LESSON 1: HYPOTHESIS TESTING

OBJECTIVES

At the end of this lesson, the students should be able to:

 Demonstrate understanding of the key concepts of hypothesis testing and

formulation;

 Illustrate null and alternative hypothesis, types of error,level of significance, and test
statistic;

 Distinguish between one-tailed and two-tailed test; and

 Formulate the appropriate null and alternative hypothesis.

What Is It?

Hypothesis is an assumption or inferential statement about the characteristics of

the subject under consideration. It is a claim statement about a population parameter based
on the merits of sample information.

The method in which we select samples to learn more about the characteristics in a
given population is called hypothesis testing. Hypothesis testing is a systematic way to
test claims about a group or population. To illustrate, suppose we read a research stating
that children in the United States watch an average of 5 hours of television program per
week. To test whether this claim is true, we record the time (in hours) that a group of 20
American children (the sample), among all children in the United States (the population),
watch television program. The mean that we measure for these 20 children is a sample
mean. We can then compare the sample mean we select to the population mean stated in
the research.

The general goal of a hypothesis test is to rule out chance (sampling error) as a plausible
explanation for the results from a research study. All research starts with a problem that needs
to be solved. From this problem, hypotheses are developed to provide the researcher with a
clear statement of the problem.

A hypothesis test involves two hypothesis:

A null hypothesis (𝑯𝑶 ) states no existence of relationship between the variables under
study. It is stated for the purpose of being accepted or rejected.
 An alternative hypothesis (𝑯𝒂 ) is accepted if the null hypothesis is rejected. It is a
statement that states that there exist a difference between a parameter and a specific value.

Example 1:

Claim: The average monthly income of Filipino families who belong to low income bracket is
Php 8,000.

𝐻𝑜 : The average monthly income of Filipino families who belong to low income bracket is Php
8,000 (μ = 8, 000)

𝐻𝑎 : The average monthly income of Filipino families who belong to low income bracket is not
equal to Php 8,000 (μ ≠ 8,000)

Notice that the null hypothesis is expressed through the use of “equal” sign ( = ) while the
alternative hypothesis is expresses by the “not equal” symbol ( ≠ ) because the claim does
not specify any direction.

Example 2:

The average monthly income of Filipino families who belong to low income bracket is more
than Php 8,000.

𝐻𝑜 : The average monthly income of Filipino families who belong to low income bracket is Php
8,000 (μ = 8, 000)

𝐻𝑎 : The average monthly income of Filipino families who belong to low income bracket is
more than Php 8,000 (μ > 8,000)

Notice that the null hypothesis is expressed through the use of “equal” sign ( = ) while the
alternative hypothesis is expresses by the > symbol because the claim specify a direction
which is more than 8,000.

Example 3:

The average monthly income of Filipino families who belong to low income bracket is less than
Php 8,000.

𝐻𝑜 : The average monthly income of Filipino families who belong to low income bracket is Php
8,000 (μ = 8, 000)

𝐻𝑎 : The average monthly income of Filipino families who belong to low income bracket is less
than to Php 8,000 (μ < 8,000)
Notice that the null hypothesis is expressed through the use of “equal” sign ( = ) while the
alternative hypothesis is expresses by the < symbol because the claim specify a direction
which is less than 8,000.

In research, alternative hypothesis gives a researcher specific clarifications on the research

questions or problems. It provides a study with the direction that can be used to collect
data and obtain results of interest by the researcher thus, it is always selected before
commencing the studies to give researchers the opportunity to prove that the restatement
is backed up by an evidence and not just from the researcher’s ideas or values.

Example 1:

About 10% of the human population is left-handed. Suppose a researcher at Penn State
speculates that students in the College of Arts and Architecture are more likely to be left-
handed than people found in the general population.

Research Question: Are artists more likely to be left-handed than people found in the general
population?

