Hypothesis Testing the various steps
Hypothesis Testing the various steps
Hypothesis Testing the various steps
Hypothesis Testing the various steps
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Null Hypothesis H0:
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Null Hypothesis H0:
Alternate Hypothesis HA:
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ = 200
Alternate Hypothesis HA: µ ≠ 200
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ = 200
Alternate Hypothesis HA: µ ≠ 200
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ = 200 Two tailed
Alternate Hypothesis HA: µ ≠ 200 test
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ = 200 Two tailed
Alternate Hypothesis HA: µ ≠ 200 test
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ = 200 Two tailed
Alternate Hypothesis HA: µ ≠ 200 test
Step 2 : Calculate the t-statistic
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ = 200 Two tailed
Alternate Hypothesis HA: µ ≠ 200 test
Step 2 : Calculate the t-statistic
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ = 200 Two tailed
Alternate Hypothesis HA: µ ≠ 200 test
Step 2 : Calculate the t-statistic
Sample mean 199 way above 200 t-statistic -3.9528 way above 0
Sample mean 199 way below 200 t-statistic -3.9528 way below 0
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.
tn-1 distribution
α/2 probability α/2 probability
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.
t-cutoff = +/- |[Link](α/2, n-1)|
tn-1 distribution
α/2 probability α/2 probability
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.
t-cutoff = +/- |[Link](α/2, n-1)|
tn-1 distribution
= +/- |[Link](0.05/2, 10-1)|
= +/- 2.622
α/2 probability α/2 probability
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
α : The ‘significance’ level. Typically, = 0.05 or 0.01
The probability of rejecting the Null hypothesis when it is true.
t-cutoff = +/- |[Link](α/2, n-1)|
tn-1 distribution
= +/- |[Link](0.05/2, 10-1)|
= +/- 2.622
α/2 probability α/2 probability
-2.622 +2.622
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Step 4 : Check whether t-statistic falls in the rejection region
tn-1 distribution
-2.622 +2.622
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Step 4 : Check whether t-statistic falls in the rejection region
tn-1 distribution
t-statistic = -3.9528
-2.622 +2.622
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Step 4 : Check whether t-statistic falls in the rejection region
tn-1 distribution Conclusion:
We reject the Null hypothesis
t-statistic = -3.9528
-2.622 +2.622
Hypothesis Testing the various steps
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Step 4 : Check whether t-statistic falls in the rejection region
tn-1 distribution Conclusion:
We reject the Null hypothesis
Our evidence is not consistent
with the claim made
t-statistic = -3.9528
-2.622 +2.622
