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Hypothesis Testing
What is Hypothesis Testing?
Hypothesis testing is an area of
statistical inference in which one
evaluates a conjecture about some
characteristic of the parent population
based upon the information contained
in the random sample.
Usually the conjecture concerns one
of the unknown parameters of the
population.
What is a Hypothesis?
This drug is guaranteed
A hypothesis is a to change the cholesterol
claim or statement levels (on the average) by
about the population more than 30%!
parameter
Examples of parameters
are population mean
or proportion
The parameter must
be identified before the
analysis © 1984-1994 T/Maker Co.
Example of Hypothesis
Type I Error
Type II Error
Type I Error
The mistake of rejecting the null hypothesis
when it is true.
It is not a miscalculation or procedural
misstep; it is an actual error that can occur
when a rare event happens by chance.
The probability of rejecting the null
hypothesis when it is true is called the
significance level (α).
The value of α is typically predetermined,
and very common choices are α = 0.05
and α = 0.01.
Examples of Type I Error
The mistake of rejecting the null hypothesis when it is true.
Rejection 0
Regions a
Ho: 30
Ha: > 30
0
a/2
Ho: 30
Ha: 30
0
The p-value - the smallest level of
significance at which Ho will be rejected
based on the information contained in the
sample
p-value Decision
0.01 Reject Ho
0.05 Reject Ho
0.09 Do not reject Ho
Conclusions in Hypothesis Testing
1. Fail to reject the null hypothesis Ho.
2. Reject the null hypothesis Ho.
Notes:
Some texts say “accept the null hypothesis”
instead of “fail to reject the null hypothesis.”
Whether we use the term “accept” or “fail to
reject”, we should recognize that we are not
proving the null hypothesis to be true; we are
merely saying that the sample evidence is not
strong enough to warrant the rejection of the
null hypothesis.
Wording of Final Conclusion
Start
Yes
Does (Reject Ho) (This is the
the “The sample data only case in
original support the claim which the
claim contain
Do you reject
original claim
the condition Ho? that….(original is
of claim).” supported.)
equality?