Statistic with Computer Education

Module/lesson

Hypothesis Testing

Objectives:
1. Definition of hypothesis testing
2. Aim of hypothesis testing
3. Types of hypothesis testing
4. Steps of hypothesis testing
5. Level of significance
7. One – tailed and two-tailed test
6. How do you reject the null hypothesis?
7. Examples of hypothesis testing

what is meant by hypothesis testing?

Hypothesis testing is the use of statistics to determine the probability that a given
hypothesis is true. It is a procedure in making decisions based on sample evidence. Or
probability theory used to determine whether the hypothesis is accepted or rejected. If the
statement is found reasonable then, the hypothesis is accepted, otherwise it is rejected.

What is the aim of hypothesis testing?

The purpose of hypothesis testing is to determine whether there is enough statistical

evidence in favor of a certain belief, or hypothesis, about a parameter

There are Two types of hypothesis

Null and Alternative hypothesis

A null hypothesis is a hypothesis that says there is no statistical significance between the two
variables. It is usually the hypothesis a researcher or experimenter will try to disprove or
discredit. An alternative hypothesis is one that states there is a statistically significant
relationship between two variables.

The usual process of hypothesis testing consists of 7 steps.

1. Formulate the null and alternative hypothesis

2. Decide the level of significance, α.

3. Choose the appropriate test statistic

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 4. Establish the critical region

5. Compute the value of the statistic test

6. Decide whether to accept or reject the null hypothesis

7. Draw a conclusion

How do you reject the null hypothesis?

If the P-value is less than (or equal to), then the null hypothesis is rejected in favor of the
alternative hypothesis. And, if the P-value is greater than, then the null hypothesis is not rejected

There are two categories involved in testing hypothesis between means; a large sample (n ≥
30) and ( n ≤ 30 ) and small sample ( n ≤ 30) cases. In testing hypothesis, z-test and t-test
distribution may be used depending on the number of cases involved.

The z-test is used in comparing two means if the population standard deviation (σ) is
known. We should give emphasis in the discussion that if the population is normally
distributed, z-test can be used for any sample size (n). However, in many practical cases,
the population standard deviation is unknown but the sample is sufficiently large, that is n
≥ 30. The sample standard deviation (s) is used as an estimator of the population standard
deviation. Below are the discussions of the different cases in testing the mean.

A. Hypothesis about Means (comparing Sample Mean and Population Mean)

ẍ−µ ẍ−µ
1. z= σ 2. Z= s
√n √n
Where: z = z test value

ẍ = sample mean
µ = population mean or claim mean

σ = population standard deviation

s = sample standard deviation

n = number of cases greater than or equal to 30

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Definition of Level of Significance

The significance level, also denoted as alpha or α, is a measure of the strength of the evidence
that must be present in your sample before you will reject the null.

One – tailed and two-tailed test

One way of determining the type of test used in hypothesis testing is based on how the
alternative hypothesis is formulated. A one-tailed test is used when the alternative hypothesis is
directional which means that the value of the measures is either greater than (>) or less than (<)
the other measure.

A one-tailed test is a hypothesis test for which the rejection region lies at only one tail of
the distribution. One tailed test is classified as left tailed test or right-tailed test. If the population
mean (µ) is less than the specified value of µo ' then it is a left-tailed test for which the alternative
hypothesis can be expressed as µ<µ o ' .It is a right tailed test if the population mean (µ) is greater
that the specified value of µo for which the alternative hypothesis can be expressed as µ>µ o .
A two-tailed test is used when the alternative hypothesis is non-directional which means
that the values of two measures of the same kind are not equal. A two-tailed test has a not equal
sign (≠) in the alternative hypothesis. When the population mean (µ) is not equal to specified
value of µo , then the alternative hypothesis can be expressed a as µ≠ µo .

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 Rejection Regions for Two-tailed, left-tailed, and Right-tailed Test

Two-tailed Test One Tailed test (directional)

(non-directional) Right-tailed Test Left-tailed Test
Sign in H a ≠ > <

Rejection region Both sides Right side Left side

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 Critical Region in Testing Hypothesis
Type of Test
One-Tailed Test Two – tailed Test
Level of
Significance
Left-tailed Right-tailed

α = .05 Z < -1.645 Z > 1.645 Z > 1.96 or Z < - 1.96

α = .01 Z < -2.33 Z > 2.33 Z > 2.575 or Z < -2.575

α = .10 Z < -1.28 Z > 1.28 Z > 1.645 or Z – 1.645

Note: Reject the null hypothesis when the computed value of Z lies within the area of rejection.

Sample Problem 1.
The treasurer of a certain university claims that the mean monthly salary of their college
professor is P 21,750 with a standard deviation of P6,000. A researcher takes a random sample
of 75 college professors were found to have a mean monthly salary of P19,375.00 . Do the 75
college professors have lower salaries than the rest? Test the claim at α = .05 level of
significance.

Apply the different steps in testing hypothesis to solve the given problem.
Solution:

Given:
ẍ = P 19,375.00
µ = P21,750.00
σ = P 6,000.00
n = 75

Step 1.
o H 0 : The mean monthly salary of the college professors is P21,750.00
o H a : the mean monthly salary of the college professor is lower or less than
P21,750.00 ( µ < P 21,750.00)

Step 2. level of significance α = .05

Step 3. One tailed test is used the H a is directional

Step 4. The tabular value or critical value at .05 level of significance is ± 1.645
Step 5.
ẍ = P 19,375.00

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 µ = P21,750.00
σ = P 6,000.00
n = 75

ẍ−µ 19,375− 21,750 −2,375

−2,375
z= σ 6,0000 6000
692.84 = -3.43
√n √ 75 8.66

Step 6. The computed value of z = -3.43 lies under the non-rejection region, therefore
accept H 0 and reject H a .

Step 7 the mean monthly salary of the college professors is not lower than P21,750.00

Difference Between Means (Sample Means)

ẍ 1 − ẍ2

√
Z= s1 s2
+
n1 n2

Where : ẍ 1 = mean of the first sample

ẍ 2 = mean of the second sample
S1 2 = variance of the first sample
S2 2 = variance of the second sample
n1 = number of cases in the first sample
n2 = number of cases in the second sample

Problem2.
Sample of 70 observation is selected from a normal population. The sample
mean is 2.78 and the sample standard deviation is 0.83. Another sample of 58
observation is selected from normal population. The mean sample is 2.63 and the
sample standard deviation is 0.75. Test the hypothesis using α = .05 level of significance

Solution:
Step 1. H o : ẍ 1 = ẍ 2

H a : ẍ1 ≠ ẍ2

Step 2. α = 0.05
Step 3. The alternative hypothesis is expressed in a non-directional state-
ment, therefore the two-tailed test is used.
Step 4. The tabular value of Z a= .05 = ± 1.96

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 Step 5. Compute for the z-value

Given: ẍ 1 − ẍ2

√
ẍ 1 = 2.78 Z= s1 s2
s1= 0.83 +
n1 n2
ẍ2 = 2.63 2.78 −2.63

√
s2 = 0.75
(.83)2 (.75)2
n1 = 70 +
70 58
n2 = 58
0.15
=
√ 0.01954
0.15
=
0.1398

Step 6. The computed value z = 1.07 lies under the rejection region, therefore reject
the null hypothesis.

Step 7. Conclusion
There is significant difference between the two samples