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Lesson 10 of 24 By Avijeet Biswal

What Is Hypothesis Testing in Statistics? Types and Examples

Table of Contents

In today’s data-driven world , decisions are based on data all the time. Hypothesis plays a crucial role in that process, whether it may be making business decisions, in the health sector, academia, or in quality improvement. Without hypothesis & hypothesis tests, you risk drawing the wrong conclusions and making bad decisions. In this tutorial, you will look at Hypothesis Testing in Statistics.

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What Is Hypothesis Testing in Statistics?

Hypothesis Testing is a type of statistical analysis in which you put your assumptions about a population parameter to the test. It is used to estimate the relationship between 2 statistical variables.

Let's discuss few examples of statistical hypothesis from real-life - 

  • A teacher assumes that 60% of his college's students come from lower-middle-class families.
  • A doctor believes that 3D (Diet, Dose, and Discipline) is 90% effective for diabetic patients.

Now that you know about hypothesis testing, look at the two types of hypothesis testing in statistics.

Hypothesis Testing Formula

Z = ( x̅ – μ0 ) / (σ /√n)

  • Here, x̅ is the sample mean,
  • μ0 is the population mean,
  • σ is the standard deviation,
  • n is the sample size.

How Hypothesis Testing Works?

An analyst performs hypothesis testing on a statistical sample to present evidence of the plausibility of the null hypothesis. Measurements and analyses are conducted on a random sample of the population to test a theory. Analysts use a random population sample to test two hypotheses: the null and alternative hypotheses.

The null hypothesis is typically an equality hypothesis between population parameters; for example, a null hypothesis may claim that the population means return equals zero. The alternate hypothesis is essentially the inverse of the null hypothesis (e.g., the population means the return is not equal to zero). As a result, they are mutually exclusive, and only one can be correct. One of the two possibilities, however, will always be correct.

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Null Hypothesis and Alternate Hypothesis

The Null Hypothesis is the assumption that the event will not occur. A null hypothesis has no bearing on the study's outcome unless it is rejected.

H0 is the symbol for it, and it is pronounced H-naught.

The Alternate Hypothesis is the logical opposite of the null hypothesis. The acceptance of the alternative hypothesis follows the rejection of the null hypothesis. H1 is the symbol for it.

Let's understand this with an example.

A sanitizer manufacturer claims that its product kills 95 percent of germs on average. 

To put this company's claim to the test, create a null and alternate hypothesis.

H0 (Null Hypothesis): Average = 95%.

Alternative Hypothesis (H1): The average is less than 95%.

Another straightforward example to understand this concept is determining whether or not a coin is fair and balanced. The null hypothesis states that the probability of a show of heads is equal to the likelihood of a show of tails. In contrast, the alternate theory states that the probability of a show of heads and tails would be very different.

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Hypothesis Testing Calculation With Examples

Let's consider a hypothesis test for the average height of women in the United States. Suppose our null hypothesis is that the average height is 5'4". We gather a sample of 100 women and determine that their average height is 5'5". The standard deviation of population is 2.

To calculate the z-score, we would use the following formula:

z = ( x̅ – μ0 ) / (σ /√n)

z = (5'5" - 5'4") / (2" / √100)

z = 0.5 / (0.045)

We will reject the null hypothesis as the z-score of 11.11 is very large and conclude that there is evidence to suggest that the average height of women in the US is greater than 5'4".

Steps of Hypothesis Testing

Hypothesis testing is a statistical method to determine if there is enough evidence in a sample of data to infer that a certain condition is true for the entire population. Here’s a breakdown of the typical steps involved in hypothesis testing:

Formulate Hypotheses

  • Null Hypothesis (H0): This hypothesis states that there is no effect or difference, and it is the hypothesis you attempt to reject with your test.
  • Alternative Hypothesis (H1 or Ha): This hypothesis is what you might believe to be true or hope to prove true. It is usually considered the opposite of the null hypothesis.

Choose the Significance Level (α)

The significance level, often denoted by alpha (α), is the probability of rejecting the null hypothesis when it is true. Common choices for α are 0.05 (5%), 0.01 (1%), and 0.10 (10%).

Select the Appropriate Test

Choose a statistical test based on the type of data and the hypothesis. Common tests include t-tests, chi-square tests, ANOVA, and regression analysis . The selection depends on data type, distribution, sample size, and whether the hypothesis is one-tailed or two-tailed.

