Conducting Hypothesis

Testing
Statistical Hypothesis
● Assertion or conjecture about 1 or more populations
● Characteristics of an observed sample
● Subjected to rigorous test - meaningful and useful
Hypothesis Testing
● Whole process
● Gaining wide acceptance in many situations where decisions are carefully
made
● Generally known “decision-making process” for evaluating claims about a
population based on characteristics of a sample (from population)
● Another area of Inferential Statistics
Understanding Hypothesis Testing
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2 hypotheses would be:
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Exploring more Elements of Hypothesis Testing
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Reject Accept H0

Reality H0 is true Type I error Correct Decision

H0 is false Correct Decision Type II error

Conducting Hypothesis Test Using the Traditional Method

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Steps in Hypothesis Testing
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Steps in Hypothesis Testing
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Steps in Hypothesis Testing
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Steps in Hypothesis Testing
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z Test
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One-Sample z test
● In the population, the average IQ is 100. with a standard deviation of 15. A
team of scientists wants to test new medication to see if it has either a
positive or negative effect on intelligence, or no effect at all. A sample of 30
participants who have taken the medication has a mean of 140. Did the
mediation affect intelligence? Alpha=0.05
One Sample z-Test

1. Define Null and Alternative Hypotheses

2. State Alpha
3. State Decision Rule
Critical Value (z-value)
4. Calculate Test Statistics

5. State Results
6. State Conclusion
One Sample z-Test for Proportions
● A survey claims that 9 out of 10 doctors recommend aspirin for their patients
with headaches. To test this claim, a random sample of 100 doctors is
obtained. Of these 100 doctors, 82 indicate that they recommend aspirin. Is
this claim accurate? Use alpha=0.05.
One Sample z-Test for Proportions

1. Define Null and Alternative Hypotheses

2. State Alpha
3. State Decision Rule
Critical Value (z-value)
4. Calculate Test Statistics

5. State Results
6. State Conclusion
One Sample t-Test
● In the population, the average IQ is 100. A team of scientists wants to test
new medication to see if it has either a positive or negative effect on
intelligence, or no effect at all. A sample of 30 participants who have taken the
medication has a mean of 140 with a standard deviation of 20. Did the
mediation affect intelligence? Alpha=0.05
One Sample t-Test

1. Define Null and Alternative Hypotheses

2. State Alpha
3. Calculate Degrees of Freedom
4. State Decision Rule
Critical Value (t-value)
5. Calculate Test Statistics

6. State Results
7. State Conclusion
Independent Sample t-Test
● A statistics teacher wants to compare his two classes to see if they performed
any differently on the tests he gave that semester. Class A had 25 students
with an average score of 70, standard deviation of 15. Class B had 20
students with an average score of 74, standard deviation 25. Using alpha
0.05, did these two classes perform differently on the tests?
Independent Sample t-Test (two sample)

1. Define Null and Alternative Hypotheses

2. State Alpha
3. Calculate Degrees of Freedom
4. State Decision Rule
Critical Value (t-value)
5. Calculate Test Statistics

6. State Results
7. State Conclusion
Dependent Sample t-Test
● Researchers want to test a new anti-hunger weight loss pill. They have 10
people rate their hunger both before and after taking the pill. Does the pill do
anything? Use alpha=0.05

Before 9 10 7 5 7 5 9 6 8 7

After 7 6 5 4 4 6 7 5 5 7
Dependent Sample t-Test
1. Define Null and Alternative Hypotheses
2. State Alpha
3. Calculate Degrees of Freedom
4. State Decision Rule
Critical Value (z-value)
5. Calculate Test Statistics

6. State Results
7. State Conclusion
Example 2: A group of engineering students run a test to see
whether cars will get as many mpg on lead-free petrol as on 4-star
petrol.

Car A B C D E F G H I J
Lead- 15 23 21 35 42 28 19 32 31 24
free
4-star 18 21 25 24 47 30 19 27 34 20
Does 4-star petrol give significantly better results?
 Dependent Sample t-test

As a group of 4, create a problem that involves hypothesis testing

with dependent samples. Use at least 8 samples and find another
group to exchange your work with them. After exchanging, try to
solve the other group’s problem and return them once you’re done.
Make sure to use all the steps and show the solutions to each
formula. Your inference must be clear and relevant to the given
problem.
One-Sample t-test
Example
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Solution
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Two-Sample t-test
Example
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Solution
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Deciding between z Test and t-Test
When we should perform the z Test and when we should perform t-Test?
Deciding between z Test and t-Test
When we should perform the z Test and when we should perform t-Test?
● If the sample size is large enough, then the z Test and t-Test will conclude
with the same result. For a large sample size, sample variance will be a better
estimate of population variance so even if population variance is unknown, we
can use z Test using sample variance.
● Similarly, for a large sample, we have a high degree of freedom. And since t
distribution approaches the normal distribution, the difference between the z
score and t score is negligible.
Testing Hypothesis Involving Population Proportion
Example
A tech company believes that the percentage of residents in town XYZ that
own a cellphone is 70%. A marketing manager believes this value to be different.
He conducts a survey of 200 individuals and found that 130 responded yes to
owning a cellphone.
a. State the null and alternative hypotheses
b. At 95% confidence level, is there enough evidence to reject the null
hypothesis?