MATHEMATICAL

STATISTICS FOR IT
ACTIVITY 14: THE STATISTICAL
TOOLS
Learning Objectives

At the end of this chapter, the

student is expected to:
apply a variety of statistical tools to
process and manage numerical
data;
Learning Objectives

use the methods of linear

regression and correlations to
predict the value of a variable given
certain conditions; and
recognize the importance of testing
of hypotheses in making decisions.
Introduction

Statistics involves the collection,

organization, summarization,
presentation, and interpretation of
data. It has two branches:
descriptive statistics and inferential
statistics.
Introduction

Descriptive statistics is the term

given to the analysis of data that
helps describe, show or summarize
data in a meaningful way.
Introduction

When using descriptive statistics, it

is useful to summarize a group of
data using a combination of
tabulated description (i.e., tables),
graphical description (i.e., graphs
and charts) and statistical
commentary (i.e., a discussion of
the results).
Introduction

The branch that allows to make

predictions (“inferences”) from the
data is called inferential statistics.
With inferential statistics, it takes
data from samples and make
generalizations about a population.
Introduction

For instance, you might stand in a

mall and ask a sample of 100
people if they like shopping at SM.
Introduction

You could make a bar chart of yes

or no answers (that would be a
descriptive statistics) or you could
use your research (and inferential
statistics) to reason that around 75-
80% of the population (all shoppers
in all malls) like shopping at SM.
Introduction

Testing the significance of the

differences between two means,
two standard deviations, two
proportions, or two percentages,
are important areas of inferential
statistics.
Introduction

Comparison between two or more

variables often arises in research or
experiments and to be able to
make valid conclusions regarding
the results of the study, one has to
apply an appropriate test statistic.
Introduction

This chapter deals with the

discussion of the different test
statistics that are commonly used
in research studies under inferential
statistics.
The Statistical Tools

Hypothesis Testing
Correlation and Regression Analysis
Hypothesis Testing

In Statistics, decision-making starts

with a concern about a population
regarding its characteristics
denoted by parameter values. We
might be interested in the
population parameter like the mean
or the proportion.
Hypothesis Testing

For instance, you are deciding to

put up a business selling cars. Your
first course before spending money
in business is to know which car
sells the most these days.
Hypothesis Testing

Before you open a business of

selling Toyota, Mitsubishi, Hyundai,
Honda, Nissan, or Suzuki, you need
to gather information which among
these get the most number of
sales.
Hypothesis Testing

How many existing distributors of

these cars are out there? Do you
want to compete? To answer these
questions, you need to gather data.
What type of data? And where will
you get them? You simply need to
do a survey.
Hypothesis Testing

These concerns can be addressed

in a procedure in Statistics called
hypothesis testing.
Hypothesis

A hypothesis is a conjecture or
statement which aims to explain
certain phenomena in the real
world. Many hypotheses, statistical
or not, are products of man’s
curiosity.
Hypothesis

To seek for the answers to his

questions, he tries to find and
present evidences, then tests the
resulting hypothesis using
statistical tools and analysis. In
statistical analysis, the truth of
which will be either accepted or
rejected within a certain critical
Hypothesis

The hypothesis that is subjected to

testing to determine whether its
truth can be accepted or rejected is
the null hypothesis by .
Hypothesis

This hypothesis states that there is

no significant relationship or no
significant difference between two
or more variables, or that one
variable does not affect another
variable.
Hypothesis

In statistical research, the

hypotheses should be written in
null form. For example, suppose
you want to know whether method
A is not more effective than method
B in teaching mathematics in the
modern world.
Hypothesis

The null hypothesis for this study

will be: “There is no significant
difference between the
effectiveness of method A and
method B.”
Hypothesis

Another type of hypothesis is the

alternative hypothesis, denoted by .
This is the hypothesis that
challenges the null hypothesis.
Hypothesis

 The alternative hypothesis for the previous

example can be: “There is a significant
difference between the effectiveness of
method A and method B.” or “Method A is
more effective than method B,” or Method A
is less effective than method B,” depending
on whether the type of test is either one-
tailed or two-tailed. These will be discussed in
the succeeding lessons.
Significance Level

To test the null hypothesis of no

significance in the difference
between the two methods in the
previous example, one must set the
level of significance first. This is the

and is denoted by the symbol 𝛼.

probability of having a Type I error
Significance Level

A Type I error is the probability of

accepting the alternative
hypothesis when, in fact, the null
hypothesis is true. The probability
of accepting the null hypothesis
when, in fact, it is false is called a

the symbol 𝛽. The most common

Type II error and it is denoted by
Significance Level
Significance Level

If the null hypothesis is true and

accepted, or if it is false and
rejected, the decision is correct. If
the null hypothesis is true and
reject, the decision is incorrect and
this is a Type I error.
Significance Level

If the null hypothesis is false and

accepted, the decision is incorrect
and this is a Type II error. For
instance, Sarah insists that she is
31 years old when, in fact, she is 35
years old. What error is Sarah
committing?
Significance Level

Sarah is rejecting the truth. She is

committing a Type I error. Another
example, a man plans to go hunting
the Philippine monkey-eating eagle
believing that it is a proof of his
mettle. What type of error is this?
Significance Level

Hunting the Philippine eagle is

prohibited by law. Thus, it is not a
good sport. It is a Type II error.
Since hunting the Philippine
monkey-eating eagle is against the
law, the man may find himself in
jail if he goes out of his way hunting
endangered species.
Significance Level

In decisions that we make, we form

conclusions and these conclusions
are the bases of our actions. But
this is not always the case in
Statistics because we make
decisions based on sample
information.
Significance Level

The best that we can do is to

control the probability with which
an error occurs. This is the reason
why we are assigning small
probability values to each of them.
One-Tailed and Two-Tailed Tests

A test is called a one-tailed test if

the rejection region lies on one
extreme side of the distribution and
two-tailed if the rejection region is
located on both ends of the
distribution.
One-Tailed and Two-Tailed Tests
Steps in Testing Hypothesis

The following are the steps when

testing the truth of a hypothesis.
Formulate the null hypothesis.
Denote it as and the alternative
hypothesis as .