Collect Data

Gather the data that will be analyzed in the test. This data should be representative of the population to infer conclusions accurately.

Calculate the Test Statistic

Based on the collected data and the chosen test, calculate a test statistic that reflects how much the observed data deviates from the null hypothesis.

Determine the p-value

The p-value is the probability of observing test results at least as extreme as the results observed, assuming the null hypothesis is correct. It helps determine the strength of the evidence against the null hypothesis.

Make a Decision

Compare the p-value to the chosen significance level:

  • If the p-value ≤ α: Reject the null hypothesis, suggesting sufficient evidence in the data supports the alternative hypothesis.
  • If the p-value > α: Do not reject the null hypothesis, suggesting insufficient evidence to support the alternative hypothesis.

Report the Results

Present the findings from the hypothesis test, including the test statistic, p-value, and the conclusion about the hypotheses.

Perform Post-hoc Analysis (if necessary)

Depending on the results and the study design, further analysis may be needed to explore the data more deeply or to address multiple comparisons if several hypotheses were tested simultaneously.

Types of Hypothesis Testing

To determine whether a discovery or relationship is statistically significant, hypothesis testing uses a z-test. It usually checks to see if two means are the same (the null hypothesis). Only when the population standard deviation is known and the sample size is 30 data points or more, can a z-test be applied.

A statistical test called a t-test is employed to compare the means of two groups. To determine whether two groups differ or if a procedure or treatment affects the population of interest, it is frequently used in hypothesis testing.

Chi-Square 

You utilize a Chi-square test for hypothesis testing concerning whether your data is as predicted. To determine if the expected and observed results are well-fitted, the Chi-square test analyzes the differences between categorical variables from a random sample. The test's fundamental premise is that the observed values in your data should be compared to the predicted values that would be present if the null hypothesis were true.

Hypothesis Testing and Confidence Intervals

Both confidence intervals and hypothesis tests are inferential techniques that depend on approximating the sample distribution. Data from a sample is used to estimate a population parameter using confidence intervals. Data from a sample is used in hypothesis testing to examine a given hypothesis. We must have a postulated parameter to conduct hypothesis testing.

Bootstrap distributions and randomization distributions are created using comparable simulation techniques. The observed sample statistic is the focal point of a bootstrap distribution, whereas the null hypothesis value is the focal point of a randomization distribution.

A variety of feasible population parameter estimates are included in confidence ranges. In this lesson, we created just two-tailed confidence intervals. There is a direct connection between these two-tail confidence intervals and these two-tail hypothesis tests. The results of a two-tailed hypothesis test and two-tailed confidence intervals typically provide the same results. In other words, a hypothesis test at the 0.05 level will virtually always fail to reject the null hypothesis if the 95% confidence interval contains the predicted value. A hypothesis test at the 0.05 level will nearly certainly reject the null hypothesis if the 95% confidence interval does not include the hypothesized parameter.

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Simple and Composite Hypothesis Testing

Depending on the population distribution, you can classify the statistical hypothesis into two types.

Simple Hypothesis: A simple hypothesis specifies an exact value for the parameter.

Composite Hypothesis: A composite hypothesis specifies a range of values.

A company is claiming that their average sales for this quarter are 1000 units. This is an example of a simple hypothesis.

Suppose the company claims that the sales are in the range of 900 to 1000 units. Then this is a case of a composite hypothesis.

One-Tailed and Two-Tailed Hypothesis Testing

The One-Tailed test, also called a directional test, considers a critical region of data that would result in the null hypothesis being rejected if the test sample falls into it, inevitably meaning the acceptance of the alternate hypothesis.

In a one-tailed test, the critical distribution area is one-sided, meaning the test sample is either greater or lesser than a specific value.

In two tails, the test sample is checked to be greater or less than a range of values in a Two-Tailed test, implying that the critical distribution area is two-sided.

If the sample falls within this range, the alternate hypothesis will be accepted, and the null hypothesis will be rejected.

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Right Tailed Hypothesis Testing

If the larger than (>) sign appears in your hypothesis statement, you are using a right-tailed test, also known as an upper test. Or, to put it another way, the disparity is to the right. For instance, you can contrast the battery life before and after a change in production. Your hypothesis statements can be the following if you want to know if the battery life is longer than the original (let's say 90 hours):

  • The null hypothesis is (H0 <= 90) or less change.
  • A possibility is that battery life has risen (H1) > 90.

The crucial point in this situation is that the alternate hypothesis (H1), not the null hypothesis, decides whether you get a right-tailed test.

