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Testing Hypothisis

- The null hypothesis is that the average weight loss is equal to 10 pounds or more (H0: μ ≥ 10) - The alternative hypothesis is that the average weight loss is less than 10 pounds (H1: μ < 10) - A random sample of 36 members had an average weight loss of 9.2 pounds with a standard deviation of 2.4 pounds - The p-value is calculated to test the claims of the health club manager

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121 views

Testing Hypothisis

- The null hypothesis is that the average weight loss is equal to 10 pounds or more (H0: μ ≥ 10) - The alternative hypothesis is that the average weight loss is less than 10 pounds (H1: μ < 10) - A random sample of 36 members had an average weight loss of 9.2 pounds with a standard deviation of 2.4 pounds - The p-value is calculated to test the claims of the health club manager

Uploaded by

Protik
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Testing Hypothesis

• Testing of Hypotheses is a tool for decision making.

• A thesis is some thing that has been proven to be true. A


hypothesis is something that has not yet been proven to be true.
It is some statement about a population parameter or about a
population distribution. For example:

• “The average amount of cola in the bottles is equal to 1,000


cm3”
• This statement is tentative as it implies some assumption, which
may or may not be found valid on verification. Hypothesis testing
is the process of determining whether or not a given hypothesis
is true.
• If the population is large, the hypothesis is tested on the basis of
the outcome of a random sample.
Testing Hypothesis
• Any statement or pre-assumption about the population
parameter/ distribution is called hypothesis.

• Test of hypothesis is a statistical procedure that is used to


provide evidence in favor of some statement .

• The purpose of hypothesis testing is to determine whether there


is enough statistical evidence in favor of a certain belief about a
parameter.

• Hypothesis testing permits the scientist to make generalizations


about populations from sample data.
Testing Hypothesis
• Examples
– Does the statistical evidence in a random sample of potential
customers support the hypothesis that more than 10% of the
potential customers will purchase a new product?
– Is a new drug effective in curing a certain disease? A sample of
patients is randomly selected. Half of them are given the drug
while the other half are given a placebo. The improvement in the
patients’ condition is then measured and compared.

• There are two types of Statistical hypothesis:


1. Null hypothesis
2. Alternative hypothesis
Testing Hypothesis

• Null hypothesis: The statistical hypothesis that is set up for


testing is known as Null hypothesis.

• Alternative hypothesis: Any hypothesis other than null


hypothesis is called alternative hypothesis.

• Hypothesis Testing in the Courtroom:

• Null hypothesis: The defendant is innocent


• Alternative (research) hypothesis: The defendant is guilty
Types of Hypotheses

. .
•1.Null hypothesis
•Null hypothesis-The assumed or hypothesized value of a
population parameter.

•It is denoted by Ho or “H sub zero”.


•2.Alterntive hypothesis
•Alternative hypothesis-Any value other than null hypothesis
.

•It is denoted by H1 or “H sub one” .


Types of hypotheses

For example- Ho=The person is not guilty .


Then alternative hypothesis H1 is set as H1=The
person is guilty
Hypothesis testing
• The critical concepts of hypothesis testing.

– Example
• The manager of a department store is thinking about
establishing a new billing system for the store’s credit
customers
• The new system will be cost effective only if the mean monthly
account is more than $170.

– There are two hypotheses about a population mean:


• H0: The null hypothesis μ = 170
• H1: The alternative hypothesis μ > 170

(What you want to prove)


Steps of testing hypotheses

. •Setting up a null hypothesis


•Interpreting the suitable significance level
•Determination of suitable test statistic
•Determination of critical region
•Computations
•Taking decisions
Setting up a null hypothesis

• Before sampling, the researcher sets a null hypothesis.

• For example- Let us assume that the researcher wants to


test the hypothesis that the population mean is equal
to 500. so the null hypothesis is set as Ho=500.

• Whenever we reject the null hypothesis ,the conclusion


we accept is alternative hypothesis.
Alternative hypothesis

Based on the set null hypothesis there are 3 alternative


hypotheses.

a. H1≠ 500
b. H1>500
c. H1<500 .
Interpreting the significant level

Significance level is the difference between the sample mean


& the hypothesized population mean . We reject or accept
the null hypothesis based on the significance level.

