 The critical value is the boundary between the

UNIT 5: HYPOTHESIS TESTING rejection region and the nonrejection region.

PART 1 – Testing One Population Mean The following is the summary of the steps when
performing hypothesis testing.
Inferential Statistics 1. Formulate the null and alternative hypotheses.
 An area in Statistics that deals with methods 2. Specify the level of significance to be used.
used to make generalizations or inferences 3. Select the appropriate test statistic.
about some characteristics of the population 4. Establish the rejection region/regions.
based on information contained in a sample 5. Compute the actual value of the test statistic from
the sample.
Assumptions of Parametric Tests 6. Make a statistical decision.
1. Normally distributed data: The rationale behind 7. Draw the appropriate conclusion.
hypothesis testing relies on having something that is
normally distributed. 1. Testing One Population Mean (Z test, t test)
2. Homogeneity of variance: In designs in which you
test several groups of participants this assumption
means that each of these samples comes from
populations with the same variance.
3. (At least) Interval data: Data should be measured at
least at the interval level (interval or ratio)
4. Independence: In some cases it means that data from
different participants are independent, which means
that the behaviour of one participant does not influence
the behaviour of another.

Hypothesis Testing
 one type of inferential analysis
 a decision-making process for testing the claims
The degrees of freedom relate to the number of
about a population parameter based on the
observations that are free to vary.
characteristics of a sample randomly taken from
Note: When the population is normally distributed, the
the population
distribution of the sample means is also normally
distributed. If the population is not normally distributed,
Important Terms
the distribution of the sample means is still
 The null hypothesis, H0, is a statement that
approximately normally distributed under the condition
specifies a particular value (or values) for the
of Central Limit Theorem.
parameter being studied. It is the hypothesis
*** sample means is normally distributed/
that is being tested.
approximately normally distributed
 The alternative hypothesis, H1, specifies those
values of the parameter that represent an
important change from the null hypothesis. It
opposes the null hypothesis.
 The probability of committing a Type I error
is the level of significance of the test. It is the
maximum probability with which we are willing
to commit a Type I error. In practice, usually set
at 0.05 (*significant) or 0.01 (** highly
significant)
 The test statistic is a statistic computed from
the sample on which the decision to reject or
not to reject H0 is based. If the computed test
statistic falls in the rejection region, the H 0 is
rejected.

 Most computer programs do not have this
option because Z test and t test approximately
give similar output when the sample size is
large.
 One sample t test is available in SPSS.
Z distribution – based on the Standard Normal
Distribution
Properties of a Normal Distribution
■ The normal curve is symmetrical about the
mean μ;
■ In a standard normal distribution, the mean is
zero.
■ The mean is at the middle and divides the area
into halves;
■ The total area under the curve is equal to 1;
■ It is completely determined by its mean and
standard deviation σ (or variance σ2)
t distribution
Properties of the t Distribution
It is, like the Z distribution, a bell-shaped, symmetrical,
continuous distribution.
There is not one t distribution but rather a “family” of t
distributions. All have the same mean (center) of zero,
but their standard deviations differ according to the
sample size n.
The t distribution is more spread out and flatter at the
center than the Z distribution.
However, as the sample size increases, the t
distribution approaches the standard normal
distribution.
Decision of the test
■ i. The null hypothesis is rejected when the
computed test statistic falls in the rejection
region.
■ ii. The null hypothesis is not rejected when the
computed test statistic falls in the non-rejection
region.
Conclusion of the test
■ 1. When the null hypothesis (Ho) is rejected,
then this implies that the sample data provide
sufficient evidence to contradict the null
hypothesis in favor of the alternative
hypothesis.
■ 2. When the null hypothesis(Ho) is not
rejected, then the sample data do not provide
sufficient evidence to contradict the null
hypothesis. However, failing to reject the null
hypothesis does not necessarily mean that it is
true, only that we do not have enough
evidence to reject it.
p-value
 Note: When using statistical software, it gives a
p-value.
 A p-value is the probability of observing a test
statistic value as extreme as the one computed
from the sample data if the null hypothesis is
true.
 As a rule of thumb, H0 is rejected if the p-value
is less than or equal to (level of
significance).
 Once you’ve calculated your test statistic, you
calculate the probability of that test statistic
occurring by chance (p-value). The bigger the
test statistic will be, and the more unlikely it is
to occur by chance.
Example 1 (two-tailed Z test).
Lighthouse Electrical Company manufactures light
bulbs that have a lifetime that is approximately
normally distributed with a mean of 750 hours. A
random sample 30 bulbs has been tested and
showed a mean lifetime of 738 hours. It has been
known that the population standard deviation is
37.5 hours. At 0.05 level of significance, test the otherwise, H0 is not rejected.
hypothesis that the mean lifetime of light bulbs is 5. Computation of the test statistic
significantly different from 750 hours. x - µ 738 - 750
Z = = = - 1 .7 5
Solution:
s 3 7 .5
Let µ = mean lifetime of light bulbs in hours n 30
Steps in hypothesis testing
1. Null and alternative hypotheses
H0: The mean lifetime of light bulbs is 750 hours.
H1: The mean lifetime of light bulbs is significantly
different from 750 hours.
(In symbols)
H 0 : = 750 H1 : ¹ 750
2. Significance level:
6. Statistical decision: Since Z = -1.75 is not in the
= 0 .0 5 rejection region, H0 is not rejected.
3. Test Statistic: Since the alpha is known and the (Note: Z = -1.75 is within the non-rejection region
distribution is approximately normally distributed, between -1.96 to 1.96)
then the appropriate test statistic is Z test where 7. Conclusion
There is no sufficient evidence to claim that the
x - µ mean lifetime of the light bulbs is significantly
Z =
s different from 750 hours.
n
4. Rejection Regions: Since it is a two-tailed test Example 2 (one-tailed t test)
based on H 1 : ¹ 7 5 0 hours, the rejection  A manager of a hotdog company claims that mean
regions are in both tails of the Z distribution, given time to pack one dozen of hotdog manually is 11
by seconds. Suppose a random sample of 20 workers
Z < -Z or Z > Z spent a mean of 13 seconds with a standard
2 2 deviation of 2.3 seconds to pack a dozen of hotdog.
Z < -Z 0 .0 2 5 or Z > Z 0 .0 2 5
At 0.01 level of significance, do the sample results
Based from the Z distribution table, the critical provide sufficient evidence to conclude that it takes
± 1 .9 6 more than 11 seconds to pack one dozen of hotdog
value of the test is
manually? Assume that the length of time is
normally distributed.

