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Hypothesis

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What is Hypothesis?

A hypothesis is an assumption that is made based on some evidence.


This is the initial point of any investigation that translates the research questions into predictions.
It includes components like variables, population and the relation between the variables.
A research hypothesis is a hypothesis that is used to test the relationship between two or more
variables.

Types of Hypothesis
There are six forms of hypothesis and they are:

• Simple hypothesis
• Complex hypothesis
• Directional hypothesis
• Non-directional hypothesis
• Null hypothesis
• Associative and casual hypothesis

Null Hypothesis
It provides a statement which is contrary to the hypothesis. It’s a negative statement, and there is no
relationship between independent and dependent variables. The symbol is denoted by “HO”.

Hypothesis Testing
In today’s data-driven world, decisions are based on data all the time.
Hypothesis plays a crucial role in that process, whether it may be making
business decisions, in the health sector, academia, or in quality
improvement. Without hypothesis & hypothesis tests, you risk drawing the
wrong conclusions and making bad decisions.

What Is Hypothesis Testing in Statistics?

Hypothesis Testing is a type of statistical analysis in which you put your assumptions
about a population parameter to the test. Hypothesis testing is about testing that claim
that I am making whether it holds or not, based on the data that I collected.
So, this hypothesis testing concerns with parameters of the probability distribution of the
population and not with the sample. But in order to make suppositions or hypothesis regarding
the population we use the information contained in the samples.

Hypothesis testing is an integral part of every statistical inferencing exercise.


Let's discuss few examples of statistical hypothesis from real-life -

• A teacher assumes that 60% of his college's students come from lower-middle-class
families.

• A doctor believes that 3D (Diet, Dose, and Discipline) is 90% effective for diabetic
patients.

Null Hypothesis and Alternate Hypothesis


You are having particular running plant and a person is newly recruited from a reputed institution.
He comes over there and says that this process is not good enough; I have an idea which will
improve the process. The management is a bit skeptical not because it wants to discourage the
youngster, but already you are having a well running process and it is making profits.

The management is also skeptical that the new process may not be any significant or considerable
improvement over an already existing one. So, the null hypothesis is the suggested process is
not good or not producing any considerable improvement and the alternate hypothesis would
be the new process is in fact better than the old process or the existing process.

Another, more easier example is, suppose the court is investigating a particular crime and the
prosecution is saying a particular person is guilty, the null hypothesis is the person is not guilty,
the alternate hypothesis is the person is in fact guilty of committing a crime.

So, what we do is, we take the sample, and then extract a sample statistic from it; it may be the
variance of the sample or it may be the mean of the sample - these are the two more common ones.
And using this estimate, we try to infer about the population parameters. If we are using the sample
mean, then we are trying to infer about the population mean; if you are using the sample variance,
we are trying to infer about the population variance.

So, the decision making is always associated with the errors; nobody can really say that all their
decisions have been completely correct. So, we have to see what are the possible errors in decision
making.
If the null hypothesis says that person accused of a crime is innocent, and the court rejects that
hypothesis H naught, and instead says the person is actually guilty, and convicts him, then a wrong
decision has been made, and an innocent person has been punished. So, a type I error is said to
be made.

On the other hand, if the person is really guilty, but if the court exonerates him, then the guilty
person is getting away scot free, and type II error is supposed to be made. Perhaps you may recall
that even though many guilty people may escape punishment not a single innocent person should
be wrongly punished.

STATISTICAL INFERENCE FOR A SINGLE POPULATION VARIANCE

The mean of a population is important, but in many cases the variance of the
population is just as important.
In most production processes, quality is measured by how closely the process
matches the target (i.e. the mean) and by the variability (i.e. the variance) of the
process.

For example, if a process is to fill bags of coffee beans, we are interested in both
the average weight of the bag and how much variation there is in the weight of the
bags. The variance of the weight of the bags is too high—a variance that is too
large means some bags would be too full and some bags would be almost empty.
STATISTICAL INFERENCE FOR TWO POPULATION VARIANCES

Sometimes we want to compare the variability between two populations instead


of comparing the means of the populations.

