HYPOTHESIS

TESTING
STATISTICAL HYPOTHESIS

- An assertion or conjecture
concerning one or more
populations.
 HYPOTHESIS TESTING

- A set of procedures that

culminates in either the
rejection or the non-rejection
of the null hypothesis.
 STEPS IN HYPOTHESIS
TESTING
1. State the null hypothesis ( ) and the alternative
hypothesis ( ).
2. Choose the level of significance ().
3. Select the appropriate test statistic and establish the
critical region.
4. Collect the data and compute the value of the test
statistic from the sample data.
5. Make the decision.
6. Draw conclusion about the population.
 TYPES OF STATISTICAL
HYPOTHESIS
1. Null Hypothesis ( ) the
hypothesis being tested.

2. Alternative Hypothesis ( ) it
contradicts the null hypothesis.
 Terminologies:
1. One tailed test a test where the
alternative hypothesis specifies one-
directional difference for the parameter
of interest.
2. Two tailed test does not specify a
directional difference for the parameter
of interest.
 Terminologies:
3. Test statistic the quantity calculated from
the sample data that is used a decisive
parameter in forming the final conclusion.
4. Significance Level the degree of certainty
required in order to reject the null
hypothesis in favor of the alternative
hypothesis.
 Terminologies:
5. Critical Region is also called region of
rejection. It is the set of values of the
test statistic for which the null hypothesis
is rejected.
 Different Test Statistic

Z test

z=

Critical region: >

 Different Test Statistic
Correlation Analysis
2
t= , df = n 2
1 2

Pearsons r
( )( )
r=
2 2
( 2 ( ) )( 2 ( ) )
 Different Test Statistic

Regression Analysis
- To test the hypothesis on the slope
(b), the test statistic is:
0
t= , df = n 2

 Different Test Statistic
Regression Analysis
- To test the hypothesis on the
intercept (a), the test statistic is:
a 0
t= , df =

=1
2

n2
 Different Test Statistic
Regression Analysis

= =
( 2 ) ( )2

regression line: = +
 Different Test Statistic
Regression Analysis
= estimated or predicted value of the
dependent variable Y
= the intercept; value of Y when X = 0
b = slope of the line
= given value of the independent
variable X
 Different Test Statistic
Regression Analysis
= mean of Y = mean of X
n = number of X and Y pairs
2
=
2
= 2 ( )2
= 2 ( )2
= ( )( )
 Different Test Statistic
Chi Square Test
(
=

( )2
2 = , df = (r 1)(c 1)

=
= expected value
 Different Test Statistic
Z test known variance (with standard deviation
and mean)
Correlation Analysis measures the strength
between two variables
Regression Analysis relationship between
variables X and Y described by a significant
mathematical equation of the curve.
Chi Square Test independence of two
classifications