1. Statistical Thinking What Is a Test of Significance?
Chapter 22
What Is a Test of Significance?
Chapter 22 Hypothesis Testing
Chapter 22

2. Chapter 22 Hypothesis Testing
In the previous section it was our goal to find estimators (estimates)
for population parameters.
Sometimes, we may have some prior notion of what these parameters
might be.
Consequently, we may wish to test our hypotheses (guesses, beliefs).
In Statistics, a hypothesis is a claim or statement about a population
parameter. For example, the average height of people in the class
is 5.6ft.
The goal of hypothesis testing is to use sample data to determine
whether the hypothesis is true or not.
Chapter 22 Hypothesis Testing

3. Null and Alternative Hypothesis
Our prior guess is called the null hypothesis and is denoted by H0. It
is most often what we believe to be true.
H0 will always be stated as an equality claim. For the mean, the null
hypothesis will be stated as:
H0 : μ = μ0 (some value)
By switching to energy saving bulbs, you save at least $500 on hydro bills in a year !
Chapter 22 Hypothesis Testing

4. Null and Alternative Hypothesis
The assertion that is contradictory to the null hypothesis is
called the alternative hypothesis. It is usually denoted by H1
or Ha .
For the mean, H1 will be stated in one of these 3 possible forms:
H1 : μ ≠ μ0 (some value) H1 : μ > μ0 H1 : μ < μ0
If you are conducting a study and you want to use a hypothesis test to
support your claim, state your claim as the alternative hypothesis.
When trying to support a research claim, the alternative hypothesis is
sometimes called the research hypothesis.
Chapter 22 Hypothesis Testing

5. Chapter 22 Hypothesis Testing
Statistical Thinking
The Null Hypothesis: H0
population parameter equals some value
status quo
no relationship
no change
no difference in two groups
etc.
When performing a hypothesis test, we assume that the null hypothesis is true until we have sufficient evidence against it
Chapter 22 Hypothesis Testing
Chapter 22

6. The Alternative Hypothesis: Ha
Statistical Thinking
The Alternative Hypothesis: Ha
population parameter differs from some value
not status quo
relationship exists
a change occurred
two groups are different
etc.
Chapter 22 Hypothesis Testing
Chapter 22

7. The Hypotheses for Proportions
Statistical Thinking
The Hypotheses for Proportions
Null: H0: p = p0
One-sided alternatives
Ha: p > p0
Ha: p < p0
Two-sided alternative
Ha: p ¹ p0
Chapter 22 Hypothesis Testing
Chapter 22

8. Note about Identifying H0 and Ha (H1)
Statistical Thinking
Note about Identifying H0 and Ha (H1)
Chapter 22 Hypothesis Testing
Chapter 22

9. Chapter 22 Hypothesis Testing
Statistical Thinking
Example: Identify the Null and Alternative Hypothesis. Refer to the chart and use the given claims to express the corresponding null and alternative hypotheses in symbolic form.
a) The proportion of drivers who admit to running red lights is greater than 0.5. In Step 1 of the chart, we express the given claim as p > In Step 2, we see that if p > 0.5 is false, then p  0.5 must be true. In Step 3, we see that the expression p > 0.5 does not contain equality, so we let the alternative hypothesis Ha be p > 0.5, and we let H0 be p = 0.5.
H0: p = 0.5 vs. H1: p > 0.5
Chapter 22 Hypothesis Testing
Chapter 22

10. Chapter 22 Hypothesis Testing
Statistical Thinking
Example: Identify the Null and Alternative Hypothesis. Refer to the chart and use the given claims to express the corresponding null and alternative hypotheses in symbolic form.
b) The mean height of professional basketball players is at most 7 ft. In Step 1 of the chart, we express “a mean of at most 7 ft” in symbols as   7. In Step 2, we see that if   7 is false, then µ > 7 must be true. In Step 3, we see that the expression µ > 7 does not contain equality, so we let the alternative hypothesis Ha be µ > 0.5, and we let H0 be µ = 7.
H0: µ = 7 vs. H1: µ > 0.5
Chapter 22 Hypothesis Testing
Chapter 22

11. Chapter 22 Hypothesis Testing
Hypothesis testing is done under the assumption that the null
hypothesis is true, kind of like a trial: "innocent until proven guilty".
On the basis of observed sample information we decide to either
reject or not reject the null hypothesis.
If we do not reject the null hypothesis, it does not mean that we have accepted it. It
just means that based on the sample, there is not enough evidence to reject it
(a different sample might lead to a different conclusion).
Test Statistic
The test statistic is a value that we calculate from the sample data.
The decision to reject or not to reject the null hypothesis is based on the
test statistic.
When calculating the test statistic, we assume that the null hypothesis is
true.
Chapter 22 Hypothesis Testing