For example, college administrators would like two college professors grading
exams to have the same variation in their grading or a supermarket might be
interested in the variability of the check-out times for two checkers.
As with comparing other population parameters, we can construct confidence
intervals and conduct hypothesis tests to study the relationship between two
population variances. However, because of the distribution we need to use, we
study the ratio of two population variances, not the difference in the variances.
Chi-Square Goodness of Fit Test

What is the Chi-square goodness of fit test?


It is often used to evaluate whether sample data is representative of the full
population.

The Chi-square goodness of fit test checks whether your sample data is likely to
be from a specific theoretical distribution. We have a set of data values, and an
idea about how the data values are distributed. The test gives us a way to decide
if the data values have a “good enough” fit to our idea, or if our idea is
questionable.
Engage

A Pearson’s chi-square test is a statistical test for categorical (has two or more
categories, but there is no intrinsic ordering to the categories. For example, a
binary variable) data. It is used to determine whether your data are significantly
different from what you expected. There are two types of Pearson’s chi-squar
e tests:

• The chi-square goodness of fit test is used to test whether the


frequency distribution of a categorical variable is different from your
expectations.
• The chi-square test of independence is used to test whether two
categorical variables are related to each other.

Chi-square is often written as Χ2 and is pronounced “kai-square”.

Types of chi-square tests


The two types of Pearson’s chi-square tests are:

• Chi-square goodness of fit test


• Chi-square test of independence

Mathematically, these are actually the same test. However, we often think of them as
different tests because they’re used for different purposes.

Chi-square goodness of fit test


chi-square goodness of fit test is used when you have one categorical variable. It allows you
to test whether the frequency distribution of the categorical variable is significantly
different from your expectations. Often, but not always, the expectation is that the
categories will have equal proportions.

Example: Hypotheses for chi-square goodness of fit test Expectation of equal


proportions

• Null hypothesis (H0): The bird species visit the bird feeder
in equal proportions.
• Alternative hypothesis (HA): The bird species visit the bird feeder
in different proportions.

Expectation of different proportions

• Null hypothesis (H0): The bird species visit the bird feeder in
the same proportions as the average over the past five years.
• Alternative hypothesis (HA): The bird species visit the bird feeder
in different proportions from the average over the past five years.
Chi-square test of independence
You can use a chi-square test of independence when you have two categorical
variables. It allows you to test whether the two variables are related to each other. If two
variables are independent (unrelated), the probability of belonging to a certain group of
one variable isn’t affected by the other variable.

Example: Chi-square test of independence

• Null hypothesis (H0): The proportion of people who are left-handed is the
same for Americans and Canadians.

• Alternative hypothesis (HA): The proportion of people who are left-


handed differs between nationalities.

The chi-square formula


Both of Pearson’s chi-square tests use the same formula to calculate the test statistic,
chi-square (Χ2):

Where:

• Χ2 is the chi-square test statistic


• Σ is the summation operator (it means “take the sum of”)
• O is the observed frequency
• E is the expected frequency

The larger the difference between the observations and the expectations (O − E in the
equation), the bigger the chi-square will be. To decide whether the difference is big
enough to be statistically significant, you compare the chi-square value to a critical
value.

Chi-Square Goodness of Fit Test

What is the Chi-square goodness of fit test?


The Chi-square goodness of fit test is a statistical hypothesis test used to
determine whether a variable is likely to come from a specified distribution or
not. It is often used to evaluate whether sample data is representative of the full
population.
The chi-square test of independence is an inferential statistical
test, meaning that it allows you to draw conclusions about a
population based on a sample. Specifically, it allows you to
conclude whether two variables are related in the population.
1. Explain Null and Alternate Hypothesis with suitable examples.

2. Explain Chi-square goodness of fit test & Chi-square test of


independence

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