Left Tailed Hypothesis Testing

Alternative hypotheses that assert the true value of a parameter is lower than the null hypothesis are tested with a left-tailed test; they are indicated by the asterisk "<".

Suppose H0: mean = 50 and H1: mean not equal to 50

According to the H1, the mean can be greater than or less than 50. This is an example of a Two-tailed test.

In a similar manner, if H0: mean >=50, then H1: mean <50

Here the mean is less than 50. It is called a One-tailed test.

Type 1 and Type 2 Error

A hypothesis test can result in two types of errors.

Type 1 Error: A Type-I error occurs when sample results reject the null hypothesis despite being true.

Type 2 Error: A Type-II error occurs when the null hypothesis is not rejected when it is false, unlike a Type-I error.

Suppose a teacher evaluates the examination paper to decide whether a student passes or fails.

H0: Student has passed

H1: Student has failed

Type I error will be the teacher failing the student [rejects H0] although the student scored the passing marks [H0 was true]. 

Type II error will be the case where the teacher passes the student [do not reject H0] although the student did not score the passing marks [H1 is true].

Level of Significance

The alpha value is a criterion for determining whether a test statistic is statistically significant. In a statistical test, Alpha represents an acceptable probability of a Type I error. Because alpha is a probability, it can be anywhere between 0 and 1. In practice, the most commonly used alpha values are 0.01, 0.05, and 0.1, which represent a 1%, 5%, and 10% chance of a Type I error, respectively (i.e. rejecting the null hypothesis when it is in fact correct).

A p-value is a metric that expresses the likelihood that an observed difference could have occurred by chance. As the p-value decreases the statistical significance of the observed difference increases. If the p-value is too low, you reject the null hypothesis.

Here you have taken an example in which you are trying to test whether the new advertising campaign has increased the product's sales. The p-value is the likelihood that the null hypothesis, which states that there is no change in the sales due to the new advertising campaign, is true. If the p-value is .30, then there is a 30% chance that there is no increase or decrease in the product's sales.  If the p-value is 0.03, then there is a 3% probability that there is no increase or decrease in the sales value due to the new advertising campaign. As you can see, the lower the p-value, the chances of the alternate hypothesis being true increases, which means that the new advertising campaign causes an increase or decrease in sales.

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Why Is Hypothesis Testing Important in Research Methodology?

Hypothesis testing is crucial in research methodology for several reasons:

  • Provides evidence-based conclusions: It allows researchers to make objective conclusions based on empirical data, providing evidence to support or refute their research hypotheses.
  • Supports decision-making: It helps make informed decisions, such as accepting or rejecting a new treatment, implementing policy changes, or adopting new practices.
  • Adds rigor and validity: It adds scientific rigor to research using statistical methods to analyze data, ensuring that conclusions are based on sound statistical evidence.
  • Contributes to the advancement of knowledge: By testing hypotheses, researchers contribute to the growth of knowledge in their respective fields by confirming existing theories or discovering new patterns and relationships.

When Did Hypothesis Testing Begin?

Hypothesis testing as a formalized process began in the early 20th century, primarily through the work of statisticians such as Ronald A. Fisher, Jerzy Neyman, and Egon Pearson. The development of hypothesis testing is closely tied to the evolution of statistical methods during this period.

  • Ronald A. Fisher (1920s): Fisher was one of the key figures in developing the foundation for modern statistical science. In the 1920s, he introduced the concept of the null hypothesis in his book "Statistical Methods for Research Workers" (1925). Fisher also developed significance testing to examine the likelihood of observing the collected data if the null hypothesis were true. He introduced p-values to determine the significance of the observed results.
  • Neyman-Pearson Framework (1930s): Jerzy Neyman and Egon Pearson built on Fisher’s work and formalized the process of hypothesis testing even further. In the 1930s, they introduced the concepts of Type I and Type II errors and developed a decision-making framework widely used in hypothesis testing today. Their approach emphasized the balance between these errors and introduced the concepts of the power of a test and the alternative hypothesis.

The dialogue between Fisher's and Neyman-Pearson's approaches shaped the methods and philosophy of statistical hypothesis testing used today. Fisher emphasized the evidential interpretation of the p-value. At the same time, Neyman and Pearson advocated for a decision-theoretical approach in which hypotheses are either accepted or rejected based on pre-determined significance levels and power considerations.

