What is Hypothesis Testing

Topics: Statistical hypothesis testing, Statistics, Null hypothesis Pages: 4 (758 words) Published: February 28, 2015
What is Hypothesis Testing?
A statistical hypothesis is an assumption about a population parameter. This assumption may or may not be true. Hypothesis testing refers to the formal procedures used by statisticians to accept or reject statistical hypotheses.

Statistical Hypotheses
Null hypothesis. The null hypothesis, denoted by H0, is usually the hypothesis that sample observations result purely from chance. Alternative hypothesis. The alternative hypothesis, denoted by H1 or Ha, is the hypothesis that sample observations are influenced by some non-random cause.

Hypothesis Tests
Statisticians follow a formal process to determine whether to reject a null hypothesis, based on sample data. This process, called hypothesis testing, consists of four steps. State the hypotheses. This involves stating the null and alternative hypotheses. The hypotheses are stated in such a way that they are mutually exclusive. That is, if one is true, the other must be false. Formulate an analysis plan. The analysis plan describes how to use sample data to evaluate the null hypothesis. The evaluation often focuses around a single test statistic. Analyze sample data. Find the value of the test statistic (mean score, proportion, t-score, z-score, etc.) described in the analysis plan. Interpret results. Apply the decision rule described in the analysis plan. If the value of the test statistic is unlikely, based on the null hypothesis, reject the null hypothesis.

Decision Errors
Two types of errors can result from a hypothesis test.
Type I error. A Type I error occurs when the researcher rejects a null hypothesis when it is true. The probability of committing a Type I error is called the significance level. This probability is also called alpha, and is often denoted by α. Type II error. A Type II error occurs when the researcher fails to reject a null hypothesis that is false. The probability of committing a Type II error is called Beta, and is often denoted by β. The...
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