Hypothesis Testing

 Procedure in Testing Hypothesis

 Hypothesis Testing using p-Value
 One Sample z Test
 One Sample t Test

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 Procedure in Testing Hypothesis
Statistical hypothesis – a conjecture about the
population parameter. This conjecture may or may not be
true
Two Types of Statistical Hypotheses
1.Null hypothesis (H0) – a statistical hypothesis testing
that assumes that the observation is due to a chance
factor; Denoted by H0: μ1 = μ2, which shows that there is
no difference between the two parameters
2.Alternative hypothesis (H1) – shows that observations
are the result of a real effect; states that there is a
difference between two population means (or
parameters)
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 Procedure in Testing Hypothesis
level of significance – the degree of significance in which
we accept or reject the null hypothesis
critical value – determines the critical and noncritical
regions; a value that separates the critical region from
the noncritical region
critical or rejection region – the range of the values of
the test value that indicates that there is a significant
difference and that the null hypothesis (H0) should be
rejected
noncritical or nonrejection region – the range of the
values of the test value that indicates that the difference
was probably due to chance and that the null hypothesis
(H0) should not be rejected
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 Procedure in Testing Hypothesis

One-tailed versus two-tailed test

One-tailed test – shows that the null hypothesis be
rejected when the test value is in the critical region on
one side of the mean; may either be a right-tailed test or
a left-tailed test, depending on the direction of the
inequality of the alternative hypothesis
Two-tailed test – the null-hypothesis should be rejected
when the test value is in either of the two critical regions

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 Procedure in Testing Hypothesis

One-tailed versus two-tailed test

Two-tailed Left-tailed Right-tailed

test test test
Signs in the H0: μ = k H0: μ = k or H0: μ = k or
H0 H0: μ ≥ k H0: μ ≤ k
Signs in the H1: μ ≠ k H1: μ < k H1: μ > k
H1
Rejection In both tails In the left tail In the right
Region tail

where k represents a specific number

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 Procedure in Testing Hypothesis
Common Phrases in Hypotheses Testing
Is equal to

 Is the same as
Is exactly the same as

Is increased

 Is greater than
Is higher than

Is at least

 Is not less than
Is greater than or equal to

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 Procedure in Testing Hypothesis
Common Phrases in Hypotheses Testing
Is not equal to

 Is not the same as
Is different from

Is decreased

 Is less than
Is lower than

Is at most

 Is not more than
Is less than or equal to

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 Procedure in Testing Hypothesis

The Critical Value Approach to Hypothesis Testing

•The observed value of the statistic (sample observation)
is compared to critical values (population observation)
•These critical values are expressed as standard z values

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 Procedure in Testing Hypothesis
The Critical Value Approach to Hypothesis Testing
For instance, if we use a level of significance of 0.05, the
size of the rejection region is 0.05

Finding the Critical Values for α = 0.05 Finding the Critical Value for α = 0.05
(Right-tailed test) (Left-tailed test)

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 Procedure in Testing Hypothesis

Testing the Hypothesis about the Mean (σ Known) at 0.05

Significance Level

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 Procedure in Testing Hypothesis

Possible Outcome of a Hypothesis Test

Statistical H0 True H0 False
Decision
Do not reject H0 Correct decision Type II error
Confidence = 1 – α P(Type II error) = β
Reject H0 Type I error Correct decision
P(Type I error) = α Power = 1 – β
Type I error – occurs if one rejects the null hypothesis
when it is true
Type II error – occurs if one does not reject the null
hypothesis when it is false
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 Procedure in Testing Hypothesis

The following are the steps in conducting hypothesis

testing:
1.State the null hypothesis (H0) and the alternative
hypothesis (H1)
2.Choose the level of significance, α, and the sample size
3.Determine the test statistic and sampling distribution
4.Determine the critical values that divide the rejection
and nonrejection regions

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 Procedure in Testing Hypothesis

The following are the steps in conducting hypothesis

testing:
5.Collect the data and compute the value of the test
statistic
6.Make a statistical decision
7.State the conclusion

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 Hypothesis Testing using p-Value

p-value (probability value) – the probability of getting a

sample statistic or a mean extreme sample statistic in the
direction of the H1 when the H0 is true

