B0002

Statistical Hypothesis

is a conjecture about…

1. the value of a parameter of the

population
or
2. the distribution of the
population

Test of Statistical Hypotheses * Property of STI

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Statistical Hypothesis

Examples:

1. The mean pre-test score of

students in Statistics class is 75.
2. There is no significant difference
between the mean IQ test scores
of boys and girls.
3. Gender and leadership style are
statistically independent.
4. The data distribution follows a
uniform distribution.

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Formulating Hypotheses

1. Null hypothesis (Ho) - is usually

expressed in terms of equality or
no difference

2. Alternative hypothesis (Ha) - the

hypothesis proposed to be
accepted in case the sample data
do not show evidence to support
Ho.

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Formulating Hypotheses
Example
1. Paulo wanted to investigate whether or not a
promotional campaign increase the sales of
certain product as compared to a known mean
of 316 units being sold per day. Test if the
promotional campaign increases the mean
number of units sold per day.

What are the null and alternative hypotheses

in this problem? Is it one-tailed or two-tailed
test?

Ho:   316 (The mean sales is less than or

equal to 316 units sold per day or The
promotional campaign does not increase the
mean number of units sold per day)

Ha:   316 (The mean sales is greater than

316 units sold per day or The promotional
campaign increases the mean number of units
sold per day)

Test statistic: one-tailed

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Formulating Hypotheses
Example:

2. Quiolo wanted to test if the mean number

of hours spent studying per week by his
classmates is 12 hours.

What are the null and alternative

hypotheses in this problem? Is it one-
tailed or two-tailed test?

Ho:   12 (The mean number of hours

spent studying per week by Quiolo’s
classmates is 12 hours.)

Ha:   12 (The mean number of hours

spent studying per week by Quiolo’s
classmates is not 12 hours)

Test statistic: two-tailed

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Errors in Hypothesis
Testing

Decision True State of Nature

Made Based
on Test
Ho is true Ho is true

Reject Ho Type I error Correct

(with prob. Decision
α) (with prob.
1 – β)
Accept Ho Correct Type II error
Decision (with prob.
(with prob. β)
1 – α)

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Level of Significance

In performing the test, the

usual practice is to control
the probability of rejecting a
true null hypothesis by setting
it to a very small value, say
α = 0.05 or α = 0.01.

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Errors in Hypothesis Testing

Example:

The manufacturer of a certain shampoo claims

that its mean content is 250ml. Seventy-five
bottles of this brand of shampoo are randomly
selected and carefully weighed. An
independent consumer group is skeptical of
this claim and thinks that the mean content.
Using the weights obtained, a hypothesis test
is to be performed in order to decide whether
the mean weight of all bottles differs from the
advertised content.
Ho:  = 250ml
Ha:  ≠ 250ml

Where  is the actual mean weight of all “250-

ml” shampoo bottles. Explain what each of the
following would mean.
a. Type I error
b. Type II error
c. Correct decision

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Errors in Hypothesis
Testing

Suppose the weights of the 75 bottles

sampled lead to non-rejection of the null
hypothesis. Classify the conclusion by error
type or as a correct decision.

a. Equals the advertised weight of 250 ml.

b. Does not equal the advertised weight of
250 ml.

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Errors in Hypothesis Testing

Answers:

a. A type I error would occur if in fact 

= 250 ml. but the results of the
sampling lead to the conclusion that
 ≠ 250ml.
b. A type II error would occur if in fact 
≠ 250ml but the results of the
sampling fail to lead to that
conclusion.
c. A correct decision would occur if in
fact  = 250 ml and the results of the
sampling do not lead to the rejection
of that fact; or if in fact  ≠ 250ml
and the results of the sampling lead
to that conclusion.
d. Correct decision
e. Type II error

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Steps in Hypothesis Testing

1. State the hypotheses, Ho and

Ha.
2. Determine the appropriate test
statistic to use and its
distribution under Ho.
3. Specify the level of significance
4. State the decision rule
5. Compute the value of the test
statistic from the sample data.
6. Make a decision (reject or fail to
reject).
7. Draw a conclusion in relation to
the objective of the original
problem.

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