ppt13. Exploring More Elements of Hypothesis Testing
ppt13. Exploring More Elements of Hypothesis Testing
Elements of
Hypothesis Testing
Lesson Objective
At the end of this lesson, you are expected to:
• Understand the concept of Type I and Type II errors;
• Connect error to the process of hypothesis testing;
• Locate critical values under the normal curve; and
• Determine critical values for hypothesis testing.
Content
• Activity 1: What mistakes do people make?
• Activity 2: Understanding the Decision Grid
• Four Possible Outcomes in Decision-Making
• Activity 3: Understanding Errors
• Types of Errors
• Control Errors
• Activity 4: Determining the Critical Values
• Summary Tables of Critical Values
• Group Activity
Activity 1: What mistakes do
people make?
1. Bryan thinks that he is a six-footer. His actual height is
156 cm.
2. On a moonlit night, a young man declares that there are
two moons.
3. Mark says, “I am virtuous!” In the moment, he find
himself in jail.
4. Thousand of years ago, Ptolemy declared that earth is
flat.
5. On a beachfront, a signage reads, “No littering of plastic
wrappers, empty bottles, and can.” A few yards away,
environmentalists are picking up rubbish left behind by
picnic lovers.
Activity 2: Understanding the
Decision Grid
• In hypothesis testing, we make decisions about the null
hypothesis.
• When we conduct hypothesis test, there are four
possible outcomes.
Four Possible Outcomes in
Decision-Making
Decisions about the
Do not Reject
Reject
(or Accept )
Solution:
Mary is rejecting the truth. She is committing a Type
I error.
• Example 2: Stephen’s Hairline
Stephen says that he is not bald. His hairline is just
receding. Is he committing an error? If so, what type of
error.
Solution:
Yes. A receding hairline indicates balding. This is a
Type I error. Stephen action may be to find remedial
measures to stop falling hair.
Reject a Accept a
I A
true true
Accept a Reject a
II B
false false
Control Errors
• We can control errors by assigning small probability
values to each of them. The most frequently used
probability values for and are 0.05 and 0.01.
• The symbol and are each probabilities of error, each
under separate conditions, and they cannot be
combined. Therefore, there is no single probability for
making an incorrect decision.
Note that the rejection region for a directional test is in
one tail but distributed to the two tails in a non-
directional test.
Activity 4: Determining the
Critical Values
For a 95% confidence level:
(expressed up to four decimal places
so that we can identify an area in the
normal curve table as close as
possible to this value).
In the normal curve table, the
area .4750 corresponds to z=1.96.
Thus, the critical values for the 95%
confidence level are and
For 99% confidence level:
(expressed up to four decimal places
so that we can identify an area in the
normal curve table as close as possible
to this value).
In the normal curve table, there are two
areas close to this value: 0.4949 that
corresponds to z=2.57 and .4951 that
corresponds to z=2.58. Then, we get
the average of the z-values. This result
to z=2.575. In practice, we use the z-
values 2.58.
Thus, for 99% confidence, the critical
values are and .
Summary Table of Critical
Values
Confidence Level 2-tailed 1-tailed
_________ _________
_________ _________
_________ _________
_________ _________
Group Activity
For each of the given, do the following:
1. Draw the normal curve.
2. Locate the z-value.
3. Indicate if the z-value is in the rejection region or in the
acceptance region.
• confidence, two-tailed
• confidence, two-tailed
• confidence, one-tailed
• confidence, one-tailed
Example:
• confidence, two-tailed