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Tests of Hypotheses

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    [Former Professor of VIT, Vellore (TN) & BU]

    Hypo.Testing/ RNS/kiit 1

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    1.Define Research Problem2.Review Literature (Last finding/ theory/ concept)

    3.Formulate Hypothesis

    4.Design the Research (Sampling design)5.Collection of data(Observations, response variable)

    [ Predictor, criterion variables] Ex. - advt., sales

    6. Analysis of data (Hypothesis testing etc.)

    7. Interpretation & Final report

    Hypo.Testing/ RNS/kiit 3

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    Research gap

    Additional knowledge

    Trying to know something about the unknown

    Population vs Sample

    Parameter vs Statistic Census vs sampling

    Sampling methods & sampling distributions

    Sampling error, standard error

    Estimation: point & interval

    Hypo.Testing/ RNS/kiit 4

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    of consumers of

    Marital status of respondents Annual Income of family2. Relevance of malls, like Bigbazar (to the locals);3. Importance of while buying Mobile,

    edible oil4. Use of credit cards;5. Attitude (I)/ Preference(O)

    (study on fruit juice Vs soft drink)6. Newspaper popularity;

    7. Packaging [study onfor

    deodorant];8. Selecting a trusted/ dependable Hospital

    Hypo.Testing/ RNS/kiit 5

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    The observational method involves human or

    mechanical observation of what people actually door what events take place during a buying or

    consumption situation.

    are repeated-measurement studies, that collectdata over several periods in time.

    Hypo.Testing/ RNS/kiit 6

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    is a declaratory statement that is testable. Itis a statement about the population that we wish to

    verify on the basis of available sample information.

    - It is a provisional answer to the research problem

    under study which is tested empirically for its validity.

    The hypothesis tested is generally called

    and the other, which gives a reversestatement, is called its

    Hypo.Testing/ RNS/kiit 7

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    1.

    2.

    3. 4.

    Hypo.Testing/ RNS/kiit 8

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    Actual/true-State

    Reject (H0) Accept (H0)

    H0 True Wrong (Type IError)

    CorrectDecision

    H0 False Correct

    Decision

    Wrong (Type II

    Error)

    Action

    Decision from Sample

    = Producers risk and = Consumers risk, (chances of)

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    the probability of type-1 error, is known as thelevel of significance of the test (= size of the CriticalRegion).

    Prob.{Accepting H0 / H1 is true}= ,

    (1-

    ) is called the power of the test.- We cant check/ reduce both & simultaneously.The usual practice is to control at a predeterminedlow level and subject to this constraint on wechoose such a test that minimizes (or maximizesthe power function, 1- ). Generally we choose =0.05 or, 0.01 (i.e. 5% or 1%) level of significance.

    Hypo.Testing/ RNS/kiit 10

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    In every test, we compute the value

    - E( )Z = --------------

    S.E.( )

    Where , is the statistic;S.E ( ) is the standard error of the statistic .

    Hypo.Testing/ RNS/kiit 11

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    Large Sample Test

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    1. Construct hypotheses (null & Alternative) 2. Select appropriate test statistic (formula)

    3. Calculation (calculated value of t or z)

    4. Comparison (with tabulated value)

    Note: Testtype (one/ two tailed test) depends onH1one/ two tailed test : (z=2.58 or 1.96), for 1% or 5%

    one tailed test : (z= 2.33 or 1.645), for 1% or 5%

    Hypo.Testing/ RNS/kiit 13

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    Hypo.Testing/ RNS/kiit 14

    n

    XZ

    /

    0

    FORMULAE FOR TESTS

    Cases: - Large sample test

    1. Testing of Mean of a Normal Distribution With Known S. D. ( ):

    2. Testing of mean of a Normal Distribution with unknown S.D. ():

    Where,

    (S is called sample Standard Deviation)

    21

    1 XX

    nS i

    nS

    Xt

    /

    0

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    Hypo.Testing/ RNS/kiit 15

    ,11

    21

    21

    nnS

    XXt

    2

    11

    21

    2

    2212

    12

    nn

    SnSnS

    3 (a):Test ofequality of two means with known variances:

    (Ho: 1

    = 2

    )

    3(b): Test ofequality of two means where variances are not

    known:

    ,

    2

    12

    1

    12

    21

    nn

    XXZ

    Where,

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    Hypo.Testing/ RNS/kiit 16

    npq

    PPZ

    /

    1

    2

    22

    1

    11

    21

    n

    qP

    n

    qP

    PPZ

    4 (a): Test of proportions (single sample):

    4(b): Test of equality of proportions of two samples:

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    t - test when :

    (i) Sample size is within 30-40, or less(ii) Population variance or standard deviation isunknown.

    While testing hypothesis following are

    usually made:(a) the population is normal (or ApproximatelyNormal),(b) Observations are independently drawn for therandom sample.

    (c) In case of 2 samples, population variances areequal(for the test of equality of Means)

    Hypo.Testing/ RNS/kiit 17

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    This test is used for:

    (i) test of dependence or association between

    2 attributes,

    (ii) test of goodness of fit,

    (iii) test of homogeneity (of distributions,correlation coefficients & population variances).

    n (Oi- Ei)2

    2 ( )= --------

    i=1 Ei

    Hypo.Testing/ RNS/kiit 18

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    Hypo.Testing/ RNS/kiit 19

    Critical region (or the rejection area)

    Accept

    Right-tail

    Left-tail

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    Hypo.Testing/ RNS/kiit 20


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