Hypothesis Testing

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HYPOTHESIS TESTING

HYPOTHESIS TESTING

• Involves asking a question,


collecting data, and then
examining the data
• Hypothesis – statements about
the population
TYPES OF HYPOTHESIS

• Null Hypothesis – hypothesis to be


tested; denoted by 𝐻𝑜

• Alternative Hypothesis – against


the null hypothesis; denoted by 𝐻𝑎
EXAMPLES

1. We have a medicine that is being


manufactured and each pill is
supposed to have 14 milligrams of
the active ingredient. What are our
null and alternative hypotheses?

𝑯𝒐 : 𝝁 = 𝟏𝟒 𝑯𝒂 : 𝝁 ≠ 𝟏𝟒
EXAMPLES

2. The school principal wants to test


if it is true what teachers say – that
high school juniors use the
computer an average 3.2 hours a
day. What are our null and
alternative hypotheses?

𝑯𝒐 : 𝝁 = 𝟑. 𝟐 𝑯𝒂 : 𝝁 ≠ 𝟑. 𝟐
TEST OF SIGNIFICANCE

• Goal: Reject 𝐻𝑜 in favor of 𝐻𝑎

• Note: If successful in rejecting 𝐻𝑜 ,


then the result is declared to be
“significant”
TYPES OF ERRORS

• Type I Error – the mistake of


rejecting the 𝐻𝑜 when it is true and
the probability of a type I error is
called the significance level 𝛼

• Type II Error – the mistake of failing


to reject the 𝐻𝑜 when it is false and
𝛽 𝑏𝑒𝑡𝑎 is used to represent the
probability of a type II error
TEST STATISTICS

• A statistics computed from the


sample data that is especially
sensitive to the differences
between 𝐻𝑜 and 𝐻𝑎
REGION OF REJECTION

• The set of all values of the test statistics


which will lead to the rejection of 𝐻𝑜
• The smaller the 𝛼 is, the smaller the
region of rejection
• The location of the region of rejection
depends on the form of 𝐻𝑎
CRITICAL VALUES

• The value(s) that separate the


critical region from the values of
the test statistics that would not
lead to rejection of the null
hypothesis.
TYPES OF TESTS

• TWO-TAILED TEST – whether true value


of a population parameter is different
from a specified value
• LEFT-TAILED TEST – whether the true
value of a population parameter is less
than a specified value
• RIGHT TAILED TEST – whether the true
value of a population parameter is less
than a specified value
PROBABILITY VALUE OR P-VALUE

• The actual or observed value of the


probability of Type I error
• The smaller the p-value, the stronger
is the evidence of rejecting 𝐻𝑜
• Reject 𝐻𝑜 if the p-value is less than
or equal to the level of significance

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