SPECIFIC OBJECTIVES:

At the end of the unit, the students are expected to;
1. Define hypothesis and hypothesis testing;
2. Explain the type I (alpha) and type II (beta) errors in
rejecting or accepting the null hypothesis;
3. Distinguish directional from non-directional hypothesis;
4. Determine the level of significance in a one-tailed or two-
tailed test;
5. Apply an appropriate statistical test for the hypothesis;
and
6. Summarize the procedure for hypothesis testing.
Definitions:
• HYPOTHESIS is simply a statement that something is
true. It is a tentative explanation, a claim or assertion
about people, objects or events.

• HYPOTHESIS is a form of statement and the

truth/validity or certainty of any statement is
questionable. It is imperative that such a statement
must be tested significantly in order to ascertain its
truth/validity.
Example
e.g. 1. “There is no significant relationship between
the mathematics attitude and competency levels
of 2nd year accountancy students of the University
of the East.”

e.g. 2. “The proportion of consumers who

purchased Ariel powder soap before advertising
campaign in the television and the proportion
who purchased it after the advertising campaign is
not equal.”
Some types of questions that are
commonly asked:
 Is there significant difference between the
performance of UE graduates in the Oct CPA Board
Exam and May CPA Board Exam?

 Is there a significant difference in the proportion of

consumers who purchased Ariel powder soap before
advertising campaign in television and the proportion
who purchased it after the advertising campaign?

 Is there a significant difference in the mean life span

between the Eveready and National batteries?
HYPOTHESIS TESTING: (Def)
It is a procedure in making decisions based on a
sample evidence or probability theory used to
determine whether the hypothesis is accepted or
rejected. If the statement is found reasonable, then
the hypothesis is accepted otherwise rejected.
Two (2) types of Hypothesis:
1. NULL HYPOTHESIS (Ho)
Ho = Ha no difference/no relationship

“There is no significant relationship between the

mathematics attitude and competency levels of 2nd yr
accountancy students of the Univ. of the East.”
 2. ALTERNATIV E HYPOTHESIS(Ha)
Ho > Ha
Ho < Ha
Ho ≠ Ha
there is difference/relationship

E.g.“The proportion of consumers who purchased

Ariel powder soap before advertising campaign in the
television and the proportion who purchased it after
the advertising campaign is not equal.”
 The 4 Possible Outcomes for a
Hypothesis Test

Decision/Fac Ho is true Ho is false

t
Do not reject Ho Correct Decision Type 2 error

Reject Ho Type 1 error Correct decision

Def of Type 1 and Type 2 errors:
I. Type 1 error: Rejecting the null hypothesis when in
fact the null hypothesis is true.

I. Type 2 error: Not rejecting the null hypothesis

when in fact the null hypothesis is false.
Definition of Level of Significance:
The significance level (α) of a hypothesis test is defined
to be the probability of committing a type 1 error. This
is the probability of rejecting the null hypothesis.

The significance level (β) of a hypothesis test is defined

to be the probability of committing a type 2 error.
This is the probability of not rejecting a false or null
hypothesis.
One-tailed and two-tailed test:
• A one-tailed test is a hypothesis test for which the
rejection region lies at only one tail of the
distribution.
left-tailed test is when the population mean (μ) is
less that the specified value μo.
right-tailed test is when the population mean (μ)
is greater than the specified value of μo.
• A two-tailed test is used when the alternative
hypothesis is non-directional which means that the
values of two measure of the same kind are not equal.
Rejection regions of one-tailed &
two-tailed tests:
Two-tailed One-tailed One-tailed
test test test (left)
(Right)
Sign in Ha ≠ > <

