HYPOTHESES TESTING

TERMINOLOGIES
1. Statistical Hypotheses – is a conjecture about a population parameter. This conjecture may or may not be true.
2. Null Hypotheses – symbolized by H0, is a statistical hypothesis that states that there is no difference between a parameter
and a specific value, or that there is no difference between two parameters.
3. Alternative hypothesis – symbolized by H1, is a statistical hypothesis that states the existence of a difference between a
parameter and a specific value, or states that there is a difference between two parameters.
4. Statistical Test - uses the data obtained from a sample to make a decision about whether the null hypothesis should be
rejected
5. Test Value - numerical value obtained from a statistical test.
6. Level of Significance - is the maximum probability of committing a type I error. This probability is symbolized by α. That
is, P = α.
7. Critical Value - separates the critical region from the noncritical region. The symbol for critical value is C.V.
8. Critical or rejection region - is the range of values of the test value that indicates that there is a significant difference and
that the null hypothesis should be rejected.
9. Noncritical or Nonrejection region - is the range of values of the test value that indicates that the difference was probably
due to chance and that the null hypothesis should not be rejected
10. One-tailed test - indicates that the null hypothesis should be rejected when the test value is in the critical region on one
side of the mean. A one-tailed test is either a right-tailed test or left-tailed test, depending on the direction of the inequality
of the alternative hypothesis.
11. Two-tailed test - the null hypothesis should be rejected when the test value is in either of the two critical regions.

“A claim, though, can be stated as either the null hypothesis or the alternative hypothesis, however, the statistical evidence can
only support the claim if it is the alternative hypothesis. Statistical evidence can be used to reject the claim if the claim is the null
hypothesis. These facts are important when you are stating the conclusion of a statistical study.”

A type I error occurs if you reject the null hypothesis when it is true.
A type II error occurs if you do not reject the null hypothesis when it is false.

Elementary Statistics, Allan G. Bluman, 8th ed

HYPOTHESES TESTING

In hypothesis testing, the following steps are recommended.

1. State the hypotheses. Be sure to state both the null and the alternative hypotheses.
2. Design the study. This step includes selecting the correct statistical test, choosing a level of significance, and formulating a plan to carry out
the study. The plan should include information such as the definition of the population, the way the sample will be selected, and the methods
that will be used to collect the data.
3. Conduct the study and collect the data.
4. Evaluate the data. The data should be tabulated in this step, and the statistical test should be conducted. Finally, decide whether to reject
or not reject the null hypothesis.
5. Summarize the results.

Solving Hypothesis-Testing Problems (Traditional Method)

Step 1 State the hypotheses and identify the claim.
Step 2 Find the critical value(s) from the appropriate
Step 3 Compute the test value.
Step 4 Make the decision to reject or not reject the null hypothesis.
Step 5 Summarize the results.

 Z test for a Mean

𝑜𝑏𝑠𝑒𝑟𝑣𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 − 𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑣𝑎𝑙𝑢𝑒

𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒 =
𝑠𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑒𝑟𝑟𝑜𝑟
Observed value is the statistic (such as sample mean) that is computed from the sample data
Expected value is the parameter (such as the population mean) that you would expect to obtain if the null hypothesis were true, or the hypothesized
value.

Elementary Statistics, Allan G. Bluman, 8th ed

HYPOTHESES TESTING
The denominator is the standard error of the statistic being tested (standard error of the mean)
Assumptions for the z Test for a Mean When S Is Known
1. The sample is a random sample.
2. Either n≥ 30 or the population is normally distributed if n <30.

STEPS: (Z test)
1. State the hypotheses and the claim
2. Find the critical value(s)
3. Compute for the test value
4. Make the decision.

OUTCOMES OF A HYPOTHESIS-TESTING SITUATION

P-VALUE METHOD FOR HYPOTHESIS TESTING

The P-value (or probability value) is the probability of getting a sample statistic (such as the mean) or a more extreme sample statistic in the direction of
the alternative hypothesis when the null hypothesis is true. P-value is the actual area under the standard normal distribution curve (or other curve,
depending on what statistical test is being used) representing the probability of a particular sample statistic or a more extreme sample statistic occurring
if the null hypothesis is true.

Solving Hypothesis-Testing Problems (P-Value Method)

Step 1 State the hypotheses and identify the claim.
Step 2 Compute the test value.
Step 3 Find the P-value.
Step 4 Make the decision.
Step 5 Summarize the results.

Decision Rule When Using a P-Value

If P-value ≤a, reject the null hypothesis.
If P-value >α, do not reject the null hypothesis.

Guidelines for P-Values

If P-value ≤ 0.01, reject the null hypothesis. The difference is highly significant.
If P-value > 0.01 but P-value ≤ 0.05, reject the null hypothesis. The difference is significant.
If P-value > 0.05 but P-value ≤0.10, consider the consequences of type I error before rejecting the null hypothesis.
If P-value > 0.10, do not reject the null hypothesis. The difference is not significant.

