HYPOTHESIS TESTING

1
HYPOTHESIS TESTING

• The use of sample data to make a decision either
  to accept or to reject a statement about a
  parameter value or about a population distribution

2
Procedure for Hypothesis Testing

• Establish the hypotheses
• Obtain the sample results
• Choose the test statistic, set the significance
  level, and look up the critical values of z or t
• Calculate the standard error
• Calculate the test statistic
• Decide whether to reject the null hypothesis and
• Take action.

3
Example

• A manufacturer of cereal wants to test the
  performance of one of its filling machines. The
  machine is designed to discharge a mean amount of
  12 ounces per box, and the manufacturer wants to
  detect any departure from this setting. This
  quality control study calls for sampling 100
  boxes to determine whether the machine is
  performing to specifications. The sample resulted
  in a mean amount of 11.85 ounces per box with a
  standard deviation of 0.5. Setup a test of
  hypothesis for this study, using ? 0.01.

4
Formulation of Hypotheses

• Null Hypothesis H0
• The Null Hypothesis is
• usually the hypothesis
• that the researcher wants
• to gather evidence against.

• Alternative Hypothesis HA
• The Alternative Hypothesis
• is usually the hypothesis
• for which the researcher
• wants to gather supportive
• evidence.