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# Hypothesis testing with Z statistic

Parameters
n 50 Problem: The ETS who put out the SAT tests claims that studying old tests does not hav
mu0 560 performance. Suppose the average SAT scores are 560 with standard deviation of 100. T
sigma 100 we choose a random sample of 50 students and give them two old tests to study. The SA
alpha 5% students turns out to be 580.
Question: At 5% significance level, is there evidence that studying has any effect, positi
sampleMean 580 SAT results?
0.064439
zCritical 1.959964 500 0.988775 Power curve
zScore 1.414214 505 0.973142
510 0.942438 1.2
Method 1: Critical region 515 0.889149 1
520 0.80743
Decision: Do not Reject H0 525 0.696697 0.8
530 0.564116

power
0.6
Method 2: P-Value 535 0.423891
540 0.292989 0.4
pValue 0.157299 545 0.185507
550 0.108955 0.2
Decision: Do not Reject H0 555 0.064439 0
560 0.05 450 470 490 510 530 550 570 590 610 6
565 0.064439
alternative mean
power calculations: 570 0.108955
575 0.185507
mua 565 580 0.292989
za 0.353553 585 0.423891
power 0.064439 590 0.564116 Second on the "north east corner of the first
beta 0.935561 595 0.696697 entered "=B29" that is equals the formula for
600 0.80743
605 0.889149 Third select all the block of cells containing t
610 0.942438 above it. Here you should select cells E10 to
615 0.973142
Fourth Click on the data menu and then sele
620 0.988775
Fifth A dialog window pops up. Leave the Ro
formula which will be varying. Since here we
means, we write B27, the cell where mua is
the data.

## Sixth while the data is highlighted click on th

that studying old tests does not have any effect on
60 with standard deviation of 100. To test ETS's claim
them two old tests to study. The SAT score of these

Power curve

Power curve

## 490 510 530 550 570 590 610 630 650

alternative mean

on the "north east corner of the first data entry" enter the power formula. Here in the cell F11 I have
=B29" that is equals the formula for power.

ect all the block of cells containing the data you generated, the column next to it and the row right
Here you should select cells E10 toF35.

## ick on the data menu and then select Table.

alog window pops up. Leave the Row input cell empty and in the column input cell the part of the
which will be varying. Since here we want to calculate the power for various possible alternative
we write B27, the cell where mua is stored. Click OK and you should see the power values in front of

le the data is highlighted click on the chart icon and follow instructions to generate the power curve.
Hypothesis testing with Z statistic
Parameters
n 50 Problem: We now look at the claim that studying increases the
mu0 560 average SAT score (and not just change it). This leads to a one
sigma 100 sided test.
alpha 5%

sampleMean 580

## zCritical 1.644854 0.0983

zValue 1.414214 560 0.05
565 0.0983
Method 1: Critical region 570 0.174187
575 0.279545 power curve
Decision: Do not Reject H0 580 0.408797
585 0.548912 1.2
Method 2: P-Value 590 0.683129 1
595 0.796736
pValue 0.07865 600 0.881709 0.8
605 0.937869

power
0.6
Decision: Do not Reject H0 610 0.970666
615 0.987591 0.4
620 0.995309
0.2
power calculations: 625 0.998418
630 0.999525 0
mua 565 635 0.999873 550 570 590 610 630 650 670
za 0.353553 640 0.99997
alternative means
power 0.0983 645 0.999994
beta 0.9017 650 0.999999
655 1
660 1
665 1
670 1
675 1
680 1
685 1
power curve

power curve

## 70 590 610 630 650 670 690

alternative means
Hypothesis testing with t statistic
Parameters
Now suppose we do not want to use the sample standard deviation as the population standa
size is not big enough to justify this. Here the actual SAT scores are stored in the Data table.
obtained using the Excel functions directly. The results on the left (essentially identical with sm
are obtained by StatPro statistical inferece for one sample. Here we have the two tail test.
n 19
mu0 560 Data Results for one-sample analysis for Data
stdev 98.47161 458
alpha 5% 707 Summary measures
513 Sample size 19
sampleMe 553.3285 567 Sample mean 553.329
611 Sample standard deviation 98.472
tCritical 2.100922 513
tValue -0.29532 547 Test of mean=560 versus two-tailed alternative
646 Hypothesized mean 560.000
Method 1: Critical region 716 Sample mean 553.329
631 Std error of mean 22.591
Decision: Do not Reject H0 529 Degrees of freedom 18
501 t-test statistic -0.295
505 p-value 0.771
Method 2: P-Value 494
524 Null Hypothesis: the mean of SAT scores does not change
pValue 0.771132 374 Alternative Hypothesis: The mean of SAT scores changes
695
Do not Reject H0 381
601 Decision
power calculations: Do not reject the null hypothesis
mua 9.3
ta -24.377
power 7.24E-16
beta 1
n as the population standard deviation, since our sample
e stored in the Data table. The results on the left are
essentially identical with small difference in terminology)
e have the two tail test.

ailed alternative

## AT scores does not change after studying sample exams

an of SAT scores changes after studying
Hypothesis testing with t statistic
Parameters
Same problem as before, except we do a one-tail test, I.e. we are interested in wh
n 19 will improve SAT scores.
mu0 560 Data Results for one-sample analysis for Data
stdev 98.47161 458
alpha 5% 707 Summary measures
513 Sample size 19
sampleMe 553.3285 567 Sample mean 553.329
611 Sample standard deviation 98.472
tCritical 1.734064 513
tScore -0.29532 547 Test of mean<=560 versus one-tailed alternative
646 Hypothesized mean 560.000
Method 1: Critical region 716 Sample mean 553.329
631 Std error of mean 22.591
Decision: Do not Reject H0 529 Degrees of freedom 18
501 t-test statistic -0.295
505 p-value 0.614
Method 2: P-Value 494
524
pValue 0.614434 374
695
Do not Reject H0 381
601
power calculations:
mua 9.3
ta -24.377
power 4.62E-16 Null Hypothesis: the mean of SAT scores does not change after studying sample
beta 1 Alternative Hypothesis: The mean of SAT scores improves after studying

Decision:
#REF!
e. we are interested in whether studying sample exams

ailed alternative

## nge after studying sample exams

oves after studying