Test of Hypothesis

Suppose you were given a coin

and asked to determine if the coin
is fair or biased.
 Test of Hypothesis

You might respond by conducting a

simple experiment by tossing the coin
many times, and if the probability of a
head is 0.5 then you can conclude that
it is fair.
 Hypothesis

 -is a statement or tentative theory which explain

facts about the real world.. In search for an
answer, "educated guest" and pertinent
evidences are brought out which later on are
turned into propositions or hypotheses.

 These hypotheses are subjected to testing. If

they are found to be statistically true, they' are
accepted; if they are found to be false they
rejected.
 Types of Hypothesis

 Null Hypothesis- denoted by

Ho
 - statement being tested
 - a hypothesis of equality or no

difference
 Types of Hypothesis

 Alternative Hypothesis -
denoted by Ha
- a hypothesis believed to be true
when the null hypothesis is
rejected
 Example:

1. Manager of a certain Bank

claims that their Non-A TM
customers need to wait, on the
average, for at most ten minutes
before they are served.
 Example:

The null hypotheses is:

Ho : Non-ATM customers need to wait an
average of at most ten minutes they are serve.

and the alternative is

Ha : Non-ATM customers need to wait an

average of more than ten minutes before they are
served.
 Example:

2. There is no difference between the average score

on the long exam of section A and Section B.

Ho: Average score of section A and B are the

same.
Ha: Average score of section A and B are different.
 Types of Alternative Hypothesis:

 Non-directional- a statement which asserts

that one value is different from another
Directional- an assertion that one measure is
less than or greater another measure of similar
nature

 From the above example- Example1 is

directional while example 2 is non­-directional.
 Types of Test of Hypothesis

 One-Tailed Test- used to test a null

hypothesis against a directional alternative
hypothesis.

 Two-Tailed Test- used to test a null

hypothesis against a non-directional alternative
hypothesis.
 Four possibilities exist is connection with the
decision procedure of hypothesis testing.

Fact
Decision
Ho is true Ho is false

Do Not Reject Ho Correct Decision Type II Error

Correct
Reject Ho Type I Error
Decision
Level of Significance
 Steps in Hypothesis Testing

1. Formulate the null hypothesis and alternative

hypothesis
2. Decide the level of significance.

3. Decide on the type of data to be collected and

choose an appropriate test statistics and testing
procedure

4. State the decision rule

 Steps in Hypothesis Testing

5. Compute for the value of the test statistics from the

sample data

6. Make decision ( compare the computed value with its

corresponding tabular value) . Reject Ho if the absolute
computed value is equal or greater than the absolute
tabular value and do not reject Ho if the absolute
computed value is less than the absolute tabular value.

7. Interpret results.
 Test Statistics

 Z-test
-Sample mean compared to population mean

( X  ) n
Z

X - sample mean
 - population mean
 - population standard deviation
n- number of items with the sample
 Test Statistics

 Z-test
-Comparing two sample means

X1  X 2
Z 
1 1
 
n1 n 2
Xn - sample mean

 - population standard deviation

n- number of items with the sample
 Test Statistics
 Z-test
Critical Values of Z

Significance Level

Test type 0.10 0.05 0.025 0.01

One tailed test 1.28 1.645 1.96 2.33

Two tailed test 1.645 1.96 2.33 2.58

 Test Statistics
 t-test
Sample mean compared with population mean

t
 X   n 1
s
X - sample mean
- population mean
S - sample standard deviation
n - number of items in the sample
 Test Statistics
 t-test
Comparing two sample means
X1  X 2
t
2
( n1  1) s1  ( n 2  1) s 2
2
 1 1 
  
n1  n 2  n1 n 2 
X1 - mean of the first sample
X2 - mean of the second sample
SI - standard deviation of the first sample
S2 - standard deviation of the second sample
n1 - number of items in the first sample
n2 -number of items in the second sample
 Test Statistics

 For t-test- one must first compute for

the degrees of freedom (the number
of free choices that can be made) for
single sample it is n – 1, while for
two samples it is n1 + n2 – 2
 Test Statistics

 Examples:
1. A researcher wishes to find out whether or not there is
significant difference between the monthly allowances of
morning and afternoon student in his school. By random
sampling, he took sample of 239 students in the morning
sessions and took sample of 209 students in the afternoon
session. These students were found to have a mean of Php
142.00 and Php 148.00. The total population of students in
that school has a standard deviation of Php40. Is there a
significance difference between the two samples at 0.0 I
level of significance?
 Test Statistics

2. A researcher knows that the average height of

Filipino women is 1.525 meters. A random sample of
26 students was taken as a sample and was found to
have a mean height of 1.56 meters, with standard
deviation of 0.10 meters. Is there a reason to believe
that the 26 women in the sample are significantly taller
than the others, at 0.05 level of significance?
 Test Statistics

3. A researcher wishes to test whether or not the modular

method of teaching is more effective than the Traditional Method.
She picks two classes of approximately equal intelligence
(verified trough an administered lQ test) she gathers a sample of
18 students to whom she uses the Modular method and another
sample of 14 students to whom she uses the traditional method.
After the experiment, an objective test revealed that the first
group got a mean score of28.6 with standard deviation of 5.9,
while the second group got a mean score of 21. 7, with standard
deviation of 4.6. Based on the results of the administered test,
can we say that the case method is more effective than the
traditional method?