TUM School of Management

Production and Supply Chain Management

Prof Martin Grunow

Technische Universitt Mnchen

Quality Engineering & Management

Session 5.2: Hypothesis Testing

Dr. Holly Ott

Production and Supply Chain Management
Chair: Prof. Martin Grunow
TUM School of Management

Holly Ott

Quality Engineering & Management Module 5

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Learning Objectives
Describe how hypothesis testing is used to make inferences about
population parameters.
List the steps in performing a hypothesis test.
Perform a hypothesis test concerning the mean of a normally
distributed population with known standard deviation.
Explain the meaning of the P-value.

Holly Ott

Quality Engineering & Management Module 5

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Hypothesis Testing
Two hypotheses are proposed:
Null hypothesis denoted by H0.
Alternative hypothesis denoted by H1
The hypotheses are complementary to each other. If one is true, other
is not true, and vice versa.
The statement to be affirmed (the new claim) is placed in the Alternate
Hypothesis, H1
Possible Errors
Type-I error occurs if H0 is declared false when in fact it is true.
Type-II error occurs if H0 is declared true when in fact it is false.
2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

Quality Engineering & Management Module 5

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Outcomes of a Statistical Test

www.pixelio.de

Probability of Type I error is denoted by and is also called

the level of significance
Probability of Type II error is denoted by , and (1- ) is
called the power of the test
2012 from "A First Course in Quality Engineering: Integrating Statistical
and Management Methods of Quality" by K.S. Krishnamoorthi. Reproduced
by permission of Taylor and Francis Group, LLC, a division of Informa plc.
Holly Ott

Quality Engineering & Management Module 5

TUM School of Management

Production and Supply Chain Management
Prof Martin Grunow

Technische Universitt Mnchen

Practice
Now let's look at an example of the outcomes
of a hypothesis test.
Please look at the next "Practice" module
before continuing with the lecture.

Holly Ott

Quality Engineering & Management Module 5