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# 8/18/2020

Hypothesis
CHAPTER 7 It is simply a statement that

## HYPOTHESIS something is true. It is a tentative

explanation, a claim or assertion

TESTING

## Hypothesis Testing Two Types of Hypothesis

It is a procedure in making 1. Null Hypothesis (Ho)
decisions based on a sample It is a statement of the status quo, one of no difference or
no effect. If the null hypothesis is not rejected, no changes
evidence or probability theory used
to determine whether hypothesis is
accepted or rejected. 2. Alternative Hypothesis (Ha)
It is one in which some difference or effect is expected.

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Possible outcomes
for a Hypothesis Test Level of Significance (a)
Facts
Ho is true Ho is false It is the probability of committing a
Decision Type I error or rejecting the null
Do not reject Ho Correct Decision
Type II error (β) hypothesis.

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## Tests for Rejection Region Rejection Region(s)

1. One-tailed Test Two-tailed Right-tailed Left-tailed
Test Test Test
It is a hypothesis test for which the rejection region lies
at only one tail (Left-tailed or Right-tailed)
Sign-in Ha ≠ > <
2. Two-tailed Test
Rejection
It is a hypothesis test for which the rejection region lies Both sides Right Left
Region
on both end tails of distribution.

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## Regions Critical Region in Testing Hypothesis

Non-rejection Region
Type
of Test
Level of One-tailed Test Two-tailed Test
Significance

Left-tailed Right-tailed
a = 0.01 z < -2.33 z > 2.33 z > 2.575 or z < -2.575
a = 0.05 z < -1.645 z > 1.645 z > 1.96 or z < -1.96
a = 0.10 z < -1.28 z > 1.28 z > 1.945 or z < -1.945
Critical Region

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## Hypothesis Testing Procedure A. Hypothesis About Means

1. Formulate the null and alternative hypothesis
(Comparing Sample mean and Population mean)
2. Decide the level of significance
3. Choose the appropriate test statistic.
4. Establish critical region
5. Compute the value of the statistical set
z = z-test value = population standard deviation
6. Decide whether to accept of reject the null hypothesis
x = sample mean s = sample standard deviation
7. Draw conclusion = population mean n = number of cases > 30

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Example: Solution:
Step 1: Ho : μ = P21, 750
The treasurer of a certain university claims that the mean monthly Ha : μ < P21, 750
salary of their college professor is P21,750 with a standard deviation of
P6,000. A researcher takes a random sample of 75 college professors Step 2: a= 0.05
were found to have a mean monthly salary of P19,375. Do the 75
college professors have lower salaries than the rest? Test the claim at Step 3: One-tailed test
a= 0.05 level of significance.
Step 4: Critical Value + 1.645 z= -1.645 z= 1.645

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Solution:
Solution:
Step 5: ẋ = P19,375
μ = P21,750 Step 6: Reject Ho z= -3.43
σ = P6,000 Accept Ha
n = 75
z= -1.645

## Z= 19,375 – 21,750 = -2375 = -2375

Step 7: There is a significant difference between the salaries of the
6,000 6,000 692.84
college professors.
√75 8.66

Z= -3.43

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## A sample of 70 observations is selected from a normal population. The

sample mean is 2.78 and the sample standard deviation is 0.83. Another
sample of 58 observation is selected from normal population. The
mean sample is 2.63 and the sample standard deviation is 0.75. Test the
hypothesis using a = 0.05 level of significance.
z = z-test value s1 = variance of 1st sample
x1 = mean of 1st sample s2 = variance of 2nd sample
x2 = mean of 2nd sample n1 = number of cases in 1st sample
n2 = number of cases in 2nd sample

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Solution:
Solution:
Step 5: x = 2.78
1 x = 2.63
2

Step 1: Ho : x = x
1 2
s1 = 0.83 s2 = 0.75
Ha : x ≠ x
1 2 n1 = 75 n2 = 58

## Step 2: a= 0.05 Z= 2.78 – 2.63 = 0.15 = 0.15

0.1398
Step 3: Two-tailed test

Z = 1.07

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## Solution: C. Hypothesis Testing about Single Proportions

Step 6: Accept Ho
Reject Ha z= 1.07

z= -1.96 z= 1.96

Step 7: There is no significant difference between the two samples P = population proportion
^
P = sample proportion
n = number of cases

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Example: Solution:
Step 1: Ho : > 85%
A barangay captain claims that at least 85% of the residents in his Ha : < 85%
barangay have household pets. To test this claim a researcher
randomly selected a sample of 550 residents and find that 495 of them Step 2: a= 0.05
do have household pets. At 0.05 level of significance what can you
conclude. Step 3: One-tailed test

## Step 4: Critical Value + 1.96 z= -1.96 z= 1.96

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Solution:
Solution:
Step 5: P^ = 495 / 550
P = 85% Step 6: Accept Ho z= 3.28
n = 550 Reject Ha

## 0.85 (1-0.85) 0.000231818 0.015225576

Step 7: There is no significant difference between the two proportions
550

Z = 3.28

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THANK YOU!