Contents

Contents..................................................................................................................... 1
Hypothesis.................................................................................................................. 1
Steps of Hypothesis.................................................................................................2
Types of errors in hypothesis test..............................................................................3
Z-test .........................................................................................................................3
Z-test (one tail)........................................................................................................3
Z-test (two tail)........................................................................................................4
Z- test formula............................................................................................................4
Significance of Level...................................................................................................4
Р-Value:...................................................................................................................... 4
t test...........................................................................................................................5
t test (one tail)........................................................................................................5
t test (two tail).........................................................................................................6
Degree of freedom.....................................................................................................6
Two sample t-test.......................................................................................................6
Independent Measurement (two independent samples).............................................6
Related Measurement (two related Samples).............................................................7
Hartley's test or F-Max test.........................................................................................8
Z test for hypothesis for the proportion:-....................................................................8
Hypothesis test for variance (ANOVA)........................................................................8
One factor ANOVA................................................................................................... 8
Two factor ANOVA...................................................................................................9
Correlation.................................................................................................................. 9
Nature of relationships............................................................................................9
Regression.................................................................................................................. 9
Inference for ρ (rho)................................................................................................. 10

Hypothesis
Procedure for deciding if a null hypothesis should be accepted or rejected in favor of
an alternate hypothesis. A statistic is computed from a survey or test result and is
analyzed to determine if it falls within a set acceptance region. If it does, the null
hypothesis is accepted otherwise rejected.

Steps of Hypothesis
STEP 1: State the null hypothesis H0 and the alternative hypothesis H1.
To do a significance test, you need 2 hypotheses:
H0, Null Hypothesis: the statement being tested, usually saying
As “no effect” or “no difference”.
H1, Alternative Hypothesis: the statement we hope is
True in its place of H0

STEP 2: Decision criteria

A test statistic measures compatibility between the H0 and the data.

The formula fills and then calculates the values of the test. if the α is not given we
will use 0.05.

α= .05

STEP 3: Calculate

Put the values of there test the formulas they will show the reject H0 and
not reject H0

STEP: 4
If you reject H0, your results are significant.
If you do not reject H0, your results are not significant.
Types of errors in hypothesis test

Type 1 error Type II error

It is an error or rejecting the null It is an error of failing to reject the null
hypothesis but in it is true in nature. It is hypothesis when in true it is rejected. It
called alpha (α) error .it comes when we comes when we observe no difference
observe difference but in true there is no but in true difference in present. It is
difference. called as bête (β) error.

Z-test

The `Z-test` is a statistical test used in inference which determines if the difference
between a sample mean and the population mean is large enough to be statistically
significant.

Z-test (one tail)

If our alternative hypothesis is less then μ, rejecting the null hypothesis of only for
large values of the sample mean, it is then called one-tailed

α=0.05
Z-test (two tail)

The two-tailed test is a statistical test used in inference, in which a given

statistical hypothesis , H0 will be rejected when the value of the statistic is either
sufficiently small or sufficiently large. The test is named after the "tail" of data
under the far left and far right of a bell-shaped normal data distribution or bell
curve. However, the terminology is extended to tests relating to distributions other
than normal.

α=0.05

Z- test formula

Significance of Level
The significance level of a test is the probability that the test statistic will reject the
null hypothesis when the hypothesis is true.

The confidence coefficient, 1-α is the probability that you will not reject the null
hypothesis H₀ when is true and should not be rejected.

Р-Value:
The р-value is the probability of getting a test statistic equal to or more extreme
then the sample result, given that the null hypothesis H₀ is true. If the р-value is low
then H₀ must go.

Five method of р-value:

1. Stat the null hypothesis, H₀ and the alternative hypothesis, H₁

2. Choose the level of significance, α and the sample size, n. the level of
significance is specified according to the alterative.
3. Determine the appropriate test statistic and sampling distribution.
4. Collect the data, compute the value of the test statistic and sampling
distribution
5. Write down the statistical decision, if the p-value is greater than or equal to
α, you do no reject the null hypothesis H₀. if the p-value is less than α you
reject the null hypothesis. if the p-value is low , then h₀ must rejected.

t test

Formula (σ unknown)

A statistical test involving means of normal populations with unknown standard deviations;
small samples are used, based on a variable t equal to the difference between the mean of the
sample and the mean of the population divided by a result obtained by dividing the standard
deviation of the sample by the square root of the number of individuals in the sample.

t test (one tail)

A statistical test in which the critical region consists of all values of a test statistic that are less
than a given value or greater than a given value, but not both known as one-tail test.
t test (two tail)

A statistical test in which the critical region consists of those values of a test statistic less than a
given value as well as those values greater than another given value. Also known as two-tail test.

