MATH 110

HYPOTHESIS TESTING

Prepared by: engr rjaaguilar

 AREAS OF CONCERN
 Steps in Hypothesis Testing
 z test for a Mean
 t test for a Mean
 z test for a Proportion
 χ2 test for a Variance or Standard
Deviation
 Confidence Intervals and Hypothesis
Testing
 OBJECTIVES
 State the five steps used in hypothesis testing.
 Test means for large samples using the z test.
 Test means for small samples using the t test.
 Test proportions using the z test.
 Test variances or standard deviations, using the
chi-square test.
 Test hypothesis using confidence intervals.
 Draw a scatter plot
Steps in Hypothesis Testing
 A Statistical hypothesis is a conjecture
about a population parameter. This
conjecture may or may not be true.
 The null hypothesis, symbolized by H0, is
a statistical hypothesis that states that
there is no difference between a
parameter and a specific value or that
there is no difference between two
parameters.
Steps in Hypothesis Testing
 The alternative hypothesis,
symbolized by H1, is a statistical
hypothesis that states a specific
difference between a parameter
and a specific value or states that
there is a difference between two
parameters.
Steps in Hypothesis Testing -
Example
 A medical researcher is interested in
finding out whether a new medication
will have any undesirable side effects.
The researcher is particularly
concerned with the pulse rate of the
patients who take the medication.
Steps in Hypothesis Testing -Example

 What are the hypotheses to test

whether the pulse rate will be different
from the mean pulse rate of 82 beats
per minute?
 H0: = 82 H1:  82
 This is a two-tailed test.
Steps in Hypothesis Testing - Example
 A chemist invents an additive to increase the
life of an automobile battery. If the mean
lifetime of the battery is 36 months, then his
hypotheses are
 H0: 36 H1:  36
 This is a right-tailed test.
Steps in Hypothesis Testing - Example

 A contractor wishes to lower heating

bills by using a special type of insulation
in houses. If the average of the monthly
heating bills is $78, her hypotheses
about heating costs will be
 H0:  $78 H1:  $78
 This is a left-tailed test.
Steps in Hypothesis Testing
A statistical test uses the
data obtained from a sample
to make a decision about
whether or not the null
hypothesis should be
rejected.
Steps in Hypothesis Testing
The numerical value obtained
from a statistical test is called
the test value.
In the hypothesis-testing
situation, there are four possible
outcomes.
Steps in Hypothesis Testing
In reality, the null hypothesis
may or may not be true, and
a decision is made to reject
or not to reject it on the
basis of the data obtained
from a sample.
Steps in Hypothesis Testing
H0 True H0 False

Error
Error Correct
Correct
Reject Type
Type II decision
decision
H0

Do not Correct
Correct Error
Error
reject decision
decision Type
Type II
II
H0
Steps in Hypothesis Testing
A type I error occurs if one
rejects the null hypothesis when
it is true.
A type II error occurs if one does
not reject the null hypothesis
when it is false.
Steps in Hypothesis Testing
 The level of significance is the maximum
probability of committing a type I error.
This probability is symbolized by 
(Greek letter alpha). That is,

 P(type I error)=.
 P(type II error) =  (Greek letter beta).
Steps in Hypothesis Testing
Typical significance levels are:
0.10, 0.05, and 0.01.
For example, when
  = 0.10, there is a 10% chance
of rejecting a true null
hypothesis.
Steps in Hypothesis Testing
The critical value(s) separate/s
the critical region from the
noncritical region.
The symbol for critical value is
C.V.
Steps in Hypothesis Testing
The critical or rejection region is
the range of values of the test
value that indicates that there is
a significant difference and that
the null hypothesis should be
rejected.
Steps in Hypothesis Testing
The noncritical or nonrejection
region is the range of values of
the test value that indicates that
the difference was probably due
to chance and that the null
hypothesis should not be
rejected.
 Steps in Hypothesis Testing

A one-tailed test (right or left)

indicates that the null
hypothesis should be rejected
when the test value is in the
critical region on one side of
the mean.
Finding the Critical Value for
 = 0.01 (Right-Tailed Test)
Finding the Critical Value for
 = 0.01 (Left-Tailed Test)

