DEFINING HYPOTHESIS TESTING

SECOND SEMESTER, S.Y. 2019-2020

ANGELES CITY, PAMPANGA

Submitted

In Partial Fulfillment

of the Requirements for the EngData class

By:

Alex, Ezikiel

Alpino, Harvey

Amio, Willliam

Calingo, Miguel

Gania, Joshua

Under the Class Instruction of

Engr. Rchelle Ann Marquez-Gundran

Holy Angel University

January 2020
 Hypothesis Testing

Hypothesis testing is a process from statistics wherein an analyst tests mainly on

some assumed data regarding to some population.

According to Christina Majaski (2020), it is used by an analyst dependently on

the nature of the data used and basis of analyzation. It is mainly used to assess the

credibility of a hypothesis by using sample data from a population.

Significance of the study

To the students. This study would give students the knowledge about

hypothesis testing with its process and formulas that could be applied to statistical

problem relating the population.

To the teachers and instructors. This study would give the teachers with views

on how students understand hypothesis testing.

To the future researchers. This study would be informational and helpful to

them and would be a good reference for their future research.

Scope and Limitation

This study is limited to aimed to be done inside Holy Angel University only and

will tackle the concepts, processes holy angel university having financial difficulties, and

improvements or solutions of financial difficulties of the same said students.

The participants involved in this study were randomly selected aeronautical

engineering students, where their names, year level and section are made confidential.
 A research is a systematic work that aims to find out or uncover certain information or more

specifically, answers to the questions that researchers have asked or wondered even before

they have started the project in the first place. Researches are generally daunting and are done

over a very long period of time, which can range from a few weeks to a few months and

sometimes even years. This is due to the fact that a research has several parts that make up its

foundation as well as its presentation of data.

Considering that the whole research is mainly centered on information, accuracy is a

priority. The precision of data and its accuracy will determine the course of the research and

may even guide the flow of the project.

Hypothesis Testing

Hypothesis testing is the action or act in statistical researches where the researcher, or

in this case, the analyst tries to analyze the initial hypotheses or claim in regards to a

population. It essentially tests if enough evidence is present or collected to support or disprove a

hypothesis. Simply put, hypothesis testing is the part of a research where statistics is used to

take a look at the given data or analyze it. This part of the research must be taken into account

at a very early part of your research planning since there may be a possibility that some of the

data that has been collected may not be clearly analyzed or are too obscure to categorize or

label and thus, will not be fully able to complement the hypothesis test. It would be more

convenient too if the choices were limited and not fully open as well.
Basic Steps of Hypothesis Testing

According to Majaski (2020), all hypotheses are tested using a four-step process:

1. The first step is for the analyst to state the two hypotheses so that only one can

be right.

2. The next step is to formulate an analysis plan, which outlines how the data will be

evaluated.

3. The third step is to carry out the plan and physically analyze the sample data.

4. The fourth and final step is to analyze the results and either reject the null

hypothesis, or state that the null hypothesis is plausible, given the data.

Null and Alternative Hypotheses

When testing the given hypotheses, it is important to look at the hypotheses first and

foremost or make a claim if there are still none. Two preferably, one that signifies no changes or

difference, and one that signifies that there is a difference. The first hypothesis will be dubbed

the Null Hypothesis which is denoted by H0, it is the prediction or statement that claims that

there are no significant difference or relation between the data; this is the hypothesis that is

expected to be rejected. The null hypothesis should be stated because it is the primary

hypothesis that will be tested. A study should not be designed in such a way that it will

mistakeably support the null hypothesis. The null hypothesis being rejected, is what the design

of the study should be built upon.

Examples:

-There is no difference between Soda A and Soda B

- The number of unemployed adults in the year 2019 is 42170

- The annual income of an average family in the Philippines is ₱250 000

The second hypothesis is known as the Alternative Hypothesis which is denoted by

Ha. It is the expected result findings of the study. This is also the point where the research will
establish the tail or the direction that it leans on. Alternative hypotheses can be classified into

one of the following two, they can be two tailed, or one tailed. In the case of the one tailed, it

can be separated further into whether it is only limited to being either lower or higher, but never

both. If it is lower than a certain amount, then it will be a left tailed test, if higher, then a right

tailed test. In two tailed tests it can go either way. There exists an Experimental Hypothesis as

well, when it comes to experimental research. These two are commonly mistaken for one

another. They are similar in the fact that they are used for predicting the changes between

groups. All experimental hypotheses are alternative, but not all alternative hypotheses can be

classified as experimental.

Examples:

-A groovy commercial will raise the sales of a toy company

-The proportion of detergent users who prefer Brand A is higher than 50%

-There is a difference between Coffee A and Coffee B

Rejecting the Null Hypothesis

Before the test can proceed, it should be noted that sometimes there are instances

where errors may occur. The two kinds of errors are given below.

