VJCET- S4 PSM – MODULE 4

MODULE 4
TESTING OF HYPOTHESES I
(PARAMETRIC OR STANDARD TESTS OF HYPOTHESES)
Hypothesis

Hypothesis may be defined as a proposition or a set of proposition set forth as an

explanation for the occurrence of some specified group of phenomena either asserted
merely as a provisional conjecture to guide some investigation or accepted as highly
probable in the light of established facts. Quite often a research hypothesis is a predictive
statement, capable of being tested by scientific methods, that relates an independent
variable to some dependent variable.

For example, consider statements like the following ones: “Students who receive
counselling will show a greater increase in creativity than students not receiving
counselling” Or “the automobile A is performing as well as automobile B.” These are
hypotheses capable of being objectively verified and tested. Thus, we may conclude that
a hypothesis states what we are looking for and it is a proposition which can be put to a
test to determine its validity.

Characteristics of hypothesis:

(i) Hypothesis should be clear and precise.

(ii) Hypothesis should be capable of being tested.
(iii) Hypothesis should state relationship between variables, if it happens to be a
relational hypothesis.
(iv) Hypothesis should be stated as far as possible in most simple terms so that the
same is easily understandable by all concerned.
(v) Hypothesis should be consistent with most known facts.
(vi) Hypothesis must explain the facts that gave rise to the need for explanation
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Type I and Type II errors:

Type I error means rejection of hypothesis which should have been accepted and Type II
error means accepting the hypothesis which should have been rejected. Type I error is
denoted by α (alpha) known as α error, also called the level of significance of test; and
Type II error is denoted by β (beta) known as β error. In a tabular form the said two errors
can be presented as follows:

The probability of Type I error is usually determined in advance and is understood

as the level of significance of testing the hypothesis. If type I error is fixed at 5 per cent, it
means that there are about 5 chances in 100 that we will reject H0 when H0 is true. We
can control Type I error just by fixing it at a lower level. For instance, if we fix it at 1 per
cent, we will say that the maximum probability of committing Type I error would only be
0.01.
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Two-tailed and One-tailed tests:

Two-tailed test
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left-tailed test

Right-tailed test
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Hypothesis testing
Hypothesis testing helps to decide on the basis of a sample data, whether a hypothesis
about the population is likely to be true or false. Statisticians have developed several tests
of hypotheses (also known as the tests of significance) for the purpose of testing of
hypotheses which can be classified as: (a) Parametric tests or standard tests of
hypotheses; and (b) Non-parametric tests or distribution-free test of hypotheses.

The important parametric tests are: (1) z-test; (2) t-test; (* 3) χ2 -test, and (4) F-
test. All these tests are based on the assumption of normality i.e., the source of data is
considered to be normally distributed.

HYPOTHESIS TESTING OF MEANS

1. Population normal, population infinite, sample

size may be large or small
but variance of the population is known, Ha may be one-sided or two-
sided: In such a situation z-test is used for testing hypothesis of mean and the test
statistic z is worked our as under:

2. Population normal, population finite, sample size may be large or small but
variance of the population is known, Ha may be one-sided or two-sided: In such a
situation z-test is used and the test statistic z is worked out as under (using finite
population multiplier):
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3. Population normal, population infinite, sample size small and variance of the
population unknown, Ha may be one-sided or two-sided: In such a situation t-test
is used and the test statistic t is worked out as under

4. Population normal, population finite, sample size small and variance of the
population unknown, and Ha may be one-sided or two-sided: In such a situation t-
test is used and the test statistic ‘t’ is worked out as under (using finite population
multiplier):
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Example1

The observed value of z is 1.231 which is in the acceptance region since R : | z | > 1.96
and thus H0 is accepted. We may conclude that the given sample (with mean height =
67.47") can be regarded to have been taken from a population with mean height 67.39"
and standard deviation 1.30" at 5% level of significance.
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Example 2

The observed value of z is –0.67 which is in the acceptance region since R : | z | > 1.96
and thus, H0 is accepted and we may conclude that the sample mean is consistent with
population mean i.e., the population mean 320 is supported by sample results.
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Example 3
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Example 4
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As Ha is two-sided, we shall determine the rejection region applying two-tailed test at 5

per cent level of significance, and it comes to as under, using table of t-distribution* for 9
d.f.: R : | t | > 2.262 As the observed value of t (i.e., – 1.488) is in the acceptance region,
we accept H0 at 5 per cent level and conclude that the mean breaking strength of copper
wires lot may be taken as 578 kg. weight.
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Example 5

