Module 3: Overview
DSCI 5180MODULE 3: INFERENCE OR HYPOTHESIS TESTING
Overview
What is Inference or Hypothesis Testing?
In this Module (to be completed in HLS), basic concepts associated with the process of “Inference” on the
true population parameters are presented. This is the situation where we already have a candidate value
for the population parameter from the past, …. Or simply have some idea/belief about it. We will use the
sample statistics to make inferences regarding those beliefs: in specific whether to continue to hold or
discard them.
Again, we know that any sample mean rarely returns the true population mean. Generally, we start with
a hypothesis regarding the true value of the population mean. Depending on how confident we want to
be, whenever the sample mean is close enough to this believed value, we take that as sufficient support
for our belief to hold; and so keep on holding it. Of course, if the sample mean is far from that believed
(tested as true) value, then we will have to discard the value as being untrue. Such tests of inference
could be undertaken for beliefs about true proportions too.
This logic can be extended to situations where we need to test if a parameter value has increased
(sample mean should turn out to be much higher than the current one to enable holding such belief), or
decreased (sample mean should be much lower, in this case, to enable holding such belief). The
procedure is called Hypothesis testing.
Learning Objectives
Upon successful completion of this module, you will be able to:
Conduct a test of hypothesis for a population mean with a large sample size
Conduct two-tailed and one-tailed tests of hypothesis
Use Excel to compute the calculated z and also be able to calculate it manually
Use tables to look up the critical z
Conduct a test of hypothesis for a population mean with a small sample size/population
standard deviation unknown
Use Excel to compute the calculated t and also be able to calculate it manually
Use tables to look up the critical t-value
Use a p-value in hypothesis testing for both one and two-tailed tests of hypothesis
Use Excel to calculate the p-value and also be able to look it up manually using tables
Conduct tests of hypothesis for a single population proportion with large samples
Conduct tests of hypothesis for a single population proportion with large samples using p-values
Module To Do List
HLS 10.1: Introduction to Hypothesis Testing (10 points)
HLS 10.2: Testing a Hypothesis about a Population Mean, Sigma Known (z-value) (10 points)
HLS 10.3: Testing a Hypothesis about a Population Mean, Sigma UnKnown(t-value) (10 points)
HLS 10.4: The relationship between confidence intrval estimation and hypothesis testing (10
points)
HLS 10.5: Testing a Hypothesis about a Population Proportion (z-value) (10 points)
Module 3 Quiz (25 points)
Module 3: Materials
DSCI 5180MODULE 3: INFERENCE OR HYPOTHESIS TESTING
Materials
Please find a collection of PowerPoints, Excel worksheets, videos, and links below. These materials will
assist you in completing the following HLS Lessons: 10.1, 10.2, 10.3, 10,4 and 10.5. When you've
completed these HLS Lessons, please complete the Module 3 Quiz.
Documents
PowerPoints
o Module 3 - A quick [Link] Module 3 - A quick [Link]
o A Procedure for Testing a [Link] A Procedure for Testing a
[Link]
o M3-Developing a Hypothesis (10.1)- [Link] M3-Developing a
Hypothesis (10.1)- [Link]
M3-Hypothesis Testing- Anokhin-1-1-1 (4).pptxDownload M3-Hypothesis Testing- Anokhin-1-1-1 (4).pptx
Quiz 3 [Link] Quiz 3 [Link]
Watch
Basics of Hypothesis Testing - Recommended (YouTube) (15:07 minutes) (Links to an external site.)
(Links to an external site.)
Feel free to use the Basics of Hypothesis Testing Slides Download Basics of Hypothesis Testing Slidesto
follow along or take notes as you watch the video.
Hypothesis Testing of Proportions (YouTube) (17:42 minutes) (Links to an external site.)
Hypothesis Testing of Proportions - using Calculator and Excel (YouTube) (15:25 minutes) (Links to an
external site.)
The following Hawkes TV videos may also be helpful:
Hypothesis Testing for Means (Z-value)Links to an external site.
Hypothesis Testing for Means (t-value)Links to an external site.
Hypothesis Testing for Means (p-value)Links to an external site.
Hypothesis Testing for Single Proportion (Z-value)Links to an external site.
Hypothesis Testing for Single Proportion (p-value)Links to an external site.