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What is a Hypothesis?
What is a Hypothesis?
A Hypothesis is a statement about the value of a population
exhaustive
H0 is always presumed to be true
H1 has the burden of proof
A random sample (n) is used to reject H0
If we conclude 'do not reject H 0', this does not necessarily
mean that the null hypothesis is true, it only suggests that
there is not sufficient evidence to reject H 0; rejecting the
null hypothesis then, suggests that the alternative
hypothesis may be true.
Equality is always part of H0 (e.g. = , ,
).
< and > always part of H1
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up as H0
If the claim is boastful the claim is set
up as H1. Remember, H1 has the burden
of proof
In problem solving, look for key words
and convert them into symbols. Some
key words include: improved, better
than, as effective as, different from, has
changed, etc.
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Parts of a Distribution in
Hypothesis Testing
Example
Jamestown Steel Company manufactures
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Problem
Step 1: State the null hypothesis and the alternate
hypothesis.
H0: = 200
H1: 200
(note: keyword in the problem has changed)
Step 2: Select the level of significance.
= 0.01 as stated in the problem
Step 3: Select the test statistic.
Use Z-distribution since is known
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Problem
Step 4: Formulate the decision rule.
Reject H0 if |Z| > Z/2
Z Z / 2
X
Z / 2
/ n
203.5 200
Z .01 / 2
16 / 50
1.55 is not 2.58
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Type II Error:
Defined as the probability of accepting the
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Test Error
14
15
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H0: $60
H1: < $60
(note: keyword in the problem now less than)
Step 2: Select the level of significance.
= 0.01 as stated in the problem
Step 3: Select the test statistic.
Use t-distribution since is unknown
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21
22
X
s
256 250
6
10
3.162
24
25
Sample proportion
(1 )
n
Sample size
27
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H0: .80
H1: < .80
(note: keyword in the problem at least)
Step 2: Select the level of significance.
= 0.01 as stated in the problem
Step 3: Select the test statistic.
Use Z-distribution since the assumptions are met
and n and n(1-) 5
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Problem # 33
According to a recent survey, Americans
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Problem # 46
In the year 2006 the mean fare to fly from
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Problem # 57
The U.S. presidents call for designing and
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( x1 x2 ) D0
12 22
n1 n2
or
( x1 x2 )
12 22
n1 n2
1 = 2
Mean
Wage
Sample
Standard
Deviation
Sampl
e Size
Union
$20.75
$2.25
40
Nonunion
$19.80
$1.90
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Example
A manpower-development statistician is asked to
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Solution
Step 1:
This is a two-tailed test. The hypothesis is stated below. The
significance level is 0.05 (given)
H0: 1 = 2 versus H1: 1 2
Step 2:
Since this is a test of the means and the degrees of freedom (n1 + n2
- 2) is in excess of 30, a z test is appropriate. The critical
values are 1.96 (from a z table).
Step 3:
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Solution
Step 4: Sketch the distribution, locate the critical values
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Problem: 9-3
Two research laboratories have
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Problem: 9-6
Notwithstanding the Equal Pay Act of
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p1 =
p2
2.Alternate Hypothesis H1: (p1 - p2)>D (p1 - p2)<D
[p1 > p2 p1 < p2]
..one-tailed test
Alternate HypothesisH1: (p1 - p2) D
[p1 p2 ]
.. two-tailed test
3. Test Statistics:
Rejection Region z > z or z < -z (one tailed
test)
z > z/2 or z < -z/2 (two tailed test)
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4. Test Statistics:
5. Rejection Region
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x1 x2
p
n1 n2
( p1 p 2 )
1
1
p q[
]
n1 n2
Example:
1.
2.
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Problem: 9-22
A coal-fired power plant is considering two
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Problem: 9-23
A group of clinical physicians is performing tests on patients to
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Group
Proportion That
Improved
Number of
Patients
Treatment
0.45
120
Control
0.36
150
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( n1 1) s12 ( n 2 1) s 22
( n1 1) ( n 2 1)
4. Test Statistics:
x1 x 2
x1 x2
x1 x 2
t
sp
1
1
n1
n2
df ( n1 n2 2)
5. Rejection Region
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Example:
A company wishes to test when the sensitivity achieved by
Mean
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Proposed
92
Standard
Deviation
15
P.M.O.
84
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Sample
Size
12
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Solution
Step 1:
This is a one-tailed test. The hypothesis is stated below. The
significance level is 0.05 (given) H0: 1 2 versus H1: 1 > 2
Step 2:
Since this is a test of the means and neither n1 or n2 is in
excess of 30, a t test is appropriate. The critical value is
1.708 (from a t table with 25 degrees of freedom).
Step 3:
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Solution
Step 4:
Sketch the distribution, locate the critical values and the
test statistic.
Step 5:
Decide! Since the test statistic values lies within the
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Problem: 9-8
A credit-insurance organization has
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Problem: 9-9
A large stock-brokerage firm wants to
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