12. Chapter 22 Hypothesis Testing
Statistical Thinking
Test Statistic
The test statistic is a value used in making a decision about the null hypothesis, and is found by converting the sample statistic to a score with the assumption that the null hypothesis is true.
Chapter 22 Hypothesis Testing
Chapter 22

13. Test statistic for proportions
Statistical Thinking
Test Statistic - Formulas
z = p - p  pq n 
Test statistic for proportions
z =
x - µx  n
Test statistic for mean
Chapter 22 Hypothesis Testing
Chapter 22

14. Chapter 22 Hypothesis Testing
Statistical Thinking
Example: A survey of n = 880 randomly selected adult drivers showed that 56% (or p = 0.56) of those respondents admitted to running red lights. Find the value of the test statistic for the claim that the majority of all adult drivers admit to running red lights.
Recall the sampling distribution of the sample proportion and the necessary conditions required to make the distribution valid. For this example, assume that the required assumptions are satisfied and focus on finding the indicated test statistic.)
Chapter 22 Hypothesis Testing
Chapter 22

15. Chapter 22 Hypothesis Testing
Statistical Thinking
Solution: The preceding example showed that the given claim results in the following null and alternative hypotheses:
H0: p = 0.5 and H1: p > 0.5.
Because we work under the assumption that the null hypothesis is true with p = 0.5, we get the following test statistic: n pq 
z = p – p  =
(0.5)(0.5)
880
= 3.56
Chapter 22 Hypothesis Testing
Chapter 22

16. Chapter 22 Hypothesis Testing
Statistical Thinking
Interpretation: We know from previous chapters that a z score of 3.56 is exceptionally large. It appears that in addition to being “more than half,” the sample result of 56% is significantly more than 50%. See the following figure:
Chapter 22 Hypothesis Testing
Chapter 22

17. Critical Region, Critical Value, Test Statistic
Statistical Thinking
Critical Region, Critical Value, Test Statistic
Chapter 22 Hypothesis Testing
Chapter 22

18. Chapter 22 Hypothesis Testing
Statistical Thinking
Critical Region
The critical region (or rejection region) is the set of all values of the test statistic that cause us to reject the null hypothesis. For example, see the red-shaded region in the previous figure.
Significance Level
The significance level (denoted by ) is the probability that the test statistic will fall in the critical region when the null hypothesis is actually true.
Chapter 22 Hypothesis Testing
Chapter 22

19. Chapter 22 Hypothesis Testing
Statistical Thinking
Critical Value
A critical value is any value that separates the critical region (where we reject the null hypothesis) from the values of the test statistic that do not lead to rejection of the null hypothesis. The critical values depend on the nature of the null hypothesis, the sampling distribution that applies, and the significance level . See the previous figure where the critical value of z = corresponds to a significance level of  = 0.05.
Chapter 22 Hypothesis Testing
Chapter 22

20. Two-tailed, Right-tailed, Left-tailed Tests
Statistical Thinking
Two-tailed, Right-tailed, Left-tailed Tests
The tails in a distribution are the extreme regions bounded by critical values.
page 394 of Elementary Statistics, 10th Edition
Chapter 22 Hypothesis Testing
Chapter 22

21.  is divided equally between the two tails of the critical
Statistical Thinking
Two-tailed Test
H0: =
H1: 
 is divided equally between
the two tails of the critical
region
Means less than or greater than
Chapter 22 Hypothesis Testing
Chapter 22

22. Chapter 22 Hypothesis Testing
Statistical Thinking
Right-tailed Test
H0: =
H1: >
Points Right
Chapter 22 Hypothesis Testing
Chapter 22

23. Chapter 22 Hypothesis Testing
Statistical Thinking
Left-tailed Test
H0: =
H1: <
Points Left
Chapter 22 Hypothesis Testing
Chapter 22

24. Chapter 22 Hypothesis Testing
Statistical Thinking
P-Value
The P-value (or p-value or probability value) is the probability of getting a value of the test statistic that is at least as extreme as the one representing the sample data, assuming that the null hypothesis is true. The null hypothesis is rejected if the P-value is very small, such as 0.05 or less.
Chapter 22 Hypothesis Testing
Chapter 22