In the event that the null hypothesis was found to be true, and it was accepted then no errors

are committed. If for whatever reason, it was rejected then a Type I error was committed. In the

event that the null hypothesis was found to be false and was accepted, then a Type II error

was committed.

Following the statements of the hypotheses, the test continues with the collection of data, from

the given, namely the mean scores and anything that will be used in the test statistic.

Test Statistic
 The test statistics are a way to compare the results that were conceived with the regular

population. A test statistic can be computed in three different ways and will depend on the

situation or what results is being aimed for. The test statistic will be solved using a Z-test if the

comparison of a population mean to a sample is the aim. T-test will be used if the hypotheses

will be tested and if determining the difference between two independent sample groups is the

goal. T tests are best used for when the sample size is less than 30, and Z tests are used when

the sample size is larger than 30. There are other types of tests as well aside from these such

as the Chi Square which is used for an association between two categorical variables relating

to the population sample. There is also the Homogeneity of Variance which is used to test the

likeness or similarity of dispersion parameters when two or more population samples are given.

Analysis of Variance however, focuses on the differences between means in at least more

than two groups. Mood’s Median compares the medians of at least 2 population samples.

In the case of Welch Test however, it is similar to the Mood’s Median except this time it

compares the equality of means between two samples. Kruskal-Wallis H Test compares two

or more groups with a variable which should not be dependent, based on a dependent variable.

The Box Cox Power Transformation transforms a data set into a normal distribution

For Z-scores: For T-test

Single Population Two Population

Where

μ = Mean x̄ = sample mean

σ = Standard Deviation μ0 = population mean

x̄ = sample mean s1/2 = sample standard deviation

n = sample size n1/2 = sample size

Acceptance Regions/ Rejection Region

When determining if the null hypotheses will be rejected, a threshold must first be established.

This threshold is known as the Critical Value. The critical value’s range depends on the type of

test it will be as well as the confidence level. Generally, 95% is the most commonly used or

90%, these percentages will roughly translate to 0.1 or 0.05. Just like with the test statistic, the

critical values also depend on the type of test.

For example, Z scores:

The table below can be referred to for the common confidence levels:

Confidence Level Critical Value (Z-score)

0.90 +/-1.645

0.91 +/-1.70

0.92 +/-1.75

0.93 +/-1.81

0.94 +/-1.88

0.95 +/-1.96

0.96 +/-2.05 For the uncommon levels:

0.97 +/-2.17

0.98 +/-2.33

0.99 +/-2.575
Step 1: Subtract the confidence level from 100% (1)

Step 2: Convert step 1 into a decimal

Step 3 Divide Step 2 by 2

Step 4: Subtract Step 3 from 1 if

Step 5: Refer to the table

For T-test critical values

Step 1 : Acquire the df by subtracting 1 from your sample size
Step 2: Check the alpha level
Step 3: Determine if one tailed or two tailed
Step 4: See the table below
 Conclusion

This is the part where a conclusion will be drawn from the results of the test. The
test statistic will determine if the null hypothesis is rejected or accepted. The critical
values will play the roles of the thresholds when deciding whether to accept or reject the
hypothesis.

EXAMPLES
TWO TAILED
Problem 1
A new sneakerstore (Sneakers_PH) claims that his fees are lower than that of
your current sneakerstore (Pumped-up Kicks). Data available from an
independent research firm indicates that the mean and standard deviation of all
Pumped-up Kicks clients are $18 and $6, respectively. A sample of 100 clients of
Pumped-up Kicks is taken and fees are calculated with the new rates of
Sneakers_PH. If the mean of the sample is $18.75 and the sample standard
deviation is $6, can any inference be made about the difference in the average
bill between Pumped-up Kicks and Sneakers_PH store?

Solution:

 H0: Null Hypothesis: mean = 18

 H1: Alternative Hypothesis: mean <> 18 
 Rejection region: Z <= - Z2.5 and Z>=Z2.5 (assuming 5% significance level,
split 2.5 each on either side).
 Z = (sample mean – mean) / (std-dev / sqrt (no. of samples))

(18.75−18)
Z= =1.25
6
( )
√ 100
 This calculated Z value falls between the two limits defined by: -
Z2.5 = -1.96 and Z2.5 = 1.96.
 This concludes that there is insufficient evidence to infer that there is
any difference between the rates of your existing broker and the new
broker. Alternatively, the p-value = P(Z< -1.25)+P(Z >1.25) = 2 *
0.1056 = 0.2112 = 21.12%, which is greater than 0.05 or 5%, leads
to the same conclusion.

Problem 2

Researchers want to test the effectiveness of new anti- anxiety medication. In

clinical testing, 64 out of 200 people taking the medication report symptoms of
anxiety. Of the people receiving a placebo, 92 out of 200 report symptoms of
anxiety. Is the medication working any differently than the placebo? Test this
claim using alpha = 0.05.

