HYPOTHESIS TESTING

Chapter 9
HYPOTHESIS TESTING
 How to state a null hypothesis and an
alternative hypothesis
 How to identify type I and type II errors

 How to know whether to use a one-tailed

or two-tailed test
 How to make and interpret a decision
based on the results of a statistical test
DEFINITION OF TERMS
• Hypothesis testing is a process that uses sample
statistics to test a claim about the value of a
population parameter.

EXAMPLE: The limit for salmonella contamination

for chicken is 20%. A meat inspector reports that
the chicken produced by a company exceeds the
limit.
DEFINITION OF TERMS
• Hypothesis testing is a process that uses sample
statistics to test a claim about the value of a
population parameter.

TYPES OF HYPOTHESIS TESTING

• A one-tailed test of hypothesis is a test where the
alternative hypothesis specifies a difference that can
fall in one tail of the distribution.(one-directional)
• A two-tailed test of hypothesis is a test where the
alternative hypothesis specifies a difference that can
fall in either of the two tails of the distribution.(non-
directional)
DEFINITION OF TERMS
• Hypothesis is a statement about a population
parameter.
TYPES OF HYPOTHESES
• Null hypothesis (Ho) is a claim about a population
characteristic.
• Alternative hypothesis (Ha) is a competing claim.

EXAMPLE: The limit for salmonella contamination

for chicken is 20%. A meat inspector reports that
the chicken produced by a company exceeds the
limit.
EXAMPLES OF NULL HYPOTHESIS VS.
ALTERNATIVE HYPOTHESIS
1. One-tailed test of hypothesis
a. Ho: μ = 21 vs. Ha: μ > 21
b. Ho: μ = 21 vs. Ha: μ < 21
c. Ho: μ1 = μ2 vs. Ha: μ1 > μ2
d. Ho: μ1 = μ2 vs. Ha: μ1 < μ2
2. Two-tailed test of hypothesis
a. Ho: μ = 21 vs. Ha: μ ≠ 21
b. Ho: μ1 = μ2 vs. Ha: μ1 ≠ μ2
DEFINITION OF TERMS
TYPES OF ERRORS
• Type I error occurs if the null hypothesis is rejected
when it is true.
• Type II error occurs if the null hypothesis is not rejected
when it is false.

Statistical
Truth of Null Hypothesis
Decision
Ho is TRUE Ho is FALSE

Do not reject Ho Correct Type II

Reject Ho Type I Correct

DEFINITION OF TERMS

• Level of significance is the maximum allowable

probability of making a type I error or type II error.
(α, β = 0.10, 0.05, 0.01)
• Level of confidence is the percent of accurateness.

• Test statistic is a statistic that is compared with the

parameter in the null hypothesis.
•
Z-TEST
If n ≥ 30, use the z-test formula:
A. One-sample mean
( x   )( n )
z
s
B. Two-sample means

( x1  x 2 )
z 
s12 2
s2

n1 n2
T-TEST

If n < 30, use the t-test formula:

A. One-sample mean
( x   )( n )
t
B. Two-sample means
s
x1  x2
t
s1 (n1  1)
2
 
s2 (n1  1)
2
 1  1 
n1  n2   2 n
 1 n2 
SIX STEPS IN HYPOTHESIS TESTING
1. Formulate the null and alternative hypotheses.
2. Specify the level of significance and decide whether
a one-tailed or a two-tailed test shall be used.
3. Decide the test statistic to be used. Find the critical
or tabular value and the degree of freedom.
4. Compute for the value of the test statistic using the
data from the population and the sample.
5. Make a decision.
computed value ≥ tabular value Reject Ho
computed value < tabular value Accept Ho
6. State the conclusion.
EXERCISES

Solve the problems by following the steps and

procedures in hypothesis testing.

A clothing store owner believes that the mean

income of its customers is P30 000 per month.
One hundred fifty customers are randomly
selected and asked of their monthly income. The
sample mean is P30 500 per month and the
standard deviation is P4 200. Is there sufficient
evidence to indicate that the mean income of the
customers of the store is P30 000 per month?
Use α=0.05.
EXERCISES
Solve the problems by following the steps and
procedures in hypothesis testing.

In a particular community, it is claimed that the

mean household water usage for a particular
month is 45 cubic meters. The following year, a
countrywide water conservation campaign was
conducted. Fifty homes were randomly selected
and found that the mean consumption is 47 cubic
meters with a standard deviation of 2.5 cubic
meters. Is there enough evidence to accept the
claim that the mean household water usage per
month is 45 cubic meters at α=0.01?
EXERCISES
Solve the problems by following the steps and
procedures in hypothesis testing.

A nationwide survey found out that the average

time that college students spent on their
personal computer is 7.5 hours per week. A
random sample of 28 college students showed
that they spent 7.1 hours per week using their
computers with a standard deviation of 0.7
hours. Test whether the average number of
hours spent by the 28 college students is
significantly lower than the national average of
7.5 hours. Use a level of significance, α=0.05.
EXERCISES

Solve the problems by following the steps and

procedures in hypothesis testing.

A chemical company alleged that the average

weight of its bag of chemical is 30 kilograms
with a standard deviation of 1.1 kilograms. A
sample of 26 bags was taken and revealed a
mean weight of 29.5 kilograms. Shall we accept
the allegation of the chemical company? Use
α=0.01.
EXERCISES
Solve the problems by following the steps and
procedures in hypothesis testing.

Job satisfaction as a function of work schedule was

investigated in two different factories. In the first
factory, the employees are on fixed shift system while
in the second factory, the workers have rotating shift
system. Using the data in the table below, determine if
there is a significant difference in job satisfaction
between the two groups of workers. Use α=0.01.
Work Mean Standard Sample size
Schedule deviation

Fixed shift 7.29 3.12 49

Rotating shift 6.08 2.96 42

EXERCISES
Solve the problems by following the steps and
procedures in hypothesis testing.

A prospective MBA student was made to estimate the

difference in salaries of professors in private and state
colleges. He claimed that the difference in the average
starting salaries of the MBA graduates of the two
colleges were relevant. An independent study of
simple random samples of the most recent MBA
graduates of both colleges revealed the following
statistics:
Statistics Private State
Arithmetic P38 820 per P32 080 per
mean month month
Standard 800 940
deviation
Sample size 50 50
EXERCISES
Solve the problems by following the steps and
procedures in hypothesis testing.

In a study of usage of instant coffee by a simple

random of 10 rural families, the consumption of such
coffee was found to have an arithmetic mean of 30
ounces per family every month with a standard
deviation of 5 ounces. In another similar study for 17
urban families, consumption was found to average
28 ounces with a standard deviation of 4 ounces. At
0.01 level of significance, would you conclude that
there was a statistically significant difference in the
sample averages of consumption of instant coffee
between the rural and the urban families?
EXERCISES
Solve the problems by following the steps and
procedures in hypothesis testing.

A distributor claims that the average strength of

brand A rope exceeds the average strength of
brand B rope. To test its claim, 25 pieces of each
brand are tested under similar conditions. Brand
A had an average strength of 87.6 kilograms with
a standard deviation of 6.82 kilograms, while
brand B had an average strength of 88.7
kilograms with a standard deviation of 5.64
kilograms. Test whether the claim of the
distributor is correct at 0.05 level of significance.