HYPOTHESIS TESTING
Presentation by Engr. Sofia M. Dela Peña
MEM 103 | 2023 Engr. Leopoldo Cura, Ph,D.
INTRODUCTION
HYPOTHESIS
Steps to Perform Hypothesis Testing
There are four steps to performing Hypothesis Testing:
1. Set the Null and Alternate Hypotheses
2. Set the Significance Level, Criteria for a decision
3. Compute the test statistic
4. Make a decision
Null Vs. Alternative Hypothesis
NULL HYPOTHESIS ALTERNATIVE HYPOTHESIS
There is no relationship/association There is a relationship between two
ship between two groups selected variables in a study
It is denoted as H0 It is denoted as HA
It is followed by not equal to, ‘less
It is followed by ‘equal to’ sign
than’ or ‘greater than’ sign
The researcher tries to dis approve in The researcher tries to prove
null hypothesis alternative hypothesis
Null Vs. Alternative Hypothesis
NULL HYPOTHESIS ALTERNATIVE HYPOTHESIS
The results are observed as a result The results are observed as a result
of chance of some real causes
The result of a null hypothesis The results of an alternative
indicates no changes in opinions or hypothesis causes change in opinion
actions and actions
If the null hypothesis is accepted the If an alternative hypothesis is
results of the study become accepted the results of the study
insignificant become significant
If the P value is greater than the If the P value is smaller than the
level of significance, the null level of significance an alternative
hypothesis is accepted hypothesis is accepted
PROBLEM
Type of Hypothesis Null Hypothesis Alternative Hypothesis
The average time to recover The average time to recover
Example using Drug A is the same as using Drug A is less than with
with Drug B Drug B
No statistical significance Statistical significance exist
Statistical Significance
between observed data between observed data
The observed result is due to The observed result is due to
Outcome if True
chance the effect or relationship
PROBLEMS
Example:
1. The average age of a employees in Metro Manila is 36.8 years.
H0: µ=36.8 years
HA: µ≠36.8 years
ONE-TAILED TEST
In this statistical hypothesis test, all the critical region, related to α, is placed
in any one of the two tails. One-tailed test can be:
• Left-tailed test: When the population parameter is believed to be lower
than the assumed one, the hypothesis test carried out is the left-tailed test.
• Right-tailed test: When the population parameter is supposed to be
greater than the assumed one, the statistical test conducted is a right-tailed
test.
TWO-TAILED TEST
Two tailed test will reject the null hypothesis if the sample mean is
significantly higher or lower than the hypothesized mean.
Appropriate when Ho: µ=µo and Ha: µ≠µo
COMPARISON
BASIS OF COMPARISON ONE-TAILED TEST TWO-TAILED TEST
Meaning A statistical hypothesis test in which A significance test in which
alternative hypothesis has only one end, alternative hypothesis has two ends,
is known as one tailed test. is called two-tailed test.
Hypothesis Directional Non-directional
Region of rejection Either left or right Both left and right
Determines If there is a relationship between If there is a relationship between
variables in single direction. variables in either direction.
Result Greater or less than certain value. Greater or less than certain range of
values.
Sign in alternative hypothesis > or < ≠
ONE TAIL TEST
A one sided test is a statistical hypothesis test in which the values
for which we can reject the null hypothesis, Ho are located entirely in
one tail of the probability distribution.
Lower tailed test will reject the null hypothesis if the sample mean is
significantly lower than the hypothesized mean. Appropriate when
Ho: µ=µo and Ha:µ<µo
Example: A wholesaler buys light bulbs from the manufacturer in large
lots and decides not to accept a lot unless the mean life is at least
1000 hours.
Ho: µ=1000 hours and Ha: µ<1000 hours
And uses a lower tailed test .
i.e. he rejects Ho only if the mean life of sampled bulb is
significantly below 1000 hours (he rejects Ha and rejects the lot)
ONE TAIL TEST
Upper tailed test, will reject the null hypothesis if the smaple mean is
significantly higher than the hypothesized mean. Appropriate when
Ho : µ = µo and HA: µ>µo
Example: A highway safety engineer decides to test the load bearing
capacity of a 20 year old bridge. The minimum load bearing capacity of
the bridge must be at least 10 tons
Ho: µ=10 tons and Ha: µ> 10 tons
And uses an upper tail test
i.e. he rejects Ho only if the mean load bearing capacity of the bridge
is significantly higher than 10 tons
TWO TAIL TEST
Two tailed test will reject the null hypothesis if the sample mean is
significantly higher or lower than the hypothesized mean.
Appropriate when Ho: µ=µo and Ha: µ≠µo
e.g. The manufacturer of light bulbs wants to produce light bulbs with
mean life of 1000 hours. If the lifetime is shorter he will loose
customers to the competion and if it is longer than he will incur a high
cost of production. He does not want to deviate significantly from 1000
hours in either direction. Thus he selects the hypotheses as null
hypothesis.
Key Differences Between One-
tailed and Two-tailed Test
THANK YOU!