Solution:
Let = mean length of time to pack one dozen of
hotdog manually
Steps in hypothesis testing
1. Null and alternative hypotheses
H0: The mean length of time to pack one dozen of
hotdog manually is 11 seconds.
H1: The mean length of time to pack one dozen of
hotdog manually is more than 11 seconds.
(In symbols) H O: μ=11 seconds
H 1 : > 11 seconds
2. Significance level: = 0 .0 1
3. Test Statistic: Since is unknown, the
distribution of the length of time is
normally distributed, and the sample size
n=20 (less than 30), the appropriate test statistic is
Thus, H0 is rejected if Z < - 1 . 9 6 o r Z > 1 . 9 6 t- test.
 x - ■ Is there a significant difference in Calculus
t =
s grades between private and public SHS
n students?
4. Rejection Region: Since it is a one-tailed test ■ Do women have higher EQ than men?
based on H 1 : > 1 1 minutes, the rejection
region is in the right tail of the t distribution, given The following is the summary of the
by with degrees of freedom steps when performing hypothesis
testing.
df = n - 1 = 20 - 1 =19  
1. Formulate the null and alternative hypotheses.
2. Specify the level of significance to be used.
3. Select the appropriate test statistic.
4. Establish the rejection region/regions.
5. Compute the actual value of the test statistic from
the sample.
6. Make a statistical decision.
7. Draw the appropriate conclusion.

Testing the Difference Between the Means of Two

Thus, H0 is rejected if t > 2 . 5 3 9 otherwise, H0 is Independent Populations: Z test
not rejected.
5. Computation of the test statistic
x - 13 - 11
t = = = 3 .8 8 9
s 2 .3
n 20
t = 3 .8 8 9

6. Statistical decision
Since t = 3.889 is in the rejection region, H0 is
rejected.
7. Conclusion: There is sufficient evidence to claim
that that mean time to pack one dozen of hotdog
manually is more than 11 seconds.

PART 2 - Testing Two Independent Population Means

Hypothesis testing can be extended to procedures that

compare statistics from two samples of data selected
from two independent populations.

This test is used in situations in which there are two

experimental conditions and different participants have
been used in each condition
The following are some practical problems that require
hypothesis testing for the difference between two
population means:
 Case 1 is performed if the population standard
deviations are given, regardless of the sample
size.
 Case 2 is performed if the population standard
deviations are not given but the sample sizes n1
 and n2 are both greater than or equal to 30
(Central Limit Theorem applies). 4. Rejection Regions: Since it is a two-tailed test based
 Case 3 is performed if the problem states that on H 1 : µ 1 - µ 2 ¹ 0 the rejection regions are in both tails
the population standard deviations are equal, of the Z distribution, given by
but they are unknown and the sample sizes Z < - Z a or Z > Z a
2 2
used are small (less than 30).
 Case 4 is performed if the problem states that Z < -Z 0 .0 0 5 or Z > Z 0 .0 0 5

the population standard deviations are unequal,

but they are unknown and the sample sizes
used are small (less than 30).

Example 1 (Two-tailed Z test)

A study was conducted to compare the length of time it
took men and women to perform a certain assembly-
line task. Independent random samples of 100 men and
100 women were employed in an experiment in which
each person was timed (in seconds) on identical tasks.
The results are summarized below:
Men Women

n1  100 n2  100
x1  45 x2  38
s1  5.24 s2  4.75

Do the data present sufficient evidence to suggest a

significant difference between the mean completion
times of this task for men and women? Use 0.01 level of
significance.

