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    The mayor's claim is false.

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    60 views27 pages

    Hypothesis Tests For One Population Mean: Chapter 9 Part 1

    Uploaded by

    Mohd Nazri Othman
    The mayor's claim is false.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 27

    Hypothesis Tests for One

    Population Mean
    Chapter 9 Part 1
    Contents
    • The Nature of Hypothesis Testing
    • Hypothesis Test About A Population Mean:
    Large Samples ( Critical Value Approach)
    • Hypothesis Test About a Population Mean:
    Large Samples (p-Value Approach)
    • Hypothesis Test About a Population Mean:
    Small Samples (t-test)
    The Nature of Hypothesis
    Testing
    • A hypothesis is a statement that something is
    true

    Example:
    • The mean weight of all bags of pretzels
    packaged differs from the advertised weight of
    454 g
    • The mean age of students in class is more than
    20 years old
    Hypothesis Test
    Hypothesis Test
    Null hypothesis
    • A null hypothesis is a claim (or statement)
    about a population parameter that is assumed
    to be true until it is declared false.
    Alternative hypothesis
    • An alternative hypothesis is a claim about a
    population parameter that will be true if the
    null hypothesis is false.
    Choosing the hypotheses
    Null Hypothesis
    Alternative Hypothesis
    • If the population mean µ is different from a specific
    value – Two-tailed test
    • 2. If a population mean µ is less than a specific value –
    Left-tailed test

    • 3. If a population mean µ is greater than a specific


    value – Right-tailed test
    Example: The R.R Bowker Company collects
    information on the retail prices of books. In 2000,
    the mean retail price of math book was $51.46. Suppose that
    we want to perform a hypothesis test to decide whether this
    year’s mean retail price of math book has increased from the
    2000 mean.
    1. Determine the null hypothesis for the hypothesis test.
    – Determine the alternative hypothesis for the hypothesis
    test.
    – Classify the hypothesis test are 2-tailed, left tailed or right
    tailed.

    Answer:
    1. H0:μ = $51.46
    • H0:a > $51.46
    • Right tailed
    Test Statistic
    For a two-tailed test, the null hypothesis is rejected when
    the test statistic is either too small or too large. The rejection
    region consists of two parts: one on the left and one on the
    right, (a)
    For a left-tailed test, the null hypothesis is rejected only
    when the test statistic is too small. The rejection region
    consists of only one part, on the left, (b)
    For a right-tailed test, the null hypothesis is rejected only
    when the test statistic is too large. The rejection region
    consists of only one part, on the right, (c)

    (a) (b) (c)


    Rejection & Nonrejection
    Regions
    Not enough evidence to Enough evidence to
    declare the person guilty declare the person guilty
    and, hence, the null and, hence, the null
    • Rejection and is
    hypothesis Nonrejection Regions is rejected in
    not rejected hypothesis
    o Nonrejection
    in this region. and rejection regions
    this region. for the court case.

    Level of
    0 1evidence

    Nonrejection region C Rejection region

    Critical point
    Type I & Type II Errors

    Two Types of Errors (Example: Court Case)

    Actual Situation
    The Person Is The Person Is
    Not Guilty Guilty

    The person is Correct Type II error


    Court’s not guilty decision or β error
    decision
    The person is Type I error Correct
    guilty or α error decision
    Type I & Type II Errors

    Actual Situation
    H0 Is True H0 Is False
    Correct Type II or β
    Do not reject H0
    decision error
    Decision
    Type I or α Correct
    Reject H0
    error decision
    Type I & Type II Errors
    Type I error : Rejecting the null hypothesis
    when it is in fact true
    Type II error : Not rejecting the null hypothesis when it is in
    fact false
    Relationship between Type I & Type II error
    probabilities
    For a fixed sample sized, the smaller we specify the
    significance level, α, the larger will be the probability, β, of
    not rejecting a false null hypothesis
    Hypothesis Tests for One
    Population Mean when σ
    is Known
    (Large Sample)
    Critical Values
    Example: Determine the critical value (s) for hypothesis
    test at the 5% significance level if
    the test is
    a) two-tailed b) left tailed c) right tailed
    Answer:
    1.α = 0.05
    two-tailed : rejection region - left & right
    α/2=0.05/2 =0.025.
    So, critical value ±Z0.025= ± 1.96 (from Table II)
    b) α = 0.05
    left tailed : rejection region – left
    So, critical value –Z0.05 = -1.645 (from Table II)

    c) α = 0.05
    right tailed : rejection region – right
    So, critical value Z0.05 = 1.645 (from Table II)
    One mean z-test
    (Critical Value Approach)
    (cont.)
    • (cont.)

    If value of x is unknown, find the value of x


    with the formula;

    Critical value
    When to use?
    Example 1: The TIV Telephone Company provides
    long-distance telephone service in an area. According to
    the company’s records, the average length of all long-
    distance calls placed through this company in 1999 was
    12.44 minutes and standard deviation 2.65 minutes. The
    company’s management wanted to check if the mean
    length of the current long-distance calls is different from
    12.44 minutes. A sample of 150 such calls placed
    through this company produced a mean length of 13.71
    minutes . Using the 5% significance level, can you
    conclude that the mean length of all current long-
    distance calls is different from 12.44 minutes?
    Solution:
    Step 1
    H0 : μ = 12.44 (mean length is 12.44 minutes)
    Ha : μ ≠ 12.44 (mean length of is different)

    Step 2
    5% significance level, or α = 0.05

    Step 3
    Compute test statistic;
    Solution:
    Step 4
    The sign ≠ in the Ha indicates that the test is two-tailed
    Area each tail = α /2= 0.05/2 = 0.025
    So, critical value z0.025= -1.96 and 1.96

    Step 5
    The value of z=5.87 (from step 3).
    • It is greater than the critical value
    • It falls in the rejection region
    • So, reject H0
    Do not reject H0
    Reject H0 Reject H0

    α /2 = .025 α /2 = .025

    z
    -1.96 0 1.96
    Two critical values of z Value of test
    statistic,
    Z=5.87
    Step 5
    Interpretation : At the 5% significance level, the data
    provide sufficient evidence to conclude that the valuemean
    of test
    statistic =5.87
    length of all current long distance calls is different from
    12.44 minutes
    Example 2: The mayor of a large city claims that
    the average of families living in this city
    is at least $300,000. A random sample of 100
    families selected from this city produced a mean of
    $288,000 with a standard deviation of $80,000. Using the
    2.5% significance level, can you conclude that the mayor’s
    claim is false?

    Solution:
    Step 1
    H0 : μ ≥ $300,000 (mean is at least $3000,000)
    Ha : μ < $300,000 (mean is less than $3000,000)

    Step 2
    5% significance level, or α = 0.05
    Step 3
    Compute test statistic;

    Step 4
    The sign < in the Ha indicates that the test is left-tailed
    Area in the left tail = α = 0.025
    So, critical value z0.025= -1.96. (from table II)

    Step 5
    The value of z=-1.50 (from step 3).
    • It is larger than the critical value
    • It falls in the rejection region
    • So, reject H0
    Do not reject H0
    Reject H0

    α = .025

    z
    -1.96 0
    value of test
    Critical value of z statistic = -1.50

    Step 5
    Interpretation : At the 2.5% significance level, the data
    provide sufficient evidence to conclude that the mean of
    families living in this city is less than $300,000

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