Hypothesis Testing

- A procedure in making decisions based on a sample evidence or probability theory used to

determine whether a hypothesis is accepted or rejected.
- If the statements is found reasonable then, the hypothesis is accepted, otherwise rejected.

One-tailed and Two-tailed Test

One – Tailed Test

- Used when the alternative hypothesis is directional which means that the value of the measures is
either greater than (>) or lesser than (<) the other measure.
- A hypothesis test for which the rejection region lies at only one tail of the distribution.
- If the population mean (µ) is less than the specified value of µ0, then it is left – tailed test (µ <
µ0).
- If the population mean (µ) is greater than the specified value of µ0, then it is right – tailed test (µ
< µ0).
Two – Tailed Test

- Used when the alternative hypothesis is non – directional which means that the values of two
measures of the same kind are not equal.
- It has a not equal sign (≠)
- A hypothesis test for which the rejection region lies on both end of the tail distribution, one on the
left and one on the right.
Rejection Regions for Two-Tailed, Left-Tailed, and Right-Tailed Test

Two-tailed Test Right-tailed Test Left-tailed Test

Sign in Ha ≠ > <
Rejection region Both sides Right side Lest side

Graphical Representation

Non-Rejection
Rejection Region
Region
11

z = - 1.645
a = 0.05, one-tailed test (left tail)
 Rejection
Non- Rejection
Region
Region
11

z = 1.645
a = 0.05, one-tailed test (right tail)

Non- Rejection
Region
Rejection Region
Rejection Region
11

z = ± 1.96
a = 0.05, two-tailed test

A Hypothesis Testing Procedures

1. Formulate the null and Alternative Hypothesis.
2. Decide the level of significance, a.
3. Choose the appropriate test statistics.
4. Establish the critical region.
5. Compute the value of statistical test.
6. Decide whether to accept or reject null hypothesis.
7. Draw a conclusion

A. Hypothesis About Means (Comparing sample means and Population Means)

 x−µ x−µ
z= z=
1. σ 2. s
√n √n
Where:
z = z-test value
x = sample mean
µ = population mean or claimed in Ho
δ = population standard deviation
s = sample standard deviation
n = number of cases greater than or equal 30

Problem 1.
The treasures of a certain company university claims, that the mean monthly salary of their
college professor is P 21,750 standard deviation of P 6,000. A researcher takes a random sample of 75
college professors were found to have a mean monthly salary of P 19, 375. Do the 75 college professors
have lower salaries than the rest? Test the claim at a = 0.05 level of significance.
Problem 2.
The hospital record shows that the mean weight of newly born baby is 7 lbs., with the standard
deviation of 0.75 lbs. A researcher takes a sample of 55 newly born babies and found to have a mean
weight of 6.73 lbs. Test the claim at 0.05 level of significance.
Problem 3.
An economist claims that the mean family income of a certain populated area in Metro Manila is
at P 22, 450 monthly. Test the claim at 0.05 level of significance. The economics take a sample of 150
families, obtaining a mean of P 19,769 with a standard deviation of P 529. What is the conclusion?