Hypothesis Testing
Hypothesis Testing
Step 1 : Formulate Hypothesis
Hypothesis Testing
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Hypothesis Testing
Step 1 : Formulate Hypothesis
Step 2 : Calculate the t-statistic
Step 3 : Cutoff values for the t-statistic
Hypothesis Testing
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
Hypothesis Testing
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
Interpret results of hypothesis test as
applied to the particular business application
Hypothesis Testing from a previous lesson…
checking the claim that bottling unit puts in 200 ml of beverage in bottles
Hypothesis Testing from a previous lesson…
checking the claim that bottling unit puts in 200 ml of beverage in bottles
Null Hypothesis H0: µ = 200 Two tailed test
Alternate Hypothesis HA: µ ≠ 200
Hypothesis Testing from a previous lesson…
checking the claim that bottling unit puts in 200 ml of beverage in bottles
Null Hypothesis H0: µ = 200 Two tailed test
Alternate Hypothesis HA: µ ≠ 200
tn-1 distribution
α/2 probability α/2 probability
Hypothesis Testing from a previous lesson…
checking the claim that bottling unit puts in 200 ml of beverage in bottles
Null Hypothesis H0: µ = 200 Two tailed test
Alternate Hypothesis HA: µ ≠ 200
tn-1 distribution
α/2 probability α/2 probability
Hypothesis Testing from a previous lesson…
checking the claim that bottling unit puts in 200 ml of beverage in bottles
Null Hypothesis H0: µ = 200 Two tailed test
Alternate Hypothesis HA: µ ≠ 200
tn-1 distribution
α/2 probability α/2 probability
Hypothesis Testing
Single tail hypothesis test
tn-1 distribution
Hypothesis Testing
Single tail hypothesis test
tn-1 distribution
α probability
Hypothesis Testing
Single tail hypothesis test
tn-1 distribution
α probability
Hypothesis Testing
Example
A fuel additive manufacturer claims that through the use of its’ fuel
additive, automobiles in the small car category should achieve on
average an increase of 3 miles or more per gallon of fuel.
Hypothesis Testing
Example
A fuel additive manufacturer claims that through the use of its’ fuel
additive, automobiles in the small car category should achieve on
average an increase of 3 miles or more per gallon of fuel.
Claim made: increase in fuel efficiency is 3 miles per gallon or more
Hypothesis Testing
Example
A fuel additive manufacturer claims that through the use of its’ fuel
additive, automobiles in the small car category should achieve on
average an increase of 3 miles or more per gallon of fuel.
Claim made: increase in fuel efficiency is 3 miles per gallon or more
To test the claim…
1) Random selection of 150 small cars
Hypothesis Testing
Example
A fuel additive manufacturer claims that through the use of its’ fuel
additive, automobiles in the small car category should achieve on
average an increase of 3 miles or more per gallon of fuel.
Claim made: increase in fuel efficiency is 3 miles per gallon or more
To test the claim…
1) Random selection of 150 small cars.
2) Their fuel efficiency measured before and after the use of fuel additive.
Hypothesis Testing
Example
A fuel additive manufacturer claims that through the use of its’ fuel
additive, automobiles in the small car category should achieve on
average an increase of 3 miles or more per gallon of fuel.
Claim made: increase in fuel efficiency is 3 miles per gallon or more
To test the claim…
1) Random selection of 150 small cars.
2) Their fuel efficiency measured before and after the use of fuel additive.
3) 150 measurements obtained for the increase in miles per gallon achieved.
Hypothesis Testing
Example
A fuel additive manufacturer claims that through the use of its’ fuel
additive, automobiles in the small car category should achieve on
average an increase of 3 miles or more per gallon of fuel.
Claim made: increase in fuel efficiency is 3 miles per gallon or more
To test the claim…
1) Random selection of 150 small cars.
2) Their fuel efficiency measured before and after the use of fuel additive.
3) 150 measurements obtained for the increase in miles per gallon achieved.
Hypothesis Testing
Hypothesis Testing
Hypothesis Testing
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0
Alternate Hypothesis HA: µ < 3.0
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0
Alternate Hypothesis HA: µ < 3.0
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0
Alternate Hypothesis HA: µ < 3.0
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0 One tailed
Alternate Hypothesis HA: µ < 3.0 test
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0 One tailed
Alternate Hypothesis HA: µ < 3.0 test
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0 One tailed
Alternate Hypothesis HA: µ < 3.0 test
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0 One tailed
Alternate Hypothesis HA: µ < 3.0 test
Reject Null hypothesis if t-statistic is way below 0
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0 One tailed
Alternate Hypothesis HA: µ < 3.0 test
Reject Null hypothesis if t-statistic is way below 0
Only one rejection region on the Left-Hand-Side
Hypothesis Testing
Single tail hypothesis test with rejection region on the L.H.S.
H0: µ ≥ …
HA: µ < …
Hypothesis Testing
Single tail hypothesis test with rejection region on the L.H.S.
H0: µ ≥ …
HA: µ < …
Single tail hypothesis test with rejection region on the R.H.S.
H0: µ ≤ …
HA: µ > …
Hypothesis Testing
Single tail hypothesis test with rejection region on the L.H.S.
H0: µ ≥ …
HA: µ < …
Single tail hypothesis test with rejection region on the R.H.S.
H0: µ ≤ …
HA: µ > …
Hypothesis Testing
Single tail hypothesis test with rejection region on the L.H.S.
H0: µ ≥ …
HA: µ < …
Single tail hypothesis test with rejection region on the R.H.S.
H0: µ ≤ …
HA: µ > …
Hypothesis Testing
Single tail hypothesis test with rejection region on the L.H.S.
H0: µ ≥ …
HA: µ < …
Single tail hypothesis test with rejection region on the R.H.S.
H0: µ ≤ …
HA: µ > …
Hypothesis Testing
Single tail hypothesis test with rejection region on the L.H.S.
H0: µ ≥ …
HA: µ < …
Single tail hypothesis test with rejection region on the R.H.S.
H0: µ ≤ …
HA: µ > …
Two tail hypothesis test with rejection regions on both sides
H0: µ = …
HA: µ ≠ …
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0
Alternate Hypothesis HA: µ < 3.0
Step 2 : Calculate the t-statistic
Hypothesis Testing
Step 1 : Formulate Hypothesis
Null Hypothesis H0: µ ≥ 3.0
Alternate Hypothesis HA: µ < 3.0
Step 2 : Calculate the t-statistic
= -0.9072
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic α = 0.05
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic α = 0.05
α probability
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic α = 0.05
α probability t-cutoff = -|[Link](α, n-1)|
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic α = 0.05
α probability t-cutoff = -|[Link](α, n-1)|
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic α = 0.05
α probability t-cutoff = -|[Link](α, n-1)|
= -|[Link](0.05, 150-1)|
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic α = 0.05
α probability t-cutoff = -|[Link](α, n-1)|
= -|[Link](0.05, 150-1)| = -1.6551
-1.6551
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic α = 0.05
Step 4 : Check whether t-statistic falls in
the rejection region
-1.6551
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic α = 0.05
Step 4 : Check whether t-statistic falls in
the rejection region
-0.9072
-1.6551
Hypothesis Testing
H0: µ ≥ 3.0
Step 1 : Formulate Hypothesis
HA: µ < 3.0
Step 2 : Calculate the t-statistic = -0.9072
Step 3 : Cutoff values for the t-statistic α = 0.05
Step 4 : Check whether t-statistic falls in
the rejection region
Conclusion:
-0.9072 Do not reject Null hypothesis
Our evidence is consistent with
the claim made
-1.6551
