MODULE 2

INTRODUCTION TO HYPOTHESIS TESTING USING PARAMETRIC AND NON-

PARAMETRIC TESTS

Objectives:
At the end of the course, the student will be able to know:
1. the different steps in hypothesis testing.
2. the difference between one- and two-sided tests of hypotheses and when each is
appropriate.
3. how to select some common parametric and non-parametric tests for quantitative
and categorical variables involving:
a. one group,
b. two groups,
c. more than two groups
4. how to conduct an analysis using MS Excel.

INTRODUCTION TO HYPOTHESIS TESTING

MOST RESEARCHERS ARE INTERESTED IN ANSWERING SO MANY TYPES OF

QUESTIONS. FOR EXAMPLE.
a scientist might want to know whether the earth is warming up
a physician might want to know whether a new medication will lower a person’s
blood pressure
an educator might wish to see whether a new teaching technique is better than a
traditional one
a retail merchant might want to know whether a public prefers a certain color in a
new line of fashion
automobile manufacturers are interested in determining whether seat belts will
reduce the severity of injuries caused by accidents
All the above examples or questions can be addressed through statistical hypothesis
testing, which is a decision-making process for evaluating claims about a population.
IN HYPOTHESIS TESTING, THE RESEARCHER MUST:
I. DEFINE THE POPULATION UNDER STUDY

- THE POPULATION IS USUALLY CHARACTERIZED BY A PARAMETER,

COMMONLY
N

X i
POPULATION MEAN (µ), RECALL,  i 1
N
2
 N N

N X   Xi  i
2

POPULATION VARIANCE (σ2), RECALL,  2  i 1  i 1 

N
OR POPULATION STANDARD DEVIATION (σ)

Note: since most population is not known the parameters are usually given
or assumed.
II. STATE THE PARTICUALR HYPOTHESIS, THE NULL AND THE
ALTERNATIVE, THAT WILL BE INVESTIGATED

NULL (H0) – statement of no difference (the same, similar, unchanged, etc…)

ALTERNATIVE (Ha) – statement that there is a difference (not the same,

dissimilar, will change, etc…)
Note:
1. A ‘claim’ can be attached either to null or to the alternative but specifically, it is the
one that is stated in a particular case or study or problem.
2. The null and alternative hypothesis can either be two-tailed test or one-tailed test
(right tailed or left tailed)

TWO-TAILED TEST ONE-TAILED TEST

RIGHT-TAILED TEST LEFT-TAILED TEST
H0 :  H0 :  H0 : 
Ha :  Ha :  Ha : 
(greater than or equal to, (less than or equal to, at
Note: the equality can at least, not less than) most, not more than)
never be interchange or or
H0 :  H0 : 
Ha :  Ha : 
(greater than, more (less than, lower than)
than)
Note: to identify whether it is right-tailed or left-
tailed, the alternative hypothesis will be considered
Example:
On each of the following studies, state the null and alternative hypothesis and
identify the claim.

1. A medical researcher is interested in finding out whether a new medication

will have any undesirable side effects. The researcher is particularly
concerned with the pulse rate of the patients who take the medication. Will
the pulse rate increase, decrease, or remain unchanged after a patient takes
the medication? Assume that the mean pulse rate for the population under
study is 82 beats per minute.

Answer: H0 : µ = 82 (claim)
Ha : µ ≠ 82
Note: the test is two-tailed test
2. A chemist invents an additive to increase the life of an automobile battery.
Assume that the mean lifetime of the automobile battery is 36 months.
Answer: H0 : µ ≤ 36
Ha : µ > 36 (claim)
Note: the test is right-tailed test

3. A contractor wishes to lower heating bills by using a special type of insulation

in houses. Assume the average monthly heating bills is P4,500.
Answer: H0 : µ ≥ 4,500
Ha : µ < 4,500 (claim)
Note: the test is left-tailed test

III. GIVE THE LEVEL OF SIGNIFICANCE (α). THE STANDARD VALUES

OF α ARE: 10% (.10), 5% (.05), AND 1% (.01).

