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Testing of Hypothesis For Single Proportion - : Large Sample Test

This document discusses testing hypotheses for single proportions using large sample tests. It provides background on hypothesis testing according to Karl Popper. It defines key terms like the null hypothesis (H0), alternative hypothesis (H1), level of significance, and type I and type II errors. It outlines the steps to conduct a large sample test for a single proportion: 1) formulate the hypotheses, 2) specify the significance level and critical value, 3) calculate the test statistic, 4) make a conclusion about rejecting or failing to reject the null hypothesis. Two examples are worked through demonstrating this process.

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68 views16 pages

Testing of Hypothesis For Single Proportion - : Large Sample Test

This document discusses testing hypotheses for single proportions using large sample tests. It provides background on hypothesis testing according to Karl Popper. It defines key terms like the null hypothesis (H0), alternative hypothesis (H1), level of significance, and type I and type II errors. It outlines the steps to conduct a large sample test for a single proportion: 1) formulate the hypotheses, 2) specify the significance level and critical value, 3) calculate the test statistic, 4) make a conclusion about rejecting or failing to reject the null hypothesis. Two examples are worked through demonstrating this process.

Uploaded by

Praba Karan Pk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Testing of hypothesis for single proportion – large sample test

FACULTY IN-CHARGE: Dr. MUTHU KUMAR P

BATCH MEMBERS
20Y126 - SRINATH R

20Y127 – SWETHA D

20Y128 - THANGARAJ M

21Y437 – SAKTHIVEL T

21Y439 – SURYA KRISHNAA P


HISTORY OF HYPOTHESIS – (KARL POPPER)

Any useful hypothesis will enable predictions by reasoning (including deductive


reasoning).

It might predict the outcome of an experiment in a laboratory setting or the


observation of a phenomenon in nature.

The prediction may also invoke statistics and only talk about probabilities. 

Karl Popper, has argued that a hypothesis must be falsifiable, The notion of the
scientific hypothesis as both falsifiable and testable was advanced by Karl
Popper.
INTRODUCTION

Significance tests play a key role in experiments: they allow researchers to determine whether their data
supports or rejects the null hypothesis, and consequently whether they can accept their alternative
hypothesis.

NULL HYPOTHESIS :
◦ Null hypothesis is denoted by H0.
◦ It states that there is no true difference between the sample of data and the population
parameter.
◦ Thus, a null hypothesis states that:
◦ H0 = there is no difference between the assumed and the actual value of the parameter.
ALTERNATIVE HYPOTHESIS:
◦ Logical opposite of the null hypothesis.
◦ It is statistically significant difference does exist between the population parameter and the sample statistic being
compared.
◦ It is represented by H1.

LEVEL OF SIGNIFICANCE:
◦ P(Type I error) = α
◦ Maximum allowable probability of making a type I error.
◦ By setting the level of significance at a small value, the probability of rejecting a true null hypothesis to be small.
◦ Commonly used LOS:
◦ α = 0.05,0.02,0.01.

P(Type II error) = β beta . It is not used commonly.


FORMULATING METHODS
STEP 1 - Formulate H0 = p = p0 and H1.

STEP 2 - Specify α and specify criterion to reject H0.

STEP 3 - Calculate Test Statistic

STEP 4 - Conclusion
The critical values for some of the standard LOS are given in the following table.

Nature of test LOS = 0.01 or 1% LOS = 0.05 or 5%


Two tail test Zα = 2.58 Zα = 1.96
Right tail test Zα = 2.33 Zα = 1.64
Left tail test Zα = -2.33 Zα = -1.64
SCHEMATIC DIAGRAM OF ONE TAIL TEST AND
TWO TAIL TEST
PROBLEM -1
1. Transceivers provide wireless communication among electronic components
of consumer products. Responding to a need for a fast, low-cost test of
Bluetooth-capable transceivers, engineers developed a product test at the wafer
level. In one set of trials with 60 devices selected from different wafer lots, 48
devices passed. Test the null hypothesis p = 0.70 against the alternative
hypothesis p > 0.70 at the 0.05 level of significance.
SOLUTION
Given Data: n = 60 , X = 48, p = 0.70, LOS = 0.05.

Here, the sample size is 60 > 30. So, it is a large sample test.

p̂ = X / n = 48 / 60 = 0.8

STEP 1: Null hypothesis H0 = p = 0.70

Alternative Hypothesis H1 = p > 0.70 (right hand one tail test).

STEP 2: LOS = 0.05 ; then Zα = 1.64 .


SOLUTION
STEP 3: Test statistic

◦ Z= = 1.6903
STEP 4 : Since Z = 1.69 > 1.64 = Zα
Hence, the hypothesis is rejected.
i.e., (low-cost test of Bluetooth-capable transceivers will face errors while functioning )
Confidence interval for proportion

Substituting the values in the equation:

0.773 <p<0.826

But our hypothesis lies outside the confidence interval so, it must be rejected.
PROBLEM -2
2. A manufacturer of submersible pumps claims that at most 30% of the pumps
require repairs within the first 5 years of operation. If a random sample of 120 of
these pumps includes 47 which required repairs within the first 5 years, test the
null hypothesis p = 0.30 against the alternative hypothesis p > 0.30 at the 0.05
level of significance.
SOLUTION
Given Data: n = 120 , X = 47, p = 0.30, LOS = 0.05.
Here, the sample size is 120 > 30. So, it is a large sample test.
p̂ = X / n = 47 / 120 = 0.39.

STEP 1: Null hypothesis H0 = p = 0.30

Alternative Hypothesis H1 = p > 0.30 (right hand one tail test).

STEP 2: LOS = 0.05 ; then Zα = 1.64 .


SOLUTION
STEP 3: Test statistic

Z= = 2.153
STEP 4: Since Z = 2.153 > 1.64 Zα
Hence, the hypothesis is rejected.

i.e., ( 30% of the pumps will repairs within the first 5 years of operation)
Confidence interval for proportion

Substituting the values in the equation:

0.3608 <p<0.4192

But our hypothesis lies outside the confidence interval so, it must be rejected.
THANK YOU

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