For a left-tailed test when

 = 0.01, the critical value will
be –2.33 and the critical
region will be to the left of
–2.33.
Finding the Critical Value for
 = 0.01 (Two-Tailed Test)
In a two-tailed test, the null
hypothesis should be
rejected when the test value
is in either of the two critical
regions.
Finding the Critical Value for
 = 0.01 (Two-Tailed Test)
Large Sample Mean Test
The z test is a statistical test for
the mean of a population. It can
be used when n  30, or when
the population is normally
distributed and  is known.
The formula for the z test is
given on the next slide.
Large Sample Mean Test
Large Sample Mean Test -
Example
 A researcher reports that the average
salary of assistant professors is more
than $42,000. A sample of 30 assistant
professors has a mean salary of
$43,260. At  = 0.05, test the claim
that assistant professors earn more
than $42,000 a year. The standard
deviation of the population is $5230.
Large Sample Mean Test -
Example
 Step 1: State the hypotheses and
identify the claim.
 H0: $42,000 H1:  $42,000 (claim)
 Step 2: Find the critical value. Since
 = 0.05 and the test is a right-tailed
test, the critical value is z = +1.65.
Z-table
 Step 3: Compute the test value.
Large Sample Mean Test -
Example
 Step 3: z = [43,260 –
42,000]/[5230/30] = 1.32.
 Step 4: Make the decision. Since the
test value, +1.32, is less than the
critical value, +1.65, and not in the
critical region, the decision is “Do not
reject the null hypothesis.”
Large Sample Mean Test -
Example
 Step 5: Summarize the results.
There is not enough evidence to
support the claim that assistant
professors earn more on average
than $42,000 a year.
 See the next slide for the figure.
Large Sample Mean Test -
Example
Large Sample Mean Test -
Example
 A national magazine claims that the
average college student watches less
television than the general public. The
national average is 29.4 hours per week,
with a standard deviation of 2 hours. A
sample of 30 college students has a
mean of 27 hours. Is there enough
evidence to support the claim at
 = 0.01?
Large Sample Mean Test -
Example
 Step 1: State the hypotheses and
identify the claim.
 H0: 29.4 H1:  29.4 (claim)
 Step 2: Find the critical value. Since
 = 0.01 and the test is a left-tailed test,
the critical value is z = –2.33. Z-table

 Step 3: Compute the test value.

Large Sample Mean Test -
Example
 Step 3: z = [27– 29.4]/[2/30]
= – 6.57.
 Step 4: Make the decision. Since
the test value, – 6.57, falls in the
critical region, the decision is to
reject the null hypothesis.
Large Sample Mean Test -
Example
 Step 5: Summarize the results.
There is enough evidence to
support the claim that college
students watch less television than
the general public.
 See the next slide for the figure.
Large Sample Mean Test -
Example
Large Sample Mean Test - Example
The Medical Rehabilitation Education
Foundation reports that the average cost of
rehabilitation for stroke victims is $24,672.
To see if the average cost of rehabilitation is
different at a large hospital, a researcher
selected a random sample of 35 stroke
victims and found that the average cost of
their rehabilitation is $25,226. The standard
deviation of the population is $3,251. At  =
0.01, can it be concluded that the average
cost at a large hospital is different from
$24,672?
Large Sample Mean Test – Example
(continuation)

