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Stat Chapter 5

This document discusses hypothesis testing, including: - Defining a hypothesis as a proposed explanation made based on limited evidence. - Hypothesis testing involves two competing hypotheses: the null hypothesis and alternative hypothesis. - It outlines the key components of hypothesis testing including significance level, test statistic, critical value, critical region, Type I and II errors, and the steps to conduct hypothesis testing.

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11 views

Stat Chapter 5

This document discusses hypothesis testing, including: - Defining a hypothesis as a proposed explanation made based on limited evidence. - Hypothesis testing involves two competing hypotheses: the null hypothesis and alternative hypothesis. - It outlines the key components of hypothesis testing including significance level, test statistic, critical value, critical region, Type I and II errors, and the steps to conduct hypothesis testing.

Uploaded by

Latayada Justin
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter V

HYPOTHESIS
TESTING
HYPOTHESIS
- a supposition or proposed explanation made based on
limited evidence as a starting point for further investigation.
- tentative explanation for a group of facts, phenomenon or
scientific problem that can be accepted as basis for further
verification or accepted as likely to be true.
TWO COMPETING HYPOTHESES IN HYPOTHESIS TESTING
SIGNIFICANCE LEVEL
- Usually denoted by alpha (α) is related to the degree of
certainty in order to reject the null hypothesis in favor of the
alternative hypothesis.
TEST STATISTIC
- A test in which its value is used o decide whether the null
hypothesis should be rejected in a hypothesis test or not.
- Z-test, T-test, Chi-Square and F-test are examples of test
statistic
CRITICAL VALUE/TABULAR VALUE
- a point to which the value of the test statistic in a sample
is compared to determine whether the null hypothesis is
rejected or not.
CRITICAL REGION
- a set of values of the test statistic for which the null
hypothesis is rejected in a hypothesis test
TYPE I and TYPE II ERRORS
- The types of hypothesis testing to be used depends
on the statement of the alternative hypothesis.
- The one-tailed test is a directional test in which the
rejection region lies on either left or right tail of a
normal distribution/curve.
- For the right-tailed directional test, the rejection region
is on the right tail of the normal curve. We use the
comparative words for our alternative hypothesis such
as “above/ bigger/ higher/ greater than”.
- For the left-tailed directional test, the rejection is
located on the left of the tail of the normal curve. The
words “below/ smaller/ lower/ less than”.
- The two-tailed test is a non-directional test. The
rejection regions are located on both tails of the
normal curve. The test is used when the alternative
hypothesis is stated using the words “not equal to, not
the same as, significantly different.”
Steps in Hypothesis Testing
1. Write the given
2. Formulate the null and alternative hypotheses.
3. Specify the level of significance.
4. Determine the test statistic to be used and the critical value or
tabular value.
5. Compute the value of the test statistic
6. Make a decision.
7. Conclude
A researcher reports that the average salary of College
Deans is more than 63,000 pesos. A sample of 35
College Deans has a mean salary of 65,700 pesos. At
α=0.01, test the claim that the College Deans earn more
than 63,000 pesos a month. The standard deviation of
the population is 5,250 pesos.

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