INFERENTIAL

STATISTICS

TESTING OF HYPOTHESIS
HYPOTHESIS
A statement with many faceted ideas that are
still to be resolved whether they are true or not is
called hypothesis. A hypothesis is subjected to
testing statistically. If it is to be true, then it is
accepted, but if it is found to be false, it is
rejected.

Types of Hypothesis
NULL HYPOTHESIS always express the idea of
nonsignificant difference which is denoted by H 0
ALTERNATIVE HYPOTHESIS is the negation of the
null hypothesis, and denoted by H1 .
Note: Rejection of null hypothesis leads to the
acceptance of the alternative hypothesis.

Example 1:
H0 :The mean weight of a newly born baby is equal to 6 lbs.
H0 : = 6
H1 :The mean weight of a newly born baby is not equal to 6 lbs.
H1 : 6
Example 2:
H0 :There is no significant difference between the mean height of
the palay planted in the lahar soil and agricultural soil.
H0 : =
H1 :There is a significant difference between the mean height of
the palay planted in the lahar soil and agricultural soil.
H1 :

Example 3:
H0 :The performance of the recent EE graduates in
the board examination do not differ from that of the
past.
H0 : =
H1 :The performance of the recent EE graduates
in the board examination is better than that of the
past .
H1 : >

TYPES OF ERRORS:
TYPE I - Rejecting the null hypothesis when in fact
it is true.
TYPE II Accepting the null hypothesis when in
fact it is false.

LEVEL OF SIGNIFICANCE:
The probability of committing a type I error is called the
level of significance. The level of significance is denoted
by alpha (), while the probability of committing type II
error is denoted by beta (). The value of is equal to
the probability of making an error in rejecting the null
hypothesis when in fact it is true. Similarly, the value of
is equal to the probability of committing an error in
accepting the Ho when in fact it is false.
Choice of the value of the significance level ranges
from 0.01 to 0.10, depending on the risk the researcher
is willing to the for making type I error.

TYPES OF TESTS:
A hypothesis could be one sided(directional) or two
sided (non-directional). The one sided test is referred
to as one tailed test. If the alternative hypothesis is
expressed in terms like greater than or less than,
it is called one-tailed test. The rejection region lies
only in one tail of the distribution.
Rejection region

Acceptance
Region

Acceptance
region

If an alternative hypothesis is expressed in a

nonequality statement, it is a nondirectional or a
two tailed test.
Rejection Region

Acceptance
Region

STEPS IN HYPOTHESIS TESTING : (with Fixed

Probability of Type I Error)
1. Formulate a null hypothesis (Ho) and the
alternative hypothesis (H ).
2. Set the level of significance.
3. Identify the type of statistical test as either one
tailed or two tailed test.
4. Determine the tabular value for the test. (Z, t, Chisquare, f)
5. Compute for the required statistical test.
6. value.

6. Decide whether to accept to reject the null hypothesis. Accepting

the null hypothesis implies rejecting an alternative hypothesis,
while rejecting Ho implies accepting H1. The statement below can
be used as guidelines in making a decision.
a. Accept Ho if the computed value is less than the tabular
value.
b. Reject Ho if the computed value is greater than the tabular.
7. Conclusion is the last step. It is the part where the researcher
explains his decision. Interpreting a result may not end by
simply saying null hypothesis is accepted or null hypothesis
is rejected. Moreover, it is a good idea to explain the
implication of the result.

Significance Testing (P-value Approach)

1.
2.
3.

4.

State null alternative hypotheses.

Choose an appropriate test statistic.
Compute the P-value based on the computed
value of the test statistic.
Use judgment based on the P-value and
knowledge of the scientific system.

CRITICAL VALUES OF Z
Significant
Level

0.10

0.05

0.025

0.01

One-Tailed

1.28

1.645

1.96

2.23

Two-Tailed

1.645

1.96

2.33

2.58

Examples:
1. The mean score on a widely freshman history
examination is 75. A history teacher at a very large
university wants to determine whether there is statistical
evidence for claiming that this years class is not
average.
Given the following scores, and assuming that the
students in this class are a random sample from the
population of students at the university, test the
appropriate hypothesis versus the appropriate
alternative. The test scores are:
94

69

89

49

88

89

65

95

55

93

86

62

83

96

48

51

69

74

83

71

89

58

89

81

79

52

73

75

91

68

100

63

81

Answer:
1. H0 : = 75, the student score is average
H1 : 75, the student score is not average
2.
3.
4.
5.

