Module 4 Inferential Statistics
Module 4 Inferential Statistics
Hypothesis testing means to tell (on the basis of the data the 2. Selecting a significance level: the hypothesis is tested on a
researcher has collected) whether or not the hypothesis seems pre-determined level of significance and it must be specified.
to be valid. Whether it needs to be accepted or rejected. Generally in practice 5% level or 1% level is adopted for this
1. Setting up the hypotheses: the formulation of hypotheses is purpose. Factors that affects the level of significance are size of
an important step which must be accomplished with due care the samples, variability of measurements, whether the
in accordance with the object and nature of the problem under hypothesis is directional or non-directional and the difference
consideration. It also indicates whether we should use one- between the sample means. The level of the significance must
tailed (directional hypothesis) or two-tailed test (null be adequate in the context of the purpose and nature of
hypothesis or non-directional hypothesis). enquiry.
The following are the possibilities of formulating hypothesis.
• HO: Coffee has no effect on attention span (μ₁ = μ₂).
• H1: Coffee affects attention span (μ₁ ≠ μ₂).
• H1: coffee increases attention span (μ₁ > μ₂) (mean score of
attention span of experimental group > mean score of
attention span of control group)
4. Critical Value:
• A critical value is a threshold in hypothesis testing that helps
decide whether to reject the null hypothesis. It is determined using
the distribution of the test statistic, the prefix significance level (α),
Dr. Amani Kanugolu, Assistant professor, NMIMS, Navi Mumbai
4.1 Steps in hypothesis testing Cont’d..
a. A company claims that the average height of its employees is 175 cm. A random sample of 36 employees has a
mean height of 172 cm. If the population standard deviation is 5 cm, test the hypothesis that the mean height of the
company's employees is 175 cm. Use a significance level of 0.05.
b. A manufacturing company claims that the average weight of its products is 500 grams. A random sample of 64
products has a mean weight of 495 grams. If the population standard deviation is 10 grams, test the hypothesis that
the mean weight of the products is 500 grams. Use a significance level of 0.05.
c. A school claims that the average GPA of its students is 3.0. A random sample of 36 students has a mean GPA of 2.8.
If the population standard deviation is 0.5, test the hypothesis that the mean GPA of the students is 3.0. Use a
significance level of 0.05.
a. A researcher wants to compare the average heights of men and women in a population. A random sample of 40 men has a mean height of
175 cm, and a random sample of 40 women has a mean height of 160 cm. If the population standard deviation for men is 5 cm and for women
is 4 cm, test the hypothesis that the mean heights of men and women are equal. Use a significance level of 0.05.
b. A survey wants to compare the average amount of time spent exercising per week by people who live in urban and rural areas. A random
sample of 64 people from urban areas has a mean exercise time of 3 hours, and a random sample of 64 people from rural areas has a mean
exercise time of 2 hours. If the population standard deviation for urban areas is 1 hour and for rural areas is 0.8 hours, test the hypothesis that
the mean exercise times of people in urban and rural areas are equal. Use a significance level of 0.01.
c. A researcher wants to compare the average scores of students from two different schools on a standardized test. A random sample of 36
students from School A has a mean score of 80, and a random sample of 36 students from School B has a mean score of 85. If the population
standard deviation for School A is 5 and for School B is 6, test the hypothesis that the mean scores of students from the two schools are
equal. Use a significance level of 0.05. CRITICAL VALUES FOR TWO –TAILED Z TEST
Parametric tests are statistical tests that require specific assumptions normality can be tested using statistical software.
about the data being analyzed. These assumptions primarily involve: • Statistical Power: They are preferred over nonparametric tests
• Random Sampling: The data must be randomly selected from the because they are more efficient and precise when assumptions are
population. met.
• Independence: Observations within the sample must not influence
each other. Examples of Parametric Tests
• Normality: The population from which the sample is drawn should • t-Test: Used to compare the means of two groups or a sample mean
follow a normal distribution (or approximately normal). against a known value. Assumes normality and equal variances (in
• Homogeneity of Variance: For certain tests, the variances of groups independent samples).
being compared should be roughly equal. • Analysis of Variance (ANOVA): Compares means across three or
When these assumptions are met, parametric tests are more statistically more groups. Assumes normal distribution of data and equal
powerful, meaning they have a greater likelihood of detecting a true variances among groups.
effect (rejecting a false null hypothesis). • Linear Regression: Examines the relationship between two or more
variables. Assumes normality of residuals, linearity, and
Key Characteristics of Parametric Tests homoscedasticity (equal variance of residuals).
