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Hypothesis Testing

Hypothesis testing is a decision-making process used to evaluate claims about populations by making statistical inferences based on data samples. There are two types of hypotheses: the null hypothesis states there is no difference or relationship, while the alternative hypothesis states there is a difference or relationship. Statistical tests are used to either reject or fail to reject the null hypothesis, with the potential for type 1 or type 2 errors. Key steps in hypothesis testing include stating the hypotheses, setting the significance level, determining the appropriate test, computing the test statistic, and making a decision to reject or fail to reject the null hypothesis.

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466 views16 pages

Hypothesis Testing

Hypothesis testing is a decision-making process used to evaluate claims about populations by making statistical inferences based on data samples. There are two types of hypotheses: the null hypothesis states there is no difference or relationship, while the alternative hypothesis states there is a difference or relationship. Statistical tests are used to either reject or fail to reject the null hypothesis, with the potential for type 1 or type 2 errors. Key steps in hypothesis testing include stating the hypotheses, setting the significance level, determining the appropriate test, computing the test statistic, and making a decision to reject or fail to reject the null hypothesis.

Uploaded by

charlene quiambao
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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HYPOTHESIS

TESTING
HYPOTHESIS TESTING
It is a decision-making process
for evaluating claims about a
population.
HYPOTHESIS
An educated guess which shows possible
answer to the problem.
It is a decision-making process for
evaluating claims about a population.
STATISTICAL HYPOTHESIS
- It is an inference about a population
parameter.
TWO TYPES OF HYPOTHESIS
a. NULL HYPOTHESIS (Ho)– this is the hypothesis
being tested. It states that there is no difference
between a parameter and a specific value.
b. ALTERNATIVE HYPOTHESIS (Ha)–It states that
there is a difference between a parameter and a
specific value.
In order to state the hypothesis correctly,
the researcher must translate correctly the
claim into mathematical symbols. There are
3 possible sets of statistical hypothesis.
1. Ho: parameter = specific value TWO-
TAILED
Ha: parameter ≠ specific value TEST

2. Ho: parameter = specific value LEFT-


TAILED
Ha: parameter < specific value TEST
3. Ho: parameter = specific value RIGHT-
TAILED
Ha: parameter > specific value TEST
Reject Ho Do not Reject Ho
CORRECT
Ho is true TYPE 1 ERROR
DECISION
CORRECT
Ho is false TYPE II ERROR
DECISION
STEPS IN HYPOTHESIS
TESTING
1. State the null and alternative hypothesis.
2. Set the desired level of significance.
3. Determine the appropriate test statistics.
4. Compute the test statistic as a basis for decision.
5. Formulate the decision.
TEST STATISTICS TO USE
     

Z-test Z-test T-test


EXAMPLE
PROBLEMS
A manufacturer claims that the average lifetime
 

of his lightbulbs is 3 years or 36 months. The


standard deviation is 8 months. Fifty bulbs are
selected and the average lifetime is found to be
32 months. Should the manufacturer’s statement
be rejected at ?
XYZ Bank issues its own credit card. The head of
credit collection department found out that the mean
amount of unpaid balance of credit card holders was
Php 25,000 and with a standard deviation of Php
1,500. the head wanted to find out whether the mean
amount of unpaid balance was really Php 25,000. he
sample 40 credit card holders and found a sample
mean of Php 23,900. Can the head of the credit
collection department conclude that the unpaid
balance is less than Php 25,000? Use the 0.01 alpha
level.
A manufacturer claims that the average content of
one bottle of cooking oil is 237 mL. Retail stores
claim otherwise. To determine whose claim is true,
sample of 20 bottles of cooking oil was tested and
revealed an average of 235 mL with a standard
deviation of 2.5 mL. Is there a difference between the
sample and population means? Use the 0.05
significance level.
In a particular barangay, it was found out that the
average monthly electrical bills were Php 3,992.60. A
seminar was conducted to educate residents for the
proper use of appliances and other equipment that
requires electricity for its use and operation. Several
months after the seminar, a resurvey was conducted
and a sample of 25 residents was taken. Results
revealed a sample mean of Php 3,062 and a SD of Php
1,685. At 0.01 significance level, can we conclude
that there is a reduction in the monthly electrical bill?

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