EXPLORING MORE ELEMENTS ON

HYPOTHESIS TESTING
Objectives
At the end of this lesson, you are expected to:
• Understand the concept of Type I and Type II error;
• Connect error to the process of hypothesis testing;
• Locate critical values for hypothesis testing; and
• Make decision about the null hypothesis
Understanding the Decision Grid
Four Possible Outcomes in Decision-Making

Decisions about the 𝑯𝟎

Reject 𝑯𝟎 Do not reject 𝑯𝟎

(or Accept 𝑯𝟎 )

𝑯𝟎 is true Type I error Correct Decision

REALITY

𝑯𝟎 is false Correct Decision Type II error

Example 1. Maria’s Age
Maria insists that she is 30 years old when, in fact,
she is 32 years old. What error is Maria
committing?
Solution:
Mary is rejecting the truth. She is
committing a TYPE I error.
Example 2. Stephen’s Hairline
Stephen says he is not bald. His hairline is just
receding. Is he committing an error?
Solution:
Yes. A receding hairline indicates
balding. This is a TYPE I Error. Stephen
may act to find a remedial measure to stop
falling hair
Example 3. Monkey-Eagle Hunt
A man plans to go hunting the Philippine
monkey-eating eagle, believing that it is a
proof of his mettle. What type of error is
this?
Solution:
Hunting the Philippine eagle is
prohibited by the law. Thus it is not a good
sport. It is a TYPE II Error. Since hunting
the Philippine monkey-eating eagle is
against the law, the man may find himself
in jail if he goes out of his way hunting
endangered species.
In the decisions that we make, we form
conclusions and these conclusions are the
bases of our actions. But this is not always
the case in statistics, because decisions
are made based on sample information.
The best we can do is to CONTROL THE
PROBABILITY with which an error can
occurs.
Types of Errors
Error in decision Type Probability Correct Decision Type Probability

Reject a true 𝑯𝟎 I 𝛼 Accept a true 𝑯𝟎 A 1−𝛼

Accept a false 𝑯𝟎 II 𝛽 Reject a false 𝑯𝟎 B 1−𝛽

Power of statistical test

Note: We can control the errors by assigning small

probability values to each of them. The most frequently
used probability values for 𝛼 and 𝛽 are 0.05 and 0.01
 Decision errors under the normal curve

• Directional tests are one tailed.

• Non-directional tests are two-tailed
• Rejection Region: region where the value of the test statistic lie
for which we will reject the null hypothesis. This region is also
called critical region.
• The line that separates the rejection region from the non-
rejection region (1 − 𝛼).
• Critical values can be obtained from the critical values table of
test statistic.
 Determining the critical values
For a 95% confidence
level:
In a normal curve
table, the 95%
corresponds to a
z=1.96. Thus the
critical values for 95%
are -1.96 and +1.96.
 Determining the critical values
For a 99% confidence
level:
In a normal curve
table, the 99%
corresponds to a
z=2.58. Thus the
critical values for 95%
are -2.58 and +2.58.
Locating z-value
Indicate if z value is in the rejection region
2. z= -2.68 , 95% confidence,
two-tailed test:
In a normal curve table, the 2
99% corresponds to a z=1.96.
2.68

A z-value of 2.68 in a two-tailed

test of 95% confidence level is in
the rejection region.
QUIZ
Identify the correct answer.
1. What type of error is committed when you reject a null hypothesis
when, in fact, it is true?
2. What type of error is committed when you accept a null hypothesis
when, in fact, it is false?
3. Suppose it is the Christmas season and Janine thinks that it is the
month of January, what error is she committing?
4. Determine whether it the test is directional or non-directional:
4.1
4.2
Finding critical values
1. For a 95% confidence level, what are the critical values for a TWO-
TAILED test? (2 points)

Locating z-values
1. For each of the given, draw the normal curve and locate the z-value.
Then indicate if the z-value is in the rejection region or in the
acceptance zone. (3 points)

z= 1.8, 95% confidence two-tailed

ANSWER KEY
1. Type I error 4. Z= +1.96, -1.96 (2-1-0)
2. Type II error 5. Z-value of 1.8 is in
3. Type I error Acceptance Region or Not in
the Rejection Region. (3-1-0)
4.