Mr. Mark Anthony Garcia, M.S.

Mathematics Department
De La Salle University

CHAPTER 9: TESTING
OF HYPOTHESIS
Situation: Hypothesis Testing
  
Suppose that a political analyst
predicted that senatorial candidate A will
top the upcoming senatorial elections in
city X with at least 0.70 or 70% of the
votes.
 The political analyst surveyed voters in
city X out of the population size of
voters.
Situation: Hypothesis Testing
  
The survey resulted into voters that will
vote for senatorial candidate A.
 Hence, the sample proportion or 68%.
 However, the political analyst does not
know whether this is a sufficient
evidence to conclude that senatorial
candidate A will top the elections in city
X with at least 0.70 or 70% of the votes.
Situation: Hypothesis Testing
   help the political analyst, we shall
To
discuss the concept of hypothesis
testing.
 The hypothesis of the political analyst is
that the population proportion is greater
than or equal to 0.70 () against the case
that is less than 0.70 ().
Hypothesis Testing

A statistical hypothesis is an assertion or

conjecture concerning one or more
populations. A test of hypothesis is the
method to determine whether the
statistical hypothesis is true or not.
Types of Statistical Hypothesis

We have two types of statistical

hypothesis. We have
1. Null Hypothesis
2. Alternative Hypothesis
Null Hypothesis

  
The null hypothesis is the hypothesis
that the researcher wishes to reject or
not to reject.
 This hypothesis includes equality always
and it is denoted by .
Alternative Hypothesis
 The alternative hypothesis is the
hypothesis that is accepted if the null
hypothesis is rejected.
 This hypothesis allows for the possibility
of several values and it is denoted by
H 1.
 This hypothesis may be directional
(quantifier is < or >) or non-directional
(quantifier is ).
Null and Alternative Hypothesis
If is the hypothesized value, then we have
the following possibilities for the null and
alternative hypothesis.
Null Alternative
Hypothesis Hypothesis

,
,
Example: Null and Alternative
Hypothesis

In the political analyst situation, the null

and alternative hypothesis is given as
follows.

Null Hypothesis
Alternative Hypothesis
Example: Null and Alternative
Hypothesis

No more than 20% of the faculty at the

local university contributed to the annual
giving fund.

Null Hypothesis
Alternative Hypothesis
Example: Null and Alternative
Hypothesis

At most 65% of public school children are

malnourished.

Null Hypothesis
Alternative Hypothesis
Example: Null and Alternative
Hypothesis

Fifty-five percent of elected public officials

came from the same university.

Null Hypothesis
Alternative Hypothesis
Example: Null and Alternative
Hypothesis

At least 70% of next year's new cars will

be in the compact and subcompact
category.

Null Hypothesis
Alternative Hypothesis
Example: Null and Alternative
Hypothesis

The proportion of voters favoring the

incumbent in the upcoming elections is
0.58.

Null Hypothesis
Alternative Hypothesis
Elements of Hypothesis Testing

The
 following are important things to know
about hypothesis testing.
1. Level of Significance,
2. One-tailed versus Two-tailed tests
3. Test Statistic
4. Critical Region
 Level of Significance,
The
  level of significance, , is the probability
of committing an type I error of rejecting
the null hypothesis when, in fact, it is true.

  Null hypothesis
  TRUE FALSE
Reject TYPE I Error Correct Decision
Do not Reject Correct Decision TYPE II Error
One-tailed vs. Two-tailed Tests

   hypothesis test is one-tailed if the

A
alternative hypothesis is directional,
either is or .
 The test is two-tailed if the alternative
hypothesis is non-directional or if .
Test Statistic

 The test statistic is the value generated

from sample data. Its value is then
compared with the critical values.
 In the PhStat output, it is referred to as
the Z Test Statistic.
Test Statistic

   formula is given by .
Its
 Sample proportion , Hypothesized value
and .
Test Statistic

   the political analyst situation, , , and .

