difference between the sample mean

and the population mean. Thus, the claim of the director of the secretarial school
that their graduates can type more than 75 word per minute is incorrect.
 EXAMPLE 2
It is hypothesized that the cost of making a movie is Php 24 million. This
year a random sample of 15 movies has shown an average production of
Php 28 million with a standard deviation of Php 5 million. At 0.01 level of
significance, is the hypothesized cost true?

Step 1: Formulate the null and alternative hypotheses.

Ho : The average cost of making a movie is equal to Php 24 million (
Ha : The average cost of making a movie is not equal to Php 24 million (
 EXAMPLE 2
Step 2: Type of Test: The test is two-tailed (nondirectional).
Critical Value: With the use of the table for t-distribution, the critical value of t at
0.01 level, two tailed test, is .

Rejection region:

Step 3: Compute the test value.

Given:
 EXAMPLE 2
Step 4: Decision: Reject the null hypothesis because the computed value or the
test value falls inside the rejection region.

Step 5: Conclusion: There is significant difference between the sample mean

and the population mean. Thus, the hypothesized cost of making a movie is true.