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Hypothesis Testing Key Terms

Hypothesis testing is a statistical method for making decisions based on experimental data, involving the null hypothesis (𝐻𝑜) and the alternative hypothesis (𝐻𝑎). The significance level (α) determines the criteria for rejecting the null hypothesis, with tests categorized as one-tailed or two-tailed. Key concepts include rejection and non-rejection regions, critical values, and the use of t-tests or z-tests based on known standard deviations and sample sizes.

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8 views

Hypothesis Testing Key Terms

Hypothesis testing is a statistical method for making decisions based on experimental data, involving the null hypothesis (𝐻𝑜) and the alternative hypothesis (𝐻𝑎). The significance level (α) determines the criteria for rejecting the null hypothesis, with tests categorized as one-tailed or two-tailed. Key concepts include rejection and non-rejection regions, critical values, and the use of t-tests or z-tests based on known standard deviations and sample sizes.

Uploaded by

Jessa Mae Sintos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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HYPOTHESIS TESTING

Key Terms:
• Hypothesis Testing is a statistical method applied in making decisions using
experimental data. It is basically testing an assumption that we make about a
population.
• Hypothesis is a proposed explanation, assertion, or assumption about a
population parameter or about the distribution of a random variable. There are two
types of hypothesis, the null and the alternative.
• The null hypothesis is an initial claim based on previous analyses, which the
researcher tries to disprove, reject, or nullify. It shows no significant difference
between two parameters. It is denoted by 𝐻𝑜.
• The alternative hypothesis is contrary to the null hypothesis, which shows that
observations are the result of a real effect. It is denoted by 𝐻𝑎.
• The level of significance denoted by alpha or 𝛂 refers to the degree of
significance in which we accept or reject the null hypothesis. (Note: 100% accuracy
is not possible in accepting or rejecting a hypothesis. The significance level α is
also the probability of making the wrong decision when the null hypothesis is true.)
• When the alternative hypothesis is two-sided like 𝐻𝑎: 𝜇 ≠ 𝜇o, it is called two-tailed
test.
• When the given statistics hypothesis assumes a less than or greater than value, it
is called one-tailed test.

• The rejection region (or critical region) is the set of all values of the test statistic
that causes us to reject the null hypothesis. (Note: It is the shaded region.)
• The non-rejection region (or acceptance region) is the set of all values of the
test statistic that causes us to fail to reject the null hypothesis. (Note: It is the non-
shaded region.)
• The critical value is a point (boundary) on the test distribution that is compared to
the test statistic to determine if the null hypothesis would be rejected. (Note: It can
be found in the table.)
• The computed t-value is the value we are going to compare to the critical value
to decide whether to reject or accept the null hypothesis depending on where it
falls under. It is the result of calculating the t-test and substituting the given values
𝑥̅ −𝑢
to the formula 𝑡 = 𝑠 .
√𝑛
• The computed z-value is the value we are going to compare to the critical value
to decide whether to reject or accept the null hypothesis depending on where it
falls under. It is the result of calculating the z-test and substituting the given values
𝑥̅ −𝑢
to the formula 𝑧 = 𝜎 .
√𝑛
• When to use z-test and t-test? Please be guided by the

Is the standard
deviation known?

If NO, then is the sample


If YES, then use z-test. size greater than 30
(n>30)?

If YES, then use If NO, then


z-test. use t-test.

• Errors that can be committed.

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