Solution:
Let µ 1 = mean completion time for men Based from the Z distribution table, since the area of
0.4950 is in between Z = 2.57 and Z = 2.58, then the
critical value of the test is
2 = mean completion time for women
d = 0 (hypothesized difference)
Thus, H0 is rejected if Z < - 2 . 5 7 5 o r Z > 2 . 5 7 5
0

otherwise, H0 is not rejected.

Steps in hypothesis testing
1. Null and alternative hypotheses 5. Computation of the test statistic
H0: There is no significant difference in the mean (x 1 - x )- d (4 5 - 38)- 0
2 0
completion times to perform a certain assembly-line Z = = = 9 .8 9 8
2 2
task between men and women. s1
+ s 2 (5 . 2 4 ) 2 +
(4 . 7 5 )2
n1 n 2 100 100
H1: There is a significant difference in the mean
completion times to perform a certain assembly-line
task between men and women. 6. Statistical decision
Since Z = 9.898 is in the rejection region, H 0 is rejected.
(In symbols) H 0 : 1 - 2 = 0 versus
H 1 : 1 - 2 ¹ 0

2. Significance level: = 0 .0 1
3. Test Statistic: Since both sample sizes are large, we
can use an approximate Z-test, given by
(x 1 - x 2 )- d 0
Z =
2 2
s1 + s 2
n1 n 2
7. Conclusion
There is a significant difference in the mean completion
times to perform a certain assembly-line task between
men and women. Thus, H0 is rejected if t > 1.701, otherwise, H0 is not
rejected.
Example 2 (One-tailed t-test) 5. Computation
A certain electronics company investigated the life span First, solve for the pooled standard deviation S p and
between two brands of laptop with the same then solve for t.
specifications. A random sample of 15 Brand X laptops
( n 1 - 1 ) s 12 + ( n 2 - 1 ) s 22 (1 5 - 1 )( 0 . 6 0 ) 2 + (1 5 - 1 )( 0 . 8 5 ) 2
showed a mean lifespan of 7.75 years with a standard s =
p = = 0 .7 3 5 7
n1 + n 2 - 2 15 + 15 - 2
deviation of 0.60 year while another random sample of
15 Brand Y laptops showed a mean lifespan of 6.25 (x 1 - x )- d (7 . 7 5
2 0 - 6 .2 5 ) - 0
years with a standard deviation of 0.85 year. Assume t = = = 5 .5 8 4
that the population variances are equal. At 0.05 level of s × 1 + 1 (0 . 7 3 5 7 ) × 1 + 1
p n1 n 2 15 15
significance, is there sufficient evidence to claim that 6. Statistical decision
Brand X laptops have significantly longer mean life span Since is in the rejection region, H0 is rejected
than Brand Y?

Solution:
Let 1 = mean life span of Brand X laptop
7. Conclusion
2 = mean life span of Brand Y laptop There is sufficient evidence to claim that Brand X
d 0 = 0 (hypothesized difference) laptops have significantly longer mean life span than
Brand Y.
Steps in hypothesis testing
1. Null and alternative hypotheses EXCEL
H0: There is no significant difference in the mean life t-test: two independent samples assuming unequal
span between Brand X and Brand Y laptops. variances
H1: Brand X laptops have significantly longer mean life Women Men
span than Brand Y laptops. 110 100
(In symbols) H 0 : µ1 - µ2 = 0 versus 100 90
H 1 : 1 - 2 > 0 150 95
2. Significance level: = 0 .0 5 200 112
3. Test Statistic: Since it is assumed that the population 160 115
variances are equal, that is s 1 = s 2 but unknown and 170 89
n1 < 30, n < 3 0 . Then the appropriate test statistic is 180 95
2

pooled-variance t test where 160 96

(x 1 - x2)- d 200 100
0
t = 250 102
s × 1 + 1
p n1 n 2 130 110
4. Rejection Regions: Since the test is one-tailed, the 125 105
rejection region is given by 100 98
t > ta 105 100
t > t 0 .0 5 130 93
Based from the t distribution table with degrees of 210 85
freedom df = 28, the critical value of the test is 1.701. 225 108
df = n1 + n 2 - 2 230 100
=1 5 + 1 5 - 2 130 120
=28 101 80
Most people nowadays have facebook accounts.
Suppose you want to investigate the number of
facebook friends an fb user have when grouped
according to gender. Based on the following data, test
the hypothesis that women have more facebook friends
than men. Use 0.05 level of significance.

Note: Check for normality and homogeneity of

variances

Rule of Thumb for Checking the Condition of Unequal

Variances (in Excel)
 In most cases, if the ratio of sample variances is
larger than 3, then it is safe to assume that the
population variances are unequal.
 Variance 1/ Var. 2: x > 3 (unequal), x < 3 (equal)

Decision Rule (one-tailed test)

1. Critical value: Reject Ho in favor of H1 if t stat >
t Critical two-tail
2. p-value: Reject Ho in favor of H1 if P(T<=t) one-
tail £ 0.05.
£

Note: The ratio of the 2

variances is more than 3.

greater than the t Critical one-tail 1.72

p-value is less than 0.05

Decision/Conclusion: Reject Ho. The data provide

sufficient evidence to claim that women have more
facebook friends than men.