25. Chapter 22 Hypothesis Testing
Statistical Thinking
P-value
A small P-value indicates that the observed data (or relationship) is unlikely to have occurred if the null hypothesis were actually true
The P-value tends to be small when there is evidence in the data against the null hypothesis
The P-value is NOT the probability that the null hypothesis is true
Chapter 22 Hypothesis Testing
Chapter 22

26. Chapter 22 Hypothesis Testing
Statistical Thinking
P-value
When the alternative hypothesis includes a greater
than “>” symbol, the P-value is the probability of
getting a value as large or larger than the observed
test statistic (z) value.
look up the percentile for the value of z in the standard normal table (Table B)
the P-value is 1 minus this probability
Chapter 22 Hypothesis Testing
Chapter 22

27. Chapter 22 Hypothesis Testing
Statistical Thinking
P-value
When the alternative hypothesis includes a less than
“<” symbol, the P-value is the probability of getting a
value as small or smaller than the observed test
statistic (z) value.
look up the percentile for the value of z in the standard normal table (Table B)
the P-value is this probability
Chapter 22 Hypothesis Testing
Chapter 22

28. Chapter 22 Hypothesis Testing
Statistical Thinking
P-value
When the alternative hypothesis includes a not equal
to “” symbol, the P-value is found as follows:
make the value of the observed test statistic (z) positive (absolute value)
look up the percentile for this positive value of z in the standard normal table (Table B)
find 1 minus this probability
double the answer to get the P-value
Chapter 22 Hypothesis Testing
Chapter 22

29. Alternative Method for P-value
Statistical Thinking
Alternative Method for P-value
Caution: Use this method only when Ha has a “>” sign and Z is positive or when Ha has a “<“ sign and Z is negative.
Make the value of the observed test statistic (z) negative
Look up the percentile for this negative value of z in the standard normal table (Table B)
if the alternative hypothesis includes a greater than “>” or less than “<“ symbol, the P-value is this probability in step 2
if the alternative hypothesis includes a not equal to “” symbol, double this probability in step 2 to get the P-value
Chapter 22 Hypothesis Testing
Chapter 22

30. Conclusions in Hypothesis Testing
Statistical Thinking
Conclusions in Hypothesis Testing
We always test the null hypothesis. The initial conclusion will always be one of the following:
1. Reject the null hypothesis.
2. Fail to reject the null hypothesis.
page 394 of Elementary Statistics, 10th Edition
Chapter 22 Hypothesis Testing
Chapter 22

31. Chapter 22 Hypothesis Testing
Statistical Thinking
Decision Criterion
Traditional method:
Reject H0 if the test statistic falls within the critical region.
Fail to reject H0 if the test statistic does not fall within the critical region.
Chapter 22 Hypothesis Testing
Chapter 22

32. Chapter 22 Hypothesis Testing
Statistical Thinking
* Decision *
If we think the P-value is too low to believe the observed test statistic is obtained by chance only, then we would reject chance (reject the null hypothesis) and conclude that a statistically significant relationship exists (the data supports the alternative hypothesis).
Otherwise, we fail to reject chance and do not reject the null hypothesis of no relationship (result not statistically significant).
Chapter 22 Hypothesis Testing
Chapter 22

33. Typical Cut-off for the P-value
Statistical Thinking
Typical Cut-off for the P-value
Commonly, P-values less than 0.05 are considered to be small enough to reject chance (reject the null hypothesis).
Some researchers use 0.10 or 0.01 as the cut-off instead of 0.05.
This “cut-off” value is typically referred to as the significance level  of the test.
Chapter 22 Hypothesis Testing
Chapter 22

34. Errors in Hypothesis Testing
There are two kinds of errors that can be made in testing a hypothesis.
A type I error consists of rejecting the null hypothesis when it is true.
The probability of making a type I error is denoted by 
(the significance level).
A type II error involves not rejecting the null hypothesis when it is false. The probability of making a type II error is denoted by  .
To decrease both  and , increase the sample size.
Chapter 22 Hypothesis Testing

35. Chapter 22 Hypothesis Testing
Statistical Thinking
Thought Question 1
The defendant in a court case is either guilty or innocent. Which of these is assumed to be true when the case begins? The jury looks at the evidence presented and makes a decision about which of these two options appears more plausible. Depending on this decision, what are the two types of errors that could be made by the jury? Which is more serious?
Chapter 22 Hypothesis Testing
Chapter 22

