Testing of Hypothesis

Testing a New Drug’s Effect on Blood Pressure

A pharmaceutical company develops a new drug that they

believe lowers blood pressure. They conduct a study to test
this claim.

Hypothesis tests use sample data to draw conclusions about

the properties of a population.
There are tremendous benefits in working with random
samples because it is usually impossible to measure the
entire population.

The samples we use are typically a minuscule percentage of

the entire population.
Consequently, they occasionally misrepresent the population
severely enough to cause hypothesis tests to make errors.
 Testing of Hypothesis
Testing a New Drug’s Effect on Blood Pressure

A pharmaceutical company develops a new drug that they

believe lowers blood pressure. They conduct a study to test
this claim.

Step 1: Formulate the Hypotheses

Null Hypothesis (H₀): The new drug has no effect on blood
pressure
Alternative Hypothesis (H₁): The new drug lowers blood
pressure
 Testing of Hypothesis
Testing a New Drug’s Effect on Blood Pressure
Type Description Example
A pharmaceutical company develops a new drug that they Type I Error
Rejecting H₀ Concluding a drug works
believe lowers blood pressure. They conduct a study to test (False
when it is true when it doesn’t
this claim. Positive)

Step 2: Choose the Significance Level (α) Failing to

Type II
•The company sets α = 0.05 (5%), meaning they are willing to reject H₀ Concluding a drug doesn’t
Error (False
when H₁ is work when it does
accept a 5% chance of incorrectly concluding that the drug Negative)
true
works when it actually doesn’t (Type I error).

How to Reduce Errors?

To reduce Type I error (α) → Lower the significance level

(e.g., from 0.05 to 0.01).

To reduce Type II error (β) → Increase sample size or

improve test sensitivity.

Power of a hypothesis test = 1- β

 Testing of Hypothesis
Testing a New Drug’s Effect on Blood Pressure • F-Test (For Comparing Variances of Two Samples)
This test is used to test the significance of difference
A pharmaceutical company develops a new drug that they between variances
believe lowers blood pressure. They conduct a study to test • ANOVA (for comparing more than two groups)
this claim. This test is used to test the significance of difference
between means of more than 2 samples

Step 3: Select the Appropriate Test

Depending on the type of data and hypothesis, use an

appropriate test:
• Z-test (for large samples, known variance)
This test is used to test the significance of difference
between means and proportion
• T-test (for small samples, unknown variance)
This test is used to test the significance of difference
between means
• Chi-square test (for categorical data)
This test is used to test the goodness of fit and
independence of attributes
 Testing of Hypothesis
Testing a New Drug’s Effect on Blood Pressure

A pharmaceutical company develops a new drug that they

believe lowers blood pressure. They conduct a study to test
this claim.

Step 4: Collect Data & Compute Test Statistic

They randomly select n patients and measure their blood

pressure before and after taking the drug.

They calculate the mean reduction in blood pressure and

the test statistic value using the appropriate formula.
 Testing of Hypothesis
Testing a New Drug’s Effect on Blood Pressure

A pharmaceutical company develops a new drug that they

believe lowers blood pressure. They conduct a study to test
this claim.

Step 4: Collect Data & Compute Test Statistic

They randomly select n patients and measure their blood

pressure before and after taking the drug.

They calculate the mean reduction in blood pressure and

the test statistic value using the appropriate formula.
 Testing of Hypothesis
Testing a New Drug’s Effect on Blood Pressure

A pharmaceutical company develops a new drug that they

believe lowers blood pressure. They conduct a study to test
this claim.

Step 5: Find critical value / p-value and Compare test

statistic value with critical value or p-value with α

|Test statistic value|< critical value  H0 is accepted

p-value > α  H0 is accepted
 Testing of Hypothesis
Testing a New Drug’s Effect on Blood Pressure

A pharmaceutical company develops a new drug that they

believe lowers blood pressure. They conduct a study to test
this claim.

Step 6: Conclusion
•The company concludes that there is significant evidence
that the drug lowers blood pressure.
•The drug can now proceed to further testing or approval.
 TESTING OF HYPOTHESIS

Steps in Testing of Hypothesis:

Step 1: Null Hypothesis, Alternate Hypothesis

Step 2: Test statistic

Step 3: Level of significance

Step 4: Critical value

Step 5: Decision
 TESTING OF HYPOTHESIS
A machine is set to produce metal plates of thickness 1.5 cms with standard deviation 0.2
cm. A sample of 100 plates produced by the machine gave an average thickness of 1.52
cms. Is the machine fulfilling the purpose?

Given Data :

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 2: Test statistic Step 5: Decision

 TESTING OF HYPOTHESIS
A random sample of 25 members is found to have a mean of 4.45 cms. Can it be reasonably
regarded as a sample from a large population whose mean is 5 cms and whose variance is 4
cms?

