HYPOTHESIS TESTING PART 1 Melanie Joy A.

Arellano, RMT
LEARNING OUTCOMES
Explain the uses of the different descriptive
statistical tools.
Interpret results of the different statistical tools
INTRODUCTION
In quantitative research, we aim to answer research
questions. One method of evaluating this research question
is via a process called hypothesis testing, which is
sometimes also referred to as significance testing.
HYPOTHESIS TESTING
• a statistical method used to make decisions or inferences
about population parameters based on sample data.
•It involves testing an assumption (called the null hypothesis,
Ho) against an alternative hypothesis (H1 or Ha)
STATISTICAL INFERENCE
Statistical Inference: Process of drawing conclusions about the population on the
basis of the samples obtained from the population of interest.
An approach in statistical inference is STATISTICAL HYPOTHESIS TEST
Steps in Hypothesis Testing:
(1) formulating statistical hypothesis,
(2) setting the level of significance,
(3) computation of the test statistic,
(4) statistical decision,
(5) interpretation/drawing of conclusion.
STATISTICAL HYPOTHESIS
Definition: is an assertion concerning one or more population.
Null Hypothesis
 Hypothesis of no difference
 Should always be stated for the purpose of being rejected or not being
rejected
 Examples
 The average daily intake of linoleic acid is equal to 15 grams (Ho: u=15)
 There is no difference in mean serum uric acid level of patients between
with syndrome and without syndrome
STATISTICAL HYPOTHESIS
Alternative Hypothesis (aka research hypothesis): the hypothesis that the researcher believes in.

 Non directional (aka two-sided hypothesis): there is a significant difference between two
descriptive measures. It makes use of “not equal to” symbol (≠)
 Example:
 The average daily intake of linoleic acid is not equal to 15 grams (H1: u ≠ 15)
 Directional: is an assertion that one descriptive measure is less than or greater than another
descriptive assertion
 Example:
 The average daily intake of linoleic acid is less than 15 grams (H1: u < 15)
 The average daily intake of linoleic acid is greater than 15 grams (H1: u > 15)
STATE THE HYPOTHESES
Scenario 1: A pharmaceutical company is testing a new drug to see if it lowers blood
pressure.

Scenario 2: A researcher wants to compare two teaching methods to see if one is

more effective than the other based on student exam scores.
STATE THE HYPOTHESES
Scenario 3: You are testing whether a coin is biased or fair by flipping it multiple
times and counting the number of heads.

Scenario 4: A company wants to know if their new marketing campaign has increased
the average number of sales.
ONE-TAILED TEST (DIRECTIONAL TEST)
•tests for the possibility of the relationship in one direction only.
Example: H1: The mean is greater than or less than some value (but not
both)
Scenario 1: You're testing whether a new drug lowers blood pressure.
H1: μ<μ0 (testing for a decrease)
Scenario 2: You're testing whether a company’s new product increases
customer satisfaction scores.
H1:μ>μ0 (testing for an increase)
TWO-TAILED TEST (NON-DIRECTIONAL TEST)
•Test for the possibility of the relationship in both directions.
Example: H1: The mean is different from a specific value, meaning it could
be either greater than or less than that value.
•Scenario 3: You're testing whether a new teaching method results in any
difference in student performance (it could be better or worse).
•H1:μ=/μ0
•Scenario 4: You're testing whether a coin is biased in any direction (more
heads or more tails).
•H1:p/=0.5
LEVELS OF SIGNIFICANCE
Significance Level (α\alpha):

 Definition: is the probability that the null hypothesis will be rejected when it is
true
 There are three levels of significance most commonly used: 0.10, 0.05, 0.01
 Threshold: reject Ho = 0.05 (5%) risk to commit Type I error (rejecting
a true null hypothesis)
TYPES OF ERRORS
TYPE 1 ERROR (FALSE POSITIVE)
•Occurs when Ho is rejected, but is actually true
•Denoted by α, often set to 0.05, meaning a 5% chance of
rejecting Ho when it is true
TYPE II ERROR (FALSE NEGATIVE)
•Occurs when Ho is not rejected, but Ho is false
•Denoted by β, representing the probability of failing to
reject a false null hypothesis
TEST STATISTIC
A value calculated from sample data, used to make decisions
about the hypotheses.
Common test statistics: z-score and t-score
The selection of the test statistic depends on
➢Type of variables
➢Levels of measurement
➢Whether the samples are independent or dependent
➢The assumption on the distribution about the data
CRITICAL AND ACCEPTANCE REGIONS
Critical Region: the region in which the null hypothesis is rejected if
the test statistic fall within.
Critical value: serves as basis whether the hypothesis is rejected or
failed to reject.
REJECTION REGION
➢For a one-tailed test, the critical region (where you reject Ho) is only on
one side of the distribution.
➢If you're testing for an increase (𝐻1:𝜇>𝜇0 ), you would only reject 𝐻o
if the test statistic falls far into the right tail of the distribution.
➢If you're testing for a decrease (𝐻1:𝜇<𝜇0 ), you would only reject 𝐻o
if the test statistic falls far into the left tail of the distribution.
REJECTION REGION
➢For a two-tailed test, the critical region is split between both tails of
the distribution
➢You would reject 𝐻o if the test statistic is either much larger or much
smaller than expected, meaning it falls into either the left or right tail of
the distribution.
WHEN TO USE WHICH TEST?
•Use a one-tailed test if you're only interested in whether the effect is in one direction.
For example, you might use a one-tailed test when testing whether a drug only
improves health outcomes, without caring if it worsens them.

