INTRODUCTION
TO HYPOTHESIS
TESTING – ONE
SAMPLE Z – TEST
Objectives:
At the end of the discussion, I should be able to;
1. Apply one sample z – test.
HYPOTHESIS TESTING
Hypothesis testing is a statistical test used to determine whether
the hypothesis assumed for the sample of data stands true for the
entire population or not.
Hypothesis testing is also used when you are comparing two or
more groups.
The purpose of hypothesis testing is to determine whether there is
enough statistical evidence in favor of a hypothesis about a
parameter.
Hypothesis should be simple and specific. There are two types of
statistical hypothesis, the null hypothesis and the alternative
hypothesis.
The null and alternative hypothesis are contradictory - must
examine evidence to decide if you have enough evidence to reject
the null hypothesis or not.
NULL HYPOTHESIS
Denoted as always has a symbol with an equal in it.
Null means NOTHING.
A statement that there is no relationship between two measured
phenomena or no association among groups.
A null hypothesis is a hypothesis that says there is no statistical
significance between the two variables in the hypothesis. It is the
hypothesis that the researcher is trying to disprove.
It is a statement of no difference between sample means or
proportions. It may also be a statement of no difference between a
sample mean and a population mean. In other words, the
difference equals 0.
a presumption of nothing happened or no change.
ALTERNATIVE HYPOTHESIS
Denoted as .
never has a symbol with an equal in it.
It is a claim about the population that is contradictory to .
states there is a statistically significant relationship between two
variables.
The hypothesis that one is trying to establish, and it can be
“statistically proved” by a rejection of the null hypothesis.
Example:
Write the null hypothesis and the alternative hypothesis in the
following statements.
1. Employees have mean paid vacation of 4 weeks per year.
Null Hypothesis, : = 4 weeks per year
Alternative Hypothesis, : 4 weeks per year
2. The mean number of cars a person owns in his lifetime is not
more than 5.
: ≤ 5 cars
: > 5 cars
3. Seventy percent of the first year engineering students have no
failing grades this school year.
: p = 0.70
: p 0.70
4. At most 85% of the people voted in latest local elections.
: p ≤ 0.85
: p > 0.85
5. On the average, the dosage sold under this brand is 50 mg
(population mean dosage = 50 mg).
: =50mg
: 50mg
LEVEL OF SIGNIFICANCE
Denoted by α .
Measures the strength of the evidence that must be present in your
sample before rejecting the null hypothesis.
It is the probability of rejecting the null hypothesis when in fact it is true,
that is ( Type 1 error = α ).
Usual values of α are 0.05 , 0.02 , or 0.01
TEST STATISTIC
A test statistic is a random variable that is calculated from sample data
and used in a hypothesis test.
Test statistics is used to determine whether to reject the null hypothesis.
The test statistic compares your data with what is expected under the
null hypothesis.
The test statistic is used to calculate the p-value.
TEST STATISTIC
Examples of test statistic are:
for a Z-test is the Z-statistic
𝒙 −𝝁
𝒛 =
𝝈
√𝒏
for the T –test is the t – statistic
TYPES OF ERRORS IN HYPOTHESIS TESTING
Type l Error
o Occurs when the null hypothesis is true but it is rejected.
o Denoted by α.
Type II Error
o Accepting the null hypothesis which should have been rejected.
o Denoted by β.
P-VALUE
calculated from a statistical test, that describes how likely it is the
data could have occurred under the null hypothesis
A p-value of 0.05 indicates that you have only 5% chance of
drawing the sample tested if the null hypothesis was actually true.
If the p-value is less than the significance level, we reject the null
hypothesis.
The p – value is the area under the curve at the rejection region.
Example:
If the observed value of z = 1.51 ( calculated value), then from the
statistical table at z = 1.51 is 0.93448, so the p – value of the
sample is 0.06552.
𝑃 −𝑣𝑎𝑙𝑢𝑒
𝑃 −𝑣𝑎𝑙𝑢𝑒
𝑃 −𝑣𝑎𝑙𝑢𝑒 ∗ 2
STEPS IN HYPOTHESIS TESTING
Step 1: Specify the .
Step 2: Set the level of significance (α). Indicate the critical value
of the test statistic at this level of significance.
Step 3: Calculate the test statistic and corresponding p – value.
Critical Value Approach
If contains the “ > “ , then conduct a right tailed test. Compare
calculated test statistic with the critical value of the test statistic at the
given α.
calculated test statistic < critical value of the test statistic, do
not reject the null hypothesis.
calculated test statisticcritical value of the test statistic, reject
the null hypothesis.
