Hypothesis Testing: Steps

Objectives
• Recall the terms used in the last session about
hypothesis testing.
• Understand the use of hypothesis testing in real
life applications
• Determine the steps in doing test of hypothesis
• Create inferences based on the methods of
hypothesis testing.
Steps for Hypothesis Testing
1
• State the null and alternative hypotheses.

2
• Select a level of significance.

3
• Select the test statistic.

4
• Determine the critical region.

5
• Compute the value of the test statistic.

6
• Make a decision/conclusion.
Step 1: State the null and alternative
hypotheses.
• A null hypothesis is a statement about the value of a population parameter
formulated with the hope of it being rejected. It is usually denoted by H0.
• If H0 is rejected, we will be led to accept an alternative hypothesis,
denoted by H1 or Ha.
Remarks
• To test a hypothesis, we take a sample from a population
and use the information obtained in the sample to decide
whether the hypothesis is likely to be true or false.
• If the evidence from the sample is inconsistent with the
hypothesis, we reject it. Otherwise, we “accept” it.
Remarks

• Note that “accepting” the hypothesis does not mean that it

is true, just that there is insufficient evidence to reject it.
• The alternative hypothesis is more important, and
represents what we are investigating.
Examples
• Formulate the null and alternative hypotheses:
• The annual turnover rate of the 200-count bottle of Bayer
Aspirin follows the normal distribution with a mean of 6.0 and
a standard deviation of 0.50. We would like to know if the
mean turnover has changed and is not 6.0.
Examples
• Formulate the null and alternative hypotheses:
• A recent national survey found that high school students
watched an average of 6.8 DVDs per month. A random sample
of 36 college students revealed that the mean number of DVDs
watched last month was 6.2, with a standard deviation of 0.5.
Do college students watch fewer DVDs per month than high
school students?
Step 2: Select a level of significance.
• The level of significance of a test, , is the probability of
rejecting the null hypothesis when it is true.
Remark
• The level of significance intuitively represents the amount
of evidence we need before we reject the null hypothesis.
• The value of  is usually around 0.05.
Step 3: Select the test statistic.
• A test statistic is a value calculated from sample information
used to determine whether to reject the null hypothesis.
• The test statistic depends on the hypothesis being tested.
Step 4: Formulate the decision rule.
• The decision rule indicates the condition or conditions where
the null hypothesis is rejected.
Definitions
• A test of any hypothesis, where the alternative
hypothesis is one-sided is called a one-tailed test.
• A test of any hypothesis, where the alternative
hypothesis is two-sided is called a two-tailed test.
• The critical value is the dividing point between the
region where the null hypothesis is rejected and region
where it is not rejected.
Right-Tail Testing
Left-Tail Testing
Two–Tail Testing
Step 5: Make a decision.

• If the value of the test statistic is in the rejection region,

reject H0.
• If it is not in the rejection region, conclude that the sample
results do not allow us to reject H0.
Hypothesis Testing: Single
Mean and Proportion
 Hypothesis Testing For the Mean
Null hypothesis (Ho):  = o

Is the population standard

deviation known?

NO YES

Is the sample size greater than 30? X  o

Z 
 n
NO YES
 < o z < - z
X  o X  o  > o z > z
t Z
S n S n   o |z| > z/2
 < o t < - t
 > o t > t
  o | t | > t/2
Example 1

Test Ho: µ=50 vs Ha: µ50 if a random sample of 16

subjects had mean 48 and standard deviation of 5.8 at 0.05
level of significance. Assume that the sample was taken from
a Normal population with standard deviation of 6.
Step 1: Ho: µ=50
Ha: µ50
Step 2: Level of significance α = 0.05

Step 3: test statistics since the population sd is given, use , use z-test
X  o
Z 
 n

Step 4: critical region

using the z-table two tailed at .05
𝑧𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝛼 = ±1.96
2

48−50
Step 5: computation 𝑧 = 6 z= -1.33
16

Step 6: Decision
Since the computed z value of l-1.33l is less than 1.96 and is within the critical region of acceptance,
thus, the null hypothesis is accepted. There is no sufficient evidence to accept the alternative
hypothesis. Thus, the mean value is equal to 50.
Example 2 𝜇𝑜 n Use z-table!

It is claimed that an automobile is driven on the average less

than 25,000 kilometers per year. To test this claim, a
random sample of 100 automobile owners are asked to keep
a record of the kilometers they travel. Would you agree with
this claim if the random sample showed an average of 23,500
kilometers and a standard deviation of 3,900 kilometers? Use
a 0.01 level of significance.