•Use a two-tailed test when you're testing for any difference, not just in one direction.
This is the more conservative option because it requires stronger evidence to reject
Ho, as the significance level α is split between both tails.
VISUAL EXAMPLE
One-tailed test (right-tail):
The rejection region is entirely on the right side of the curve if H1 predicts an increase.

Two-tailed test:
The rejection regions are on both sides of the curve, with half of α allocated to the
left side and the other half to the right side.
COMPUTATION OF THE TEST STATISTIC
Before the actual computation of the test statistic, it is highly suggested that:

➢Level of significance is set

➢Corresponding critical value is set
SETTING THE LEVEL OF CONFIDENCE
The level of significance is the probability of rejecting the null hypothesis when it is
actually true (committing a Type I error).
It defines the threshold for the p-value, which helps you decide whether or not to reject the
null hypothesis.
The most common significance levels are:
a= 0.05 (5%) – most commonly used value in hypothesis testing. It means that there is a 5%
risk of concluding that a difference exists when there is no actual difference.
a= 0.01 (1%)- this is stricter, indicating only a 1% chance of rejecting a true null hypothesis
a= 0.10 (10%) – this is more lenient and used in less critical scenarios
STATISTICAL DECISION
Approaches:
1. Compare the Test statistic with the critical value
2. Compare the p-value with the level of significance
COMPARE THE TEST STATISTIC WITH THE CRITICAL
VALUE:
Test Statistic: A value calculated from sample data that measures how far the sample result
is from the null hypothesis. Examples include a Z-statistic, t-statistic, chi-square statistic, or F-
statistic.
Critical Value: The threshold value beyond which we reject the null hypothesis. This value
depends on the level of significance (α) chosen for the test and the distribution of the test
statistic under the null hypothesis.
1. Choose a significance level (α), typically 0.05, 0.01, or 0.10.
2. Find the critical value(s) based on the chosen α and the distribution of the test statistic.
3. Calculate the test statistic from the sample data.
4. Compare the test statistic to the critical value
•If the test statistic exceeds the critical value (in absolute terms, for two-
tailed tests), reject the null hypothesis.
•If the test statistic does not exceed the critical value, fail to reject the
null hypothesis.

•Example (Two-tailed Z-test):

➢α = 0.05 for a two-tailed test.
➢Critical values: ±1.96 (from the Z-distribution).
➢If the test statistic |Z| > 1.96, reject the null hypothesis; otherwise, fail
to reject.
COMPARE THE P-VALUE WITH THE LEVEL OF
SIGNIFICANCE:
•p-value: The probability of observing a test statistic as extreme as, or more extreme than,
the one observed, assuming the null hypothesis is true.
•Level of Significance (α): The probability threshold for rejecting the null hypothesis,
commonly 0.05, 0.01, or 0.10.

•1. Choose a significance level (α).

•2. Calculate the p-value based on the observed test statistic.
•3. Compare the p-value with α:
EXAMPLE:
•If α = 0.05 and the calculated p-value is 0.03:
➢Since p-value (0.03) is less than α (0.05), reject the null hypothesis.
•If p-value = 0.07:
➢Since p-value (0.07) is greater than α (0.05), fail to reject the null
hypothesis.
INTERPRETATION
❖If the statistical decision is to reject null hypothesis, restate the alternative hypothesis
Example:
✓Null hypothesis (H₀): The average weight of a product is 500 grams.
✓Alternative hypothesis (H₁): The average weight of a product is not 500 grams.
❖If the statistical decision is not to reject the null, state the null hypothesis
✓Null hypothesis (H₀): The average weight of a product is 500 grams.
✓Alternative hypothesis (H₁): The average weight of a product is not 500 grams.