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INSTRUCTED BY
MD. ALAMGIR HOSSIN
FACULTY, CBA, IUBAT
PRESENTED BY
2
MD. SAIDUR RAHMAN SAID
16204006, MBA
Spring 2017, IUBAT
Hypothesis Testing
3
Is the average
Population of GPA 2.7 ?
5 million college (Imagine that 2.7 was
students mean GPA for U.S. college
students in 1990)
Paired t-Test
ANOVA (F-tests)
sum test
Example: Grade Inflation?
15
STEP 3: Collect data
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and compute test statistic
Summarize all variables involved both
numerically and graphically
Look at distributional shape, as many
test procedures require approx.
normality for continuous variables.
Check for outliers.
Compute the test statistic from our
observed data.
Example: Grade inflation?
17
(Has mean GPA increased since 1990?)
Is the average
Population of GPA 2.7 ?
5 million college (Imagine that 2.7 was
students mean GPA for U.S. college
students in 1990)
n 100
Normal
Student t values
value
t according to sample
z
size
Level of
10 20 30 40
confidence
99% 3.17 2.85 2.75 2.70 2.58
95% 2.23 2.09 2.04 2.02 1.96
90% 1.81 1.72 1.70 1.68 1.64
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Example: Grade Inflation (contd)
critical value calculation and interpretation
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Follow-up Questions:
1. How much larger is it?
2. Is it a large enough increase that we
actually care?
3. Does this result tell us that grades in U.S.
college and universities are being inflated
by professors?