Module-V
Testing of hypothesis –Types of errors - Critical region,
Procedure for testing of hypothesis-Large sample tests- Z
test for Single Proportion- Difference of Proportion- Mean
and difference of means.
Notations
Hypothesis Testing
Hypothesis testing is an act in statistics whereby an analyst tests an
assumption regarding a population.
❖ Null hypothesis 𝐻0 : There is no difference between certain characteristics
of a population
❖ Alternative hypothesis H1: There is difference between certain
characteristics of a population
Hypothesis Testing
The common man decide to get tested for COVID-19 based on mild
symptoms.
The results may be:
❖ The test result says he has coronavirus,
but he actually don’t have it.
❖ The test result says he don’t have
coronavirus, but actually he has the
virus.
Reason Error
A failed candidate is passed by the teacher
Types of errors
Reality
Decision
❖ The region in which a sample value falling is rejected, known as
region of rejection or critical region
❖ The critical value, also known as the significant value, is the value of a test
statistic that separates the critical region from the rejection of acceptance.
𝛼
Steps involved in Hypothesis testing
• Formulate Null and Alternate hypothesis
• Identify the level of significance
• Test statistic
• Critical (or) Rejection region
• Conclusion
Table corresponding to critical values
Proportion:
A proportion refers to the fraction of the total population possesses a certain attribute
Example:
Suppose we have a sample of four pets; a bird, a fish, a dog and a cat. If we ask what
proportion has four legs, then only two pets (the dog and the cat) have four legs,
therefore the proportion of pets with four legs is 2/4 or 0.5.
A proportion, denoted by ′𝑝′ is a parameter that describes a percentage value
associated with a population.
Example:
A survey showed 83% of women in a village are educated, the value 0.83 is a
population proportion.
𝑥
i.e., 𝑝 = , is a sample proportion in a random sample of size 𝑛.
𝑛
Now,
Test statistics:
Example 1:
In a sample of 1000 people Karnataka 540 are rice eaters and the rest are
wheat eaters. Can we assume that the both rice and wheat are equally popular
in this state at 1% level of significance?
Level of significance: 𝛼 = 0.01
Test Statistic
Example 2: 40 people were attacked by a disease and only 36 survived. Will you
reject the hypothesis that the survival rate, if attacked by this disease is
85% in favor of the hypothesis that it is more at
5% level of significance.
Level
Example: 1
Experience had shown that 20% of a manufactured product is of the top
quantity. In one day’s, production of 400 articles only 50 are of top quality.
Test the hypothesis at 0.05 level.
Test of difference of proportions (between two sample Proportions)
Let 𝑃1 𝑎𝑛𝑑 𝑃2 be the proportions of successes in two large samples of size
𝑛1 𝑎𝑛𝑑 𝑛2 respectively, drawn from the sample population or from two populations with the
same proportion 𝑃1 = 𝑃2 = 𝑃.
Example 1
In a random sample of 100 men taken from village A, 60 were found to
be consuming alcohol. In another sample of 200 men taken from village
B, 100 were found to be consuming alcohol. Do the two villages differ
significantly in respect to the proportion of men who consume alcohol?
Solution
2. A manufacturer of electronic equipment subjects’ samples of two completing brands
of transistors to an accelerated performance test. If 45 of 180 transistors of the first kind
and 34 of 120 transistors of the second kind fail the test, what can conclude at the level
of significance 0.05 about the difference between the corresponding sample proportions?
Solution
3. Random samples of 400 men and 600 women were asked whether they would like to
have flyover near their residence. 200 men and 325 women were in favor of the proposal.
Test the hypothesis that proportions of men and women in favor of the proposal are same
at 5% level.
Null hypothesis 𝐻0 is accepted.
Test of single mean condition
Test of Difference of Means
Test Statistic:
Decision:
Since 𝑍 = 2.65 exceeds 1.645, so 𝐻0 must be rejected