The steps for p-value method are

1.State the null hypothesis (H0) and the alternative
hypothesis (H1)
2.Choose the level of significance, α, and the sample size
3.Determine the test statistic and sampling distribution

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 Hypothesis Testing using p-Value

The steps for p-value method are

4.Compute the test value
5.Determine the p-value
6.Make a statistical decision
7.State the conclusion

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 Hypothesis Testing using p-Value
If p-value ≤ α, reject the H0, and if p-value > α, do not
reject the H0
Important Guidelines for p-Values
If p-value ≤ 0.01, reject the H0, thus difference is highly
significant
If p-value > 0.01 and p-value ≤ 0.05, reject the H0, thus
difference is significant
If p-value > 0.05 and p-value ≤ 0.10, consider a
consequence of type I error before rejecting the H0, thus
difference is significant
If p-value > 0.10, do not reject H0, thus difference is not
significant
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 Hypothesis Testing using p-Value

The relationship between confidence interval and

hypothesis testing can be summarized into two:
When the confidence interval contains the hypothesized
mean, do not reject H0
When the confidence interval does not contain the
hypothesized mean, reject H0

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 One Sample z Test

One Sample z Test

obserevd value  expected value

Test value 
standard error

X  X 
z z
 n s n
where z = one sample z test
X = sample mean
μ = population mean
σ = population standard deviation
s = sample standard deviation
n = number of observations in the sample
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 One Sample z Test

Assumptions in One Sample z test:

1.Subjects are randomly selected
2.Population distribution is normal
3.The population should be known
4.Cases of the samples should be independent
5.Sample size should be greater than or equal to 30

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 One Sample z Test

Procedure for One Sample z Test:

1.Set up the hypotheses:
H0: μ = specific value H1: μ ≠, <, > specific value
2.Set the level of significance and determine the critical
value of z
3.Calculate the sample mean for one sample z test by
using the following formula:

X
 X
n
where X = sample mean
n = number of observations in the sample
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 One Sample z Test

Procedure for One Sample z Test:

4.Calculate the value of the one sample z test by using
the first formula if σ is known, otherwise use the second
formula
5.Statistical decision for hypothesis testing:
If zcomputed < zcritical, do not reject H0
If zcomputed ≥ zcritical, reject H0
6.State the conclusion

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 One Sample z Test

Example 1 A researcher reports that the average salary of

college deans is more than ₱63,000. A sample of 35
college deans has a mean salary of ₱65,700. At α = 0.01,
test the claim that the college deans earn more than
₱63,000 a month. The standard deviation of the
population is ₱5,250.

http://comdis.wisc.edu/images/Scholz_Karl_office13_5388.jpg

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 One Sample z Test

Example 2 The average baptismal

ceremony includes 50 guests. A
random sample of 32 baptismal
ceremonies during the past year in
the NCR had a mean of 53 guests
and a standard deviation of 10. Is
there a sufficient evidence at the
0.05 level of significance that the
average number of guests differs
from the national average?
http://www.crawfordcountycatholics.com/images/baptism.gif

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 One Sample z Test
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content/uploads/2010/01/w-Giant-Coffee-Cup75917.jpg
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Example 3 A researcher claims
that the monthly consumption
of coffee per person is more
than 19 cups. In a sample of 60
randomly selected people, the
mean monthly consumption was
20. The standard deviation of
the sample was 4 cups. Find the
p-value of the test. On the basis
of the p-value, is the
researcher’s claim valid at α =
0.01?
J0018
 One Sample z Test

Example 4 Powdered milk is packed in a 1-kg bag. An

inspector from the Department of Trade and Industry
(DTI) suspect the bags may not contain 1 kg. A sample of
40 bags produces a mean of 0.96 kg and a standard
deviation of 0.12 kg. Is there enough evidence to
conclude that the bags do not contain 1 kg as stated at α
= 0.05? Also, find the 95% confidence interval of the true
mean.

http://www.harpak-ulma.com/packaging-solutions/fresh-food-packaging/dairy/milk/powdered-milk-
packaging-in-vertical-machine-vffs-in-pillow-and-stable-bag/image_preview
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 One Sample z Test
Exercises
1.A report in LTO stated that the average age of taxis in
the Philippines is 9 years. An operations manager of a
large taxi company selects a sample of 40 taxis and finds
the average age of the taxis is 8.2 years. The σ if the
population is 2.3 years. At α = 0.05, can it be concluded
that the average age of the taxis in his company is less
than the national average?

