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Testing of Hypothesis
In hypothesis testing, we must state the assumed or
hypothesized value of the population parameter before we
begin sampling
The assumption we wish to test is called the null hypothesis
and is symbolized H0
Alternative Hypothesis
If our sample results fail to support the null hypothesis, we
must conclude that something else is true.
Whenever we reject the hypothesis, the conclusion we do
accept is called the alternative hypothesis and is Symbolized H 1
Example: For H0 =500 ( the null Hypothesis is that the population mean is
equal to 500)
We will consider three possible alternative hypothesis
H1 500 ( The alternative hypothesis is that the population mean is not equal
to 500)
H1 > 500 (The alternative hypothesis is that the population mean is greater
than 500
H1 <500 (The alternative hypothesis is that the population mean is less than
500
Significance Level
The purpose of hypothesis testing is not to question the computed value
of the sample statistics but to make a judgment about the difference
between the sample statistics and a hypothesized population parameter.
The next step after stating the null and alternative hypothesis, then, is to
decide what criterion to use for deciding whether to accept or reject the
null hypothesis
It means simply that when sample data do not cause us to reject a null
hypothesis, we behave as if that hypothesis is true.
Selecting
Significance
Level/Confidence
Limits
Type I Error
Rejecting a null Hypothesis when it is true is
called a Type I error
Type I error is denoted by a (alpha) where
a = Probability of type I error
= Probability (rejecting Ho | Ho is true ).
Conditions for Using the Normal and t Distributions in Testing Hypotheses about
means
When the population
Sample size
assume the population is normal Z table
or approximately so
t-table
A
two-tailed test of a hypothesis will reject the null
hypothesis if the sample mean is significantly higher than or
lower than the hypothesized populations mean
Thus, in a two-tailed test, there are two rejection regions.