= 0.05
Two tailed test
Critical region z = 1.96
Test Statistic
76 75
z = ----------------- = 0.3773
15.2254 / 33
6. Decision: Accept Ho
7. Conclusion: There is no statistical basis for concluding
that the freshman class this year is not average.

2. Suppose you are a buyer of large supplies of

light bulbs. You want to test, at the 5% significance
level, the manufacturers claim that his bulbs last
more than 800 hours. You test 36 bulbs and find
the sample mean x , is 816 hours and the sample
standard deviation s=70 hours. Should you accept
the claim?

Answer:
1. H0 : = 800, Light bulbs last not more than 800 hours
H1 : > 800, Light bulbs last more than 800 hours
2.
3.
4.
5.

= 0.05
One tailed test
Critical region z = +1.645
Test Statistic
816 - 800
Z = ----------------- = 1.37
70 / 36
6. Decision: Accept Ho
7. Conclusion: Reject the manufacturers claim that hiis
bulbs last more than 800 hours.

3.A certain printing press is known to turn out an average of

45 copies a minute. In an attempt to increase its output, an
alteration is made to the machine, and then in 3 short test
runs it turns out 46, 47, and 48 copies a minute. Is this
increase statically significant, or is it likely to be simply the
result of chance of variation? Use a significance level of
0.05

Answer:
1. H0 : = 45, there is no increase in copies
H1 : > 45, there is an increase in copies
2.
3.
4.
5.

= 0.05
One tailed test
Critical region t = +2.92
Test Statistic
47 - 45
T = ----------------- = 3.47
1/3
6. Decision: Reject Ho
7. Conclusion: The increase in copies in our samples is
statistically significant. It is not the result of chance of
variation.

4.

Suppose that you want to decide which of the two equally

priced brands of light bulbs last longer. You choose a
random sample of 100 bulbs of each brand and find that
brand A has sample mean of 1,180 hours and standard
deviation of 120 hours, and that brand B has sample
mean of 1,160 hours and sample standard deviation of 40
hours. What decision should you make at 5% level of
significance.

Answer:
1. H0 : A = B , brand A and Brand B are the same
H1 : A B , brand A and Brand B are not the same
2. = 0.05
3. Two tailed test
4. Critical region z = 1.96
5. Test Statistic
(1,180-1,160) - 0
Z = ----------------------------------------- = 1.58
(14,400/100) + (1,600/100)
6. Decision: Accept Ho
7. Conclusion: There is no significant difference between
the average lifespans of the two brands.

5.A recent report claims that college non-graduates get

married at a earlier age than college graduates. To support
the claim, random samples of size 100 were selected from
each group and the mean age at the time of marriage was
recorded. The mean and standard deviation of the college
non-graduates were 22.5 years and 1.4 years respectively,
while the mean and standard deviation of the college
graduates were 23 years and 1.8 years. Test the claims of
the report at the 5% level of significance.

Answer:
1. H0 : 1 2 0
H1 : 1 2 < 0
2.
3.
4.
5.

= 0.05
One tailed test
Critical region z = - 1.645
Test Statistic
(22.5 - 23) - 0
Z = ----------------------------------------- = -2.19
(1.42 /100) + (1.82 /100)
6. Decision: Reject Ho
7. Conclusion: At 5% level of significance, college nongraduates do marry at an earlier age than college
graduates.

6.

The following data represent the running times of

films produced by 2 motion picture companies
Company

Time ( minutes)

102

86

98

109

92

81

165

97

134

92

87

114

Test the hypothesis that the average running times of

films produced by company 2 exceeds the average
running time of films produced by company 1 by at
least 10 minutes, against the one sided alternative
that the difference is less than 10 minutes. Use a
0.01 level of significance and assume the distribution
of times approximately normal with unequal
variances.

