Hypothesis Testing
Hypothesis testing is a statistical method used to determine whether there's enough
evidence to reject a null hypothesis and support an alternative hypothesis. It involves
formulating two competing hypotheses, collecting data, performing a statistical test, and
then drawing a conclusion based on the test results and a predetermined significance
level. It is used to estimate the relationship between 2 statistical variables.
Here's a step-by-step guide to hypothesis testing:
1. Formulate Hypotheses:
Null Hypothesis (H₀):
This is a statement of no effect or no difference, often stating that the population
parameter is equal to a specific value or that there's no relationship between
variables.
Alternative Hypothesis (H₁ or Hₐ):
This is a statement that contradicts the null hypothesis, suggesting there's a
significant effect or difference, or a relationship between variables.
2. Collect Data:
● Gather a sample of data from the population you're interested in.
3. Choose a Statistical Test:
● Select the appropriate statistical test based on the type of data, research
question, and assumptions about the population.
4. Calculate Test Statistic and P-value:
● Use the chosen statistical test to calculate a test statistic and its associated
p-value.
5. Make a Decision:
● Compare the p-value to the significance level (α), which is usually 0.05 or 0.01.
● If the p-value is less than or equal to α, reject the null hypothesis. Otherwise, fail
to reject the null hypothesis.
6. Interpret and Present Findings:
● Clearly state your conclusion, explaining whether you rejected or failed to reject
the null hypothesis.
● Report the test statistic, p-value, and significance level in your findings.
Choosing a Statistical Test: t-test and Z-test
What is a t-test?
A t-test is a statistical test used to determine whether there is a significant difference
between the means of two groups or between a sample mean and a known value. It is
particularly useful when dealing with small sample sizes or when the population
standard deviation is unknown.
The t-test statistic for a one sample t-test is calculated using the formula:
where:
● Xˉ is the sample mean
● μ is the population mean (or the mean of the comparison group)
● s is the sample standard deviation, and
● n is the sample size.
What is a Z-test?
A Z-test is a statistical test used to determine whether there is a significant difference
between the sample mean and the population mean or between the means of two
groups when the population variance is known, and the sample size is large.
It is primarily used when the sample size exceeds 30, allowing the use of the normal
distribution to approximate the distribution of the test statistic.
The Z-test statistic for a one-sample Z-test is calculated using the formula:
where:
● Xˉ is the sample mean,
● μ is the population mean,
● σ is the population standard deviation, and
● n is the sample size.
In hypothesis testing, both t-tests and z-tests are used to compare population means,
but they are used in different scenarios based on sample size and knowledge of
population standard deviation. T-tests are used when sample sizes are small (usually
less than 30) or when the population standard deviation is unknown. Z-tests are used
when sample sizes are large (usually 30 or more) and the population standard deviation
is known.
Key Differences:
Sample Size:
T-tests are suitable for small samples, while z-tests are used for large samples.
Population Standard Deviation:
T-tests are used when the population standard deviation is unknown, while
z-tests assume a known population standard deviation.
Distribution:
T-tests use the Student's t-distribution, which is more robust to violations of
normality, especially with smaller samples. Z-tests rely on the standard normal
distribution, which is better suited for larger sample sizes where the Central Limit
Theorem applies.
Degrees of Freedom:
T-tests require calculating degrees of freedom, which is based on the sample
size, while z-tests don't involve degrees of freedom.
A Quick Summary: t-tests vs. Z-tests
Choosing between a t-test and a Z-test can be summarized with these guidelines:
● Use a t-test: When the sample size is small (n < 30) and/or the population
variance is unknown.
● Use a Z-test: When the sample size is large (n ≥ 30) and the population variance
is known.
Reference
Caulfield, J. (2023, May 31). Hypothesis testing. Scribbr.
https://www.scribbr.com/statistics/hypothesis-testing/
Testbook. (n.d.). Difference between T-test and Z-test. Testbook.
https://testbook.com/key-differences/difference-between-t-test-and-z-test
Thevapalan, A. (2024, August 15). T-test vs. Z-test: When to use each. DataCamp.
https://www.datacamp.com/tutorial/t-test-vs-z-test
