Testing of Hypothesis I

(Parametric or Standard Tests of Hypothesis)

Rehna. V. J

5/1/2012

Hypothesis
Main

function is to suggest new experiments & observations Decision makers test hypothesis on the basis of available information and then take decisions on the basis of such testing Hypothesis testing enables us to make probability statements about population parameters The hypothesis may not be proved 5/1/2012 absolutely, but in practice it is accepted

What is a Hypothesis?
Hypothesis means a mere assumption or

some supposition to be proved or disproved But for a researcher, hypothesis is a formal question that he intends to resolve. A hypothesis may be defined as a proposition or a set of proposition set forth as an explanation for the occurrence of some specified group of phenomena either asserted merely as a provisional conjuncture to guide some investigation or accepted as highly probable in the light of established facts
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Example of a hypothesis capable of being experimentally verified and tested

Students who receive counseling will show a

greater increase in creativity than students not receiving counseling

Automobile

is

performing

as

well

as

automobile B
We may conclude that a hypothesis states what

we are looking for and it is a proposition which can be put to test to determine its value. 5/1/2012

Characteristics of Hypothesis
Hypothesis must posses the following characteristics: A hypothesis must be clear and precise. If not, the

inferences drawn on its basis cannot be taken as reliable Hypothesis should be capable of being tested Hypothesis should state relationship between variables Hypothesis should be limited in scope and must be specific. A researcher must remember that narrower hypothesis are generally more testable and he should develop such hypothesis Hypothesis should be stated as far as possible in 5/1/2012 simple terms so that it is easily understandable by

Characteristics of Hypothesis
Hypothesis must posses the following

characteristics: Hypothesis should be possible to be tested within a reasonable time. One cannot spend a lifetime collecting data to test it. Hypothesis must explain the facts that give rise to the need for explanation. Thus hypothesis must actually explain what it claims to explain i.e. it should have empirical reference.
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Basic concepts concerning testing of hypothesis.

Null hypothesis or alternative hypothesis The level of significance.

Decision rule or test of hypothesis.

Type I and Type II errors. Two-tailed and one-tailed test.

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Basic concepts concerning testing of hypothesis.

Null hypothesis or alternative hypothesis:

If we are to compare method A with method

B about its superiority and if we proceed on the assumption that both methods are equally good, then
A=B
This assumption is termed as the null

hypothesis. If method A is superior or if method B is inferior then we are stating what is termed as alternative hypothesis. 5/1/2012 The null hypothesis is symbolized as Ho and

Basic concepts concerning testing of hypothesis.

The

null hypothesis and alternative hypothesis are chosen before the sample is drawn. In choice of null hypothesis, the following considerations are usually kept in view :
Alternative hypothesis is usually the one which

one wishes to prove and the null hypothesis is the one which one wishes to disprove. The rejection of a certain hypothesis when it is actually true involves great risk. Null hypothesis should be always be specific. It should not state an approximate value.
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Basic concepts concerning testing of hypothesis.

Decision rule or test of hypothesis:

Given a null hypothesis Ho and alternative

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hypothesis Ha, we make a rule known as decision rule according to which we accept Ho (reject Ha) or reject Ho (i.e. accept Ha). For example, if Ho is that a certain lot is good against Ha, means there are very few defective items in Ho. If the lot is not good, it means there are too many defective items in it. Then we must decide the number of items to be tested and the criterion for accepting or 5/1/2012 rejecting the hypothesis.

Basic concepts concerning testing of hypothesis.

Type I and Type II errors: There are two basic types of errors which we

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make in the context of testing of hypothesis. We may reject Ho when Ho is true Type I error. We may accept Ho, when Ho is not true Type II error. Type I error means rejection of hypothesis which should have been accepted and Type II error means accepting the hypothesis which should have been rejected. Type I error is denoted by (alpha error) and also called the level of significance of test. 5/1/2012 Type II error is denoted by (beta error).

Basic concepts concerning testing of hypothesis.

