Statistics and Probability Formulas (4th Quarter)

HYPOTHESIS TESTING
APPLYING p-VALUE METHOD
ONE-TAILED TWO-TAILED
Finding p-value Reject H0
H0: µ0 = µ H0: µ0 = µ
Ha: µ0 < µ(left-tailed) Ha: µ0 ≠ µ One-tailed 0.5000 - p≤α
(probability/area of
Ha: µ0 > µ(right-tailed)
the given z)
H0: µ0 ≥ µ Two-tailed [0.5000 -
Ha: µ0 < µ(left-tailed) (probability/area of
the given z)] x 2
H0: µ0 ≤ µ
Ha: µ0 < µ(left-tailed)
Test Statistic Z for Proportions

TYPES OF ERRORS 𝑋
𝑝−𝑝 𝑝= sample proportion ( 𝑛
)
Do not reject Reject
z=
𝑝𝑞 𝑝= population proportion (%)
𝑛 𝑛= sample size
H0 is true Correct Decision Type I error
𝑞=𝑝−1
H0 is false Type II error Correct Decision 𝑞=𝑝− 1

SIGNIFICANCE LEVELl: Hypothesis Testing Using

Z-Test CORRELATION AND REGRESSION ANALYSIS
Level of Significance PEARSON r
Type of
Test
α = 1% α = 5% α = 10%
𝑛∑𝑥𝑦 − ∑𝑥 • ∑𝑦
One-tailed r=
𝑐 =± 2. 33 𝑐 =± 1. 645 𝑐 =± 1. 28
test 2 2 2 2
[𝑛∑𝑥 − (∑𝑥) ][𝑛∑𝑦 − (∑𝑦) ]
Two-tailed
𝑐 =± 2. 575 𝑐 =± 1. 96 𝑐 =± 1. 645
test
INTERPRETATION
z-test and t-test
PEARSON r Qualitative Description
Test Statistic Test Statistic
Reject H0 ±1 Perfect Correlation
(z) (n≥30) (t) (n<30)
± 0. 75 𝑡𝑜 <± 1 Very High Correlation
𝑥−µ 𝑥−µ z ≤ −c z ≥ +c
z= σ t= 𝑠 ± 0. 50 𝑡𝑜 <± 0. 75 Moderately High Correlation
t ≤ −c t ≥ +c
𝑛 𝑛
± 0. 25 𝑡𝑜 <± 0. 50 Moderately Low Correlation
For the critical value of t-test, check n &α, and refer
to the t-table. > 0 𝑡𝑜 <± 0. 25 Very Low Correlation

0 No Correlation