In
 Hence, using the formula for the test
statistic , we have .
Critical Region

The critical region is sometimes called the

rejection region. If the critical region is
satisfied, then the null hypothesis is
rejected.
Critical Region: Left-Tailed
   the PhStat output, the critical region is
In
given by Z test statistic < Lower Critical
Value.
 If this critical region is satisfied, then
reject the null hypothesis . Otherwise, do
not reject .
Critical Region: Right-Tailed
   the PhStat output, the critical region is
In
given by Z test statistic > Upper Critical
Value.
 If this critical region is satisfied, then
reject the null hypothesis . Otherwise, do
not reject .
Critical Region: Two-tailed
   the PhStat output, the critical region is
In
given by Z test statistic < Lower Critical
Value or Z test statistic > Upper Critical
Value
 If this critical region is satisfied, then
reject the null hypothesis . Otherwise, do
not reject .
Critical Region

   the political analyst situation, the null

In
hypothesis is and alternative hypothesis
is .
 This means that the test is one-tailed
and specifically left-tailed.
 The test statistic is computed earlier as
Critical Region
  
Recall that the critical region for left-
tailed test is or Z test statistic < Lower
Critical Value. If this is satisfied, then
reject .
 Assuming that , from a PhStat output,
the lower critical value is .
 Is ?
 The answer is NO.
Conclusion
 Since the critical region is NOT satisfied,
we do not reject the null hypothesis that
the population proportion of voters is at
least 70%.
 Hence, there is sufficient evidence to
conclude that senatorial candidate A will
top the senatorial elections in city X.
Example 1: Hypothesis Testing

A chocolate manufacturer targets an 8 out

of 10 public approval of their new
chocolate recipe to release in the market.
A random sample of 80 people where
given a taste test and resulted a 75%
approval of the product. Will the company
release the product in the market with a
0.05 level of significance?
Example 1: Hypothesis Testing
The
 chocolate manufacturer targets an 8
out of 10 public approval of their new
chocolate recipe which is equivalent to
80%. Thus, the hypothesized value is .

Null Hypothesis
Alternative Hypothesis
Example 1: Hypothesis Testing

  
Given are the sample proportion and .
 Since , the test is two-tailed.
 The critical region is Z Test Statistic <
Lower Critical Value or Z Test Statistic >
Upper Critical Value.
Example 1: Hypothesis Testing
Z Test of Hypothesis for the Proportion
Data
Null Hypothesis p= 0.8
Level of Significance 0.05
Intermediate Calculations
Sample Proportion 0.75
Standard Error 0.04472136
Z Test Statistic -1.118033989
Two-Tailed Test
Lower Critical Value -1.959963985
Upper Critical value 1.959963985
p-Value 0.263552477
Example 1: Hypothesis Testing
   or ?
Is
 Both inequalities are false!
 Therefore, the critical region is not
satisfied.
 Do not reject and conclude that the and
so the company should release the
product.
Example 2: Hypothesis Testing
A commonly prescribed drug on the market for
relieving nervous tension is believed to be
only 60% effective. Experimental results with
a new drug administered to a random sample
of 100 adults who were suffering from nervous
tension showed that 70 received relief. Is this
sufficient evidence to conclude that the new
drug is superior to the one commonly
prescribed? Use a 0.05 level of significance.
Example 2: Hypothesis Testing
  
The claim is that the new drug is
superior to the commonly prescribed
drug. This means that .

Null Hypothesis
Alternative Hypothesis
Example 2: Hypothesis Testing

  The sample proportion is and .

 Since , the test is right-tailed.
 The critical region is Z Test Statistic >
Upper Critical Value.
Example 2: Hypothesis Testing
Data Data

Null Hypothesis p= 0.6 Null Hypothesis p= 0.6

Level of Significance 0.05 Level of Significance 0.05

Number of Successes 70 Number of Successes 70

Sample Size 100 Sample Size 100

Intermediate Calculations Intermediate Calculations

Sample Proportion 0.7 Sample Proportion 0.7

Standard Error 0.048989795 Standard Error 0.048989795

Z Test Statistic 2.041241452 Z Test Statistic 2.041241452

Upper-Tail Test Lower-Tail Test

Upper Critical Value 1.644853627 Lower Critical Value -1.644853627

p-Value 0.020613417 p-Value 0.979386583

Example 2: Hypothesis Testing

   ?
Is
 The answer is NO!
 Therefore, we do not reject and
conclude that which means that the
new drug is not superior than the
commonly prescribed drug.
P-value Approach

 The p-value or the probability value

approaches hypothesis testing in a
different manner.
 Instead of comparing the test statistic
with the critical values, we compare the
p-value with the level of significance.
P-value Approach
 If the test statistic is in the critical region,
then the p-value will be less than the
level of significance.
 It does not matter whether it is a left tail,
right tail, or two tail test. This rule always
holds.
 Reject the null hypothesis if the p-
value is less than the level of
significance.