Hypothesis

Testing
Dr.Giridhar K.V.
MBA, M.Com, MA (eco), Ph.D, PGDHRM,
PGDMM,

Dept. of Management,
Sahyadri A&C College,
Constituent College of Kuvempu University,
Shimoga-577203.

What is Hypothesis?
Meaning:
1.A hypothesis is an educated prediction
that can be tested.

2.Ahypothesisis a specific, testable

prediction. It describes in concrete
terms what you expect will happen in a
certain circumstance.

A Case to develop the

Hypothesis:
Imagine you have a Seminar
Presentation/Test on BRM tomorrow.
You stay out late and see a movie
with friends. You know that when you
study in the Evening, you do better
presentation/Test. What do you think
will
happen
on
tomorrow's
Presentation/test?

Evaluation:
When
you
answered
this
question,
you
formed
a
hypothesis. Ahypothesisis a
specific, testable prediction. It
describes in concrete terms
what you expect will happen in a
certain circumstance.

Your hypothesis may

have been:
'If not studying well, lower
the performance in
presentation/test and I do
not study, then I will get a
low grade in Seminar/test.'

Statistics
Descriptive
Organising,
summarising &
describing data

Inferential
Correlational

Generalising

Relationships
Significance

Steps in Hypothesis
Testing
1.
2.
3.
4.
5.
6.
7.
8.
9.

Data
Assumptions
Hypothesis
Pick test in statistics
Distribution
Decision rule
Calculate test statistics
Statistical decision
Conclusion

Types of Hypotheses
Null Hypothesis (Ho)
Alternate Hypothesis (Ha)

What is Hypothesis Testing?

Null Hypothesis

A=B

Alternative Hypothesis

AB

We also need to establish:

1) How unequal are these observations?
2) Are these observations reflective of the general population?

Development of
Hypothesis
1. Suppose Narayan claims that the avg. price of per Sq.
Ft. of site in Chennagiri town is more than Rs.2,000/-.
Write down the null and alternate Hypothesis.

H :
o

2,000 - Null Hypothesis (=)

Ha : > 2,000 Alternative Hypothesis

( means no = sign)

2. The avg. age of Youtube users is

25 years. Write down the null and
alternate Hypothesis.
H : = 25 - Null Hypothesis (=)
0

Ha : 25 Alternative Hypothesis ()

3. Someone of you tell the

mean age of this group is
23.
H : = 23 - Null Hypothesis (=)
o

Ha : 23 Alternative Hypothesis ()

ACCEPT THE
HYPOTHESIS OR REJECT
You take a sample mean age from the population

(n=10),
If mean age is 23.12 years (l% of level of Significance)
- ACCEPT
If mean age is 24 years (5% of level of Significance)
- ACCEPT
If mean age is 26 years (l0% of level of Significance)
- MAY OR MAY NOT ACCEPT
If mean age is 30 years
- REJECT

Types of Errors

Types of Sample
1. Small samples
2. Large samples

Test of Significance for

Attributes
1. Number of success
2. Probability of success
3. Difference between

1. Number of success

Prob: 1
A coin was tossed 400 times, and head
turned-up 216 times.
Test the Hypothesis that coin is
unbiased.

Prob: 2
In 600 throws of 6 Faced die, odd
points appeared 360 times, would you
say that the die is fair at 5% level of
significance.

2. Proportion of Success

Prob: 1
The birth register of the municipality
reveals that in a week, 2,400 males and
2,600 females were born. Do these
figures support the Hypothesis
proportions are equal at 5% level of
significance?

Prob: 2
Manufacturer of Electric bulbs claims
that only 2% bulbs produced by him are
defective. A random sample of 50 bulbs
revealed that 2 bulbs are defective. Test
the claim of manufacturer at 95% level
of confidence.

3. Difference between
proportions

Prob: 1
In a random sample of 1,000 persons
from Town-A, 400 are found to be
consumers of wheat.

In a sample 800 from Town B, 400 are

found to be consumers of wheat.

Do this data reveal a significant

difference between Town-A and Town-B
in consumption of wheat is concerned?

Prob: 2
In a simple random sample of 600 men
taken from a city 400 are found to be
smokers.

In another simple random sample of 900

men taken from another city, 450 are
smokers.

Do the data indicate that there is a

significant difference in
smoking in the 2 cities?

the

habit

of

Test of Significance for

Large Samples

Prob: 1
The mean height obtained from a
random sample of size 100 is 64 inches,
SD of distribution of height of the
population is known to be 3 inches. Test
the statement that the mean height of
the population is 67 inches at 5% level
of significance. And also set-up 99%
level of significance of mean height of
population.

Prob: 2
A sample of 100 tyres is taken from a
lot. The mean life of tyres is found to be
39,350 kms with a SD of 3,260. Could
sample come from a population with
mean life of 40,000 kms?

Establish 99% confidence limits within

which mean life of tyre is expected to
lie.

Test of Significance for

Small Sample

Prob: 1
Manufacturer of Electric bulb claims that his
bulb have a mean life of 25 months with a SD of
5 months, a Random sample of 6 bulbs gave the
following values.

Mean life (in months): 24, 26, 30, 20, 20, 18

Can you regard the producers claim to be valid
at 1% level of significance?

(given that the table values of the appropriate

test at the said level are 4.032, 3.707, and 3.499
for 5,6, and 7 degrees of freedom respectively)

Prob: 2
The life of Electric bulbs for a random sample
of 10 from a large consignment gave the
following data:

Item: 1 2 3 4 5 6 7 8 9 10
Life : 4.2 4.6 3.9 4.1 5.2 3.8
4.3

4.4

3.9

5.6

(in 000 hours)

Can we accept the hypothesis that avt. Life of

bulbs in 4,000 hrs.

Test

1. Parametric Test

T-test
F-test
z-test
2. Non-Parametric Test

Chi (kite or ki) Square Test

Chi-Square Test
1. In an antimalarial compaign in a certain area,
quine was administred to 812 persons out of a
total out 3,248, the number of fever cases is
shown below:
Treatment Fever

No fever

Total

Quinine

20

792

812

No quinine

220

2216

2436

Total

240

3008

3248

Discuss the usefulness of quinine in checking

malaria.

Prob:2
Based on the information, on 1000 randomly
selected fields about the tenacy status of
culviatiors of these fileds and use of
fertilizers, collected
agro-economic
Ownedin an Rented
Total
survey
classification
was
Using the following
416
184
600
noted:
fertilizers
Not using
fertilizers

64

336

400

Would you conclude that owners culvitotors are

Total inclined towards
480
520of fertilizers
1000at
more
the use
5% level?

Prob:3
A certain drug is claimed to be in curing cold. In an
experiment on 328 people with cold, half of them
were given sugar pills and half of them were given
drugs for cold. The parients reactions to treatment
are recorded in the following table . The test of
hypothesis that the drug is no better than sugar pills
ofr curing coldHelped
(given for v=2,
X2 0.05 No
5.99)
Harmed
effect
Drug

104

20

40

Sugar pills

88

24

52

Prob: 4
200 digts are chosen at random from a set of
tables. The frequencies of the digits are as
follows:

Digits: 0 1 2 3 4 5 6 7 8 9
Frequency: 18 19 23 21 16 25 22 20 21 15
Use Chi square to assess the correctness of
the hypothesis that digits were distributed in
equal numbers in the table from which they
were chosen.

All the Very Best

Thanks