The application and methodology of hypothesis testing have since become a cornerstone of statistical analysis across various scientific disciplines, marking a significant statistical development.

Limitations of Hypothesis Testing

Hypothesis testing has some limitations that researchers should be aware of:

  • It cannot prove or establish the truth: Hypothesis testing provides evidence to support or reject a hypothesis, but it cannot confirm the absolute truth of the research question.
  • Results are sample-specific: Hypothesis testing is based on analyzing a sample from a population, and the conclusions drawn are specific to that particular sample.
  • Possible errors: During hypothesis testing, there is a chance of committing type I error (rejecting a true null hypothesis) or type II error (failing to reject a false null hypothesis).
  • Assumptions and requirements: Different tests have specific assumptions and requirements that must be met to accurately interpret results.

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After reading this tutorial, you would have a much better understanding of hypothesis testing, one of the most important concepts in the field of Data Science . The majority of hypotheses are based on speculation about observed behavior, natural phenomena, or established theories.

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If you have any questions regarding this ‘Hypothesis Testing In Statistics’ tutorial, do share them in the comment section. Our subject matter expert will respond to your queries. Happy learning!

1. What is hypothesis testing in statistics with example?

Hypothesis testing is a statistical method used to determine if there is enough evidence in a sample data to draw conclusions about a population. It involves formulating two competing hypotheses, the null hypothesis (H0) and the alternative hypothesis (Ha), and then collecting data to assess the evidence. An example: testing if a new drug improves patient recovery (Ha) compared to the standard treatment (H0) based on collected patient data.

2. What is H0 and H1 in statistics?

In statistics, H0​ and H1​ represent the null and alternative hypotheses. The null hypothesis, H0​, is the default assumption that no effect or difference exists between groups or conditions. The alternative hypothesis, H1​, is the competing claim suggesting an effect or a difference. Statistical tests determine whether to reject the null hypothesis in favor of the alternative hypothesis based on the data.

3. What is a simple hypothesis with an example?

A simple hypothesis is a specific statement predicting a single relationship between two variables. It posits a direct and uncomplicated outcome. For example, a simple hypothesis might state, "Increased sunlight exposure increases the growth rate of sunflowers." Here, the hypothesis suggests a direct relationship between the amount of sunlight (independent variable) and the growth rate of sunflowers (dependent variable), with no additional variables considered.

4. What are the 2 types of hypothesis testing?

  • One-tailed (or one-sided) test: Tests for the significance of an effect in only one direction, either positive or negative.
  • Two-tailed (or two-sided) test: Tests for the significance of an effect in both directions, allowing for the possibility of a positive or negative effect.

The choice between one-tailed and two-tailed tests depends on the specific research question and the directionality of the expected effect.

5. What are the 3 major types of hypothesis?

The three major types of hypotheses are:

  • Null Hypothesis (H0): Represents the default assumption, stating that there is no significant effect or relationship in the data.
  • Alternative Hypothesis (Ha): Contradicts the null hypothesis and proposes a specific effect or relationship that researchers want to investigate.
  • Nondirectional Hypothesis: An alternative hypothesis that doesn't specify the direction of the effect, leaving it open for both positive and negative possibilities.

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About the Author

Avijeet Biswal

Avijeet is a Senior Research Analyst at Simplilearn. Passionate about Data Analytics, Machine Learning, and Deep Learning, Avijeet is also interested in politics, cricket, and football.

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Hypothesis Testing

Hypothesis testing is a tool for making statistical inferences about the population data. It is an analysis tool that tests assumptions and determines how likely something is within a given standard of accuracy. Hypothesis testing provides a way to verify whether the results of an experiment are valid.

A null hypothesis and an alternative hypothesis are set up before performing the hypothesis testing. This helps to arrive at a conclusion regarding the sample obtained from the population. In this article, we will learn more about hypothesis testing, its types, steps to perform the testing, and associated examples.

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What is Hypothesis Testing in Statistics?

Hypothesis testing uses sample data from the population to draw useful conclusions regarding the population probability distribution . It tests an assumption made about the data using different types of hypothesis testing methodologies. The hypothesis testing results in either rejecting or not rejecting the null hypothesis.

Hypothesis Testing Definition

Hypothesis testing can be defined as a statistical tool that is used to identify if the results of an experiment are meaningful or not. It involves setting up a null hypothesis and an alternative hypothesis. These two hypotheses will always be mutually exclusive. This means that if the null hypothesis is true then the alternative hypothesis is false and vice versa. An example of hypothesis testing is setting up a test to check if a new medicine works on a disease in a more efficient manner.

