6.1.

Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis

6.2. Hypothesis Testing Hypothesis test decisions

HYPOTHESIS TESTS FOR A SINGLE

POPULATION

MSc. Nguyễn Hoàng Huy Tú

December 16, 2023

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Null Hypothesis and Alternative Hypothesis

Definition
Null hypothesis, H0 : A maintained hypothesis that is considered
to be true unless sufficient evidence to the contrary is obtained.
Alternative hypothesis, H1 : A hypothesis against which the null
hypothesis is tested and which will be held to be true if the null is
declared to be false.
Note that: if we reject the null hypothesis, then the alternative
hypothesis will be accepted.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

One-sided and Two-sided Hypotheses

Definition
Let θ be the population parameter. There are 3 types of hypotheses:
{
H0 : θ = θ 0
H1 : θ ̸= θ0
{
H0 : θ ≤ θ0 or θ = θ0
H1 : θ > θ0
{
H0 : θ ≥ θ0 or θ = θ0
H1 : θ < θ0

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Example: State the null and alternative hypotheses

The branch manager of an international bank in Kuala Lumpur,

Malaysia, has received a memorandum from senior executives at the
head office of the bank instructing the manager to ensure that the
average queuing time for customers waiting to see a cashier is no
more than 5 minutes. Since receiving this directive, the manager has
been informally checking queuing times and is very confident that the
average time customers spend waiting to see a cashier is currently 5
minutes or less. You have now been brought in to undertake an audit
of queuing times to check that they are in accordance with the senior
executives’ directive. State the null and alternative hypotheses you
will be using in this instance.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Exercise
Ex 1: In a random sample of 361 owners of small businesses that had
gone into bankruptcy, 105 reported conducting no marketing studies
prior to opening the business. Test the hypothesis that at most 25% of
all members of this population conducted no marketing studies before
opening their businesses. State the null and alternative hypotheses.
Ex 2: A company selling licenses for new e-commerce computer
software advertises that firms using this software obtain, on average
during the first year, a yield of 10% on their initial investments. A
random sample of 10 of these franchises produced the following
yields for the first year of operation:

6.1 9.2 11.5 8.6 12.1 3.9 8.4 10.1 9.4 8.9

Assuming that population yields are normally distributed, test the

company’s claim. State the null and alternative hypotheses.
Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population
 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Exercise

Ex 3: A random sample of 50 university admissions officers was

asked about expectations in application interviews. Of these sample
members, 28 agreed that the interviewer usually expects the
interviewee to have volunteer experience doing community projects.
Test the hypothesis that the population proportion is larger than
one-half.

Ex 4: At the insistence of a government inspector, a new safety

device is installed in an assembly-line operation. Test the population
variance for daily output does not exceed 500.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Exercise

Ex 5: Plastic sheets produced by a machine are periodically

monitored for possible fluctuations in thickness. If the true variance
in thicknesses exceeds 2.25 square millimeters, there is cause for
concern about product quality. Test that the population variance is at
most 2.25.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Exercise

Ex 6:A diet doctor claims that the average North American is more
than 20 pounds overweight. To test his claim, a random sample of 20
North Americans was weighed, and the difference between their
actual and ideal weights was calculated. The data are listed here. Do
these data allow us to infer at the 5% significance level that the
doctor’s claim is true?
Ex 7: In some states, the law requires drivers to turn on their
headlights when driving in the rain. A highway patrol officer believes
that less than one-quarter of all drivers follow this rule. As a test, he
randomly samples 200 cars driving in the rain and counts the number
whose headlights are turned on. He finds this number to be 41. Does
the officer have enough evidence at the 10% significance level to
support his belief?

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Hypothesis test decisions

Definition
Hypothesis test decision is a procedure to either reject or accept (fail
to reject) the null hypothesis on the basis of sample evidence.

It is based on counterfactual argument (proof by contradiction). Given

a small probability α (the significant level).
First, we assume the Null hypothesis is true. Then we find an event A
such that

P(A|H0 ) = α

Since the probability α is small, we consider that A cannot occur.

Now, from a random sample, we will check that either A occur or not.
If A occur (contradiction), then we reject H0 . Otherwise, we fail to
reject (accept) it.
Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population
 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Example

The production manager of Circuits Unlimited has asked for your

assistance in analyzing a production process. This process involves
drilling holes whose diameters are normally distributed with a
population standard deviation of 0.06 inch. A random sample of nine
measurements had a sample mean of 1.95 inches. Use a significance
level of α = 0.05 to test the hypothesis that the population mean is
equal to 2.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Solution
State the null and alternative hypotheses:
{
H0 : µ = 2
H1 : µ ̸= 2
First, assume that H0 is true. It means µ = 2 Now, since the
population is normally distributed, we have
X−µ
Z= √ ∼ N(0, 1)
σ/ n
Therefore ( )
P −zα/2 < Z < zα/2 = 1 − α
( )
⇒ P Z < −zα/2 or Z > zα/2 = α

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 6.1. Concepts of Hypothesis Testing Null Hypothesis and Alternative Hypothesis
6.2. Hypothesis Testing Hypothesis test decisions

Solution

Hence the decision rule is

X−µ X−µ
Reject H0 if √ < −zα/2 or √ > zα/2
σ/ n σ/ n
In other words,

Reject H0 if X < 1, 9608 or X > 2, 0392

Because x = 1, 95, we reject H0 and accept H1 .

