Hypothesis

Testing
 Hypothesis

• The term hypothesis is a statement about

one or more parameters of a population
placed under examination that is
tentatively accepted but as yet unproven.
• A hypothesis is either accepted or
rejected, that is; it is either true or false.
 Two Competing Hypothesis

Null Hypothesis (H0)

•It is a preliminary assumption about the
parameter of a population that is being
investigated.
•It is a claim that a population characteristic
that is initially assumed to be true.
 Two Competing Hypothesis

Alternative Hypothesis (Ha)

•It is a researcher’s formulation of the
hypothesis or assertion which he/she
believes to be true about the population
parameters.
•It is an assertion contradicting the null
hypothesis.
 Types of Test Used with the
Alternative Hypothesis
Two-Tailed Test
•It is a method in which the critical area of a
distribution is two-sided and tests whether a sample
is greater than or less than a certain range of
values.
One-Tailed Test
•A one-tailed test is a statistical test in which the
critical area of a distribution is one-sided so that it is
either greater than or less than a certain value, but
not both.
Types of Test Used with the
Alternative Hypothesis
Basic Steps in the Traditional Hypothesis Testing

1. FORMULATE THE NULL AND ALTERNATIVE

HYPOTHESIS.

Examples:
1.We want to test whether the mean GPA of students in American
colleges is different from 2.0 (out of 4.0). The null and alternative
hypotheses are:
H0: μ = 2.0
Ha: μ ≠ 2.0 Two-Tailed Test
Basic Steps in the Traditional Hypothesis Testing

1. FORMULATE THE NULL AND ALTERNATIVE

HYPOTHESIS.

2. We want to test if college students take less than five years

to graduate from college, on the average. The null and
alternative hypotheses are:

H0: μ ≥ 5
Ha: μ < 5 One-Tailed Test
Basic Steps in the Traditional Hypothesis Testing

2. SET THE LEVEL OF SIGNIFICANCE (α).

•Level of Confidence
It is the degree of assurance that a particular statistical
statement is correct under specified conditions.
•Level of Significance
It is the degree of uncertainty about the statistical
statement under the same conditions used to determine the
confidence level.
Basic Steps in the Traditional Hypothesis Testing

2. SET THE LEVEL OF SIGNIFICANCE (α).

Level of confidence represents the probability

that the null hypothesis H0 is true, while level of
significance represents the probability that H0 is false.
Basic Steps in the Traditional Hypothesis Testing

2. SET THE LEVEL OF SIGNIFICANCE (α).

Type of Errors
True State of Null Hypothesis
Statistical Decision H0 is true H0 is false

Reject H0 Type I Error Correct

Accept H0 Correct Type II Error

Rejecting H0 while it is true is known as a Type 1 error.

And accepting H0 if its false its a Type 2 error.
Basic Steps in the Traditional Hypothesis Testing

3. DETERMINE THE TEST STATISTIC TO BE USED.

If the test concerns means, the choices of the test are:
Z – Test
•If the probability distribution of the random variable is
normal and the standard deviation is given.
•The sample size is large (n≥30)
Basic Steps in the Traditional Hypothesis Testing
Basic Steps in the Traditional Hypothesis Testing

3. DETERMINE THE TEST STATISTIC TO BE USED.

T – Test
•Used if the probability distribution is normal
•Sample size is small (n<30)
•Population standard deviation is estimated from the
sample standard deviation
Basic Steps in the Traditional Hypothesis Testing
Basic Steps in the Traditional Hypothesis Testing

4. DETERMINING THE REJECTION REGION OR CRITICAL

REGION
• The critical region is the set of values of the test statistic
for which the null hypothesis is rejected in a hypothesis test.
This region has an area equivalent to α. Which is called the
level of significance.
•The acceptance region is the region in the distribution of the
test statistic where the true parameter lies. It is denoted as the
middle probability (1- α), which is also known as the level of
confidence.
•Critical point – the point that that divides the critical region and
the acceptance region.
Basic Steps in the Traditional Hypothesis Testing

4. DETERMINING THE REJECTION REGION OR CRITICAL

REGION
•For Z-test, use Appendix A (Areas under Normal
Curve)

•For T-test, use Appendix B but you must first compute

the degrees of freedom (v).
For one sample mean test V = n – 1
For two sample mean test v = n1 + n2 -2
Basic Steps in the Traditional Hypothesis Testing

4. DETERMINING THE REJECTION REGION OR CRITICAL

REGION
Critical Values of Z-Test
Basic Steps in the Traditional Hypothesis Testing

5. DATA COMPUTATION

In the computation of data no alteration or data

manipulation should be made to ensure and preserve
the objectivity of the statistical test of the hypothesis.