Solution:

 H0: Null Hypothesis: P1 = P2

  H1: Alternative Hypothesis: P1 ≠P2
  Rejection region: Z <= - Z2.5 and Z>=Z2.5 (assuming 5% significance level,
split 2.5 each on either side).

( P 1− p 2)
Z=
√ P(1−P)
√ 1
+
1
n1 n2

N1= 200

N2 = 200

64 92
P1= =0.32 P2 = =0.46
200 200

x 1+ x 2 64+ 92
P= = =0.39
n 1+n 2 200+200

(0.32−0.46)
Z= =2.869

√ 0.39( 1−0.39)
√ 1
+
1
200 200

 This calculated Z value falls outside the two limits defined by: - Z2.5 =
-1.96 and Z2.5 = 1.96.

There was a significant difference in effectiveness between the medication group

and the placebo group, z= -2.869, p<0.05. therefore, we reject null hypothesis.

ONE TAILED

Problem 1

An alternator manufacturer must produce its alternators so that they are 95% confident
that it runs at less than 71.1° C under stress test in order to meet the production
requirements for sale to the US government. The stress test is performed on random
samples drawn from the production line on a daily basis. Today’s sample of 7
alternators has a mean of 71.3° C and a standard deviation of 0.214° . Is there a
production quality issue?

Solution:

 H0: Null Hypothesis: mean ≤ 71.1

 H1: Alternative Hypothesis: mean > 71.1
 Rejection region: Using the t-table and 95% level of significance, the critical value
is tp = 1.943

Ý −μ 71.3−71.1
t c= = =2.47
s / √ n 0.214/ √ 7

 Since t c is clearly in the “Reject” region, then we must reject the null
hypothesis. The null hypothesis was “H0: The population mean is less than
or equal to 71.1° C”. Rejecting that means that the sample was NOT
within the bounds of what we would find acceptable if the population mean
were truly at 71.1° C.

Problem 2

A sociologist has predicted that in a given city, the level of absenteeism in the
upcoming elections will be a minimum of 40%. Of a random sample of 200 individuals
from the voting population, 75 state they will likely vote. Determine with a significance
level of 1%, if the hypothesis can be accepted.

Solution:

 H0: Null Hypothesis: mean = p ≥ 0.40

 H1: Alternative Hypothesis: mean p < 0.40
 Rejection region: Using the t- table and 1% level of significance, the critical
value is Za = 2.33

(0.4−2.33 × √ 0.4200× 0.6 )=0.3192 p = 125

'
200
=0.625

This conclude that the null hypothesis, H0, should be accepted as it can be stated with a
confidence level of 1% that absenteeism will be at least 40% for the upcoming election.

Problem 3
An up and coming new computer manufacturer sets the retail cost of their new
computers based in the manufacturing cost, which is $1800. However, the
company thinks there are hidden costs and that the average cost to manufacture
the computers is actually much more. The company randomly selects 40
computers from its facilities and finds that the mean cost to produce a computer
is $1950 with a standard deviation of $500. Run a hypothesis test to see if this
thought is true.

Solution:

 H0: Null Hypothesis: mean = 1800

 H1: Alternative Hypothesis: mean <> 1800 
 Rejection region: Using the Z- table and 5% level of significance, the
critical value is Z0.05 = 1.65

(1950−1800)
Z= =1.897
500
( )
√ 40
 This calculated Z value falls greater than Z0.05 = 1.65, which is 1.897
 This concludes that the up and coming computer manufacturer does
not have to worry about any hidden costs and that the average of
manufacturing a computer is much less.

Problem 4

A researcher believe that the average return on all Filipino stocks was greater
than 2%. In this case, the researcher is making a statement about. The
population mean (u) of all Filipino stocks. The sample mean of 36 observations of
Filipino Stocks is 4 and the standard deviation of the Population is 4.

Solution:

 H0: Null Hypothesis: mean = < 0.02

 H1: Alternative Hypothesis: mean > 0.02

Rejection region: Using the Z- table and 5% level of significance, the critical
value is Z0.05 = 1.65
( 4−2)
¿ =3
4
( )
√ 36
  This calculated Z value falls greater than Z0.05 = 1.65, which is 3
 In conclusion because the test statistic z = 3 is greater than the
critical value of 1.645, we reject the null hypothesis in favor of the
alternative hypothesis that the average return on all Filipino stocks is
greater than 2%.

Research Design

This study is a definitive study. It is a phenomenology design that does not meet

all requirements necessary for controlling influences of extraneous variables. This

definitive study attempts to create a design scheme which defines and conceptualizes

Hypothesis Testing.

Research Locale

This study is conducted at Holy Angel University of Angeles City, Pampanga.

The university is open for the students of preschool, elementary school, junior high

school, senior high school, and college. It is known to the whole central Luzon region as
a university that molds students to hone their skills for competence and to cope with the

changes of the world for generations.

Bibliography
Majaski C. (2020, January 27) Hypothesis Testing. Retrieved from https://www.

investopedia.com/terms/h/hypothesistesting.asp