MODULE 5: Hypothesis Testing MEC 51 - MA

1ST Semester | Academic Year 2024-2025 | Ma’am Milagros Faustino

TYPES OF HYPOTHESIS TEST

HYPOTHESIS TESTING

ONE-TAILED TEST
o Involves making educated guesses about a population
based on a sample drawn from the population
o The general goal of a hypothesis test is to rule out chance
o A test is said to be one- tailed if the alternative hypothesis
(sampling error) as a plausible explanation for the results
is any of the following:
from a research study
o When we are testing our hypothesis, we will run a
statistical procedure to determine if there is a significant
relationship

STATISTICALLY SIGNIFICANT TWO-TAILED TEST

o Means the difference in the results did not occur by o A test is said to be two - tailed if the alternative hypothesis
random chance is stated as

NULL HYPOTHESIS
LEVEL OF SIGNIFICANCE
o The null hypothesis, H0, is a statement that specifies a
particular value (or values) for the parameter being
studied o The probability of committing a Type I error is the level of
o It is the hypothesis that is being tested significance of the test
o It is sometimes referred to as the hypothesis of no o It is the maximum probability with which we are willing to
difference commit a Type I error
o It always contains the ‘=’ sign (either) o In practice, usually set at 0.05 (*significant) or 0.01 (**
o Is always about a population parameter, not about a highly significant)
sample statistic TEST STATISTIC

ALTERNATIVE HYPOTHESIS
o The test statistic is a statistic computed from the sample
o The alternative hypothesis, H1, specifies those values of on which the decision to reject or not to reject H0 is based
the parameter that represent an important change from o If the computed test statistic falls in the rejection region,
the null hypothesis the H0 is rejected
o It opposes the null hypothesis
CRITICAL OR REJECTION REGION(S)
o It is an assertion that holds if the null hypothesis is false
o Never contains the “=”, “≤” or “” sign
o May or may not be proven
o Is generally the hypothesis that the researcher is trying to o The sampling distribution of the test statistic is divided
prove into two regions, the rejection region (also known as
critical region) and the nonrejection region
o The rejection region is a part of the set of all possible
values of a test statistic for which H0 is rejected
o The size of the critical region is determined by the alpha
level
o Sample data that fall in the critical region will warrant the
rejection of the null hypothesis

MEC 51: Statistical Analysis with Software Application LESSON 5 1

 MODULE 5: Hypothesis Testing MEC 51 - MA
1ST Semester | Academic Year 2024-2025 | Ma’am Milagros Faustino

CRITICAL VALUE

o The critical value is the boundary between the rejection

region and the nonrejection region
o The critical value is a value from a table (z-table or t-table)
that separates the critical region (or rejection region) from
the nonrejection region

LOCATION OF THE CRITICAL REGION(S)

Z DISTRIBUTION:
PROPERTIES OF A NORMAL DISTRIBUTION

o The normal curve is symmetrical about the mean μ

o In a standard normal distribution, the mean is zero
o The mean is at the middle and divides the area into halves
o The total area under the curve is equal to 1
o It is completely determined by its mean and standard
deviation σ (or variance σ2)

MEC 51: Statistical Analysis with Software Application LESSON 5 2

 MODULE 5: Hypothesis Testing MEC 51 - MA
1ST Semester | Academic Year 2024-2025 | Ma’am Milagros Faustino

TYPE II ERROR
PROPERTIES OF THE T DISTRIBUTION

o It is, like the Z distribution, a bell-shaped, symmetrical, o Failure to reject false null hypothesis
continuous distribution o The probability of a Type II Error is β
o There is not one t distribution but rather a “family” of t P-VALUE
distributions
o All have the same mean (center) of zero, but their
standard deviations differ according to the sample size n
o A p-value is the probability of observing a test statistic
o The t distribution is more spread out and flatter at the
value as extreme as the one computed from the sample
center than the Z distribution
data if the null hypothesis is true
o However, as the sample size increases, the t distribution
o As a rule of thumb, H0 is rejected if the p-value is less than
approaches the standard normal distribution
or equal to (level of significance)
o Once you’ve calculated your test statistic, you calculate
STEPS IN HYPOTHESIS TESTING the probability of that test statistic occurring by chance (p-
value)
Step 1. State the null and alternative hypotheses o The bigger the test statistic will be, and the more unlikely
Step 2. Decide on the level of significance it is to occur by chance
Step 3. Determine the appropriate statistical test (z- test or t-test)
HYPOTHESIS TESTING FOR
Step 4. Gather data and compute for the value of the test statistic
TWO INDEPENDENT POPULATION MEANS
using the sample data
Step 5. Determine the critical region
Step 6. Check if the test statistic falls in the region of rejection. If
yes, reject Ho. Make the decision. (Reject Ho or do not reject Ho) o Hypothesis testing can be extended to procedures that
Step 7. State the conclusion compare statistics from two samples of data selected from
two independent populations
o If we reject the null hypothesis in favor of the alternative, o This test is used in situations in which there are two
we conclude that there is enough evidence to support the experimental conditions, and different participants have
alternative hypothesis been used in each condition
o If we fail to reject the null hypothesis, we conclude that
there is not enough evidence to support the alternative The following are some practical problems that require hypothesis
hypothesis testing for the difference between two population means:
o Is there a significant difference in the level of job
Note: satisfaction between male and female employees?
Failing to reject the null hypothesis does not necessarily mean o Do Brand A cellphones have shorter lifespan than Brand B
that it is true, only that we do not have enough to reject it cellphones?

STEPS IN HYPOTHESIS TESTING FOR TWO

POSSIBLE ERRORS IN HYPOTHESIS TEST DECISION MAKING POPULATION MEANS (INDEPENDENT SAMPLES)

TYPE I ERROR
Step 1. State the null and alternative hypotheses
Step 2. Specify the level of significance
o Reject a true null hypothesis Step 3. Determine the appropriate statistical test (z- test or t-test)
o Considered a serious type of error Step 4. Establish the rejection region/regions
o The maximum probability of a Type I Error is  Step 5. Compute the actual value of the test statistic from the
o Called level of significance of the test sample
o Set by researcher in advance Step 6. Make a statistical decision, reject Ho or do not reject Ho
Step 7. State the appropriate conclusion

MEC 51: Statistical Analysis with Software Application LESSON 5 3

 MODULE 5: Hypothesis Testing MEC 51 - MA
1ST Semester | Academic Year 2024-2025 | Ma’am Milagros Faustino

LIST OF NOTATIONS Case 1 is performed if the population standard deviations are given,
regardless of the sample size.

Case 2 is performed if the population standard deviations are not

given but the sample sizes n1 and n2 are both greater than or equal
to 30 (Central Limit Theorem applies).

Case 3 is performed if the problem states that the population

standard deviations are equal, but they are unknown, and the
sample sizes used are small (less than 30).

Case 4 is performed if the problem states that the population

standard deviations are unequal, but they are unknown, and the
sample sizes used are small (less than 30).

Rule of Thumb: Checking the Condition of Unequal Variances

o In most cases, if the ratio of sample variances is less than
or equal to 3, then it is safe to assume that the population
variances are equal
HYPOTHESIS TESTS FOR
TWO INDEPENDENT POPULATION MEANS

MEC 51: Statistical Analysis with Software Application LESSON 5 4