𝑋ത
S
Use 𝑧𝛼 = 2.33
Step 1: Ho: µ=25,000
Ha: µ<25,000
Step 2: Level of significance α = 0.01

Step 3: test statistics since the n>30, use z-test

X  o
Z
S n

Step 4: critical region

using the z-table one tailed to the
left at .01 𝑧𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝛼 = −2.33
v 2

23.500−25,000
Step 5: computation 𝑧 = 3,900 z= -3.85
100

Step 6: Decision
Since computed z value of -3.85 is less than -2.33 and is within the critical region of rejection, thus,
the null hypothesis is rejected. There is sufficient evidence to accept the alternative hypothesis.
Thus, the automobile driven is less than 25,000 per year.
 Example 3
n Use t-table with df = 19

𝜇𝑜 According to Dietary Goals for the United States (1977), high

sodium intake may be related to ulcers, stomach cancer, and
migraine headaches. The human requirement for salt is only
230 milligrams per day, which is surpassed in most single
servings of ready-to-eat cereals. A random sample of 20
similar servings of Special K had mean sodium content of 244
milligrams of sodium and a standard deviation of 24.5
milligrams. Is there sufficient evidence to believe that the
average sodium content for single servings of Special K
exceeds the human requirement for salt at =0.025? at  =
0.05? at  = 0.10? Assume normality. 𝑋ത
S
Use 𝑡𝛼 = 2.093
Use 𝑡𝛼 = 1.729 Use 𝑡𝛼 = 1.328
Step 1: Ho: µ=230
Ha: µ>230
Step 2: Level of significance α = 0.025

Step 3: test statistics since the n<30, use t-test

X  o
t
S n

Step 4: critical region

using the t-table one tailed to the
c=n-1 right at .025 𝑡𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝛼 = 2.093
c=20-1 2

c=19
244−230
Step 5: computation t= 24.5 t= 2.56
20

Step 6: Decision
Since computed t value of 2.56 is greater than 2.093 and is within the critical region of acceptance,
thus, the null hypothesis is accepted. There is sufficient evidence to accept the null hypothesis.
Thus, the average sodium content for single serving of Special K do not exceed the human
requirement for salt at .025 .
Step 1: Ho: µ=230
Ha: µ>230
Step 2: Level of significance α = 0.05

Step 3: test statistics since the n<30, use t-test

X  o
t
S n

Step 4: critical region

using the t-table one tailed to the
c=n-1 right at .05 𝑡𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝛼 = 1.729
c=20-1 2

c=19
244−230
Step 5: computation t= 24.5 t= 2.56
20

Step 6: Decision
Since computed t value of 2.56 is greater than 1.729 and is within the critical region of acceptance,
thus, the null hypothesis is accepted. There is sufficient evidence to accept the null hypothesis.
Thus, the average sodium content for single serving of Special K do not exceed the human
requirement for salt at .05 .
Step 1: Ho: µ=230
Ha: µ>230
Step 2: Level of significance α = 0.10

Step 3: test statistics since the n<30, use t-test

X  o
t
S n

Step 4: critical region

using the t-table one tailed to the
c=n-1 right at .05 𝑡𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝛼 = 1.328
c=20-1 2

c=19
244−230
Step 5: computation t= 24.5 t= 2.56
20

Step 6: Decision
Since computed t value of 2.56 is greater than 1.328 and is within the critical region of acceptance,
thus, the null hypothesis is accepted. There is sufficient evidence to accept the null hypothesis.
Thus, the average sodium content for single serving of Special K do not exceed the human
requirement for salt at .10 .
Testing p = p0

Alternative Hypothesis Critical Region

𝐻𝑎 : 𝑝 > 𝑝0 Reject if 𝑧 > 𝑧𝛼
𝐻𝑎 : 𝑝 < 𝑝0 Reject if 𝑧 < −𝑧𝛼
𝐻𝑎 : 𝑝 ≠ 𝑝0 Reject if 𝑧 > 𝑧𝛼Τ2 or 𝑧 < −𝑧𝛼Τ2
Example 1 𝑝𝑜 X

• Chicken Delight claims that 90 percent of its orders are

delivered within 10 minutes of the time the order is placed.
A sample of 100 orders revealed that 82 were delivered
within the promised time. At the 0.01 significance level,
can we conclude that less than 90 percent of the orders are
delivered in less than 10 minutes? Use 𝑧 = −2.33
𝛼

n
 Step 1: Ho: µ=.90
Ha: µ< .90
Step 2: Level of significance α = 0.01

Step 3: test statistics z-test proportion

Step 4: critical region

using the z table one tailed to the
left at .05 𝑧𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝛼 = −2.33
2

.82−.90
Step 5: computation 𝑧 = z= -2.67
.90 (.10)
100

Step 6: Decision
Since computed z value of -2.67 is less than -2.33 and is within the critical region of rejection, thus,
the null hypothesis is rejected. This is sufficient evidence to reject the null hypothesis. Thus, less
than 90% of the orders are delivered in less than 10 minutes.
Example 2
X

In a survey of randomly selected households, 288 had

computers while 962 did not. At the 0.01 level of signicance,
test the claim that the computers are in less than 20% of
households.
𝑝𝑜
n– X The question hypothesis is one-tailed

Use 𝑧𝛼Τ2 = −2.33

 Step 1: Ho: µ=.20
Ha: µ< .20
Step 2: Level of significance α = 0.01

Step 3: test statistics z-test proportion

Step 4: critical region

using the z table one tailed to the
left at .05 𝑧𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝛼 = −2.33
2

288
−.20
1250
Step 5: computation 𝑧 = z= 2.68
.20 (.80)
1250

Step 6: Decision
Since computed z value of 2.68 is greater than -2.33 and is within the critical region of acceptance,
thus, the null hypothesis is rejected. There is no sufficient evidence to reject the null hypothesis.
Thus, the commuters are not less than 20% of the household.
- End -