Test Of Hypothesis

Statistics
▪ Descriptive
– Describes data for the entire group
– Eg. Maths grades in CBSE exam
▪ Inferential

– Sampling from population - Testing grapes from a basket of

grapes
– Population is large group having nite or in nite individuals.
Statistical component are called parameters eg. μ ,σ - Eg.
average height of men in the country
– Sample is randomly chosen from the population. Statistical
component are called statistics eg. x , s
 Sampling Theory

■ Sampling theory is a study of relationships existing between a

population and samples drawn from the population
■ It is useful in estimating unknown population quantities such
as population mean and variance known as population
parameters or parameters
■ Sampling is useful in determining whether the observed
di erences between two samples are due to chance variation
or whether they are really signi cant
 Random Samples and Random Numbers

■ Samples must be chosen so as to be representative

of a population
■ One way to obtain a representative sample is Random
sampling
 Sampling Distribution
■ Consider all possible samples of size N that can be drawn from
a given population
■ For each sample, compute a statistic (mean & standard
deviation) that will vary from sample to sample
■ So, obtain a distribution of the statistic that is called its sampling
distribution
■ If the particular statistic used is the sample mean, then the
distribution is called the sampling distribution of mean
■ Similarly, there are sampling distributions of standard deviation,
variance, medians, etc.
 Estimation theory

■ One of the objective of Statistics is to draw inferences

(conclusion) about a population from the analysis of a sample
drawn from that population
■ The statistical inference is based on two things :
– Estimation (of population parameter from the corresponding sample
statistics)
– Testing of hypothesis
 Basic Concept
■ Statistical Decisions
Decisions about population on the basis of sample information are called
statistical decisions
■

■ Statistical Hypothesis
To make assumption about the population, which may or may not be true
are called statistical hypothesis
■

■ Null hypotheses
A statistical hypotheses that is formulated for the sole purpose of rejecting or
nullifying it is called null hypotheses
■

■ It is denoted by Ho
■ Alternative Hypotheses
Any hypotheses that di ers from a given hypotheses is called an alternative
hypotheses which is denoted by H1
■
 Test Of Hypothesis
■ Suppose a particular hypotheses is true but nd that the results
observed in a random sample di er markedly from the results
expected under the hypotheses
■ Then we would say that the observed di erences are signi cant
and would thus be inclined to reject the hypotheses
■ Procedures that enable to determine whether observed samples
di er signi cantly from the results expected and help us to
determine whether to accept or reject hypotheses are called test of
hypotheses or test of signi cance or rules of decision
 Type I and Type II Errors
■ If we reject a hypotheses when it should be accepted then it is
Type I error
■ If we accept a hypotheses when it should be rejected then it is
Type II error
■ In either case, a wrong decision or error in judgment has
occurred
■ In order to be a good test of hypotheses, they must be
designed so as to minimize errors of decision
■ The only way to reduce both types of error is to increase the
sample size, which may or may not be possible
 Procedure for Testing of
Hypothesis
■ De ne the null hypothesis
■ De ne the alternative hypothesis. This will help to decide
whether to use a single-tailed or two-tailed test
■ Specify level of signi cance
■ Compute the test statistic by chi-square test, student-t test.
Also nd the critical value of statistic from table
■ Make a decision whether to accept or reject H0, by comparing
magnitude of calculated value of statistic and the table for the
chosen level of signi cance
■ If the calculated value of statistic is less than value from the table, H0 is
accepted otherwise it is rejected.
■ A study conducted 10 yrs ago found that
the mean weight of adults to be 70 kg. Is
it the same now?
Ho : wt is same , μ =70 kg
If research suspects wt. has increased hence
Ha : wt is now greater than 70kg, μ > 70 kg
i.e. Right tailed test
If research suspects wt. has decreased hence
Ha : wt is now less than 70kg, μ < 70 kg
i.e. left tailed test
If research suspects wt. has changed hence
Ha : wt is now not equal to 70kg, μ <>70 kg
i.e. two tailed test
■ The question determines which test to go
for.
Ho : wt is same , μ =70 kg
If research suspects wt. has increased hence
Ha : wt is now greater than 70kg, μ > 70 kg
i.e. Right tailed test
Reject Ho if sample mean is signi cantly > 70
If research suspects wt. has decreased hence
Ha : wt is now less than 70kg, μ < 70 kg
i.e. left tailed test
Reject Ho if sample mean is signi cantly < 70
If research suspects wt. has changed hence
Ha : wt is now not equal to 70kg, μ <>70 kg
i.e. two tailed test
Reject Ho if sample mean is signi cantly < 70
We have to identify the critical value
 Right tailed test
Acceptance
region

Rejection
region
 Level of Signi cance
In testing a given hypotheses, the probability of type 1 error is
called the level of signi cance or signi cance level of the test
■

■ It is denoted by α
It is speci ed before any samples are drawn so that the results
obtained will not in uence the choice
■

■ A signi cance level of 0.05 or 0.01 is normal

0.05 (or 5%) signi cance level means there are about 5
chances in 100 that the hypotheses would be rejected when it
■

should be accepted
■ 95% con dent that the right decision have been made
 How do we decide whether to
reject or accept H0?
The entire set of values that the test statistic may assume is
divided into two sets or regions
■

One set, consisting of values that support the alternative

hypothesis and lead to reject H0, is called rejection region
■

The other, consisting of values that support the null hypothesis

called the acceptance region
■

When the rejection region is in the left tail of the distribution,

the test is called a left – tailed test
■

■ A rejection region in the right tail is called a right-tailed test

■ Otherwise it is called two tailed test
 Critical values
■ The value of test statistic which separates the critical
region( or rejection) and the acceptance region is called
a critical value.
■ It depends upon:
■ The level of signi cance used
The alternative hypothesis, whether it is two-tailed or single
tailed
■
 Critical values of Z at commonly used levels of
signi cance
These values of Z can be used when n is large . When n is small (n<30)
we used t and chi square test tables.
Critical value Level of signi cance
Zα 1% 5% 10%
Two tailed test |Zα|=2.58 |Zα|=1.96 |Zα|=1.645
Right tailed test Zα=2.33 Zα=1.645 Zα=1.28
Left tailed test Zα=-2.33 Zα=-1.645 Zα=-1.28
Z= X- μ
σ/sqrt(N)
 Test Of Hypothesis
The breaking strengths of cables produced by a manufacturer
have a mean of 1800 pound and a standard deviation of 100
■

pounds. By a new technique in the manufacturing process, it is

claimed that the breaking strength can be increased. To test the
claim ,a sample of 50 cables is tested and it is found that the mean
breaking strength is 1850 pound. Can we support the claim at the
0.01 signi cance level.

Z= X- μ
σ/sqrt(N)
Test of Hypothesis Zα
Two tailed
Right tailed
1%
|Zα|=2.58
Zα=2.33
5%
|Zα|=1.96
Zα=1.645
10%
|Zα|=1.645
Zα=1.28
Left tailed Zα=-2.33 Zα=-1.645 Zα=-1.28

■ Ho : μ =1800 pound and there is really no change in

breaking strength.
■ H1 : μ > 1800 pound , and there is a change in
breaking strength
Z= X- μ = 1850- 1800 = 3.55
σ/sqrt(N) 100/sqrt(50)
Right tailed Zα=2.33 Ho is rejected as 3.55 is greater than 2.33
test for 0.01