• Data Level: They typically require data measured at the interval or
ratio scale (continuous data).
• Normality: A sample size of 30 or more often makes it acceptable
to assume normality (Central Limit Theorem). For smaller samples,
Dr. Amani Kanugolu, Assistant professor, NMIMS, Navi Mumbai
4.2 Parametric and Non-parametric tests Cont’d…
If the data do not meet the assumptions for parametric tests way ANOVA.
(e.g., non-normality, ordinal-level data, or unequal variances), • Spearman’s Rank Correlation: Nonparametric alternative
nonparametric tests provide an alternative. to Pearson’s correlation.
Nonparametric tests are statistical methods used to analyze • Wilcoxon Signed-Rank Test: Nonparametric alternative to
data that do not meet the assumptions required for parametric the paired t-test.
tests. Nonparametric tests do not require the stringent
assumptions of parametric tests. They: The suitable test will be chosen depending on the
• Are suitable for data measured at nominal or ordinal characteristics of the data and study design.
levels.
• Do not assume normality or homogeneity of variance.
• Are less sensitive to outliers or small sample sizes.
Formula:
Exercise:
a. A psychologist believes that the average IQ of students in a particular school is different from the general population
mean IQ of 100. A random sample of 15 students from the school is selected, and their IQ scores are as follows:
IQ Scores: 102, 98, 105, 100, 95, 101, 99, 97, 96, 104, 103, 98, 102, 100, 99.
Test if the average IQ of students in this school is significantly different from the population mean (μ=100).
Formula:
b. A researcher wants to compare the exam performance of students who studied online versus those who attended in-person
classes. The scores of 10 students in each group are as follows:
Online 78 85 88 89 90 91 74 80 84 80
In-person 82 75 90 78 80 84 83 70 75 95
Exercise:
c. A fitness trainer wants to evaluate the effectiveness of a 4-week training program. The trainer measures the
participants' weight before and after the program. The weights (in kg) of 8 participants are as follows:
Before 80 85 90 75 100 85 80 86
program
After program 78 81 90 74 95 70 75 84
Types of correlation
1. Positive Correlation: A positive correlation occurs when two variables move in the
same direction. As one variable increases, the other variable also increases, and vice
versa. The correlation coefficient for positive correlation ranges from 0 to +1. A positive
value of the correlation coefficient indicates a direct relationship between the variables.
Example: Generally, as height increases, weight also increases. This is a positive
correlation, as both variables increase together.
4. Perfect Negative Correlation: Perfect negative correlation occurs when two variables have a perfect,
inverse, linear relationship. As one variable increases, the other decreases in exact proportion. The
relationship between the variables is perfectly predictable but in the opposite direction. The correlation
coefficient is exactly -1.
Example: Amount of fuel in a Car and Distance Traveled: As a car travels a fixed distance and consumes
fuel at a constant rate, the amount of fuel in the tank decreases in exact proportion.
5. Zero/No correlation: The two variables are not at all related to each other. As one variable increases
or decreases, it has no relation with the other variable. The correlation coefficient for zero correlation is 0.
Example: Rainfall in America and crop growth in india
One of the important aims of science is to be able to make predict the value of the dependent variable based on known values
predictions. The predictions involve a statement of causality that of the independent variables.
states that X is a cause of Y or X can predict Y. Here, X is the causal Types of regression Based on the Number of Independent
variable or predictor variable or independent variable. Y is the effect Variables:
variable or criterion variable or dependent variable. Often 1. Simple linear regression: It is a statistical method that allows
experimentation is the ideal way to establish a relation of causality us to summarize and study relationships between two
between two variables. However, it is not always possible for the continuous (quantitative) variables:
experimenter to manipulate the IV for practical or ethical. For a. One variable, denoted x, is regarded as the predictor,
example, to study if parent’s height can predict children’s height, one explanatory, or independent variable.
cannot manipulate the height of the parent. Similarly, to study if b. The other variable, denoted y, is regarded as the
levels of marital conflict between a couple can predict depression response, outcome, or dependent variable.
rates, an experimenter, for all ethical purposes, cannot create marital There is only one predictor variable
conflict. Hence, in researches like these, regression can be a way of A simple linear regression uses one IV to predict the DV. For
establishing and studying prediction. example, marks in an exam are predicted from intelligence scores.