(𝛼).
Set the desired level of significance
Steps in Testing Hypothesis

Determine the appropriate test

statistic to be used in testing the
null hypothesis.
Compute for the value of the
statistic to be used.
Compute for the degrees of
freedom.
Steps in Testing Hypothesis

Find the tabular value using the

table of values for different tests
from the appendix tables.
Steps in Testing Hypothesis

State the Decision Rule: If the

computed value is less than the
tabular value, accept the null
hypothesis. If the computed value
is greater than the tabular value,
reject the null hypothesis.
Steps in Testing Hypothesis

State the Decision Rule: If the

computed value is less than the
tabular value, accept the null
hypothesis. If the computed value
is greater than the tabular value,
reject the null hypothesis.
Steps in Testing Hypothesis

Compare the computed value to

the tabular value. Make a
conclusion using the result of the
comparison.
Degree of Freedom (df)

The degree of freedom gives the

number of pieces of independent
information available for computing
variability.
Degree of Freedom (df)

For any statistical tool used in

testing hypothesis, the number of
degrees of freedom required will
vary depending on the size of the
distribution.
Degree of Freedom (df)

For a single group of population,

the number of degrees of freedom
is N – 1, where N is the population.
For two groups, the formula for df
is: N1 + N2 – 2 for t-test and N – 2
for Pearson r. These test statistics
will be discussed later in this
chapter.
Tests Concerning Means

z-test on the Comparison between

the Population Mean and the
Sample Mean
t-test on the Comparison between
the Population Mean and the
Sample Mean
Tests Concerning Means

t-test Concerning Means of

Independent Samples
t-test on the Significance of the
Difference Between Two Correlated
Means
Tests Concerning Means

z-test on the Significance of the

Difference Between Two
Independent Proportions
t-test on the Significance of the
Difference Between Two Correlated
Means
Tests Concerning Means

the population mean (𝜇) and the

population standard deviation (𝜎)
If

are known, and 𝜇 will be compared

to a sample mean , use the formula
below.
Tests Concerning Means

The tabular values of 𝑧 can be

obtained from the following table:
Tests Concerning Means

if |𝑧| ≥ |
𝑧𝑡𝑎𝑏𝑢𝑙𝑎𝑟|.
DecisionRule: Reject
Example 1

A company, which makes a battery-

operated toy car, claims that its
products have a mean life span of 5
years with a standard deviation of 2
years.
Example 1

Test the null hypothesis that 𝜇 = 5

years against the alternative
hypothesis that years if a random
sample of 40 toy cars was tested
and found to have a mean life span
of only 3 years. Use a 5% level of
significance.
Solution

operated toy cars is 5 years. (𝜇 =

Ho : The mean lifespan of battery-

5)

operated toy cars is not 5 years. (𝜇

Ha : The mean lifespan of battery-

𝛼 = 0.05, two-tailed
≠ 5)
Solution

Computation:
Solution

Critical Value: 𝑧 < −1.96 𝑎𝑛𝑑 𝑧 >

Decision Rule: Reject Ho if |𝑧| ≥ |

1.96

𝑧𝑡𝑎𝑏𝑢𝑙𝑎𝑟|.
Solution

the computed|𝑧|, which is

6.32, is greater than |𝑧𝑡𝑎𝑏𝑢𝑙𝑎𝑟|,
Since

which is 1.96, therefore, reject Ho.

Hence, there is a significant
difference between the population
and sample mean lifespan of
battery-operated toy cars.
Example 2

A manufacturer of bicycle tires has

developed a new design which he
claims has an average lifespan of 5
years with a standard deviation of
1.2 years.
Example 2

A dealer of the product claims that

the average lifespan of 150
samples of the tires is only 3.5
years. Test the difference of the
population and sample means at
5% level of significance.
Solution

Ho : There is no significant

difference between the population
and sample mean of bicycle tires’
lifespan.
Ha : There is a significant difference
between the population and sample
mean of bicycle tires’ lifespan.
Solution

𝛼 = 0.05, one-tailed, left tail

Use z-test as test statistic.
Solution

Computation:
Solution

Value: 𝑧 < −1.645

Critical
Decision Rule: Reject Ho if |𝑧| ≥ |
𝑧𝑡𝑎𝑏𝑢𝑙𝑎𝑟|.
Solution

the computed|𝑧|, which is

15.31, is greater than |𝑧𝑡𝑎𝑏𝑢𝑙𝑎𝑟|,
Since

which is 1.645, therefore, reject Ho.

Hence, there is a significant
difference between the population
and sample mean of bicycle tires’
lifespan.
“ Without data, you’re
just another person
with an opinion.
W. EDWARDS DEMING
”
THANK YOU AND GOD BLESS US ALL!!!