𝐻𝑜 : Students in the College of Arts and Architecture are no more likely to be left-handed than
people in the general population (population percent of left-handed students in the College of
Art and Architecture = 10% or p = 10%)

𝐻𝑎 : Students in the College of Arts and Architecture are more likely to be left-handed than
people in the general population (population percent of left-handed students in College of Arts
and Architecture > 10% or p > 10%)

Example 2:

The bureau of census estimated the average number of U.S citizens residing in rural counties
to be 105,000, 10 years ago. They planned to see if it changed. They took a random sample
of 30 counties across the U.S and from the counties sampled, they are expecting that the
average number of residents have increased over the past decade.

𝐻𝑜 : The average number of U.S citizens residing in rural counties haven’t increased from the
past decade (Average number of U.S citizens residing in rural counties = 105,000 or μ =
105,000)
𝐻𝑎 : The average number of U.S citizens residing in rural counties have increased from the
past decade (population of U.S citizens residing in rural counties > 105,000 or μ > 105,000)

Example 3:

A research reported that teenagers spend 5.5 hours per week, on average, on the phone for
the past 2 years. The researcher assume that, currently, the mean is higher. A random sample
of twenty teenagers were asked how many hours per week they spend on the phone.

𝐻𝑜 : The average number of hours that students spend on using phone per week is 5.5 hours
(average hours that students spend on using their phone per week = 5.5 hours or μ = 5.5
hours)

𝐻𝑎 : The average number of hours that students spend on using phone per week is more than
5.5 hours (average hours that students spend on using their phone per week > 5.5 hours or
μ > 5.5 hours)

One-Tailed Test vs. Two-Tailed Test

When the given statistics hypothesis assumes a less than or greater than value, it is called
one-tailed test and the rejection region only lies on one of the tails.

 Left-tailed test. When the population parameter is believed to be lower than the
assumed one, the hypothesis test carried out is the left-tailed test.
 Right-tailed test: When the population parameter is supposed to be greater than the
assumed one, the statistical test conducted is a right-tailed test.

When the alternative hypothesis is two-sided like 𝐻𝑎 : 𝜇 ≠ 𝜇𝑜 , it is called two-tailed and the
rejection region lies on the both ends of the normal distribution.
Example 1: (One-Tailed test / Left-Tailed Test)

The company claims that soft drink cans on average, contain 12 ounces of soda. However, if
these cans contain less than the claimed amount of soda, the company can be accused of
cheating. Suppose a consumer agency wants to test whether the mean amount of soda per
can is less than 12 ounces.

Let μ be the mean amount of soda in all cans. The two possible decisions are:

𝐻𝑜 : μ = 12 ounces (The mean is equal to 12 ounces)

𝐻𝑎 : μ < 12 ounces (The mean is less than 12 ounces)

Example 2: (Right-Tailed Test)

According to www.city-data.com, the average price of homes in West Orange, New Jersey,
was $459,204 in 2009. Suppose a real estate researcher wants to check whether the current
mean price of homes in this town is higher than $459,204.

Let μ be the current mean price of homes in this town. The two possible decisions are:

𝐻𝑜 : μ = $459,204 (The current mean price of homes in this town is not higher than $459,204)

𝐻𝑎 : μ > $459,204 (The current mean price of homes in this town is higher than $459,204)

Example 3: (Two-Tailed Test)

According to the U.S. Bureau of Labor Statistics, people in the United States who had a
bachelor’s degree and were employed earned an average of $1038 a week in 2010. Suppose
an economist wants to check whether this mean has changed since 2010.

Let μ be the mean weekly earning of employed Americans with a bachelor’s degree.

𝐻𝑜 : μ = $1038 (The mean weekly earning of Americans with bachelor’s degree has not
changed since 2010.)

𝐻𝑎 : μ ≠ $1038 (The mean weekly earning of employed Americans with a bachelor’s degree
has changed since 2010.)

(The mean weekly earning of employed Americans with a bachelor’s degree has changed if it
is either increased or decreased since 2010.)
 Testing the Hypothesis

When we test a hypothesis, there is a possibility that we commit an error of accepting or

rejecting the hypothesis. There are two types of error:

Type I error occurs when we reject the null hypothesis when it is true. This is also called
the α error and the probability of committing this error is called the level of significance.

α = P ( 𝐻𝑜 is rejected | 𝐻𝑜 is true )

The level of significance, also denoted as alpha or α, is the probability of rejecting the null
hypothesis when it is true. For example, a significance level of 0.05 indicates a 5% risk of
concluding that a difference exists when there is no actual difference.

