HYPOTHESIS TESTING PROCEDURE

STEP 1.

Establish the Hypothesis

a.) Null Hypothesis

Ho:

b.) Alternative Hypothesis

Ha:

STEP 2.

Choose a Significance Level

STEP 3.

Plan the Test

a.) Choose the Test Statistic (formula)
b.) Determine the Rejection Region

Z
or

t
0

F
or

STEP 4.

Collect data and

Calculate test statistic

STEP 5.

Draw conclusion

STEP 6.

Estimate the parameter of interest

and determine Confidence Interval

DATA BLOCK

Hypothesis Tests
Differences in the Means - Tests for One Population
Population Variance ( 2)
known?
Yes

Test To Use

Formula

Z - Test

x 0
/ n
where:
x - Sample Mean
0 - Standard Mean
- Population Standard Deviation
n - Sample Size

No

t - Test

x 0

s/ n
where:

x - Sample Mean

0 - Standard Mean
s - Sample Standard Deviation
n - Sample Size

Differences in the Means - Tests for Two Population s Paired Data

Population
Variances
known?
N/A

Population
Variances
Equal?
N/A

Test to
Use
Paired
Sample t Test

Formula

d
s/ n
where :

d - Sample Differences Mean

s - Sample Standard Deviation
n - Sample Size

Differences in the Means - Tests for Two Populations

Population
Variances
known?
Yes

Population
Variances
Equal?
N/A

Test to
Use
Two Pop.
Z-Test

Formula
For Equal Sample Sizes

x A xB

1 2
( A 2B )
n
where:

xi - Sample Mean
i - Population Standard Deviation
n - Sample Size
For Unequal Sample Sizes

x A xB
2A 2B

n A nB

where:
xi - Sample Mean
i - Population Standard Deviation
ni - Sample Size
No

Yes

Two
Pop.,
Pooled
Variance
t-Test

For equal sample sizes

x A xB

s 2A sB2
n
where:
xi - Sample Mean
si - Sample Standard Deviation
n - Sample Size
For unequal sample sizes

x A xB

1
1 SS A SS B

n A nB n A nB 2
where:
xi - Sample Mean
n i - Sample Size

Differences in the Means - Tests for More than Two Populations

.

Differences in the Dispersion

Comparison
Population Variance to a
Standard

Test To
Use
2 - Test

Formula

( n 1) s 2
20

where :
s - Sample Standard Deviation

- " Standard" or Population Standard Deviation

n - Sample Size
Two Population
Variances

2
2
F s A sB

F - Test

where :
s i - Sample Standard Deviation

Differences in Proportions
Comparison
Population Proportion to a
Standard

Test To
Use
Z - Test

Formula
Z

p P0
P0 (1 P0 ) / n

where:
p - Sample Proportion
n - Sample Size

Two Population
Proportions

Z - Test
(2 Pops)

p1 p2
1 1

n1 n2

p(1 p)

where:
pi - Sample Proportion
ni - Sample Size
x x
p= 1 2
n1 n2
xi - Number of Sample Items with Characteristic of Interest