Hypothesis tests
Hypothesis
H0: Null-hypothesis is an conjecture which we assume is
true until we have too much evidence against it.
H1: The alternative hypothesis covers the alternative to H0
Notice: We either reject or cannot reject the null-hypothesis
– we never accept (or prove) the null-hypothesis.
Legal analogy:
H0: Innocent vs H1: Guilty
Procedure: Defendant is assumed innocent (H0) until
enough evidence suggest he is guilty..
1 lecture 8
Hypothesis tests
Examples of hypotheses
The mean height of men is 1.80 cm: H 0 : µ = 180
H1 : µ ≠ 180
The mean age of when people H 0 : µ ≥ 18
leave home is higher than 18 H1 : µ < 18
years:
The average price of milk in 7-11 is H 0 : µ 7 −11 − µb = 2
2 kr higher than in Brugsen: H1 : µ 7 −11 − µb ≠ 2
Notice: H0 always involves equality (≤,≥, or =)
2 lecture 8
Hypothesis tests
One-sided and two-sided tests
One-sided test:
H 0 : θ ≥ θ0 H 0 : θ ≤ θ0
H1 : θ < θ 0 H1 : θ > θ 0
Two-sided test:
H 0 : θ = θ0
H1 : θ ≠ θ 0
3 lecture 8
Hypothesis tests
Test statistics
Recall: A sample function is a function of data
Test statistic: a sample function θ, which
indicates if the null hypothesis should be
rejected or not.
Critical area: if θ lies in the critical area then
the null-hypothesis is rejected.
Critical values: boundary points for the critical
area.
4 lecture 8
Hypothesis tests
Type I and type II errors
Type I error: H0 rejected, when H0 is true.
Type II error: H0 not rejected, when H0 is false.
Significance level: α is the probability of
committing a Type I error.
One-sided test Two-sided test
α
5 α /2 lecture 8
Test of mean
Variance known (two-sided)
Hypothesis: Significance level:
H 0 : µ = µ0 X − µ0
P − zα / 2 < < zα / 2 = 1 − α
H1 : µ ≠ µ 0 σ/ n
Test statistics: Critical values:
x − µ0
z= − zα / 2 , zα / 2
σ/ n
Decision: reject H0 if z does not lie between the
critical values, otherwise we cannot reject H0.
6 lecture 8
Test of mean
Variance known
Problem: Anders claims that a flight to
Paris on average costs 5000 kr. For
a sample fo ten flights to Paris he
finds a sample average of 4850kr.
1. Rephrase Anders’ claim as a statistical
hypothesis.
2. Assume that the standard deviation of prices
of flights to Paris is 100 kr. Is Anders’
hypothesis reasonable at the 5% significance
level?
lecture 8
7
Hypothesis tests
p-value
Assuming that H0 is true, the p-value is the
probability of observing a more extreme test
statistics than the one just observed.
The null-hypothesis if rejected if p-value < α.
One-sided test Two-sided test
p
8 θ θ lecture 8
Test of mean
Variance known
Problem (cont.): Anders claims that a
flight to Paris on average costs
5000 kr. For a sample fo ten flights
to Paris he finds a sample average
of 4850kr.
3. Calculate the p-value and compare it to the
significance level (we still assume the
standard deviation to be 100kr).
lecture 8
9
Hypothesis test and
confidence intervals
The connection with confidence intervals:
x − µ0
− zα / 2 < < zα / 2
σ/ n
σ σ
x − zα / 2 < µ 0 < x + zα / 2
n n
That is, the null-hypothesis, µ = µ0, is
rejected if and only if µ0 lies outside the
confidence interval.
10 lecture 8
Test of mean
Variance known (one-sided)
Hypotheses: Significance level:
H 0 : µ ≥ µ0 X − µ0
P − zα < = 1−α
H1 : µ < µ 0 σ
/ n
Test statistic: Critical value:
x − µ0 − zα
z=
σ/ n
Decision: Reject H0 if z lies below the critical value.
11 lecture 8
Test of mean
Variance unknown (two-sided)
Hypotheses: Significance level:
H 0 : µ = µ0 X − µ0
P − tα / 2,n −1 < < tα / 2,n −1 = 1 − α
H1 : µ ≠ µ 0 s/ n
Test statistic: Critical values:
x − µ0 − tα / 2,n −1 , tα / 2,n −1
t=
s/ n
Decision: Reject H0 if z does not lie between
the critical values.
12 lecture 8
Test of mean the MATLAB way
Variance unknown (two-sided)
Default: H0: µ = µ0 Data µ0 = 5000
>> [h,p,ci,stats]=ttest(x,5000,0.01)
h = Significance level α = 0.01
h=0: H0 not rejected
1 h=1: H0 rejected
p =
0.0013 p-value
ci =
1.0e+003 * (1-α)100% confidence interval
4.7436
4.9564 x − µ0
stats = tstat =
s n
tstat: -4.5804
df: 9 df = degrees of freedom
sd: 103.5584
sd = sample standard deviation
13 lecture 8
Test of mean the R way
Variance unknown (two-sided)
Data µ0 = 5000
> t.test(x=x,mu=5000,conf.level=0.99)
One Sample t-test Confidence level: 1-α = 0.99
data: x
t = -4.5804, df = 9, p-value = 0.001327
alternative hypothesis: true mean is not equal to 5000
99 percent confidence interval:
4743.574 4956.426
sample estimates:
mean of x
4850
14 lecture 8
Hypothesis tests
A couple of remarks
Many tests exist in both a two-sided and a one-
sided versions:
Null-hypotheses: ≤, =, or ≥
Critical values: one-sided use α
two-sided use α/2
We can reject H0 in three equivalent way:
The test statistic is in the critical area
The p-value < α
Hypothesised value (e.g. µ0) is outside the
confidence intervals (only for two-sided tests)
15 lecture 8
