Hypothesis Testing (Student’s Copy) Prepared by Mr H.D.

Chua

Hypothesis Testing

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Hypothesis Testing (Student’s Copy) Prepared by Mr H.D. Chua

Sales or duplication is prohibited

Hypothesis Testing (Student’s Copy) Prepared by Mr H.D. Chua

Sales or duplication is prohibited

Hypothesis Testing (Student’s Copy) Prepared by Mr H.D. Chua

Sales or duplication is prohibited

Hypothesis Testing (Student’s Copy) Prepared by Mr H.D. Chua

Sales or duplication is prohibited

Hypothesis Testing (Student’s Copy) Prepared by Mr H.D. Chua

Sales or duplication is prohibited

Hypothesis Testing (Student’s Copy) Prepared by Mr H.D. Chua

Sales or duplication is prohibited

Hypothesis Testing (Student’s Copy) Prepared by Mr H.D. Chua

Sales or duplication is prohibited

Hypothesis Testing (Student’s Copy) Prepared by Mr H.D. Chua

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Hypothesis Testing (Student’s Copy) Prepared by Mr H.D. Chua

Appendix A
Using GC to perform hypothesis testing - For TI calculators
Part 1: For questions where you are given sample mean or åx , åx 2
etc

You will need to calculate your x and unbiased estimator for the population variance, s2.

Press and select the appropriate test from the TESTS menu (Z- Test)

This is the test statistics

Enter σ or s here – NOT VARIANCE! This is the p-value
This is the sample mean
This is the sample size

Illustration: Your GC will display the graph with the area representing the p-value shaded. To
do this, instead of choosing “Calculate”, you will choose the “Draw” option.

e.g. From this screen, you can view the p-value

and the test statistic calculated.

Part 2: For questions where you are given raw data

Enter the raw data into List 1.
Hit STAT Hit 1 Enter the data hitting ENTER after you type in each data
value. When you are finished it will look as follows:

Press and select the appropriate test from the TESTS menu. Take note that the input
option must be in “Data”.
This is the unbiased
estimate for the
population s.d.

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Appendix B
Determining the Critical region for a hypothesis z-test for 5% significance level

Level Graphical illustration

of Critical Value Critical
Tail
signifi Using GC Region
cance
N(0,1)

Left-tailed 5%
5%
H1 : µ < µ0 zc ≤ –1.6449
Critical zc
Region

N(0,1)

Right-tailed
5% 5% zc ≥ 1.6449
H1 : µ > µ0
zc
Critical
Region

N(0,1)

2.5% 2.5% zc ≤ -1.9600

Two-tailed
5% or
H1 : µ ¹ µ0
Critical –zc
zc zc ≥ 1.9600
Critical
Region Region

a
Significance level: P(reject H0 | H0 is true) = (or a % ).
100
a
P (test statistic lies in critical region if H0 is true) =
100
p-value (calculated from sample data): (From GC, use DRAW)

The p-value is the probability of obtaining a sample mean value that is the same or more
extreme than the one from our sample data if the null hypothesis is true.
*definition of extreme depends on the type of tests
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Appendix C: General Steps for Hypothesis Testing [When using p-value in calculation]

1 Define random
variable (say X) Let X be_______________ and let µ be the population mean of
and population ___________________________ .
mean 𝜇
2 Hypotheses H 0 : µ = µ0 (asserts population mean equals a value)

Either one à H1 : µ > µ0 H1 : µ < µ0 H1 : µ ¹ µ0

3 Distribution of Case 1: X is normally distributed (and for any n)
X and Z under æ s2 ö X - µ0
Under H0 X ~ N ç µ0 , ÷ÞZ = ! N (0,1)
Ho è n ø s n

Case 2: X is not normally distributed:

Under Ho, for large n by Central Limit Theorem
æ s2 ö X - µ0
X ~ N ç µ0 , ÷ Þ Z = ! N (0,1)
è n ø s n
[Always use population variance σ! if it is known; otherwise,
use s2]

4 State the test and One/Two tailed test at α % of significance.

the significance
level α % a
Reject Ho if p <
100
5 sample data & Write down the sample mean observed,
p-value & copy the p-value calculated from the GC
6 Decide whether Case 1:
to reject Ho
Since p <
a , reject .
H0
& 100
7 Conclude in There is sufficient evidence at a % significance level to conclude
context of the that “we support H1 in the context of the question”.
question
Case 2:
Since a , do not reject H .
p> 0
100
There is insufficient evidence at a % significance level to
conclude that “we support H1 in the situation being tested ”.

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