Step 1: State the hypotheses

and identify the claim.
H0: $24,672
H1:  $24,672 (claim)
Large Sample Mean Test -
Example
 Step 2: Find the critical values. Since
 = 0.01 and the test is a two-tailed
test, the critical values are z = –2.58
and +2.58.
 Step 3: Compute the test value.
 Step 3:
 z = [25,226 – 24,672]/[3,251/35]
Z-table
= 1.01.
Large Sample Mean Test -
Example
 Step 4: Make the decision. Do not
reject the null hypothesis, since the
test value falls in the noncritical region.
 Step 5: Summarize the results. There
is not enough evidence to support the
claim that the average cost of
rehabilitation at the large hospital is
different from $24,672.
Large Sample Mean Test -
Example
 P-Values
 Besides listing an  value, many
computer statistical packages give a
P-value for hypothesis tests. The P-
value is the actual probability of getting
the sample mean value or a more
extreme sample mean value in the
direction of the alternative hypothesis (>
or <) if the null hypothesis is true.
 P-Values
 The P-value is the actual area under
the standard normal distribution curve
(or other curve, depending on what
statistical test is being used)
representing the probability of a
particular sample mean or a more
extreme sample mean occurring if the
null hypothesis is true.
P-Values - Example
 A researcher wishes to test the claim
that the average age of lifeguards in
Ocean City is greater than 24 years.
She selects a sample of 36 guards and
finds the mean of the sample to be
24.7 years, with a standard deviation of
2 years. Is there evidence to support
the claim at  = 0.05? Find the P-value.
P-Values - Example

 Step 1: State the hypotheses and identify

the claim.
 H0: 24 H1:  24 (claim)
 Step 2: Compute the test value.

24.7  24
z  2.10
2 36
P-Values - Example
 Step 3: Using Table E in Appendix C, find
the corresponding area under the normal
distribution for z = 2.10. It is 0.4821
 Step 4: Subtract this value for the area
from 0.5000 to find the area in the right
tail.
0.5000 – 0.4821 = 0.0179
Hence the P-value is 0.0179.
P-Values - Example
 Step 5: Make the decision. Since the
P-value is less than 0.05, the decision
is to reject the null hypothesis.
 Step 6: Summarize the results. There
is enough evidence to support the
claim that the average age of
lifeguards in Ocean City is greater
than 24 years.
P-Values - Example
 A researcher claims that the average
wind speed in a certain city is 8 miles
per hour. A sample of 32 days has an
average wind speed of 8.2 miles per
hour. The standard deviation of the
sample is 0.6 mile per hour. At  = 0.05,
is there enough evidence to reject the
claim? Use the P-value method.
 P-Values - Example
 Step 1: State the hypotheses and identify
the claim.
 H0: 8 (claim) H1:  8
 Step 2: Compute the test value.

8.2  8
z  1.89
0.6 32
9-3 P-Values - Example
Step 3: Using table E, find the
corresponding area for z = 1.89.
It is 0.4706.
Step 4: Subtract the value from
0.5000.
0.5000 – 0.4706 = 0.0294
P-Values - Example
 Step 5: Make the decision: Since this test is
two-tailed, the value 0.0294 must be
doubled; 2(0.0294) = 0.0588. Hence, the
decision is not to reject the null hypothesis,
since the P-value is greater than 0.05.
 Step 6: Summarize the results. There is not
enough evidence to reject the claim that
the average wind speed is 8 miles per
hour.
Small Sample Mean Test
 When the population standard deviation
is unknown and n < 30, the z test is
inappropriate for testing hypotheses
involving means.
 The t test is used in this case.
 Properties for the t distribution are given
in Chapter 8.
 9-4 Small Sample Mean Test -
Formula for t test
X 
t 
s n
where
X  sample mean
  hypothesized population mean
s  sample standard deviation
n  sample size
degrees of freedom  n  1
 9-4 Small Sample Mean Test - X 
t
Example s n

 A job placement director claims that

the average starting salary for
nurses is $24,000. A sample of 10
nurses has a mean of $23,450 and
a standard deviation of $400. Is
there enough evidence to reject the
director’s claim at  = 0.05?
 Small Sample Mean Test - X 
t
Example s n

 Step 1: State the hypotheses and

identify the claim.
 H0: $24,000 (claim) H1:  $24,000
 Step 2: Find the critical value. Since
 = 0.05 and the test is a two-tailed
test, the critical values are t = –2.262
and +2.262 with d.f. = 9.
t- table
Small Sample Mean Test -
Example
 Step 3: Compute the test value.
t = [23,450 – 24,000]/[400/] = – 4.35.
 Step 4: Reject the null hypothesis, since
– 4.35 < – 2.262.
 Step 5: There is enough evidence to reject
the claim that the starting salary of nurses is
$24,000.
t- table
Small Sample Mean Test -
Example
 Proportion Test
 Since the normal distribution can be
used to approximate the binomial
distribution when np 5 and nq 5, the
standard normal distribution can be
used to test hypotheses for proportions.
 The formula for the z test for
proportions is given on the next slide.
Formula for the z Test for
Proportions

