3 Chapter T
3 Chapter T
THREE
HYPOTHESIS
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TESTING
BASIC CONCEPTS OF HYPOTHESIS
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TYPE I AND TYPE II ERRORS
A conclusion is correct if a true null hypothesis is accepted, or, if a
false null hypothesis is rejected. An error is made under the
following conditions:
If a true H0 is rejected - Type I error. ( α)
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CONT.….
Additional concepts on testing hypothesis
Test statistic: A value, determined from sample information, used
to accept or reject the null hypothesis.
Critical Value: A number that is the dividing point between the
region of acceptance and the region of rejection.
It is a value that is compared with the test statistic to determine
whether or not null hypothesis should be rejected.
(i)
H 0 : h (ii)
H 0 : h (iii)
H 0 : h
note that:
So Ha: h Ha: h Ha: h
The first two ((i) and (ii) lead to one-tailed test.
The first one (i) is a right-tailed test and the 2 nd (ii) is a left-
tailed test.
The third one (iii) is a two-tailed test.
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TEST OF A POPULATION MEAN
While testing populations mean:
Use the sample Z test statistic when:
The population is normal and the sample size
whatever but is known, or,
The sample size is greater than 30.
Use the sample t test statistic when the population is
normal, is unknown, and n <30.
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TEST OF A POPULATION MEAN
Example 1:
Suppose that a particular University dean of students has generally
assumed the average age of a student is no more than 20 years.
However, lately the students have appeared to be somewhat older
than before, and the office believes that the average age now might
be older. Suppose that 50 students are chosen from enrollment
records randomly and the mean found to be 20.76. If the
population standard deviation for the ages of these university
students is 3.6 years, perform a hypothesis test at α = 0.05.
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CONT.…
Solution:
Step 1; State the hypothesis:
Ho: µ 20 years
Ha: µ > 20 years
Step 2: State the decision rule:
Decision rule will be: Reject Ho if sample Z > 1.645.
b/c 0.5- 0.05 = 0.45 so, z = 1.645 from the table of z-
distribution where z = 45% then find z – value from the normal
z – distribution.
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CONT.…
Step 3: computing the test state; Compute the value of the test
statistic (in this case the Z-value):
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CONT.…
Example 2:
The president of a chain store selling diary products asserts that the
mean content of the store's 32ounce fluid (1 quarter) milk
containers is at least 32 ounce. Performa a hypothesis test at the
1% level of significance if the mean content of a random sample of
60 containers is 31.98 ounces and the sample standard deviation is
0.1 ounce.
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CONT.…
Step 1: State the hypotheses:
Ho: µ ≥ 32
Ha: µ < 32
Step 2: State the decision rule:
The test will be left-tailed because Ha states is less than32. The
sample size is 60, is greater than 30, so the sample statistic is
the sample Z. thus, Z0.01 = -2.33 (0.5 – 0.01 = 0.49 find 0.49 in
the body of the table and read value of Z)
Reject H0 if sample Z< -2.33
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CONT.…
Step 3 : Compute the sample statistic (Z – value)
Step 4:
Accept or reject H0:
Sample (computed) Z < - 2.33 17
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CONT.…
Example 4:
It is known that the distribution of efficiency ratings for production
employees at Muger Cement factory is normally distributed with a
population mean of 200 and a population standard deviation of 16.
The research department is challenging this mean stating it is
different from 200. Using the 0.01 level of significance, test the
hypothesis that the population mean is 200, if the efficiency rating
of 100 employees were analyzed and sample mean is found to be
203.5. 19
Solution
Step 1: State the hypotheses:
Ho: µ = 200
Ha: µ200.
Step 2: State decision rule:
= 2.19
Accept the Ho. The population mean is not different from 200
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is accepted at the 0.01 level. The difference between 203.5 and
TEST OF A POPULATION PROPORTION
Proportion is a ratio, fraction, or percentage that gives the part of
the population sample having a particular trait of interest. Thus,
sample proportion is computed as
P=
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CONT.…
With the symbol P denoting the population proportion and Po
denoting a particular hypothesized value for the population
proportion,
The three forms for hypothesis test about population proportion are
as follows:
The first two forms are one - tailed tests, whereas the third form is
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a two - tailed test.
EXAMPLE
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SOLUTION
Step 1: State the hypothesis:
Ho: P 0.17
Ha: P > 0.17
Step 2: State the decision rule:
This is a one-tailed test, and the table reading of z 0.05 = +
1.645. Reject Ho if sample Z > 1.645
Step 3: Compute sample z:
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Formula for the z Test for Comparing Two Means from
Independent Populations
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CONT.…
These tests can also be one-tailed, using the following hypotheses:
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CONT.…
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EXAMPLE
A survey found that the average hotel room rate in Addis Ababa is
$88.42 and the average room rate in Gondar is $80.61. Assume that
the data were obtained from two samples of 50 hotels each and that
the standard deviations of the populations are $5.62 and $4.83,
respectively. At α = 0.05, can it be concluded that there is a
significant difference in the rates?
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SOLUTION
Step 1; State the hypotheses and identify the claim
H0: µ1= µ2
H1: µ1 ≠ µ2 (claim)
Step 2; Find the critical values. Since α = 0.05, the critical values are
+1.96 and -1.96.
Step 3; Compute the test value.
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HYPOTHESIS TESTING OF THE DIFFERENCE
BETWEEN TWO PROPORTIONS
It is used to test the equality of two population proportions.
For example, a researcher might ask, is the proportion of men who
exercise regularly less than the proportion of women who exercise
regularly? Is there a difference in the percentage of students who
own a personal computer and the percentage of nonstudents who
own one? Is there a difference in the proportion of college
graduates who pay cash for purchases and the proportion of non-
college graduates who pay cash?
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CONT.…
A survey of 1000 drivers this year showed that 29% of the people
send text messages while driving. Last year a survey of 1000
drivers showed that 17% of those send text messages while
driving. At α=0.01, can it be concluded that there has been an
increase in the number of drivers who text while driving?
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SOLUTION
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CONT.….
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CONT.….
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THE END
THANK
YOU
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