Rejection region Both sides Right side Left side

Critical Region in Testing
Hypothesis
Level of Type One-tailed test Two-tailed
Signific
ance of test
test
Left-tailed Right – tailed
α = 0.05 Z < -1.645 Z > 1.645 Z > 1.96 or
Z < -1.96
α = 0.01 Z < -2.33 Z > 2.33 Z > 2.575 or
Z < -2.575
α = 0.10 Z < -1.28 Z > 1.28 Z > 1.645 or
Z < -1.645
Note:
Reject the null hypothesis when the computed value
of (z) lies within the area of rejection
Some Terminologies To
Remember:
• Test Statistic: The statistic used as a basis for deciding
whether the null hypothesis should be rejected.
• Rejection Region: The set of values of the test statistic
that leads to rejection of the null hypothesis.
• Non-rejection Region: The set of values of the test
statistic that leads to non-rejection of the null
hypothesis.
• Critical value: The values of the test statistic that
separate the rejection and non-rejection regions.
A Hypothesis Testing Procedure:
1. Formulate the null and alternative hypothesis.
2. Decide the level of significance, α.
3. Choose the appropraite test statistic.
4. Establish the critical region.
5. Compute the value of the statistical test.
6. Decide whether to accept or reject the null
hypothesis.
7. Draw a conclusion.
2 Categories involved in testing
hypothesis between means:
• n ≥ 30; large sample
• N < 30; small sample

USES OF z – Test and t – test:

The z-test is used in comparing two means if the population
standard deviation (δ) is known. We should give emphasis in
the discussion that if the population is normally distributed,
z-test can be used for any sample size (n). However, in many
practical cases, the population standard deviation is
unknown but the sample is sufficiently large, that is n ≥ 30.
The sample standard deviation (s) is used as an estimator of
the population standard deviation.
SAMPLE PROBLEMS:
1. The mean weight of the baggage carried
into an airplane by individual passengers
at Tuguegarao City airport is 19.8 kgs. A
statistician takes a random sample of 110
passengers and obtains a sample mean
weight of 18.5 kgs with standard deviation
of 8.5 kgs. Test the claim at α = 0.01 level
of significance.
Procedure:
1. Formulate the null and alternative hypotheses:
Ho: μ = 19.8 kg
Ha: μ = 19.8 kg

2. α = 0.01

3. The alternative hypothesis is expressed in a

directional statement, therefore use one-tailed test.
Continuation: procedure
4. The tabular or critical value of z = -2.33.

5. Compute the z= value.

Given: mean = 18.5 kg
μ = 19.8 kg
s = 8.5 kg
n = 110
HYPOTHESIS ABOUT MEANS:
 Z= ( x – μ)/s/√n
= (18.5 – 19.8)/8.5/ √110
= -1.60
Cont.
6. The computed value of z = -1.60 lies under the non-
rejection area, therefore accept the null hypothesis
(Ho).

7. Conclusion:
There is no significant difference between the
weight of baggage carried by individual passengers.
Other Test Statistic:
ii. Difference between means:
z = (mean₁ - mean₂)/ √ s₁/n ₁ + s₂/n₂

iii. Hypothesis testing about a single proportion:

z = (p` - p)/√p(1 – p)/n p` ; sample proportion
p ; population proportion
n ; number of cases
iv. Hypothesis Testing About Two Proportions
Test Concerning Means:
• Example:
An agronomist randomly selected 20 matured
calamansi trees of one variety and have a mean height
of 10.8 ft with standard deviation of 1.25 ft, while 12
randomly selected calamansi trees of another variety
have a mean height of 9.6 ft with standard deviation
of 1.45 ft. Test whether the difference between the two
sample means is significant. Use α = 0.05.
PROCEDURE:
1. Ho: mean₁ = mean₂
Ho: mean₁ ≠ mean₂
2. α = 0.05

3. The alternative hypothesis is non-directional, thus,

the two-tailed test is used.
4. Since there are two samples used.
df = n₁ + n₂ - 2 = 30
Cont.
5. Compute the t – value:
Given: x₁ = 10.8 ft s₂ = 1.45 ft
x₂ = 9.6 ft n₁ = 20
s₁ = 1.25 ft n₂ = 12
6. Formula:
t = (x₁ - x₂)/ √s₁2/n ₁ + s₂2/n₂
= (10.8 – 9.6)/ √(1.25)2/20 + (1.45) 2/12
t = 2.38
Cont.
7. The computed value of t = 2.38 is greater than the
tabular value of t = 2.042, thus, reject the null
hypothesis (Ho) and accept the alternative
hypothesis (Ha).

8. Conclusion:
There is a significant difference between the two
samples.
Assignment:
1. 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.