Type II error occurs when we accept the null hypothesis when it is false. This is also called
the β error.

α = P ( 𝐻𝑜 is not rejected | 𝐻𝑜 is false )

Here are other key terms that you should know!

Rejection region or critical region is the set of all values of the test statistic that causes
us to reject the null hypothesis.

Non-rejection region or acceptance region is the set of all values of the test statistic that
causes us to fail to reject the null hypothesis.

Critical value is a point (boundary) on the test distribution that is compared to the test
statistic to determine if the null hypothesis would be rejected.
 Rejection and Non-rejection region in a normal distribution

Example:

A psychologist claims that the mean age at which children start walking is 12.5 months. Carol
wanted to check if this claim is true. She took a random of sample of 18 children and found
that the mean age at which these children started walking was 12.9 months with a standard
deviation of .80 month. Using the 1% significance level, can you conclude that the mean age
at which all children start walking is different from 12.5 months? Assume that the ages at which
all children start walking have an approximately normal distribution.

Step 1: Identify the claim and formulate the null ( 𝐻𝑜 ) and alternative ( 𝐻𝑎 ) hypothesis.

𝐻𝑜 : μ = 12.5

𝐻𝑎 : μ ≠ 12.5

Step 2: Set the level of significance and determine whether the test is one-tailed or two-tailed
by looking at how the alternative hypothesis is expressed. Decide on the test statistic to be
used and find the critical value for the test. Illustrate the rejection region.

Significance Level = 1%

Area in each tail = α /2 = .01/2 = .005.

df = n – 1 = 18 – 1 = 17.

The critical values for t for 17 df and .005 area in each tail are -2.898 and 2.898

The ≠ sign in the alternative hypothesis indicates that the test is two-tailed

and the rejection region lies in both tails.

Step 3: Compute the test value using the test statistic or formula for the test.

12.9 − 12.5
t= .80
√18

12.9 − 12.5
t=
.18856181

t = 2.121

Step 4: Make a decision whether to reject or not the null hypothesis.

The value of the test statistic t = 2.121 falls between the two critical points, -2.898
and 2.898, which is the non-rejection region. Consequently, we fail to reject 𝐻𝑜 .

If the test value or the computed value falls in the rejection region, then reject the null
hypothesis; otherwise, we fail to reject the null hypothesis.

ACCEPTING OR REJECTING THE NULL HYPOTHESIS

How do we decide on accepting or rejecting the null hypothesis? Follow these steps.

1. Determine the critical value, using appropriate statistical tables.

2. Draw the rejection region and the critical value.
3. If the test value or the computed value falls in the rejection region, then we fail to accept
the null hypothesis; otherwise, accept the null hypothesis.
Study the following examples

HYPOTHESIS REJECTION REGION DECISION

𝐻𝑜 : 𝜇 = 50
𝐻𝑎 : 𝜇 ≠ 50
Accept 𝐻𝑜
Test value = 1.45
Critical value ± 1.96

𝐻𝑜 : 𝜇 = 50
𝐻𝑎 : 𝜇 ≠ 50
Fail to accept 𝐻𝑜
Test value = -2.15
Critical value ± 1.96

𝐻𝑜 : 𝜇 = 50
𝐻𝑎 : 𝜇 > 50
Fail to accept 𝐻𝑜
Test value = 1.97
Critical value = 1.65

Activity

Answer the following

A. State the null and alternative hypothesis of the following statements.

1. The intelligence quotient of male grade 11 students is the same as the female

students.

2. The school want to test if the students in grade 7 prefer online distance learning

as the method of instruction.

3. The school librarian wants to find out if there was an increase in the number of

students accessing the school library.

B. Illustrate the rejection region given the critical value and identify if the t-values lie in the

non-rejection region or rejection region.

1. Critical value of 1.318, computed t-value of 1.1

2. Critical value of 1.725, computed t-value of 2.14

3. Critical value of -1.701, computed t-value of -2.48

4. Critical value of -2.306, computed t-value of -2.110

5. Critical value of -1.860, computed t-value of -2.3