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Tests of the Mean of a Normal Distribution: Population

Variance Known
From a normally distributed population with known variance σ 2
{
H0 : µ = µ 0
H1 : µ ̸= µ0
σ σ
Reject H0 if x < µ0 − zα/2 √ or x > µ0 + zα/2 √
n n
{
H0 : µ ≤ µ0 or µ = µ0
H1 : µ > µ0
σ
Reject H0 if x > µ0 + zα √
n
{
H0 : µ ≥ µ0 or µ = µ0
H1 : µ < µ0
σ
Reject H0 if x < µ0 − zα √
n
Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population
 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Example

The production manager of Northern Windows, Inc., has asked you to

evaluate a proposed new procedure for producing its Regal line of
double-hung windows. The present process has a mean production of
80 units per hour with a population standard deviation of σ = 8. The
manager does not want to change to a new procedure unless there is
strong evidence that the mean production level is higher with the new
process.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Example

The production manager of Twin Forks Ball Bearing, Inc., has asked
your assistance in evaluating a modified ball bearing production
process. When the process is operating properly, the process produces
ball bearings whose weights are normally distributed with a
population mean of 5 ounces and a population standard deviation of
0.1 ounce. A new raw-material supplier was used for a recent
production run, and the manager wants to know if that change has
resulted in a lowering of the mean weight of the ball bearings. There
is no reason to suspect a problem with the new supplier, and the
manager will continue to use the new supplier unless there is strong
evidence that underweight ball bearings are being produced.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Tests of the Mean of a Normal Distribution: Population

Variance Unknown
From a normally distributed population with unknown variance σ 2
{
H0 : µ = µ 0
H1 : µ ̸= µ0
s s
Reject H0 if x < µ0 − tn−1,α/2 √ or x > µ0 + tn−1,α/2 √
n n
{
H0 : µ ≤ µ0 or µ = µ0
H1 : µ > µ0
s
Reject H0 if x > µ0 + tn−1,α √
n
{
H0 : µ ≥ µ0 or µ = µ0
H1 : µ < µ0
s
Reject H0 if x < µ0 − tn−1,α √
n
Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population
 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Example

A company selling licenses for new e-commerce computer software

advertises that firms using this software obtain, on average during the
first year, a yield of 10% on their initial investments. A random
sample of 10 of these franchises produced the following yields for the
first year of operation:

6.1 9.2 11.5 8.6 12.1 3.9 8.4 10.1 9.4 8.9

Assuming that population yields are normally distributed, test the

company’s claim.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Example

A random sample of 172 marketing students was asked to rate, on a

scale from 1 (not important) to 5 (extremely important), health
benefits as a job characteristic. The sample mean rating was 3.31, and
the sample standard deviation was 0.70. Test at the 1significance level
the null hypothesis that the population mean rating is at most 3.0
against the alternative that it is larger than 3.0.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Tests of the Population Proportion (Large Samples)

{
H0 : P = P0
Reject H0 if
H1 : P ̸= P0
√ √
p̂(1 − p̂) p̂(1 − p̂)
p̂ < P0 − zα/2 or p̂ > P0 + zα/2
n n
{
H0 : P ≤ P0 or P = P0
H1 : P > P0
√
p̂(1 − p̂)
Reject H0 if p̂ > P0 + zα
n
{
H0 : µ ≥ µ0 or µ = µ0
H1 : µ < µ0
√
p̂(1 − p̂)
Reject H0 if p̂ < P0 − zα
n

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Example

Market Research, Inc., wants to know if shoppers are sensitive to the

prices of items sold in a supermarket. A random sample of 802
shoppers was obtained, and 378 of those supermarket shoppers were
able to state the correct price of an item immediately after putting it
into their cart. Test at the 7% level the null hypothesis that at least
onehalf of all shoppers are able to state the correct price.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Example

A random sample of 50 university admissions officers was asked

about expectations in application interviews. Of these sample
members, 28 agreed that the interviewer usually expects the
interviewee to have volunteer experience doing community projects.
Test the null hypothesis that one-half of all interviewers have this
expectation against the alternative that the population proportion is
larger than one-half. Use α = 0.05.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Tests of the Variance of a Normal Distribution

From a normally distributed population.
{
H0 : σ 2 = σ02
H1 : σ 2 ̸= µ0
(n − 1)s2 2 (n − 1)s2
Reject H0 if > χ n−1,α/2 or < χ2n−1,1−α/2
σ02 σ02
{
H0 : σ 2 ≤ σ02 or σ 2 = σ02
H1 : σ 2 > σ02
(n − 1)s2
Reject H0 if > χ2n−1,α
σ02
{
H0 : σ 2 ≥ σ02 or σ 2 = σ02
H1 : σ 2 < σ02
(n − 1)s2
Reject H0 if < χ2n−1,1−α
σ02
Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population
 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Example

Plastic sheets produced by a machine are periodically monitored for

possible fluctuations in thickness. If the true variance in thicknesses
exceeds 2.25 square millimeters, there is cause for concern about
product quality. Thickness measurements for a random sample of 10
sheets produced in a particular shift were taken, giving the following
results (in millimeters):

226 226 232 227 225 228 225 228 229 230

a. Find the sample variance.

b. Test, at the 5% significance level, the null hypothesis that the
population variance is at most 2.25.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population

 Tests of the Mean of a Normal Distribution: Population Variance Known
6.1. Concepts of Hypothesis Testing Tests of the Mean of a Normal Distribution: Population Variance Unknown
6.2. Hypothesis Testing Tests of the Population Proportion (Large Samples)
Tests of the Variance of a Normal Distribution

Example

The quality control manager of Stonehead Chemicals has asked you

to determine if the variance of impurities in its shipments of fertilizer
is within the established standard. This standard states that for
100-pound bags of fertilizer, the variance in the pounds of impurities
cannot exceed 4.

Nguyễn Hoàng Huy Tú Hypothesis Tests for a Single Population