Elementary Statistics, Allan G. Bluman, 8th ed

HYPOTHESES TESTING
 t test for a mean
When the population standard deviation is unknown, the z test is not normally used for testing hypotheses involving means. A different
test, called the t test, is used. The distribution of the variable should be approximately normal.

Assumptions for the t Test for a Mean When S Is Unknown

1. The sample is a random sample.
2. Either n≥30 or the population is normally distributed if n <30.
STEPS: (t test)
Step 1 State the hypotheses and identify the claim.
Step 2 Find the critical value(s) from Table.
Step 3 Compute the test value.
Step 4 Make the decision to reject or not reject the null hypothesis.
STEPS: (P-value method)
Step 1 State the hypotheses and identify the claim.
Step 2 Compute the test value.
Step 3 Find the P-value.
Step 4 Make the decision.

WHEN TO USE THE Z TEST OR THE T TEST?

 Z test for a proportion

A hypothesis test involving a population proportion can be considered as a binomial experiment when there are only two outcomes and
the probability of a success does not change from trial to trial.
Since a normal distribution can be used to approximate the binomial distribution when np≥5 and nq≥5, the standard normal distribution
can be used to test hypotheses for proportions.

Elementary Statistics, Allan G. Bluman, 8th ed

HYPOTHESES TESTING
Assumptions for Testing a Proportion
1. The sample is a random sample.
2. The conditions for a binomial experiment are satisfied. np ≥ 5 and nq ≥ 5.
STEPS:
Step 1 State the hypotheses and identify the claim.
Step 2 Find the critical value(s) from Table.
Step 3 Compute the test value.
Step 4 Make the decision to reject or not reject the null hypothesis.

 TESTING THE DIFFERENCE BETWEEN TWO MEANS: USING Z TEST

Assumptions for the z Test to Determine the Difference Between Two Means
1. Both samples are random samples.
2. The samples must be independent of each other. That is, there can be no relationship between the subjects in each sample.
3. The standard deviations of both populations must be known, and if the sample sizes are less than 30, the populations must be normally
or approximately normally distributed.

The theory behind testing the difference between two means is based on selecting pairs of samples and comparing the means of the pairs.
The population means need not be known.

STEPS: (traditional method)

Step 1 State the hypotheses and identify the claim.
Step 2 Find the critical value(s).
Step 3 Compute the test value.
Step 4 Make the decision.
STEPS: (P-value method)
Step 1 State the hypotheses and identify the claim.
Step 2 Compute the test value.
Step 3 Find the P-value.
Step 4 Make the decision.

Elementary Statistics, Allan G. Bluman, 8th ed

HYPOTHESES TESTING
 TESTING THE DIFFERENCE BETWEEN TWO MEANS OF INDEPENDENT SAMPLES (t TEST)
INDEPENDENT SAMPLES are samples that are not related.

Assumptions for the t Test for Two Independent Means When S1 and S2 Are Unknown
1. The samples are random samples.
2. The sample data are independent of one another.
3. When the sample sizes are less than 30, the populations must be normally or approximately normally distributed.

 TESTING THE DIFFERENCE BETWEEN TWO MEANS: DEPENDENT SAMPLES

DEPENDENT SAMPLES are samples wherein the subjects are paired or matched in some way.
Assumptions for the t Test for Two Means When the Samples Are Dependent
1. The sample or samples are random.
2. The sample data are dependent.
3. When the sample size or sample sizes are less than 30, the population or populations must be normally or approximately normally
distributed.

STEPS:
1. State the hypotheses and identify the claim
2. Find the critical value(s)
3. Compute the test value
a. Find the differences, D = X1 – X2
b. Find the mean of the differences,
∑𝐷
𝐷̅=
𝑛
c. Square the differences
𝐷2 = (𝑋1 − 𝑋2 )2

Elementary Statistics, Allan G. Bluman, 8th ed

HYPOTHESES TESTING
d. Find the standard deviation of the differences
2
𝑛 ∑ 𝐷 2 − (∑ 𝐷)
𝑠𝐷 = √
𝑛(𝑛 − 1)
e. Find the test value
𝐷̅ − 𝜇𝐷
𝑡= 𝑤𝑖𝑡ℎ 𝑑. 𝑓 = 𝑛 − 1
𝑠𝐷 /√𝑛
𝜇𝐷 is the hypothesized difference
4. Make the decision
 TESTING THE DIFFERENCE BETWEEN PROPORTIONS

Assumptions for the z Test for Two Proportions

1. The samples must be random samples.
2. The sample data are independent of one another.
3. For both samples np ≥ 5 and nq≥5.

Elementary Statistics, Allan G. Bluman, 8th ed