Raju Restaurant near the railway station at Falna has been having average sales of 500 tea
cups per day. Because of the development of bus stand nearby, it expects to increase its
sales. During the first 12 days after the start of the bus stand, the daily sales were as
under: 550, 570, 490, 615, 505, 580, 570, 460, 600, 580, 530, 526 On the basis of this
sample information, can one conclude that Raju Restaurant’s sales have increased? Use 5
per cent level of significance.
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Sandler’s A –Test

Sandler’s A –Statistic is

 Subtract the hypothesised mean of the population from each individual score (Xi) to
obtain Di and then work out.
 Find A-statistic as under:

 Read the table of A-statistic for (n – 1) degrees of freedom at a given level of

significance (using one-tailed or two-tailed values depending upon Ha) to find the
critical value of A.
 Finally, draw the inference as under:
When calculated value of A is equal to or less than the table value, then reject H 0
(or accept Ha) but when computed A is greater than its table value, then accept
H0.

Example 6

The specimen of copper wires drawn form a large lot have the following breaking strength
(in kg. weight): 578, 572, 570, 568, 572, 578, 570, 572, 596, 544 Test (using Student’s t-
statistic)whether the mean breaking strength of the lot may be taken to be 578 kg. weight
(Test at 5 per cent level of significance). Verify the inference so drawn by using Sandler’s
A-statistic as well.
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HYPOTHESIS TESTING FOR DIFFERENCES BETWEEN MEANS

The null hypothesis for testing of difference between means is generally stated as

H0 : µ1= µ2 , where µ1 is population mean of one population and µ 2 is population mean of

the second population, assuming both the populations to be normal populations.

1. Population variances are known or the samples happen to be large samples: In this
situation we use z-test for difference in means and work out the test statistic z as
under

2. Samples happen to be large but presumed to have been drawn from the same
population whose variance is known:

3. Samples happen to be small samples and population variances not known but
assumed to be equal
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Example 7

The mean produce of wheat of a sample of 100 fields in 200 lbs. per acre with a standard
deviation of 10 lbs. Another samples of 150 fields gives the mean of 220 lbs. with a
standard deviation of 12 lbs. Can the two samples be considered to have been taken from
the same population whose standard deviation is 11 lbs? Use 5 per cent level of
significance.
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Example 8
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Example 9
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Paired t-test

Paired t-test is a way to test for comparing two related samples, involving small values of
n that does not require the variances of the two populations to be equal, but the
assumption that the two populations are normal must continue to apply. For a paired t-
test, it is necessary that the observations in the two samples be collected in the form of
what is called matched pairs i.e., “each observation in the one sample must be paired
with an observation in the other sample in such a manner that these observations are
somehow “matched” or related.
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Example 10

Use paired t-test.

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Example 11
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HYPOTHESIS TESTING OF PROPORTIONS

Example12
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Example13
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Example14
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HYPOTHESIS TESTING FOR DIFFERENCE BETWEEN PROPORTIONS

If two samples are drawn from different populations, one may be interested in knowing
whether the difference between the proportion of successes is significant or not. In such
a case, we start with

This formula is used when samples are drawn from two heterogeneous populations.

But on the assumption that the populations are similar as regards the given attribute, we
make use of the following formula for working out the standard error of difference
between proportions of the two samples:
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Example15
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Example16
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Example17

There are 100 students in a university college and in the whole university, inclusive of this
college, the number of students is 2000. In a random sample study 20 were found
smokers in the college and the proportion of smokers in the university is 0.05. Is there a
significant difference between the proportion of smokers in the college and university?
Test at 5 per cent level.
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HYPOTHESIS TESTING FOR COMPARING A VARIANCE TO SOME HYPOTHESISED

POPULATION VARIANCE

The test we use for this purpose is known as chi- square test and the test statistic
symbolised as χ2 , known as the chi-square value, is worked out. The chi-square value to
test the null hypothesis viz

the values happen to be positive; one must simply know the degrees of freedom for using
such a distribution.
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TESTING THE EQUALITY OF VARIANCES OF TWO NORMAL POPULATIONS

The object of F-test is to test the hypothesis whether the two samples are from the same
normal population with equal variance or from two normal populations with equal
variances. F-test was initially used to verify the hypothesis of equality between two
variances, but is now mostly used in the context of analysis of variance.
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Example 18
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= (Sx)2 in calculator
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Example 18