Compute for the computed value (Z or t) of the

test statistic used according to formulas shown in step
number 3.
Basic Steps in the Traditional Hypothesis Testing

6. COMPARE THE VALUES OBTAINED FROM

NUMBERS 5 AND 4.

7. STATE YOUR DECISION AND CONCLUSION

BASED ON THE FOLLOWING GUIDELINES.
•If the computed value is greater than the tabular or
critical value, reject the Ho and accept the Ha.
•If the computed value is less than the tabular or
critical value, accept the Ho and reject the Ha.
 Application of Z-Test
1. Z test: One-Sample Mean

EXAMPLE:
A manufacturer claims that the average life of batteries use in
their electronic games is 150 hrs. It is known that standard deviation of
this type of battery is 20 hrs. a consumer wishes to test the
manufacturer’s claim and accordingly test 100 electronic games using
this battery and found out that the mean is equal to 144 hrs. Use α = 5%
Given: μ = 150 hrs
X = 144 hrs
s = 20 hrs
n = 100 electronic games
 Application of Z-Test
Since the population is greater than 30, Z-test will be used.
1. A One-tailed Test for one sample mean
a. State the Ho and Ha.
Ho: the average life of batteries used in electronic
games is equal to 150 hrs. (Ho: μ = 150)
Ha: the average life of batteries use in electronic
games is less than 150 hrs. (Ha: μ < 150)

b. Specify the level of significance and determine the Z value.

α = 0.05, the Z(tabular) value = ± 1.645 for one tailed
test.
Application of Z-Test
 Application of Z-Test
2. Z-Test: Two-Sample Mean
EXAMPLE:
A bank is opening a new branch in one of two neighborhoods.
One of the factors considered by the bank was whether the average
monthly family income (in thousand pesos) in the two neighborhoods
differed. From census records, the bank drew two random samples of
100 families each and obtained the following info.
Neighborhood
Sample A Sample B
X1 = 10,100 X2 = 10,300
S1 = 300 S2 = 400
n1 = 100 n2 = 100
 Application of Z-Test
The bank wishes to test the null hypothesis that the two
neighborhood have the same mean income. What should the
bank conclude? Used α = 0.05.

Solution:
2. A. One tailed test for two sample mean
a. Ho: the average income in 2 neighborhoods are equal. (Ho:
μ1 = μ2)
Ha: the average family income of neighborhood A is less
than that of neighborhood B. (Ho: μ1 < μ2)
b. α = 0.05, the Z(tabular) value = ± 1.645 for one tailed test.
Application of Z-Test
 Application of T-Test
T-test: One sample Mean
EXAMPLE:
The personnel department of a company developed an
aptitude test for a certain group of semi skilled workers. The
individual test scores were assumed to be normally
distributed. The department asserted a tentative hypothesis
that the arithmetic mean grade obtained by this group of
semi-skilled workers would be 100. It was agreed that this
hypothesis would be subjected to a two-tailed test at 5% level
of significance. The aptitude test was given to a sample of 16
semi-skilled workers and the results are:
X = 94 s=5 n = 16 μ = 100
 Application of T-Test
Solution:
Since the sample size is less than 30, we shall use the T-test
one sample Mean.
a. State the Ho and Ha.
Ho: The arithmetic mean obtained by the semi-skilled
workers is 100 (Ho: μ = 100)
Ha: The arithmetic mean obtained by the semi-skilled
workers is not equal to 100 (Ha: μ ≠ 100)
b. Determine the level of significance and the degrees of
freedom.
α = 0.05 and df = n-1 = 16 -1 = 15, the T tabular value is 2.131
for two-tailed test.
Application of T-Test
 Application of T-Test
T-test: Two Sample Mean
EXAMPLE:
A taxi company is trying to determine whether the use
of radial tires and belted tires provide the same fuel
consumption. Twelve cars were driven twice over a
prescribed test course, and for each test a car used a
different type of tire (radial or belted) in random order. The
data obtained were recorded, as follows:
Type of Tire 𝑥 S
Radial 5.75 1.10
Belted 5.61 1.30
 Application of T-Test
At 0.05 level of significance, can we conclude that cars
equipped with radial tires and belted tires provide the same fuel
consumption? Assume that the data are normally distributed.

a. Ho: There is no significant difference on the fuel consumption of

cars using radial and belted tires (Ho: μ = μ2)
Ha: There is a significant difference on the fuel consumption of cars
using radial tires and belted tires (Ha: μ ≠ μ2)
b. α = 0.05; df = n1 + n2 – 2 = 12 +12 -2 = 22, the t tabular value =
2.074
Application of T-Test