http://imganuncios.mitula.net/taxi_2009_toyota_vios_j_96635398836928692.jpg

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 One Sample z Test
Exercises
2.It is claimed that the average weight of a bag of biscuits
is 250 grams with a standard deviation of 20.5 grams.
Would you agree to this claim if a random sample of 50
bags of biscuits showed an average weight of 240 grams,
using a 0.05 level of significance?

http://i00.i.aliimg.com/wsphoto/v0/726074874/Free-shipping-adorable-colorful-
circles-biscuit-gift-bags-cookie-cake-packing-bags-12x20cm.jpg
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 One Sample t Test

One Sample t Test – a statistical procedure that is used to

know the mean difference between the sample and the
known value of the population mean
Assumptions in One Sample t Test:
1.The population must be approximately normally
distributed
2.Samples drawn from the population should be random
3.Cases of the samples should be independent
4.Sample size should be less than 30
5.The population mean should be known

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 One Sample t Test

Procedure for One Sample t test:

1.Set up hypotheses:
H0: μ = specified value
H1: μ ≠, <, > specified value
2.Set the level of significance, calculate the degrees of
freedom (df = n – 1) and determine the critical value of t

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 One Sample t Test

Procedure for One Sample t test:

3.Calculate the sample mean and sample standard
deviation for one sample t test by using the following
formula:

X
 X
s
 ( X  X ) 2

n n 1
where X = sample mean
s = sample standard deviation
n = number of observations in the sample

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 One Sample t Test

Procedure for One Sample t test:

4.Calculate the value of the one sample t test, by using
the following formula:
X 
t
s n
where t = one sample t test
X = sample mean
μ = population mean
s = sample standard deviation
n = number of observations in the sample

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 One Sample t Test

Procedure for One Sample t test:

5.Statistical decision for hypothesis testing:
If tcomputed < tcritical, do not reject H0
If tcomputed ≥ tcritical, reject H0
6.State the conclusion

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 One Sample t Test

Example 1 One of the undersecretary of the Department

of Labor and Employment (DOLE) claims that the average
salary of civil engineer is ₱18,000. A sample of 19 civil
engineers’ salaries has a mean of ₱17,350 and a standard
deviation of ₱1,230. Is there enough evidence to reject
the undersecretary’s claim at α = 0.01?

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 One Sample t Test

Example 2 The average family size in the Philippines was

reported as 4.25. A random sample of families in a
particular street resulted in the following family sizes: 5,
6, 7, 4, 3, 8, 2, and 9. At α = 0.10, is the average family
size more than the national average?

http://2.bp.blogspot.com/_6q4rmXlrar8/THpu6w7uKEI/AAAAAAAAAEg/pUHWsE
upCYo/s1600/filipino+family.jpg
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 One Sample t Test

Example 3 A researcher claims that

20-year old women on a special
diet will have an average weight of
110 lbs. A sample of 15 women has
an average weight of 112.5 lbs. and
a standard deviation of 5 pounds.
At α = 0.01, can the claim be
rejected? Also, find the 99%
confidence interval of the true
mean.

http://www.belgraviacentre.com/wp-
content/uploads/2012/12/iStock_000008958217Small1.jpg
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 One Sample t Test

Exercises
1.A survey in NCR finds the average commute time of
employees on one way is 30 minutes. The Makati
Chamber of Commerce feels that in their city, it is longer,
and they want to publicize this. They randomly select 28
commuters and finds the average is 35 minutes with a
standard deviation of 6 minutes. At α = 0.05, are they
correct?

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 One Sample t Test

Exercises
2.An ice cream dispenser dispenses
5 ounces of ice cream per serving.
To set whether the machine is
under control, a sample of 25
servings showed an average
amount of 5.08 ounces with a
standard deviation of 0.68 ounces.
Is the machine under control, using
a 0.01 level of significance?

http://www.icecreamprofits.com/wp-
content/upload/2012/05/iStock_000019502513Small.jpg
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