HYPOTHESIS TESTING

Prepared by:

DOLORES “Doris” C. ESPERANZA

MAEdMgmt.
 HYPOTHESIS TESTING

Types of statistical inference which assess

the evidence provided by data about some
claim concerning a population.

Prepared by:

DOLORES “Doris” C. ESPERANZA

MAEdMgmt.
Statistical Hypothesis

- Is an assertion or conjecture
concerning one or more populations.
- An assumption or statement, which
may or may not be true concerning one
or more population.
Two Competing Statistical Hypothesis:

a. The NULL HYPOTHESIS, H0

b. The ALTERNATIVE HYPOTHESIS,

H1 or Ha
a. The NULL HYPOTHESIS, H0

Ho: μ = 0 , Ho: P=0

b. The ALTERNATIVE HYPOTHESIS,

H1

Ho: μ > 0 P>0

μ<0 or P < 0
μ≠0 P≠0
Writing Statistical Hypothesis:
Claim: “Pop Soda” claims that each
bottle of their soft drinks is filled an 8oz.
All the time.

Ho: each bottle is filled with 80z of

soda/bottle (description)

let μ is the average soda content

Ho: μ=8oz. (this is the equation)
Ha: each bottle is filled with less than
8oz of soda/bottle

Let μ is the average soda content

Ha: μ < 8oz. (equation)

or
Ha: μ > 8oz
Ha: μ ≠ 8oz
Elements of a Test of a Hypothesis

• Null Hypothesis (Ho)

• Alternative Hypothesis (H1)
• Test Statistic: A sample statistic used to
decide whether to reject the null
hypothesis
• Rejection Region
• Calculation of Test Statistic
• Conclusion: Numerical Value falls in the
Rejection Region or not
Level of Significance
• To specify the Probability of committing a
Type 1 Error, α, which is popularly known
as the Level of Significance

• We can determine the Critical Values

which define the:
- Region of Rejection (or Critical Region)
and
- Region of Acceptance
• The critical value serves as the basis
for either Accepting or Rejecting a
Hypothesis.

• When α = .05, the Region of Rejection is

0.05 and the Region of Acceptance is 0.95
 Type I and Type II Errors in HT

NULL NULL
HYPOTHESIS HYPOTHESIS
TRUE FALSE

REJECT TYPE I
“Ho” ERROR CORRECT

FAIL TO TYPEM II
REJECT CORRECT ERROR
“Ho”
Example Problem: Perfect Potatoes

A potato chip producer and its main supplier

agree that each shipment of potatoes must meet
certain quality standards. If the producer
determines that more than 8% of the potatoes in
the shipment have “blemishes,” the truck will be
sent away to get another load of potatoes from
the supplier. Otherwise, the entire truckload will
be used to make potato chips. To make the
decision, a supervisor will inspect a random
sample of potatoes from the shipment.
The producer will then perform a significance test using
the hypotheses
Ho : p = 0.08 Ha : p > 0.08 where p is the actual
proportion of potatoes with blemishes in a given
truckload.

Describe a Type I and a Type II error in this setting, and

explain the consequences of each
• A Type I error would occur if the producer concludes
that the proportion of potatoes with blemishes is greater
than 0.08 when the actual proportion is 0.08 (or less).
Consequence: The potato-chip producer sends the
truckload of acceptable potatoes away, which may result
in lost revenue for the supplier.
• A Type II error would occur if the producer does not
send the truck away when more than 8% of the potatoes
in the shipment have blemishes.

Consequence: The producer uses the truckload of potatoes

to make potato chips. More chips will be made with
blemished potatoes, which may upset consumers.
Steps in Hypothesis Testing

1. Formulate the H0 and H1

2. Specify the level of significance α
3. Choose the appropriate test statistic
4. Establish the critical region
5. Compute for the value of the statistical test
6. Make a decision and, if possible, draw a
conclusion
Sample Problem:

Brix Car averages 26mpg. He switches

to a new brand of motor oil that is advertised
to increase gas mileage. After driving 3000
miles with the new oil, he wants to determine
if the average gas mileage has increased.
State your appropriate hypothesis.
Write:

let μ=mean gas mileage of Brix Car in the

highway:

Ho: μ = 26mpg (Brix Car mean gas is 26mpg)

Ha: μ > 26mpg (Brix Car mean gas mileage is

26mpg