Given Data :

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 2: Test statistic Step 5: Decision

 TESTING OF HYPOTHESIS
Vanaspati oil is marketed in tins of 10 kgs. A sample of 20 tins showed the mean weight as
9.5 kg with standard deviation of 3 kgs. Does the sample justify the claim that the mean
weight is 10 kg. Mention the level of significance you use.

Given Data :

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 2: Test statistic Step 5: Decision

 TESTING OF HYPOTHESIS
The average marks scored by 32 boys are 72 with a S.D of 8, while that for 36 girls is 70 with
a S.D of 6. Test at 1% level of significance whether the boys perform better than girls.

Given Data :

Step 3: Level of significance

Step 1:
Null Hypothesis
Step 4: Critical value
Alternate Hypothesis
Step 5: Decision
Step 2: Test statistic
 TESTING OF HYPOTHESIS
Ten individuals are chosen at random from a population and their heights are found to be
in inches 63, 63, 64, 65, 66, 69, 70, 70, 71, 70. Discuss the suggestion that the Mean height
of universe is 65.
Given Data :

Step 1: Step 3: Level of significance

Null Hypothesis
Step 4: Critical value
Alternate Hypothesis

Step 2: Test statistic Step 5: Decision

 TESTING OF HYPOTHESIS
The following data relate to the marks obtained by 11 students in two tests held at the
beginning of a year and the other at the end of the year after intensive coaching. Do the
data indicate that the students have benefited by coaching?
Test 1: 19, 23, 16, 24, 17, 18, 20, 18, 21, 19, 20
Test 2: 17, 24, 20, 24, 20, 22, 20, 20, 18, 22, 19
Given Data : Step 2: Test statistic

Step 3: Level of significance

Step 4: Critical value

Step 1:
Null Hypothesis
Step 5: Decision
Alternate Hypothesis
 TESTING OF HYPOTHESIS
Six guinea pigs injected with 0.5 mg of a medication took on an average 15.4 secs to fall
asleep with an unbiased standard deviation 2.2 secs, while six other guinea pigs injected
with 1.5 mg of the medication took on an average 11.2 secs to fall asleep with an unbiased
standard deviation 2.6 secs. Use 5% level of significance to test the null hypothesis that the
difference in dosage has no effect.
Given Data :

Step 3: Level of significance

Step 1:
Null Hypothesis Step 4: Critical value

Alternate Hypothesis
Step 5: Decision
Step 2: Test statistic
 TESTING OF HYPOTHESIS

Given Data : Step 2: Test statistic

Step 3: Level of significance

Step 4: Critical value

Step 1:
Null Hypothesis
Step 5: Decision
Alternate Hypothesis
 Z DISTRIBUTION

What is z distribution ?

A special normal distribution with mean 0 and standard deviation 1

Where is Z distribution used ?

Used in Hypothesis Testing in

• Test of significance of difference between
sample mean and population mean
• Test of significance between two population
means
 STUDENT T DISTRIBUTION

What is Student t distribution ?

A distribution developed by English statistician William Sealy Gosset under the pen name
‘Student’

Where is Student t distribution used ?

Used in estimating mean of a normally

distributed population when sample size is
small and population standard deviation is not
known.
 CHI-SQUARE DISTRIBUTION

What is Chi square distribution ?

Let Z1, Z2, Z3, …, Zk be independent standard normal variates.

Consider, Q = Z12 + Z22 + Z32 +…+ Zk 2

Then Q follows Chi square distribution

Here, parameter = k = degree of freedom

Where is Chi square distribution used ?

Used in Hypothesis Testing in

• Test of Goodness of Fit
• Independence of attributes
 F DISTRIBUTION

What is F distribution ?

If m 2 , n 2 are independent Chi square distribution

 /
Let Fn, m = , then F distribution is the distribution with CDF Fn, m
 /

Where is F distribution used ?

Used to test whether two observed samples

have the same variance
 TESTING OF HYPOTHESIS

Digit

Oi

Ei

(O i - E i ) 2
Ei
 TESTING OF HYPOTHESIS

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 5: Decision
Step 2: Test statistic
 TESTING OF HYPOTHESIS

20 13

Oi

Ei

(O i - E i ) 2
Ei
 TESTING OF HYPOTHESIS

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 5: Decision
Step 2: Test statistic
 TESTING OF HYPOTHESIS

Oi

Ei

(O i - E i ) 2
Ei
 TESTING OF HYPOTHESIS

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 5: Decision
Step 2: Test statistic
 TESTING OF HYPOTHESIS

Fit a Poisson distribution to the following data and calculate theoretical frequencies.
X 0 1 2 3 4 5 6 7 8
frequency 56 156 132 92 37 22 4 0 1

Oi

Ei

(O i - E i ) 2
Ei
 TESTING OF HYPOTHESIS

Step 1:
Step 3: Level of significance
Null Hypothesis

Alternate Hypothesis
Step 4: Critical value

Step 2: Test statistic Step 5: Decision

 TESTING OF HYPOTHESIS

The average number of customers in a bank per day was found to be 25. The observations of the number of customers
arriving at the bank is as given below. Fit a Poisson distribution to the given data.

