REPUBLIC OF THE PHILIPPINES

PROVINCE OF ILOCOS SUR

UNIVERSITY OF NORTHERN PHILIPPINES
TAMAG, VIGAN CITY, ILOCOS SUR

College of Public Administration

GUZMAN, JOHN WAYNE T.

RS 299a STATISTICS WITH COMPUTER APPLICATION
4:30-7:30 PM SAT
DATE OF SUBMISSION : FEBRUARY 04, 2022

ACTIVITY # 7

Differentiate the following:

1. Hypothesis testing and Estimation
- Estimation deals with the method of estimating an unknown parameter of a
population based on Random Samples from the same population. The assumption
here is that the parameter to be estimated is a constant with one value and the
sample Statistic computed from the sample is estimating that value exactly. In the
parameter space, it is represented as a point. Hence the name point estimation.
Maximum Likelihood is such a method. On the other hand, Hypothesis testing is the
process of either rejecting or not rejecting a statement or a Hypothesis that has been
set up about the Parameter. This is done by computing a Test Statistic based on the
sample(s) from that population and testing it against an ideal standard value. A risk
of a making wrong conclusion is predetermined. That means the probability of
rejecting the original hypothesis when it is a correct one. The basic hypothesis about
the parameter is known as the Null hypothesis and an Alternative hypothesis is also
set up at the same time. In case the Null (H0) is rejected, the Alternative (H1) is
accepted.2. Null and alternative hypotheses
2. Null and alternative hypotheses
- The null hypothesis and alternative hypothesis are required to be fragmented
properly before the data collection and interpretation phase in the research. Well
fragmented hypotheses indicate that the researcher has adequate knowledge in
that particular area and is thus able to take the investigation further because they
can use a much more systematic system. It gives direction to the researcher on
his/her collection and interpretation of data. In contrast, the null hypothesis and
alternative hypothesis are useful only if they state the expected relationship
between the variables or if they are consistent with the existing body of
knowledge. They should be expressed as simply and concisely as possible. They
are useful if they have explanatory power.
 REPUBLIC OF THE PHILIPPINES
PROVINCE OF ILOCOS SUR
UNIVERSITY OF NORTHERN PHILIPPINES
TAMAG, VIGAN CITY, ILOCOS SUR

College of Public Administration

3. One-tailed and two-tailed test

- One-tailed test, as the name suggests is the statistical hypothesis test, in which
the alternative hypothesis has a single end. On the other hand, a two-tailed test
implies the hypothesis test; wherein the alternative hypothesis has dual ends. On
the contrary, the region of rejection is on both sides of the sampling distribution.
A one-tailed test is used to ascertain if there is any relationship between
variables in a single direction, i.e. left or right. As against this, the two-tailed test
is used to identify whether or not there is any relationship between variables in
either direction. In a one-tailed test, the test parameter calculated is more or less
than the critical value. Unlike, two-tailed test, the result obtained is within or
outside critical value.

4. Rejection and acceptance regions

- Acceptance region is the group of values of test-statistics which are consistent
with the null hypothesis while Rejection region is the group of values of test-
statistic which are not consistent with the null hypothesis. (Outside of the
acceptance region)

5. Type I and II errors

Type I error is when you reject a true null hypothesis and is more serious error. It
is also called ‘a false positive. Otherwise, Type II error is when you accept a false
null hypothesis.