HYPOTHESIS TESTING

Hypothesis Definitions
2

Hypothesis are the predictions about the

relationship among two or more variables or
groups based on a theory or previous
research (Pittenger, 2003)
Hypothesis are assumptions or theories that
a researcher makes and tests.

Importance of Hypothesis
3

Hypothesis:

Direct our observations

Identifies the variables to be examined and data
to be collected

Describe a relationship among variables

Can state that as one variable increases, the
other will decrease; as one variables increases,
the other will increase, and so on.

Refer to populations
Hypothesis help researchers infer that results of a
sample will translate to a population

Functions of Hypothesis
4

Hypothesis can:

Estimate Population Characteristics

Correlate Variables
Display Differences among Two or more
populations
Show possible Cause and Effect

TESTING THE
HYPOTHESIS

Several factor are considered into the determination of

the appropriate statistical technique to use when
conducting a hypothesis tests. The most important are
as:

1.

The type of data being measured.

2.

The purpose or the objective of the statistical inference.

Hypothesis can be tested by various techniques. The

hypothesis testing techniques are divided into two broad
categories:

1.

Parametric Tests.

2.

Non- Parametric Tests.

Statistical Hypothesis
6

The null hypothesis always implies that there is no

relation or statistical difference between variables or
groups.
Eg- There will be no difference in the comprehensive test
scores of graduate students who read the text in
research methods and those who did not read their
research methods text.
The alternative hypothesis implies that there is a
meaningful relationship among variables or groups
Eg- Graduate students who read the text in research
methods will score higher on their comprehensive
exams than graduate students who did not read their
research methods text.

Testing of Hypothesis
7

Hypothesis testing is required for basic analysis.

The following steps are involved in hypothesis testing:

Step 1:Formulate the null and alternate

hypothesis.
Null hypothesis (H0): A statement in which no difference or
effect is expected.
Alternate hypothesis(H1): A statement that some difference or
effect is expected.

Step 2: Select an appropriate

test
It is necessary to select an appropriate statistic
test.
A test statistic measures how close the sample
has come to the Ho.
T test
Z test
F test
Chi square test

Step 3:Choose the Level of

Significance
Whenever we draw inferences about a
population, there is a risk that an incorrect
conclusion will be reached.
Two types of errors can occur
1.
2.

Type I
Type II

Type I error
Also known as alpha error, it occurs when the
sample results lead to the rejection of a Ho
that is in fact true.

The probability of type I error is also known as

Level of significance. This error is controlled by
establishing the tolerable level of risk of rejecting a
true Ho. It in turn depends upon the cost.
Type II error
It is also known as beta error. It occurs when the sample
results lead to the acceptance of a Ho that is in fact
false.

The risk of both alpha and beta can be controlled by

increasing the sample size.

Error Types
11

Error Types Chart

Reject H0
Decision Fail to Reject
(Accept)
(decide in
favor of H0)

H0 is True

H1 is True

Type I

Correct
1-

Correct
1-

Type II

Error Types
12

Alpha is the level of probability (pre-set

by the researcher) that the tested
hypothesis will be falsely rejected. Alpha is
the pre-set risk of a Type I error. In other
words, alpha is the degree of risk that you
accept, in advance of conducting the study,
that what you find will be an error.

Beta is the probability (often neglected by

the researcher) that a false null hypothesis
will be accepted. Beta is the probability that
you wont find what you are looking for if, in
fact, it is really there.

Step 4:Collect data and calculate the

test statistic
By using the formula of the selected test, we
calculated the value.
Step 5:Determine the probability
associated with the test statistic
Step 6:Compare probability value with
level of significance and make the
decision
If the computed value is more than tabular
value then we reject null hypothesis and
hence accept the alternate hypothesis.
Step 7:Draw a research conclusion

Important points

Ho is always the hypothesis that is tested.

One tailed test: A test of the Ho where the Ha

is expressed directionally.

Ex: job satisfaction in Public sector companies is

more than that of private sector.

Two tailed test: A test of Ho where the Ha is

not expressed directionally.