Scribd
Upload
4 views

Hypothesis Testing

Uploaded by

Camille Mondejar
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
4 views

Hypothesis Testing

Uploaded by

Camille Mondejar
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 10

Hypothesis Testing

CBA OMBA - Business Analytics


What is Hypothesis Testing in Statistics?
● Used to determine if there is enough evidence in a given sample to infer that
a certain condition is true for the entire population.
● Method to test an assumption of theory of a parameter of the population
based on a sample.
○ Testing a claim about a parameter in a population using data measured in a sample.
Steps for Hypothesis Testing
1. Set a research hypothesis
a. Null Hypothesis - Predicts no effect or no relationship between variables
b. Alternative Hypothesis - States research prediction of an effect or relationship.
2. Determine the population and sample
3. Test the hypothesis
4. Determine the p-Value
5. Determine significance
6. Examine errors
Examples
1. ABC Company manufactures calculators with an average mass of 450g. An
engineer decides to calculate the average mass of 50 calculators. State the
null and alternative hypotheses.
2. The teachers in a school believes that at least 80% of students will complete
high school. A student disagrees with this value and decides to conduct a test.
State the null and alternative hypotheses.
3. A teacher wishes to test if the average GPA of the students is 2.7. State the
null and alternative hypotheses.
4. The percentage of residents who own a vehicle in town XYZ is no more than
75%. A researcher disagrees with the value and decides to survey 100
residents asking them if they own a vehicle. State the null and alternative
hypothesis.
Hypothesis Testing Elements
Types
● One Tailed Tests - A statistical hypothesis test set up to show that the sample
mean would be higher or lower than the population mean, but not both
● Two Tailed Tests - A method in which the critical area of a distribution is
two-sided and tests whether a sample is greater than or less than a certain
range of values.
Methods
● Z-Tests
● T-Tests
● P-Tests
Example # 1
A factory has a machine that dispenses 80 mL of fluid in a bottle. An employee
believes the amount of fluid is not 80 mL. Using 40 samples, he measures the
average amount dispensed by the machine to be 78 mL with a standard deviation
of 2.5. State the null and alternative hypothesis, and at a 95% confidence level, is
there enough evidence to support the idea that the machine is not working
properly?
Example 2
A company manufactures car batteries with an average lifespan of 2 or more
years. An engineer believes this value to be less. Using 10 samples, he measures
the average life span to be 1.8 years with a standard deviation of 0.15. (a) State
the null and alternative hypotheses. (b) At a 99% confidence level, is there enough
evidence to discard the null hypothesis?
Example 3
The average weight of all residents in town XYZ is 168 lbs. A nutritionist believes
the true mean to be different. She measured the weight of 36 individuals and
found themean to be 169.5 lbs with a standard deviation of 3.9. State the null and
alternative hypothesis at a 95% confidence level. Using the P-Value method, Is
there enough evidence to discard the null hypothesis?
Example 4
A factory manufactures cars with a warranty of 5 years on the engine and
transmission. An engineer believes that the engine or transmission will malfunction
in less than 5 years. He tests a sample of 40 cars and finds the average time to be
4.8 years with a standard deviation of 0.50. State the null and alternative
hypothesis at a 2% significance level using the P-value method. Is there enough
evidence to support the claim that the warranty should be revised?

You might also like