36. Chapter 22 Hypothesis Testing
Statistical Thinking
Power of a Test
This is the probability that the sample we collect will lead us to reject the null hypothesis when the alternative hypothesis is true.
The power is larger for larger departures of the alternative hypothesis from the null hypothesis (magnitude of difference).
The power may be increased by increasing the sample size.
Chapter 22 Hypothesis Testing
Chapter 22

37. The Five Steps of Hypothesis Testing
Statistical Thinking
The Five Steps of Hypothesis Testing
Determining the Two Hypotheses
Determining the Sampling Distribution of the Test Statistic
Collecting and Summarizing the Data (calculating the observed test statistic value)
Determining How Unlikely the Test Statistic is if the Null Hypothesis is True (calculating the P-value)
Making a Decision/Conclusion (based on the P-value, is the result statistically significant?)
Chapter 22 Hypothesis Testing
Chapter 22

38. Chapter 22 Hypothesis Testing
Statistical Thinking
Thought Question 2
Suppose 60% (0.60) of the population are in favor of new tax legislation. A random sample of 265 people results in 175, or 0.66, who are in favor. From the Rule for Sample Proportions, we know the potential sample proportions in this situation follow an approximately normal distribution, with a mean of 0.60 and a standard deviation of Find the standardized score for the observed value of 0.66; then find the probability of observing a standardized score at least that large or larger.
Chapter 22 Hypothesis Testing
Chapter 22

39. Thought Question 2: Bell-Shaped Curve of Sample Proportions (n=265)
Statistical Thinking
Thought Question 2: Bell-Shaped Curve of Sample Proportions (n=265)
mean = 0.60
S.D. = 0.03
2.27%
0.60
0.63
0.57
0.66
0.54
0.69
0.51
Chapter 22 Hypothesis Testing
Chapter 22

40. Chapter 22 Hypothesis Testing
Statistical Thinking
Thought Question 3
Suppose that in the previous question we do not know for sure that the proportion of the population who favor the new tax legislation is 60%. Instead, this is just the claim of a politician. From the data collected, we have discovered that if the claim is true, then the sample proportion observed falls at about the 98th percentile of possible sample proportions for that sample size.
Should we believe the claim and conclude that we just observed strange data, or should we reject the claim?
What if the result fell at the 85th percentile?
At the 99.99th percentile?
Chapter 22 Hypothesis Testing
Chapter 22

41. Thought Question 3: Bell-Shaped Curve of Sample Proportions (n=265)
Statistical Thinking
Thought Question 3: Bell-Shaped Curve of Sample Proportions (n=265)
99.99th
98th
85th
0.60
0.63
0.66
0.69
0.54
0.57
0.51
Chapter 22 Hypothesis Testing
Chapter 22

42. Case Study Parental Discipline
Statistical Thinking
Case Study
Parental Discipline
Brown, C. S., (1994) “To spank or not to spank.” USA Weekend, April 22-24, pp. 4-7.
What are parents’ attitudes and practices on discipline?
Chapter 22 Hypothesis Testing
Chapter 22

43. Chapter 22 Hypothesis Testing
Statistical Thinking
Case Study: Survey
Parental Discipline
Nationwide random telephone survey of 1,250 adults.
474 respondents had children under 18 living at home
results on behavior based on the smaller sample
reported margin of error
3% for the full sample
5% for the smaller sample
Chapter 22 Hypothesis Testing
Chapter 22

44. Chapter 22 Hypothesis Testing
Statistical Thinking
Case Study: Results
Parental Discipline
“The 1994 survey marks the first time a majority of parents reported not having physically disciplined their children in the previous year. Figures over the past six years show a steady decline in physical punishment, from a peak of 64 percent in 1988.”
The 1994 sample proportion who did not spank or hit was 51%!
Is this evidence that a majority of the population did not spank or hit?
Chapter 22 Hypothesis Testing
Chapter 22

45. Case Study: The Hypotheses
Statistical Thinking
Case Study: The Hypotheses
Null: The proportion of parents who physically disciplined their children in the previous year is the same as the proportion [p] of parents who did not physically discipline their children. [H0: p = .5]
Alt: A majority of parents did not physically discipline their children in the previous year. [Ha: p > .5]
Chapter 22 Hypothesis Testing
Chapter 22

46. Sampling Distribution for Proportions
If numerous simple random samples of size n are taken, the sample proportions from the various samples will have an approximately normal distribution with mean equal to p (the population proportion) and standard deviation equal to
Since we assume the null hypothesis is true, we replace p with p0 to complete the test.
Chapter 22 Hypothesis Testing

