HYPOTHESIS TESTING
 evaluates a conjecture about some
characteristic of the parent population based
upon the information contained in the
random sample.
 Usually the conjecture concerns one of the
unknown parameters of the population.
 a statistical process of determining whether
a hypothesis made is reasonable or not,
based upon sample evidence
 an assumption about a population or an
assertion about the possible value of a
population parameter
 a claim or statement about the population
parameter
o Examples of parameters are
population mean
and population proportion
o The parameter must be identified
before analysis
 Many problems in engineering require
that we decide whether to accept or reject
a statement about some parameter. The
statement is called a hypothesis.
 The decision-making procedure about
the hypothesis is called hypothesis
testing.
 Statistical hypothesis testing and
confidence interval estimation of
parameters are the fundamental
methods used at the data analysis stage
of a comparative experiment.
STATISTICAL HYPOTHESIS
 A statement about the parameters of one
or more populations.
 A statement about the probability
distribution of a random variable.
TEST OF A HYPOTHESIS
 A procedure leading to a decision
about a particular hypothesis.
HYPOTHESIS-TESTING PROCEDURE
 Should be developed with the probability
of reaching a wrong conclusion in mind.
NULL HYPOTHESIS
 the hypothesis we wish to test
 Rejection of the null hypothesis
always leads to accepting the
alternative hypothesis.
 will always be stated so that it
specifies an exact value of the
parameter
ALTERNATIVE HYPOTHESIS
 will allow the parameter to take on
several values
 sometimes referred to as the research
hypothesis.

Testing the hypothesis involves taking a random
sample, computing a test statistic from the
sample data, and then using the test statistic to
decide about the null hypothesis.
ACCEPTANCE REGION
 a region for which we will fail to reject the
null hypothesis
Region of Rejection or Critical Region
 the set of all values of the test statistic
which will lead to the rejection of Ho
CRITICAL VALUES
 The boundaries between the critical
regions and the acceptance region
 the value or values that separate the
critical region from the values of the test
statistic that would not lead to rejection of
the null hypothesis.
 It depends on the nature of the null
hypothesis, the relevant sampling
distribution, and the level of significance.
TYPES OF TESTS
 Two-tailed Test. If we are primarily
concerned with deciding whether the true
value of a population parameter is
different from a specified value, then the
test should be two-tailed. For the case of
the mean, we say Ha:   0.
 Left-tailed Test. If we are primarily
concerned with deciding whether the true
value of a parameter is less than a
specified value, then the test should be
left-tailed. For the case of the proportion,
we say Ha: P  P0.
 Right-tailed Test. If we are primarily
concerned with deciding whether the true
value of a parameter is greater than a
specified value, then we should use the
right-tailed test. For the case of the
standard deviation, we say Ha:   0.
 TEST OF SIGNIFICANCE
 a problem of deciding between the null
and the alternative hypotheses on the
basis of the information contained in a
random sample.
 The goal will be to reject Ho in favor of
Ha, because the alternative is the
hypothesis that the researcher believes
to be true. If we are successful in
rejecting Ho, we then declare the results
to be “significant”.
Test Statistic
 a statistic computed from the sample
data that is especially sensitive to the
differences between Ho and Ha
 tend to take on certain values when Ho is
true and different values when Ha is true.
 The decision to reject Ho depends on the
value of the test statistic
TYPE I ERROR
 Rejecting the null hypothesis H0 when it
is true
 The probability of making a type I error is
denoted by the Greek letter α.
 Sometimes the type I error probability is
called the significance level, or the α-
error, or the size of the test.
TYPE II ERROR
 Failing to reject the null hypothesis when
it is false.
 Denoted by β.
TEST OF MEANS
 Gives us an indication of the true
average of a population.
POWER OF A STATISTICAL TEST
 the probability of rejecting the null
hypothesis H0 when the alternative
hypothesis is true.
 the probability of correctly rejecting a
false null hypothesis
SENSITIVITY
 the ability of the test to detect differences
GENERAL PROCEDURE FOR HYPOTHESIS
TESTS
1. From the problem context, identify the
parameter of interest.
2. State the null hypothesis, H0.
3. Specify an appropriate alternative
hypothesis Ha.
4. Choose a significance level α.
5. Determine an appropriate test statistic.
6. State the rejection region for the statistic.
7. Compute any necessary sample quantities,
substitute these into the equation for the test
statistic and compute that value.
8. Decide whether or not H0 should be rejected
and report that in the problem context.
P-VALUE
 probability that the test statistic will take on a
value that is at least as extreme as the
observed value of the statistic when the null
hypothesis H0 is true.
 the smallest level of significance that would
lead to rejection of the null hypothesis H0 with
the given data.
The confidence interval provides a range of likely
values for μ at a stated confidence level, whereas
hypothesis testing is an easy framework for
displaying the risk levels such as the P-value
associated with a specific decision.
REFERENCE DISTRIBUTION OR THE NULL
DISTRIBUTION
 When we know the distribution of the test
statistic when H0 is true.
SIMPLE LINEAR REGRESSION
 considers a single regressor or predictor x
and a dependent or response variable Y