The two-tailed test is a statistical test used in inference, in which a given statistical
hypothesis, H0 will be rejected when the value of the statistic is either sufficiently
small or sufficiently large.

Degree of freedom

Those value which can be vary. The formula of degree of freedom is df = n-1

Two sample t-test

Two sample test is a test which we use for perform the hypothesis test in that case
when we have no data like concentration of students in different temperature. The
benefit of this test is that we can know about new program weather it is effective
than previous program or not. The main thing of this test is that we perform
hypothesis test on estimated values.

This test is called two sample t-test because it has two types

• Independent Measurement (two independent samples)

• Related Measurement (two related Samples)

Independent Measurement (two independent samples)

In this we take two random samples. Samples which shows homogeneity of
variance. We use this test when μ or simple we can say that when we have no data
and we perform test on estimated basis.

In this test only two steps are different from simple t-test.

1. State the hypothesis

H₀: μ₁ = μ₂ = 0

H₁:μ₁ = μ₂ ≠ 0
 2. Calculations

S (M₁-M₂) = S²p/n₁ + S²p/n²

S²p (Pooled Variance) = SS₁/df₁ + SS₂/df₂

t = (M₁-M₂) – (μ₁ - μ₂)/ S (M₁-M₂)

Related Measurement (two related Samples)

This is a second type of two sample t-test in which we study one test at two types or
at different conditions like we perform test on 4 students of same class. e.g. we
study the concentration level of 4 students of same class who have same CGPA. and
same section at different temperatures. In this test two steps are different same like
independent measurement.

1. Stat the Hypothesis

H₀: μD = 0 (D is a difference of concentration levels of different

temperatures)

H₁: μD ≠0

2. Calculations

Here X is a D

t = MD – μD/ SMD

SMD = S²/n

S² = SS/df

SS = (X-M) ²
Hartley's test or F-Max test
We use this for testing the homogeneity of variance. Homogeneity of variance
means both populations should have same variance. The meaning of same variance
is the temperature of both classes should be same.

The formula of F-Max is given below

F-Max = S² Largest/ S² Smallest

If the value of F-Max comes greater than critical value then it means it has larger
effect and the assumption is not fine. It cannot be comparable but if the value
comes smaller than critical value then it is comparable or near to comparable and
the assumption is fine.

Z test for hypothesis for the proportion:-

In the z test for hypothesis for the proportion if the number of successes and
the number of failures are at least five, the sampling distribution of a
proportion approx follows a standardize normal distribution .

Formula (one sample)

Z = p – π/ π ( 1- π/n

Hypothesis test for variance (ANOVA)

It is a statistical test of weather the means of several groups is all equal or not. It is
better tan two sample t-test because in this test the chances of committing error is
minimum .

One factor ANOVA

It is used for comparing the means of two or more independent groups. In this only
two means are available for comparing.
Two factor ANOVA
It is used when subjects are treated as repeated measures in which subjects are
used for each treatment.

Correlation
In simple word correlation means relationship between two or more variables. As a
students of business if we want to know the relationship of productivity and working
hours we will use correlation because correlation will tell us that how strong
relationship is present between these two variables. It is also known as linear
relationship between variables. The coefficient of correlation is always lies between
-1 and +1.

The formula of correlation which tells us the nature of relationship between two or
more variables is given below

r = Ssxy/ SsxxSSyy

Nature of relationships
If value comes in +1 then it is perfect positive relation and if near to +1 e.g. +0.79
or 0.89 then it is near to perfect positive relation

If value comes in -1 then it is perfect negative relation or if neat to -1 e.g. -0.69 or

-0.99 then it is near to perfect negative relationship.

Regression
It is an analysis which is used to find the magnitude of change in one
variable due to another varable. There are two types of regression one is
single regression and the other is multiple regression.

In single regression there are two two categories ne is linear and the other is
non linear. We will disscuss just single linear regression. It is also called
linear relationship.

The equation of linear relationship is given below. This equation is also called least
square method. Scattered diagram is used for represent the linear relationship.

Y = a + bx
In above equation Y is dependent variable while X is independent variable. The
change in dependent variable(Y) comes due to change in independent variable(X). a
is a Y intercept which means that points where lines touches the most in straight
path.

Inference for ρ (rho)

Rho is use for measure the magnitude or strength of the relationship
between two variables. The formula is given below

T = r n-2/ (1-r²)