47. Test Statistic for Proportions
Statistical Thinking
Test Statistic for Proportions
To determine if the observed proportion is unlikely to have occurred under the assumption that H0 is true, we must first convert the observed value to a standardized score:
Chapter 22 Hypothesis Testing
Chapter 22

48. Case Study: Test Statistic
Statistical Thinking
Case Study: Test Statistic
Based on the sample:
n=474 (large, so proportions follow normal distribution)
no physical discipline: 51%
standard error of :
(where .50 is p0 from the null hypothesis)
standardized score (test statistic)
z = ( ) / = 0.43
Chapter 22 Hypothesis Testing
Chapter 22

49. Chapter 22 Hypothesis Testing
Statistical Thinking
Case Study: P-value
Ha: p > .50
P-value =
z=0.43
0.51
0.500
0.523
0.477
0.546
0.454
0.569
0.431 1 -1 2 -2 3 -3 z:
From Table B, z=0.4 is the 65.54th percentile.
Chapter 22 Hypothesis Testing
Chapter 22

50. Chapter 22 Hypothesis Testing
Statistical Thinking
Case Study: Decision
Since the P-value (.3446) is not small, we cannot reject chance as the reason for the difference between the observed proportion (0.51) and the (null) hypothesized proportion (0.50).
We do not find the result to be statistically significant.
We fail to reject the null hypothesis. It is plausible that there was not a majority (over 50%) of parents who refrained from using physical discipline.
Chapter 22 Hypothesis Testing
Chapter 22

51. Case Study: Decision Error?
Statistical Thinking
Case Study: Decision Error?
Decision: fail to reject H0
If in the population there truly was a majority of parents who did not physically discipline their children, then we have committed a Type II error.
Could we have committed a Type I error with the decision that we made?
[No! Why?]
Chapter 22 Hypothesis Testing
Chapter 22

52. Chapter 22 Hypothesis Testing
Statistical Thinking
Example
A researcher claims that the amounts of acetaminophen in a
certain brand of cold tablets have a mean different from the
600 mg claimed by the manufacturer. Test this claim at the
0.02 level of significance. The mean acetaminophen content for
a random sample of n=49 tablets is mg with a standard
deviation of 4.9 mg.
State the null and alternative hypotheses using standard notation.
Chapter 22 Hypothesis Testing
Chapter 22

53. Chapter 22 Hypothesis Testing
Statistical Thinking
Example Cont.
State the test statistic and give its distribution.
Calculate the test statistic value.
Chapter 22 Hypothesis Testing
Chapter 22

54. Chapter 22 Hypothesis Testing
Statistical Thinking
Example Cont.
Find the p-value for the test.
Would you reject the null hypothesis or not? Explain.
Chapter 22 Hypothesis Testing
Chapter 22

55. Chapter 22 Hypothesis Testing
Statistical Thinking
Example Cont.
Write your conclusion using non-technical terms.
Which type of error (type I or type II) could you have made
based on your decision in (e)?
Chapter 22 Hypothesis Testing
Chapter 22

56. Chapter 22 Hypothesis Testing
Statistical Thinking
Example
A company sells salt that comes in boxes which are supposed to weigh 500 grams. The owner is concerned that his packaging machine might be malfunctioning and that the average contents of the boxes might be more than 500 grams. To test this, a random sample of 46 boxes were weighed and the average weight of boxes in the sample was 508 grams with a standard deviation of 14 grams. Perform a hypothesis test with by completing the following steps.
State the null and alternative hypotheses using standard notation.
Chapter 22 Hypothesis Testing
Chapter 22

57. Chapter 22 Hypothesis Testing
Statistical Thinking
Example Cont.
State the test statistic and give its distribution.
Calculate the test statistic value.
Chapter 22 Hypothesis Testing
Chapter 22

58. Chapter 22 Hypothesis Testing
Statistical Thinking
Example Cont.
Find the p-value for the test.
Would you reject the null hypothesis or not? Explain.
Chapter 22 Hypothesis Testing
Chapter 22

59. Chapter 22 Hypothesis Testing
Statistical Thinking
Example Cont.
Write your conclusion using non-technical terms.
Which type of error (type I or type II) could you have made
based on your decision in (e)?
Chapter 22 Hypothesis Testing
Chapter 22

60. Chapter 22 Hypothesis Testing
Statistical Thinking
Key Concepts
Decisions are often made on the basis of incomplete information.
Five Steps of Hypothesis Testing
P-values and Statistical Significance
Decision Errors
Power of a Test
Chapter 22 Hypothesis Testing
Chapter 22