Note:
Level of significance = α Level of confidence = 1 - α
So for 10%(.10) level of significance means a 90%(.90) confidence of making
the right decision.
IV. SELECT A SAMPLE FROM THE POPULATION AND COLLECT THE
DATA

The researcher formulates the plan for conducting the study. In example 1, for
instance, the researcher will select the sample of patients who will be given the
drugs. After allowing the suitable period of time for the drug to be absorbed, the
researcher will measure each person’s pulse rate. Recall that the sample means
vary about the population mean. So even if the null hypothesis is true, the mean
of the sample will not, in most cases, be exactly equal to the population mean of
82.
Now a question arises. If the mean of the sample is not exactly equal to the
population mean, how does one know whether the medication affects the pulse
rate? That is, is the difference due to chance, or is it due to the effects of the
medication?
If the mean of the sample were, say, 83, the researcher would probably conclude
that the difference was due to chance and would not reject the null hypothesis.
But if the sample mean were, say, 90, then in all likelihood the researcher would
conclude that the medication increased the pulse rate of the users and would
reject the null hypothesis.
The question is. ‘Where does the researcher draw the line?’ this decision is not
made on feelings or intuition, it is made statistically. That is, the difference must
be significant and in all likelihood not due to chance. So the next step is…

V. CHOOSES AND APPROPRIATE STATISTICAL TEST AND COMPUTE

FOR THE TEST VALUE

A statistical test uses the data obtained from a sample to make a decision
about whether or not the null hypothesis should be rejected.

The numerical value obtained from a statistical test is called the test value.

The test value will then be compared with the critical value (tabulated value).

(note: If sig. value < 0.05 or 0.01, the null hypothesis is rejected and it means
the result is significant)

The critical value separates the critical region (rejection region) from the
noncritical region (non-rejection region).

If the test value falls on the critical region, Ho is rejected. Otherwise, it is not
rejected.
VI. MAKE A DECISION WHETHER TO REJECT Ho OR NOT TO REJECT
Ho

A decision is made to reject or not to reject the null hypothesis on the basis of
the value obtained from the statistical test wherein the mean (or other parameter
mentioned above) is computed for the data obtained from the sample and is
compared with the population mean.
In the hypothesis testing situation, there are four possible outcomes. Two
possibilities for a correct decision and two possibilities for an incorrect decision
(Figure 1)

FIGURE 1
HO IS TRUE HO IS FALSE

REJECT HO TYPRE I ERROR CORRECT

DECISION

DO NOT CORRECT TYPE II ERROR

REJECTHO DECISION

In example 1 for instance, the medication might not significantly change the pulse
of all the users in the population; but it might change the rate, by chance, of the
subjects in the sample. In this case, the researcher will reject the null hypothesis
when it is really true, thus committing a type one error.
On the other hand, the medication might not change the pulse rate of the
subjects in the sample; but when it is given to the general population, it might
cause a significant increase or decrease in the pulse rate of the users. The
researcher, on the basis of the data obtained from the sample, will not reject the
null hypothesis, thus committing a type two error.
VII. MAKE A CONCLUSION ABOUT THE ‘CLAIM’

I. IF THE ‘CLAIM’ IS ON HO

REJECT Ho DO NOT REJECT Ho

THERE IS ENOUGH THERE IS NOT ENOGH
EVIDENCE TO REJECT EVIDENCE TO REJECT
THE CLAIM THE CLAIM

II. IF THE ‘CLAIM’ IS ON Ha

REJECT Ho DO NOT REJECT Ho

THERE IS ENOUGH THERE IS NOT ENOGH
EVIDENCE TO SUPPORT EVIDENCE TO SUPPORT
THE CLAIM THE CLAIM
PARAMETRIC TESTS AND NON-PARAMETRIC TESTS

PARAMETRIC TESTS NON-PARAMETRIC TESTS

Definition
Parametric tests are those that make Non-parametric tests does not assume
assumptions about the parameters of the anything about the underlying distribution.
population distribution from which the sample is It usually means that you know the
drawn. This is often the assumption that the population data does not have a normal
population data are normally distributed. distribution.
Usage
Used mainly on interval and ratio scale Can be used on ordinal and
data. nominal scale data (but can be
apply also on interval and ratio
Tend to need larger samples. scale).
Data should fit a normal distribution. Can be used on small samples.
Can be used on data that are not
Samples should be drawn randomly from normally distributed.
the population. Can be used where the samples
More powerful than non-parametric are not selected randomly.
equivalent. Have less power than the
equivalent parametric test.
Statistical test
a. Analysis on Means
1.1 One- 1.1.1 Z – test (large sample, n ≥ Sign test
group or 30) Wilcoxon’s Signed Rank Test
sample 1.1.2 t – test (small sample, n < 30)
1.2 Two- 1.2.1 Z – test Mann-Whitney test
groups 1.2.2 t – test Kolmogorov-Smirnov Test
or (independent/unpaired)
sample 1.2.3 t – test (paired) Sign Test
Kolmogorov-Smirnov Test
1.3 More 1.3.1 Analysis Of Variance Kruskal-Wallis Test
than two (ANOVA) Friedman Test
groups 1.3.2 2-way Analysis Of Variance
or
sample
Analysis on Means