If contains the “ < “ , then conduct a left tailed test. Compare
calculated test statistic with the critical value of the test statistic at
the given α.
calculated test statistic > critical value of the test statistic,
do not reject the null hypothesis.
calculated test statistic critical value of the test statistic,
reject the null hypothesis.
If contains the “ “ , then conduct a 2 tailed test. Compare
calculated test statistic with the critical value of the test statistic at
the given α/2.
calculated test statistic (if negative) critical value of the
test statistic, reject the null hypothesis
calculated test statistic (if positive) critical value of the
test statistic, reject the null hypothesis
P- value Approach
Compare the p – value with α.
p – value α , reject the null hypothesis
p – value α, do not reject the null hypothesis
Step 4: Drawing a conclusion. Whether to reject the null hypothesis
or not to reject the null hypothesis.
One Sample Z – test
Z-test is a statistical test where normal distribution is applied and is
basically used for dealing with problems relating to large samples
when n ≥ 30.
Assumptions of One – Sample z – test
The data are continuous.
The data follow the normal probability distribution.
The sample is a simple random sample from its population. Each
individual in the population has an equal probability of being
selected in the sample.
The population standard deviation is known.
Example:
A manufacturer of electric lamps is testing a new production method that
will be considered acceptable if the lamps produced by this method result in
a normal population with an average life of 2,400 hours and a standard
deviation equal to 300. A sample of 100 lamps produced by this method has
an average life of 2,320 hours. Can the hypothesis of validity for the new
manufacturing process be accepted with a risk equal to or less than 5%?
μ =2400 , 𝜎 =300 , 𝑥 =2320 , 𝑛=100
Step 1. State the .
: = 2,400 hours
: 2,400 hours
μ =2400 , 𝜎 =300 , 𝑥 =2320 , 𝑛=100
Step 2. Level of Significance, α = 0.05,
Step 3. Calculate the test statistic, z – statistic.
Step 4.
Critical Value Approach
calculated z-score(-2.67) < critical value of the test statistic , reject the
null hypothesis
The test is statistically significant, suggesting that the mean life of these electric
lamps is not equal to 2,400 hours as claimed by the manufacturer.
P-value approach
z = - 2.67, the area is equal to (0.00379 x 2) 0.00076.
p – value (0.00076) < α/2 (0.025), reject the null hypothesis.
Example:
A rental car company claims the mean time to rent a car on their website is 60
seconds with a standard deviation of 30 seconds. A random sample of 36
customers attempted to rent a car on the website. The mean time to rent was
more than 70 seconds. Is there enough evidence that the sample mean time is
more than 60 seconds at 95% level of confidence?
Step 1. State Null and Alternative.
Step 2. Level of Significance,
Step 3. Calculate the test statistic, z-statistic
Step 4.
calculated z-score (2) critical value of the test statistic (1.96), reject the
null hypothesis.
There’s enough evidence in favor of the alternative hypothesis, the mean time to
rent a car is more 60 seconds.
P-value approach
z = 2.0, the area is equal to 0.97725
p – value (0.02275) < α (0.05), reject the null hypothesis
EXERCISES
1. Write the null hypothesis and the alternative hypothesis in the following
statements;
a. A local pizza store knows the mean amount of time it takes them to deliver an
order is 30minutes after the order is placed. The manager has a new system
for processing delivery orders, and they want to test if it changes the mean
delivery time. They take a sample of delivery orders and find their mean
delivery time is 40minutes.
b. A restaurant owner installed a new automated drink machine. The machine is
designed to dispense 340mL of liquid on the medium size setting. The owner
suspects that the machine may be dispensing too much in medium drinks.
They decide to take a sample of 30 medium drinks to see if the average
amount is significantly greater than 340mL.
2. A researcher reports that the average salary of College Deans is
more than P63,000. A sample of 35 College Deans has a mean salary
of P65,700. At α = 0.01, test the claim that the College Deans earn
more than P63,000 a month. The standard deviation of the population is
P5,250. Use Critical Value Approach only.
3. The average baptismal cost includes 50 guests. A random sample of
32 baptismal during the past year in the National Capital Region had a
mean of 53 guests and a standard deviation of 10. Is there sufficient
evidence at the 0.05 level of significance that the average number of
guests differs from the national average?
ANSWER KEY
a. N and A
b. N and A
2.
3.
Final Conclusion:
There is not enough evidence at the 0.05 level to
conclude that the average number of guests differs
from 50.
