1. Chapter 3 Hypothesis Testing

2. Curriculum Object Specified the problem based the form of hypothesis Student can arrange for hypothesis step Analyze a problem bassed for hypothesis

3. 11.3Introduction… In addition to estimation, hypothesis testing is a procedure for making inferences about a population.

4. What is Hypothesis Testing? Sample information can be used to obtain point estimates or confidence intervals about population parameters Alternatively, sample information can be used to test the validity of conjectures about these parameters

5. RESume A hypothesis is a statement about a population parameter from one or more populations Statistically testable hypotheses are formulated based on theories that are used to make predictions A hypothesis test is a procedure that –States the hypothesis to be tested –Uses sample information and formulates a decision rule –Based on the outcome of the decision rule the hypothesis is statistically validated or rejected

6. 11.6 Concepts of Hypothesis Testing There are two hypotheses. H 0 : — the ‘null’ hypothesis H 1 : — the ‘alternative’ or ‘research’ hypothesis The null hypothesis (H 0 ) will always state that the parameter equals the value specified in the alternative hypothesis (H 1 ) pronounced H “nought”

7. –The hypothesis that there were no effects is called the NULL HYPOTHESIS. –The null hypothesis states that in the general population there is no change, no difference, or no relationship. –In the context of an experiment, H 0 predicts that the independent variable (treatment) will have no effect on the dependent variable for the population. –Form : H 0 : μ A - μ B =0 or μ A = μ B Null hypothesis (H 0 )

8. Alternative hypothesis (H 1 ) –The alternative hypothesis (H 1 ) states that there is a change, a difference, or a relationship for the general population. –H 1 is a statement of what a statistical hypothesis test is set up to establish. –Form : H 1 : μ A ≠ μ B For example –H 1 : the two drugs have different effects, on average. –H1: the new drug is better than the current drug, on average.

9. Type I Error A type I error is made when the researcher rejected the null hypothesis when it should not have been rejected. For example, –H 0 : there is no difference between the two drugs on average. A type I error would occur if we concluded that the two drugs produced different effects when in fact there was no difference between them.

10. The hypothesis test procedure is therefore adjusted so that there is a guaranteed 'low' probability of rejecting the null hypothesis wrongly; this probability is never 0. This probability of a type I error can be precisely computed as P(type I error) = significance level = α The exact probability of a type II error is generally unknown.

11. Type II Error A type II error is made when the null hypothesis is accepted when it should have been rejected. For example, –H0: there is no difference between the two drugs on average. A type II error would occur if it was concluded that the two drugs produced the same effect, i.e. there is no difference between the two drugs on average, when in fact they produced different ones. The probability of a type II error is generally unknown, but is symbolised by and written –P(type II error) = β

12. RESUME The following table gives a summary of possible results of any hypothesis test: –Decision Reject H 0 Don't reject H 0 H 0 Type I Error Right decision –Truth H 1 Right decision Type II Error Goal: Keep ,  reasonably small

13. Example So, We have 3 kinds of hypothesis :

14. Steps in aplllying Hypothesis testing : i.State The Hypothesis ii.Choose a significance level

15. Two Tailed Test H0: μ = μo H1: μ ≠ μo Rejection Region H0 Acceptance Region H0 ½ α ½ α iii. H0 accepted if : -z 1/2 α < z < z 1/2 α

16. One Tailed Test (right) H0: μ = μo H1: μ > μo Critical region Rejection Region H0 Acceptance region H0 α iii. H0 accepted if : z ≤ z α

17. One tailed (left) H0: μ = μo H1: μ < μo ( critical region) Rejection Region H0 Acceptance Region H0 α iii. H0 accepted if: z ≥ -z α

18. iv. Calculation :

19. Suppose :

20. Implies that 5.76% of all random samples would lead to rejection of the Ho when Ho is true

21. 

22. I. Test on the Mean of a normal Distribution, variance known Suppose that we wish to test the hypothesis : Test Statistics :

23. Example