Null Hypothesis

The null hypothesis is a concise mathematical statement that is used to indicate that there is no difference between two possibilities. In other words, there is no difference between certain characteristics of data. This hypothesis assumes that the outcomes of an experiment are based on chance alone. It is denoted as \(H_{0}\). Hypothesis testing is used to conclude if the null hypothesis can be rejected or not. Suppose an experiment is conducted to check if girls are shorter than boys at the age of 5. The null hypothesis will say that they are the same height.

Alternative Hypothesis

The alternative hypothesis is an alternative to the null hypothesis. It is used to show that the observations of an experiment are due to some real effect. It indicates that there is a statistical significance between two possible outcomes and can be denoted as \(H_{1}\) or \(H_{a}\). For the above-mentioned example, the alternative hypothesis would be that girls are shorter than boys at the age of 5.

Hypothesis Testing P Value

In hypothesis testing, the p value is used to indicate whether the results obtained after conducting a test are statistically significant or not. It also indicates the probability of making an error in rejecting or not rejecting the null hypothesis.This value is always a number between 0 and 1. The p value is compared to an alpha level, \(\alpha\) or significance level. The alpha level can be defined as the acceptable risk of incorrectly rejecting the null hypothesis. The alpha level is usually chosen between 1% to 5%.

Hypothesis Testing Critical region

All sets of values that lead to rejecting the null hypothesis lie in the critical region. Furthermore, the value that separates the critical region from the non-critical region is known as the critical value.

Hypothesis Testing Formula

Depending upon the type of data available and the size, different types of hypothesis testing are used to determine whether the null hypothesis can be rejected or not. The hypothesis testing formula for some important test statistics are given below:

  • z = \(\frac{\overline{x}-\mu}{\frac{\sigma}{\sqrt{n}}}\). \(\overline{x}\) is the sample mean, \(\mu\) is the population mean, \(\sigma\) is the population standard deviation and n is the size of the sample.
  • t = \(\frac{\overline{x}-\mu}{\frac{s}{\sqrt{n}}}\). s is the sample standard deviation.
  • \(\chi ^{2} = \sum \frac{(O_{i}-E_{i})^{2}}{E_{i}}\). \(O_{i}\) is the observed value and \(E_{i}\) is the expected value.

We will learn more about these test statistics in the upcoming section.

Types of Hypothesis Testing

Selecting the correct test for performing hypothesis testing can be confusing. These tests are used to determine a test statistic on the basis of which the null hypothesis can either be rejected or not rejected. Some of the important tests used for hypothesis testing are given below.

Hypothesis Testing Z Test

A z test is a way of hypothesis testing that is used for a large sample size (n ≥ 30). It is used to determine whether there is a difference between the population mean and the sample mean when the population standard deviation is known. It can also be used to compare the mean of two samples. It is used to compute the z test statistic. The formulas are given as follows:

  • One sample: z = \(\frac{\overline{x}-\mu}{\frac{\sigma}{\sqrt{n}}}\).
  • Two samples: z = \(\frac{(\overline{x_{1}}-\overline{x_{2}})-(\mu_{1}-\mu_{2})}{\sqrt{\frac{\sigma_{1}^{2}}{n_{1}}+\frac{\sigma_{2}^{2}}{n_{2}}}}\).

Hypothesis Testing t Test

The t test is another method of hypothesis testing that is used for a small sample size (n < 30). It is also used to compare the sample mean and population mean. However, the population standard deviation is not known. Instead, the sample standard deviation is known. The mean of two samples can also be compared using the t test.

  • One sample: t = \(\frac{\overline{x}-\mu}{\frac{s}{\sqrt{n}}}\).
  • Two samples: t = \(\frac{(\overline{x_{1}}-\overline{x_{2}})-(\mu_{1}-\mu_{2})}{\sqrt{\frac{s_{1}^{2}}{n_{1}}+\frac{s_{2}^{2}}{n_{2}}}}\).

Hypothesis Testing Chi Square

The Chi square test is a hypothesis testing method that is used to check whether the variables in a population are independent or not. It is used when the test statistic is chi-squared distributed.

One Tailed Hypothesis Testing

One tailed hypothesis testing is done when the rejection region is only in one direction. It can also be known as directional hypothesis testing because the effects can be tested in one direction only. This type of testing is further classified into the right tailed test and left tailed test.

