The Logic of Hypothesis Testing

In classical tests of significance, two kinds of hypotheses are used which are

The null hypothesis and the alternative hypothesis

The null hypothesis is used for testing.

It is a statement that no difference exists between the parameter (a measure taken by a census of the population), and the statistic being compared to it (a

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The Logic of HT contd.

Analysts usually test to determine whether there has been no change in the population of interest or whether a real difference exists. A null hypothesis is always stated in a negative form.

In the hybrid-car example, the null hypothesis states that the population parameter of 50 mpg has not changed.

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The Logic of HT contd.

The alternative hypothesis holds that there has been a change in average mpg (i.e., the sample statistic of 54 indicates the population value probably is no longer 50). The alternative hypothesis is the logical opposite of the null hypothesis.
The hybrid-car example can be explored further to show how these concepts are used to test for significance. 6/12/12

The Logic of HT contd.

The null hypothesis (Ho): There has been no change from the 50 mpg average. The alternative (HA) may take several forms, depending on the objective of the researchers. The HA may be of the not the same or the greater than or less than form:

The average mpg has changed from 50. average mpg has increased

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The Logic of HT contd.

These types of alternative hypotheses correspond with twotailed and one-tailed tests. A two-tailed test, or nondirectional test, considers two possibilities:

the average could be more than 50 mpg, or It could be less than 50.

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To test this hypothesis, the region of rejection are divided into two tails of the distribution.

The Logic of HT contd.

Such hypothesis can be expressed in the following form:

Null

Ho: = 50 mpg

Alternative HA: 50 mpg (not the same case)

(See figure on the next slide)

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