No. of 0 1 2 3 4 5 6 7 8 Total
customers
Observed 2 6 24 63 64 50 36 10 1 256
frequency

Oi

Ei

(O i - E i ) 2
2 Ei
(O i - E i )
Ei
 TESTING OF HYPOTHESIS

Step 1:
Step 3: Level of significance
Null Hypothesis

Alternate Hypothesis
Step 4: Critical value

Step 2: Test statistic Step 5: Decision

 TESTING OF HYPOTHESIS

Oi

Ei

(O i - E i ) 2
Ei
 TESTING OF HYPOTHESIS

Step 1:
Step 3: Level of significance
Null Hypothesis

Alternate Hypothesis
Step 4: Critical value

Step 2: Test statistic Step 5: Decision

 TESTING OF HYPOTHESIS

Two batches of animals were inoculated and their survival was recorded as follows. Test whether the inoculation can
be considered effective against the disease.
Survived Not survived
Inoculated 10 2
Not Inoculated 4 8

Oi

Ei
 TESTING OF HYPOTHESIS

Step 1:
Step 3: Level of significance
Null Hypothesis

Alternate Hypothesis
Step 4: Critical value

Step 2: Test statistic Step 5: Decision

 TESTING OF HYPOTHESIS
Two random samples were drawn from two normal populations and their values are as follows.
Sample X : 20, 16, 26, 27, 22, 23, 18, 24, 19, 25. Sample Y : 27, 33, 42, 35, 32, 34, 38, 28, 41, 43,
30, 37. Test whether the two populations have the same variance at 5% level of significance.
∑ ∑ Step 2: Test statistic
𝐹= , where 𝑆 = ,𝑆 =
Note : Choose sample 1 and sample 2 such that 𝑆 > 𝑆

Given Data : Step 3: Level of significance

Step 4: Critical value

Step 1:
Null Hypothesis Step 5: Decision

Alternate Hypothesis
 TESTING OF HYPOTHESIS
The following data refer to yield of wheat in quintals on plots of equal area in two agricultural
blocks A and B. Determine whether variance A is greater.
Block A: no. of plots = 8, mean yield = 60, variance = 50
Block B: no. of plots = 6, mean yield = 51, variance = 40
∑ ∑ Step 2: Test statistic
𝐹 = , where 𝑆 = ,𝑆 =
Note : Choose sample 1 and sample 2 such that 𝑆 > 𝑆

Given Data : Step 3: Level of significance

Step 4: Critical value

Step 1:
Null Hypothesis Step 5: Decision

Alternate Hypothesis
 TESTING OF HYPOTHESIS

Two independent samples from normal populations are of sizes 9 and 13 and s.d. 2.1 and 1.8.
Test the hypothesis that variance of sample I is greater than or equal to variance of sample II.

∑ ∑ Step 2: Test statistic

𝐹= , where 𝑆 = ,𝑆 =
Note : Choose sample 1 and sample 2 such that 𝑆 > 𝑆

Given Data : Step 3: Level of significance

Step 4: Critical value

Step 1:
Null Hypothesis Step 5: Decision

Alternate Hypothesis
 TESTING OF HYPOTHESIS

Two independent samples from normal populations are of sizes 10 and 12 and variance 25 and
10. Test the hypothesis that variance of sample I is equal to variance of sample II.

∑ ∑ Step 2: Test statistic

𝐹= , where 𝑆 = ,𝑆 =
Note : Choose sample 1 and sample 2 such that 𝑆 > 𝑆

Given Data : Step 3: Level of significance

Step 4: Critical value

Step 1:
Null Hypothesis Step 5: Decision

Alternate Hypothesis
 TESTING OF HYPOTHESIS

One Researcher believes a coin is fair, the other believes the coin is biased towards heads.
The coin is tossed 40 times, yielding 30 heads. Indicate whether or not the first Researcher’s
position is supported by the results. Use 5% LOS.

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 5: Decision
Step 2: Test statistic
 TESTING OF HYPOTHESIS

A Researcher hypothesized that women are more likely to be religious than are men. In the
study, the Researcher tested 70 males and 100 females and found that 50 males and 52
females were religious. Does this data support the Researcher at 1% level ?

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 5: Decision
Step 2: Test statistic
 TESTING OF HYPOTHESIS

In city A, 80 people prefer coffee of 200 people surveyed, whereas in city B, of 150 peple
surveyed, 50 of them prefer coffee. Test the claim that the proportion of coffee drinkers is
same in both the cities.

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 5: Decision
Step 2: Test statistic
 TESTING OF HYPOTHESIS

A company claims that 40% of the customers prefer its product A. A survey of 200 customers
finds that 90 prefer the product. Test the company’s claim at 1% level of significance.

Step 1: Step 3: Level of significance

Null Hypothesis

Alternate Hypothesis Step 4: Critical value

Step 5: Decision
Step 2: Test statistic