HYPOTHESIS TESTING

Z Test & t Test

HYPOTHESIS TESTING

Hypothesis testing begins with an assumption called a

hypothesis, that we make about a population parameter
from which the sample is drawn.

PROCEDURE FOR TESTING HYPOTHESIS

Set up a hypothesis.
Set up a suitable significance level.
Setting a test criterion.
Doing computations.
Making decisions.

TYPES OF ERRORS

Type 1 Error: The hypothesis is true but the test rejects it.
Type 2 Error: The hypothesis is false but the test accepts
it.

TESTS OF SIGNIFICANCE

For large samples: z Test

For small samples: t Test

Z TEST
Test for difference between mean of sample and
population
Two-tailed test for difference between mean of two
samples
Test for difference between proportions

TWO-TAILED TEST FOR DIFFERENCE BETWEEN

MEAN OF SAMPLE

95% confidence limits:

1.96

99% confidence limits

2.58

Q. A sample of 100 tyres is taken from a lot. The mean life

of tyres is found to be 39,350 kms with standard deviation
of 3260. could the sample come from a population with
mean life of 40000 km ? (=0.01)

TWO-TAILED TEST FOR DIFFERENCE BETWEEN

MEAN OF TWO SAMPLES

1 2
1

0 : 1 = 2
1 : 1 2

2 2
2

Q. Two samples of 100 bulbs each has a mean life of 1500

and 1550 respectively and standard deviation 50 and 60
respectively. Is there a significant difference in the mean life
of the two samples of bulbs ? (=0.01)

TEST FOR DIFFERENCE BETWEEN

PROPORTIONS

1
1

1
+
2

1 1 +2 2
1 +2

1 = no of successes in one sample

2 = no of successes in second sample
1 = sample size of first sample
2 = sample size of second sample

Q. A machine produced 20 defective articles in a batch of

400. After overhauling it produced 10 defective in a batch of
300. Has the machine improved ? (=0.05)

T TEST

()

=mean of the sample

=actual or hypothetical mean of the sample
S= standard deviation of the sample

Q. A random sample size of 16 has 53 as mean. The sum

of the squares of the deviations taken from the mean is
135. Can this sample be regarded as taken from the
population having 56 as mean ? (= 0.01 & 0.05)

TWO SAMPLE T TEST

=
=

1 2

1 2
1 +2

(1 1 )2 + (2 2 )2
1 +2 2

Q. Two types of drugs were used on 5 and 7 patients for

reducing their weight. Drug A was imported and drug b
indigenous. The decrease in the weight after using the drug
for 6 months was as follows:
Drug A

10

12

13

11

14

Drug B

12

14

15

10

Is there a significant difference in the efficacy of the two

drugs ? (=0.05)

PAIRED SAMPLE T TEST

= mean of the differences

( )2
1

or

2 ( )2
1

Q. To verify whether a course in accounting improved

performance, a similar test was given to 12 participants
both before and after the course. The marks were as
follows:
A

Before 44 40 61 52 32 44 70 41 67 72 53 72
After

53 38 69 57 46 39 73 48 73 74 60 78

Was the course useful ?