Two-tailed & one-tailed tests

A two-tailed test rejects the null hypothesis if the sample mean is significantly higher or lower than the hypothesized value of the mean of the population
Thus in a two-tailed test, there are two rejection regions, one on each tail of the curve
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Basic concepts concerning testing of hypothesis.

Two-tailed & one-tailed tests
There are situations when only one-tailed test is considered appropriate A one-tailed test would be used when we are to test whether the population mean is either lower than or higher than some hypothesized value
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Procedure for hypothesis testing

To test a hypothesis means to tell

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whether the hypothesis is valid or not (on the basis of the data collected by the researcher) In hypothesis testing, the main question is whether to accept the null hypothesis or not Procedure for hypothesis testing refers to all those steps that we undertake for making a choice between the two. 5/1/2012

Procedure for hypothesis testing

The various steps involved in hypothesis

testing are: Making a formal statement. Selecting a significance level. Deciding the distribution to use. Selecting a random sample and computing an appropriate value. Calculation of the probability. Comparing the probability.
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Procedure for hypothesis testing

Making a formal statement :
Hypothesis

should be clearly stated considering the nature of the research problem. It also indicates whether we should use a one tailed test or a two - tailed test.

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Procedure for hypothesis testing

Selecting a significance level: The hypothesis are tested on a predetermined level of significance and it should be specified. In practice, either 5% or 1% level is adopted for the purpose. The factors that affect the level of significance are :
The magnitude of the difference between sample means Size of the sample 5/1/2012 The variability of measurements within samples

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Procedure for hypothesis testing

Deciding the distribution to use: The next step in hypothesis testing is to determine the appropriate sampling distribution. The choice generally remains between normal distribution and the t- distribution. The rules for selecting the correct distribution are similar to those in the context of estimation.
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Procedure for hypothesis testing

Selecting

a random sample computing an appropriate value:

and

Draw a sample to furnish empirical data. Here we select random sample(s) and

compute an appropriate value from the sample data concerning the test statistic utilizing the relevant distribution.

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Procedure for hypothesis testing

Calculation of the probability :
The next step is to calculate the probability

that the sample result would diverge as widely as it has from expectations, if the null hypothesis is in fact true.

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Procedure for hypothesis testing

Comparing the probability : The last step is to compare the probability thus calculated with the specified value of , the significance level. If the calculated probability is equal to or smaller than the value in case of one tailed test(and /2 in case of two - tailed test), then reject the null hypothesis (i.e. accept the alternative hypothesis) If the calculated probability is greater than , then accept the null hypothesis.
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Flow diagram for hypothesis testing

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Tests of Hypothesis
Hypothsis testing helps to decide on what

basis of a sample data, whether the hypothesis about a population is likely to be true or false Tests of hypothesis is also called as test of significance
Classified as:

Paramatric

Tests or Standard tests of

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Hypothesis Non-parametric Tests or Disribution-free test 5/1/2012 of hypothesis

Parametric Tests
Parametric

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tests usually assume certain properties of the parent population from which we draw samples Assumptions like, sample size is large, assumptions about the population parameters like mean, variance, etc must hold good before parametric tests can be used But there are some situations where the researcher does not want to make such assumptions. In such cases we use statistical methods for testing hypothesis, which are 5/1/2012 called non-parametric tests because such

Important parametric tests

z-test t-test 2-test

f-test
All

these tests are based on the assumption of normality, i.e source of data is considered to be normally distributed
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z-test
Based on the normal probability distribution Used for the judging of the significance of

several statistical measures, particularly the mean

Most frequently used test in research studies

Generally used for comparing the mean of a

sample to some hypothesized mean for the population in case of large sample
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t-test
Based on t-distribution An

appropriate test for judging the significance of a sample mean in case of small samples, when population variance is not known we use paired t-test (or difference t-test) for judging the significance of the mean of difference between the two related samples
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In case two samples are related,

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2-test
Based on chi-square distribution Parametric test used for comparing a

sample variance population variance

to

theoretical

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f-test
Based on F-distribution Parametric test used for compare the

variance of two independent samples

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Thank You

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