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Introduction To Hypothesis Testing and Estimation

This document provides an introduction to hypothesis testing and estimation in inferential statistics. It discusses the key steps in hypothesis testing, including formulating the null and alternative hypotheses, determining the significance level, calculating the test statistic, defining the critical region, and interpreting the results. It also describes point and interval estimation. The goal of hypothesis testing is to use a sample to make judgments about population parameters, while estimation involves using a sample statistic to approximate an unknown population parameter. Examples of both hypothesis testing and estimation are provided.

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Fatima Kausar
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152 views

Introduction To Hypothesis Testing and Estimation

This document provides an introduction to hypothesis testing and estimation in inferential statistics. It discusses the key steps in hypothesis testing, including formulating the null and alternative hypotheses, determining the significance level, calculating the test statistic, defining the critical region, and interpreting the results. It also describes point and interval estimation. The goal of hypothesis testing is to use a sample to make judgments about population parameters, while estimation involves using a sample statistic to approximate an unknown population parameter. Examples of both hypothesis testing and estimation are provided.

Uploaded by

Fatima Kausar
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Introduction

to Hypothesis
Testing and
Estimation
SIDRA ARSHAD EIMAN RAUF FATIMA KAUSAR ALEEZA HAFEEZ
PRESENTATION AGENDA
 Introduction to Inferential Statistics
 Hypothesis Testing
 Steps of Hypothesis Testing
 Estimation and its Types
 Numerical
OBJECTIVES
After Presentation you will be able to know about

 What is Inferential Statistics and its Types?


 What is Hypothesis Testing and its Steps?
 And what is Estimation?
 Is used to make judgments of the probability that an
observed difference between groups is a dependable one
or one that might have happened by chance.
 There are two main methods used in inferential statistics:
 Estimation &
 Hypothesis testing
1. Hypothesis Testing
 Hypothesis testing begins with an assumption,
called a hypothesis, that we make about a
population parameter.
 The hypothesis test is used to evaluate the results
from a research study in which
 A sample is selected from the population.
 The treatment is administered to the sample.
 After treatment, the individuals in the sample are
measured.

7
STEP 1: Formulate Null Hypothesis and
Alternative Hypothesis
MAKING A FORMAL STATEMENT OF NULL HYPOTHESIS
 Term arises from earlier agricultural and medical applications
 The assumption we wish to test is called null hypothesis
 Symbolized as Ho
 “H sub-zero”
 Ho no effect, no difference, independent
 Can include =, ≥, or ≤ sign

8
STEP 1: Formulate Null Hypothesis and
Alternative Hypothesis

MAKING A FORMAL STATEMENT OF THE ALTERNATIVE


HYPOTHESIS
 Whenever we reject the Ho, the conclusion we do accept is called the
alternative hypothesis
 Symbolized as H1 or HA
 “H sub-one”
 Can include ≠, <, or > sign
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STEP 2: Interpreting the significance level
 LEVEL OF SGNIFICANCE, α
 Defines the probability of the unlikely values of the sample statistics if the
null hypothesis is true
 Is used to define the rejection rejoin of the sampling distribution
 Is designated by α, (level of significance)
 Typical values are 0.01, 0.05, or 0.10
 Is selected by the researchers at the beginning
 Provides the critical value(s) of the test

10
Type I and Type II Errors
Type I Error(α): reject Ho, when Ho is true
Type II Error(β): accept Ho, when Ho is false
STEP 3: Test Statistics
 The test statistic (in this chapter a z-test) forms a ratio
comparing the obtained diff. b/w x & µ vs the amount
of diff. we would expect without any treatment effect
(the standard error).
 z-test, used on the basis of normal distribution

 z cal = (x - µHo)/σx [σx The standard error of


the mean]

STEP 4: Computation or Calculation


12
STEP 5: Critical Rejoin
 The critical region consists of outcomes that are very
unlikely to occur if the null hypothesis is true.
 Defined by sample means that are almost impossible to
obtain if the treatment has no effect.
 The phrase “almost impossible” means that these
samples have a probability (p) that is less than the alpha
level.

14
STEP 6: Interpreting the Results
 We cannot “prove” hypothesis, only provide support for
either the null or alternative
 i.e. we “accept” or “fail to reject” the null hypothesis if the
test statistics indicates that the group may form the same
population
or
 we “reject” the null hypothesis if the test statistics
indicates that it may be from different population
 Hypothesis testing results are concluded in probability
terms since we can never be 100% sure
EXAMPLE
The Food and Nutrition Board of the National Academy of Sciences
states that the recommended daily allowance (RDA) of iron for adult
females under the age of 51 is 18 milligrams (mg).
A sample of iron intake in was obtained during a 24-hour period
from 45 randomly selected adult females under the age of 51.
It revealed that the sample mean (x) was 14.68 mg. At the 1 %
significance level, does the data suggest that adult females under
the age of 51 are, on average, getting less than the RDA of 18 mg of
iron?
Assume that the population standard deviation is 4.2 mg.
2. ESTIMATION
 Process of estimate of unknown population parameter on
the basis of sample selected from the population is called
estimation

 e.g. we estimate the population mean(µ) on the basis of sample


selected from the population and we get sample mean(x).
TYPES OF ESTIMATION
1. Point Estimation
 It is a single value(or point) used to
approximate a population parameter.
 For Example
 p^ is the point estimate for a proportion
 x is the point estimate for a mean
 s is the point estimate for a standard
deviation
TYPES OF ESTIMATION
2. Interval Estimation
 It is a process of obtaining a range of
values with in which true value of the
population parameter is believed to
lie.
 For example,
 a < x < b is an interval estimate of
the population mean μ.
 It indicates that the population
mean is greater than a but less than
Qualities of a Good Estimators

• We can evaluate the quality of a statistics as an


estimator by using four criteria:

– Unbiasedness
– Efficiency
– Consistency
– Sufficiency
Confidence Interval Summary Table
THANK YOU
SIDRA ARSHAD EIMAN RAUF FATIMA KAUSAR ALEEZA HAFEEZ

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