1.1 ONE-GROUP OR SAMPLE

1.1.1 Z – TEST FOR LARGE SAMPLE (n ≥ 30)

Test Formula Level of Critical values (c.v.)

statistic σ is σ is significan Right- Left-tailed Two-
known unknown ce tailed Ha: ≤ tailed
(α) Ha: ≥ or Ha: ≠
or Ha: <
Ha: >
0.01 2.33 -2.33 ± 2.58
Z - test  
x  x  0.05 1.64 -1.64 ± 1.96
Z Z
 n s n
0.10 1.28 -1.28 ± 2.06

Example:
The Medical rehabilitation education Foundation reports that the average cost of
rehabilitation for stroke victim is P24,672 with a standard deviation of P3,251. To see if
the average cost of rehabilitation is not different at a large hospital, a researcher
selected a random sample of 35 stroke victims. At α = 0.05, can it be concluded that the
average cost at a large hospital is not different?
Result: (refer in MS EXCEL, DATA 1)
Answer:
Given: n = 35 µ = P24,672 σ = P3,251
Hypothesis: Ho: µ = P24,672 (claim)
Ha: µ ≠ P24,672
Step 3: α = 0.01; two-tailed test;
Test statistic: Z – test, σ is known

x 
Z
 n
Decision:
Conclusion:
1.1.2 T – TEST FOR SMALL SAMPLE (n < 30)
The test statistic that will be used in determining the test value is:

_
x 
t , σ is unknown degrees of freedom, v = n - 1
s
n

Example:

A job placement director claims that the average starting salary for nurses is more than
P24,000. A sample of 10 nurses has been surveyed. Is there enough evidence to reject
the director’s claim at α = 0.05?

Result: (refer in MS EXCEL, DATA 2)

Answer:
Given: µ = P24,000; n = 10; α = 0.05; one-tailed test
Hypothesis: Ho: µ ≤ P24,000
Ha: µ > P24,000 (claim)
Test statistic: t – test , σ is unknown
_
x 
t
s
n
Decision:
Conclusion:
1.2 TWO – GROUPS OR SAMPLE
1.2.1 Z – test
Formula Level of Critical values (c.v.)
significance Right-tailed Left-tailed Two-
(α) Ha: ≥ or Ha: > Ha: ≤ or Ha: < tailed
Ha: ≠
_
x1  x 2

0.10 2.33 -2.33 ± 2.58
z 
0.01 1.64 -1.64 ± 1.96
s1 s
2 2
0.05 1.28 -1.28 ± 2.06
 2
n1 n2

Example:

A college admission officer believes that students enrolling from District I have higher
NSAT scores than those who enroll from District II. A sample of 35 students from each
district is selected, and the results were gathered (refer in MS EXCEL, DATA 3). Is the
belief of the admission officer substantiated? Test at α = 0.05.

1.2.2 T – test (two independent samples)

   
x1  x2 x1  x2
t (for equal variances) or t  (for unequal variances)
1 1 s12 s22
Sp  
n1 n2 n1 n2

Example:
A restaurant manager hypothesizes that the sales in the restaurant is higher among the
male customers than it is for the female customers. The data from the last quarter sales
was gathered among 20 customers (refer in MS EXCEL, DATA 4). Is there enough
evidence to support her claim? Use α = 0.01 and assume population variances are not
equal.

1.2.3 T – test (paired samples)

2
n n
 n 

D n D    D 
2

d _
i 1  i 1  ,
t where, d i 1
; Sd 
sd n n(n  1)
n
 D – difference between the two observations; degrees of freedom= n-2
Example:

A dietician wishes to see if a person’s cholesterol level will change if the diet is
supplemented by a certain mineral. Six subjects were pretested and then took the
mineral supplement for a six-week period. The results are shown below (refer in MS
EXCEL, DATA 5). Can it be concluded that the cholesterol level has been changed at
0.10 level of significance. Assume the variable is approximately normally distributed.
Subject 1 2 3 4 5
6
Before 210 235 208 190 172
244
After 190 170 210 188 173
228