Hypothesis Testing
Hypothesis Testing
HYPOTHESIS TESTING
CONTENTS
Hypothesis Testing 249
z-Tests: Large Sample Tests 250
t-Tests: Small Sample Tests 252
Chi-Square Tests 254
Chi-Square Test of Goodness of Fit 254
Chi-Square Test of Independence 256
F-Tests: One-Way ANOVA 257
HYPOTHESIS TESTING
Hypothesis testing is a statistical method used to make inferences about a
population parameter based on a sample of data. The choice of test depends on
the type of data and the research question. Common tests include t-tests, z-tests,
chi-square tests, and F-tests (ANOVA).
Types of Tests
• One-tailed test: Tests if a parameter is greater than or less than a value.
Example: Testing if a new TikTok feature increases likes. 𝐻0 : 𝜇 ≤ 50, 𝐻𝐴 : 𝜇 >
50
• Two-tailed test: Tests if a parameter is different from a value (either higher
or lower).
Example: Testing if TikTok user engagement changes, without specifying
direction. 𝐻0 : 𝜇 = 50, 𝐻𝐴 : 𝜇 ≠ 50
NOTE: Think of hypotheses as TikTok features you want to test. Is the new
feature better? Set 𝐻0 as the status quo and 𝐻𝐴 as the new feature. Collect and
analyze data to see if you can reject 𝐻0 and support 𝐻𝐴 .
Hypothesis testing helps determine if a new feature makes a real impact. Only
one hypothesis can be true at a time.
Z -T E S T S : L A R G E S A M P L E T E S T S
The Central Limit Theorem states that the sample mean (𝑥̅ ) is approximately
normally distributed with mean 𝜇 and standard deviation 𝜎⁄√𝑛. When the
sample size is large (n ≥ 30), we can use the Central Limit Theorem to test a
population mean. The test statistic is calculated as
̅−𝝁
𝒙
If 𝜎 is known: 𝒛 =
𝝈⁄√𝒏
̅−𝝁
𝒙
If 𝜎 is unknown: 𝒛 =
𝒔⁄√𝒏
The critical value (𝑧𝛼 or −𝑧𝛼 ) is chosen based on the desired significance level
(𝛼), which represents the probability of rejecting the null hypothesis when it is
true (Type I error).
EXAMPLE 27.1
A social media marketing firm claims that their enhanced strategy has increased
the average number of likes per post. Previously, the mean number of likes per
post was 1900 with a standard deviation of 120 likes. After implementing the new
strategy, a sample of 64 posts is selected and the mean number of likes per post
is found to be 1960. Test, at the 1% level of significance, whether the mean
number of likes per post has increased due to the new strategy. Assume the
number of likes per post follows a normal distribution.
Chapter 27| Hypothesis Testing 251