Answer:
1. H0 : 2 1 10 minutes
H1 : 2 1 < 10 minutes
2. = 0.01
3. One tailed test
4. Critical region: t = - 2.998
[ 18.8/5 + 913.333/7]2
v = ------------------------------------------------ = 7
[78.8/5]2 / 4 + [913.333/7]2 / 6
5. Test Statistic
(110 - 97.4) - 10
T = ----------------------------------------- = 0.22
(78.8/5 )+ (913.333/7)
6. Decision: acceptH0
7. Conclusion: At 1% level of significance, there is sufficient
evidence that the average running time of films produced by
company 2 exceeds the average running time of films produced by
company 1 by at least 10 minutes.

7. An electrical company claimed that at least 95%

of the parts which they supplied on a government
contract conformed to specifications. A sample of
400 parts was tested, 45 did not meet
specification. Can we accept the companys claim
at a 5% level of significance?

Answer:
1. H0 : p 0.95
H1 : p < 0.95
2.
3.
4.
5.

= 0.05
One tailed test
Critical region z = +1.645
Test Statistic
355/400 - 0.95
Z = ------------------------- = -5.7
(0.95)(0.45)/400
6. Decision: Reject Ho
7. Conclusion: The companys claim that at least 95% of
the parts conformed to specifications is not justified .

8. The student government of a large college

polled a random sample of 325 male students
and found that 221 were in favor of a new
grading system. At the same time, 120 out of a
random sample of 200 female students were in
favor of the new system. Do the results indicate
a significant difference in the proportion of male
and female students who favor the new system.
Test at the 0.05 level of significance.

Answer:
1. H0 : p1 p2 = 0
H1 : p1 p2 0
2. = 0.05
3. Two tailed test
4. Critical region: Z = 1.96
5. Test Statistic
(221/325 120/200) 0
Z = -----------------------------------------------------------------= 1.86
[(221/325)(104/325)]/325 +[(120/200)(80/200)]/200
6. Decision: Reject Ho
7. Conclusion: At 5% level of significance, there is no
significant difference between the proportion of male
and female students who favor the new system.

Note: large sample test of 2 = 02 when n 30 we

can test the null hypothesis that 2 = 02 by
computing
s 0
Z = -------------0 / 2n
which is a value of a value of random variable
whose sampling distribution is approximately the
standard normal distribution.

9. A sample of size 10 produced a variance of 14.

Is this sufficient to reject the null hypothesis that
2 = 6 when tested using a 0.05 level of
significance? Using a 0.01 level of significance?

Answer:
1. H0 : 2 = 6
H1 : 2 6
2. = 0.05
3. Two tailed test 2
2
4. Critical region: 0.975 = 2.700 and 0.025 = 19.023
5. Test Statistic
9(14)
2 = ------------- = 21
6
6. Decision: Reject Ho
7. Conclusion: Conclude that 2 6 at a 5% level of
significance.

Answer:
1. H0 : 2 = 6
H1 : 2 6
2. = 0.01
3. Two tailed test 2
2
4. Critical region: 0.995 = 1.735 and 0.005 = 23.589
5. Test Statistic
9(14)
2 = ------------- = 21
6
6. Decision: Accept Ho
7. Conclusion: Conclude that 2 = 6 at a 1% level of
significance.

10. Past experience indicates that the time required for

high school seniors to complete a standardized test is
a normal random variable with a standard deviation of
6 minutes. Test, the hypothesis that = 6 against the
alternative that, < 6 if a random sample of 20 high
school seniors has a standard deviations s = 4.51. Use
a 0.05 level of significance.
11. Allotoxins produced by mold on peanut crops in
Virginia must be monitored. A sample of 61 batches of
peanuts reveals levels of 24.17 ppm, on average, with
a variance of 4.25 ppm. Test the hypothesis that
2= 4.2 ppm with the alternative that 2 4.2 ppm. Use a
0.05 level of significance

1 2.
A random sample of 21 boys and 15 girls
were given a standardized test. The average
grade of boys was 78 with a standard deviation
of 6, while the girls made an average grade of
84 with a standard deviation of 8. Test the
hypothesis 12 = 22 against the alternate
hypothesis 12 < 22 where 12 and 22 are the
variances of the population of boys and girls.
Use a 0.05 level of significance.