X  X  np
z or z 
 npq
where
  np
  npq
 Proportion Test - Example

 An educator estimates that the

dropout rate for seniors at high
schools in Ohio is 15%. Last year,
38 seniors from a random sample of
200 Ohio seniors withdrew. At  =
0.05, is there enough evidence to
reject the educator’s claim?
Proportion Test - Example
t- table

 Step 1: State the hypotheses and identify the

claim.
 H0: p0.15 (claim) H1: p 0.15
 Step 2: Find the mean and standard deviation.
 = np = (200)(0.15) = 30 and
 =(200)(0.15)(0.85) = 5.05.
 Step 3: Find the critical values. Since
 = 0.05 and the test is two-tailed the critical
values are z = 1.96.
Proportion Test - Example

Step 4: Compute the test value.

z = [38 – 30]/[5.05] = 1.58.
Step 5: Do not reject the null
hypothesis, since the test value
falls outside the critical region.
 Proportion Test - Example

 Step 6: Summarize the results. There is

not enough evidence to reject the claim
that the dropout rate for seniors in high
schools in Ohio is 15%.
 Note: For one-tailed test for
proportions, follow procedures for the
large sample mean test.
Proportion Test - Example
Variance or Standard Deviation
Test - Formula
 Assumptions for the Chi-Square Test for
a Single Variance

 The sample must be randomly

selected from the population.
 The population must be normally
distributed for the variable under
study.
 The observations must be
independent of each other.
 Variance Test - Example
 An instructor wishes to see whether the
variation in scores of the 23 students in
her class is less than the variance of
the population. The variance of the
class is 198. Is there enough evidence
to support the claim that the variation of
the students is less than the population
variance (2 = 225) at  = 0.05?
 Variance Test - Example
 Step 1: State the hypotheses and identify
the claim.
 H0: 225 H1:  225 (claim)
 Step 2: Find the critical value. Since this test
is left-tailed and  = 0.05, use the value 1 –
0.05 = 0.95.
The d.f. = 23 – 1 = 22. Hence, the critical
value is 12.338.
 Variance Test - Example
 Step 3: Compute the test value.
 = (23 – 1)(198)/225 = 19.36.

 Step 4: Make a decision. Do not reject

the null hypothesis, since the test value
falls outside the the critical region.
Variance Test - Example
 Variance Test
 Note: When the test is two-tailed,
you will need to find 2(left) and
2(right) and check whether the
test value is less than 2(left) or
whether it is greater than 2(right)
in order to reject the null
hypothesis.
 Confidence Intervals and
Hypothesis Testing - Example
 Sugar is packed in 5-pound bags. An
inspector suspects the bags may not
contain 5 pounds. A sample of 50 bags
produces a mean of 4.6 pounds and a
standard deviation of 0.7 pound. Is
there enough evidence to conclude that
the bags do not contain 5 pounds as
stated, at  = 0.05? Also, find the 95%
confidence interval of the true mean.
Confidence Intervals and
Hypothesis Testing - Example

 H0: 5 H1:  5 (claim)

 The critical values are +1.96 and – 1.96
 The test value is
4.6  5.00
Z  4.04
0.70 / 50
 Since – 4.04 < –1.96, the null hypothesis is
rejected.
 There is enough evidence to support the claim
that the bags do not weigh 5 pounds.
Confidence Intervals and
Hypothesis Testing - Example
 The 95% confidence interval for the mean is given by

s s
X z  X z 
2 n 2 n

 0.7   0.7 
4.6  (1.96)     4.6  (1.96) 
 50   50 
4.406    4.794
 Notice that the 95% confidence interval of  does not
contain the hypothesized value  = 5. Hence, there is
agreement between the hypothesis test and the
confidence interval.