One-tailed test
Two-tailed test
Statistical hypothesis
Hypothesis
▪A guess or conjecture
Statistical Hypothesis
▪Is an assertion, statement, or conjecture
concerning one or more unknown parameters or
distributional properties of the population.
Steps in formulating hypothesis testing
This consist of five important steps
1. Formulate the null and alternative hypothesis
2. Collect the data and decide on an appropriate statistical
testing procedure. Specify the level of significance α
3. Compute the test-statistic or probability value (p-value)
4. Determine the critical region, also called the rejection region.
5. Make a decision and a conclusion about the hypothesis
Two types of statistical hypothesis
Null Hypothesis
▪ Denoted as H0
▪ Is a statement of no difference and contains the equality statement that you want to
test
Alternative Hypothesis
▪ Denoted as H1 or Ha
▪ Is the operational statement of the research and contains the non-equality statement
▪ It is an assertion believed to be true whenever the null hypothesis is rejected
Null hypothesis
▪The rejection of the null hypothesis H0
leads the acceptance of the alternative
hypothesis Ha
▪ which may be Directional or Non-
Directional
Directional alternative hypothesis
▪ Is an assertion that one measure is less than or
greater than another measure
▪ It specifies which measure is greater or lesser
▪ This involves the quantifiers < or >
Non directional alternative hypothesis
▪ Is a statement which asserts that one value is
differ from another
▪ This involves the quantifier ≠
Conducting a statistical test
A researcher who collects and uses sample data to infer
whether there is sufficient evidence favoring the alternative
hypothesis Ha rather than the null hypothesis H0 arrives at
one of these two conclusions:
1. Reject H0 in favor of Ha because of sufficient evidence in
the data
2. Fail to reject H0 (do not reject H0) because of insufficient
evidence in the data.
Statistical test
▪A Statistical test of hypothesis is a method or
tool used to decide whether or not to reject a
statistical hypothesis.
▪ These statistical test are classified into one-tailed or
two-tailed test.
One tailed test and Two tailed test
One-tailed test
➢is used when an alternative hypothesis is directional
Two-tailed test
➢Is used when an alternative hypothesis is non directional
Remember:
▪ Directional hypothesis < or >
▪ Non-directional hypothesis ≠
Four possibilities
fact
decision H0 Is true H0 Is false
Correct decision Type II error
Do not reject H0
(probability = 1 - α) (probability = β)
Type I error Correct decision
Reject H0
(probability = α) (probability = 1 - β)
▪ You have made the right decision when a true null hypothesis is not
rejected or when false null hypothesis is rejected.
▪ You commit errors when true null hypothesis is rejected (type I error)
and when a false null hypothesis is not rejected (type II error).
Type I error
➢Is an error of rejecting a null hypothesis when in fact it is true
Type II error
➢Is an error of accepting a null hypothesis when in fact it is false
Type I error
α = P[Type I error]
Known as the level of significance.
▪ This is the probability of rejecting a true null
hypothesis.
▪ A confidence level 1 – α is the probability of making
the correct decision of not rejecting a true null
hypothesis.
Type II error
β=P[Type II error]
Measures the risk of accepting a false
null hypothesis.
regions
Critical Region or Rejection Region
➢Consists of values that support the alternative hypothesis Ha and leads to the
rejection of null hypothesis Ha.
it has an area given by the level of significance α
Non-critical Region
➢Consists of values that support the null hypothesis H0 and leads to its non-
rejection.
it has an area given by the confidence level 1 - α
One tailed test critical region
Critical Region and Critical
Value
One Tailed Test
Critical
Region
Non rejection Non rejection
area = 1 - α area = 1 - α
Two tailed test critical region