For example- If we test the hypothesis at the 1% level of


significance , there is only 1 chance out of 100 that we would
reject the null hypothesis.
Selecting a significance level

• The higher the significance level , the higher the probability


of rejecting null hypothesis when it is true .

• There are mainly 3 different significance levels.


0.01, 0.05, 0.10 .
significance level
Type I & Type II error

The null hypothesis is The null hypothesis is


true false

We decide to reject Type I Error: ( rejecting a


Correct Decision
the null hypothesis true null hypothesis ) α

Decision
Type II Error: ( failing to
We fall reject the null
Correct Decision reject a false null
hypothesis hypothesis ) β
Type I & Type II error
Type I & Type II error

•Type I error
•Type 1 error is the error made by rejecting the null
hypothesis when it is true. It is symbolized by α
(alpha)

•Type II error
•Type 2 error is the error made by accepting a null
hypothesis when it is false. It is denoted by ß(beta)

In order to get a lower ß we have to get a higher alpha.


Determination of suitable test statistic
Determination of
critical region
Critical Value:

The critical value for a hypothesis test is a threshold to which


the value of the test statistic in a sample is compared to
determine whether or not the null hypothesis is rejected
Determination of critical region

Critical region:

The critical region or rejection region is a set of values of the


test statistic for which the null hypothesis is rejected in a
hypothesis test; that is, the sample space for the test statistic is
partitioned into two regions

Do not reject H0

Reject
H0
Determination of critical region

•Two tailed test


•One tailed test
Two tailed test
A TWO TAILED TEST IS SUCH A HYPOTHESIS TEST FOR WHICH THE
REJECTION REGION CONSISTS IN BOTH THE SIDE OR DIRECTION.

For example- Let us set up a null hypothesis


where Ho=1000.
In case of two tailed test , the null hypothesis
will be rejected in two cases where H1<1000 or
H1>1000.So alternative hypothesis is set as
H1≠1000.
ONE-TAILED TEST

A ONE TAILED TEST IS SUCH A HYPOTHESIS TEST FOR WHICH THE


REJECTION REGION CONSISTS ONLY IN ONE SIDE OR DIRECTION.

The alternative hypothesis states that the population parameter


differs from the value stated in H0 in one particular direction.

– The critical region is located only in one tail of the


sampling distribution.
– Hypothesis about population mean is rejected only for
value of falling into one of the tails.
Left tailed test

• A left tailed test is used when H1<Ho .

• For example- A wholesaler doesn’t want to accept


bulbs below the mean life of 500 hours. So in this
case the researcher will perform a left tailed test
where H1<500.

• In this case ,the rejection region lies in the left tail.


Right tailed test

• A right tailed test is used when H1>Ho.

• For example- A sales manager wants to keep the


expenses up to 100 per day . In this case he’ll
perform a right tailed test where H1>100.

• In this case , the critical region lies in the right tail.


Taking decisions

After comparing
the hypothesized & If calculated value is larger than
computed value hypothesized value , in case of left
tailed test we reject the null
we take decisions. hypothesis

If calculated value is smaller than


hypothesized value in case of right
tailed test we reject the null
hypothesis
Critical region
Critical region
Test statistic
Testing hypothesis about population mean
Testing hypothesis about population mean
Testing hypothesis about population mean
Testing hypothesis about population mean
Testing hypothesis about population mean
Testing hypothesis about population mean
Testing hypothesis about population mean
Testing hypothesis about population proportion
Testing hypothesis about population mean
Testing hypothesis about the difference between two
population means
Testing hypothesis about the difference between two
population means
Problem

• The manager of priority health club claims that its


members lose an average of 10 pounds or more within
the first month after joining club. A consumer agency that
wanted to check this claim took a random of 36 members
of this health club and found that they lost an average of
9.2 pounds within the first month of membership with a
sd of 2.4 pounds. Find the p- value for this test.

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