Regression analysis is a statistical technique for Assumptions of simple linear regression: Data must be normally
modeling the relationship between a dependent (or response) distributed, there must be a linear relationship between IV and DV,
variable and one or more independent (or predictor) variables. The Independence of observations and homogeneity of variance.
goal of regression analysis is to develop a model that can be used to
Dr. Amani Kanugolu, Assistant professor, NMIMS, Navi Mumbai
4.4 Regression
The general form of each type of regression is: the form of a straight line (linear regression) that best
• Linear regression: Y = a + bX + e approximates all the individual data points. In multiple
• Multiple regression: Y = a + b1X1+b2X2 + b3X3 + ... + e regression, the separate variables are differentiated by using
Where: numbers with subscripts.
• Y = the variable that you are trying to predict (dependent
variable).
• X = the variable that you are using to predict Y
(independent variable).
• a = the intercept.
• b = the slope.
• e = the regression residual.
ANOVA (Analysis of Variance) is a statistical technique ANOVA is used to compare the means of multiple
used to determine whether there are significant groups to identify any statistically significant differences
differences between the means of three or more between them. Suppose we want to compare the level of
independent groups. self-esteem in males, females, and transgender
Prof. R. A. Fisher is the pioneer in developing the individuals. We randomly select samples from each
theoretical concepts of ANOVA. population and use ANOVA to analyze the data.
Assumptions of ANOVA Advantages over t-tests: Using ANOVA instead of
1. Independence: Observations are independent multiple t-tests saves time and energy, as it reduces the
of each other number of comparisons needed and it also captures
2. Normality: Data is normally distributed within interaction effects between groups,
each group
3. Homogeneity of variance: Variances are equal
across all groups
4. ANOVA assumes continuous data
Purpose of ANOVA: When comparing the means of two It assumes that sample populations follow a normal
samples, tests such as the z-test or t-test can be used. distribution and have equal variances.
However, when there are more than two sample groups, The method helps identify whether a particular factor
conducting multiple individual comparisons increases the significantly influences a dependent variable.
risk of errors. ANOVA allows researchers to The test is performed using the F-ratio, which compares
simultaneously test multiple groups to determine variance between groups and variance within groups. If
whether they originate from populations with the same the calculated F-value exceeds a critical threshold, the
mean. differences between the group means are considered
statistically significant.
Basic principles of ANOVA:
The fundamental idea of ANOVA is to compare the
means of different populations by analyzing the variation
within each sample relative to the variation between the
samples.
For example, in psychological research, MANOVA can More powerful than multiple one-way ANOVAs in
detecting differences between groups.
be used to study whether different groups show
significant differences in depression, anxiety, and stress
levels at the same time.
One-Way MANOVA: Used when there is one independent Normality: Each dependent variable should be normally
variable (IV) with multiple levels affecting multiple distributed.
dependent variables. Example: Studying coffee consumption
No Univariate or Multivariate Outliers: Extreme values
(IV) and its effects on anxiety and fatigue (DVs).
should be checked and handled.
Two-Way MANOVA: Used when there are two
Multicollinearity: The dependent variables should be
independent variables affecting multiple dependent
correlated but not too strongly (to ensure they measure
variables. Example: Studying coffee consumption and sleep
distinct concepts).
quality (IVs) and their effects on anxiety and fatigue (DVs).
Linearity: There should be a linear relationship between
Mixed MANOVA: Used when a study involves both
dependent variables.
between-subject and within-subject factors. Example:
Measuring anxiety and fatigue in participants before and Homogeneity of Variance-Covariance Matrices: The variance
after drinking coffee (within-subjects) while comparing structure across groups should be similar.
simultaneously. It helps psychologists reduce errors while identifying meaningful patterns in data.
It is particularly useful when dependent variables are related and allows researchers to gain