Step 1: Formulate the null and alternative hypothesis. Draw the one-tail or two- tail test diagram.

Step 2: Specify the level of significance. Determine the critical value (s).

Step 3: Identify the test statistics to be used and calculate it.

Step 4: Draw the conclusion.

Formulae List
Hypothesis Testing

Test Statistics for Single Mean| | Test Statistics for Two Means| known| | 1 and 2 known|
z* = x-μ0σn| | z* = x1-x2-δ0σ12n1+σ22n2|
unknown and n > 30| | 1, 2 unknown and n1 n2 2 30|
z* = x-μ0sn| | z* = x1-x2-δ0s12n1+s22n2|
unknown and n < 30| | 1, 2 unknown and n1 n2 2 < 30|
t* = x-μ0σn df = n 1| | t* = x1-x2-δ0s12n1+s22n2 df = n1 + n2 2|

Test Statistics for Single Proportion| | Test Statistics for Two Proportions| z* = Ps-P0P01-P0n| | z* = Ps1-Ps2-δ0Ps11-Ps1n1+Ps21-Ps2n2|

Using Excel

Z-score: Use =NORM.S.INV() function.

t-statistics: Use =TINV() function.
-------------------------------------------------

Use the above steps and formulae; solve the following questions using Excel and write down the solution on MS Word.

Question 1

The Safe Appliance Store issues its own credit card. The credit manager wants to find whether the mean monthly unpaid balance is more than $400. The level of significance is set at 0.05. A random check of 172 unpaid balances revealed the sample mean is $407 and the standard deviation of the sample is $38.

Should the credit manager conclude that the population mean is greater than $400?

Question 2

A machine is set to fill a specially designed bottle with 9.0 grams of vitamins. It is claimed that the mean is less than 9.0 grams. The hypothesis is to be tested at the 0.01 level.

...APP6JMaloney problems 2. 4, 6, 10, 18, 22, 24
2 ) The value of the z score un a hypothesis test is influenced by a variety of factors.
Assuming that all the other variables are held constant, explain how the value
of Z is influenced by each of the following?
Z= M - u / SD
a) Increasing the difference between the sample mean and the original.
The z score represents the distance of each X or score from the mean.
If the distance between the sample mean and the...

...understanding of hypothesistesting. The textbook explained the aspects and steps of hypothesistesting in a legible fashion, while the video helped demonstrate a real-life application.
I learned from the text that hypothesistesting is a “Procedure for deciding whether the outcome of a study (results from a sample) supports a particular theory or practical innovation (which is...

...HypothesisTesting I
Pat Obi
What is a “Hypothesis?”
A statement or claim about the value of a
population parameter: μ, σ2, p
Pat Obi, Purdue University Calumet
2
Decision Rule
1.
x 0
Z
s
n
Compare calculated Z value to Z value from
Table (critical Z value)
Reject H0 if calculated Z value lies in the
rejection/significance region (i.e. region)
ALTERNATIVELY:
2.
Compare p-value to
Reject H0 if p-value <
Pat Obi, Purdue...

...HYPOTHESISTESTING
WHAT IS THIS HYPOTHESIS????
• In simple words it means a mere assumption or supposition to be proved of disproved.
• But, for a researcher it is a formal question that he intends to resolve.
• Example: I assume that 1) under stress and anxiety a person goes into depression.
2) It leads to aggressive behaviour.
Eg. : Students who get better counselling in a university will show a greater increase in creativity than students...

...CHAPTER
8
Introduction to
HypothesisTesting
8.1
Inferential Statistics
and HypothesisTesting
LEARNING OBJECTIVES
8.2 Four Steps to
HypothesisTesting
After reading this chapter, you should be able to:
8.3
HypothesisTesting and
Sampling Distributions
8.4
Making a Decision:
Types of Error
8.5
Testing a Research...

...Release date: 27 April 2014
Submission date: 9 May 2014
TUTORIAL ON HYPOTHESISTESTING (1)
Basic Concept
1. State the null and alternative hypothesis for each conjecture :
a. A researcher thinks that if expectant mothers use vitamin pills, the birth weight of the babies will increase. The average birth weight of the population is 3.0kg.
b. An engineer hypothesizes that the mean number of defects can be decreased in a manufacturing process of...

...Nonparametric HypothesisTesting Paper
ABC’s real estate agency has recently expanded its business and is in the process of conducting research on housing prices within 10 miles of its new office. Team B has been given the task by ABC real estate to conduct the needed research. The team will be able to answer at the end of the research if the prices in Santa Cruz, California, are less than the prices of house in Scott’s Valley, California. Throughout this research...

...Hypothesistesting I
Kevin Soo
Outline
• • • • Theory and the research process What is a hypothesis? Hypothesistesting Statistical models
Theory and the research process
Theory
• A belief
– Can be true or false – P (belief)
• A proposed/possible explanation for something
– ‘Some students do poorly at statistics because they have less exposure to mathematics’ – ‘Women don’t date me because I’m ugly’ –...

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