Right Tailed Hypothesis Testing

The right tail test is also known as the upper tail test. This test is used to check whether the population parameter is greater than some value. The null and alternative hypotheses for this test are given as follows:

\(H_{0}\): The population parameter is ≤ some value

\(H_{1}\): The population parameter is > some value.

If the test statistic has a greater value than the critical value then the null hypothesis is rejected

Right Tail Hypothesis Testing

Left Tailed Hypothesis Testing

The left tail test is also known as the lower tail test. It is used to check whether the population parameter is less than some value. The hypotheses for this hypothesis testing can be written as follows:

\(H_{0}\): The population parameter is ≥ some value

\(H_{1}\): The population parameter is < some value.

The null hypothesis is rejected if the test statistic has a value lesser than the critical value.

Left Tail Hypothesis Testing

Two Tailed Hypothesis Testing

In this hypothesis testing method, the critical region lies on both sides of the sampling distribution. It is also known as a non - directional hypothesis testing method. The two-tailed test is used when it needs to be determined if the population parameter is assumed to be different than some value. The hypotheses can be set up as follows:

\(H_{0}\): the population parameter = some value

\(H_{1}\): the population parameter ≠ some value

The null hypothesis is rejected if the test statistic has a value that is not equal to the critical value.

Two Tail Hypothesis Testing

Hypothesis Testing Steps

Hypothesis testing can be easily performed in five simple steps. The most important step is to correctly set up the hypotheses and identify the right method for hypothesis testing. The basic steps to perform hypothesis testing are as follows:

  • Step 1: Set up the null hypothesis by correctly identifying whether it is the left-tailed, right-tailed, or two-tailed hypothesis testing.
  • Step 2: Set up the alternative hypothesis.
  • Step 3: Choose the correct significance level, \(\alpha\), and find the critical value.
  • Step 4: Calculate the correct test statistic (z, t or \(\chi\)) and p-value.
  • Step 5: Compare the test statistic with the critical value or compare the p-value with \(\alpha\) to arrive at a conclusion. In other words, decide if the null hypothesis is to be rejected or not.

Hypothesis Testing Example

The best way to solve a problem on hypothesis testing is by applying the 5 steps mentioned in the previous section. Suppose a researcher claims that the mean average weight of men is greater than 100kgs with a standard deviation of 15kgs. 30 men are chosen with an average weight of 112.5 Kgs. Using hypothesis testing, check if there is enough evidence to support the researcher's claim. The confidence interval is given as 95%.

Step 1: This is an example of a right-tailed test. Set up the null hypothesis as \(H_{0}\): \(\mu\) = 100.

Step 2: The alternative hypothesis is given by \(H_{1}\): \(\mu\) > 100.

Step 3: As this is a one-tailed test, \(\alpha\) = 100% - 95% = 5%. This can be used to determine the critical value.

1 - \(\alpha\) = 1 - 0.05 = 0.95

0.95 gives the required area under the curve. Now using a normal distribution table, the area 0.95 is at z = 1.645. A similar process can be followed for a t-test. The only additional requirement is to calculate the degrees of freedom given by n - 1.

Step 4: Calculate the z test statistic. This is because the sample size is 30. Furthermore, the sample and population means are known along with the standard deviation.

z = \(\frac{\overline{x}-\mu}{\frac{\sigma}{\sqrt{n}}}\).

\(\mu\) = 100, \(\overline{x}\) = 112.5, n = 30, \(\sigma\) = 15

z = \(\frac{112.5-100}{\frac{15}{\sqrt{30}}}\) = 4.56

Step 5: Conclusion. As 4.56 > 1.645 thus, the null hypothesis can be rejected.

Hypothesis Testing and Confidence Intervals

Confidence intervals form an important part of hypothesis testing. This is because the alpha level can be determined from a given confidence interval. Suppose a confidence interval is given as 95%. Subtract the confidence interval from 100%. This gives 100 - 95 = 5% or 0.05. This is the alpha value of a one-tailed hypothesis testing. To obtain the alpha value for a two-tailed hypothesis testing, divide this value by 2. This gives 0.05 / 2 = 0.025.

Related Articles:

  • Probability and Statistics
  • Data Handling

Important Notes on Hypothesis Testing

  • Hypothesis testing is a technique that is used to verify whether the results of an experiment are statistically significant.
  • It involves the setting up of a null hypothesis and an alternate hypothesis.
  • There are three types of tests that can be conducted under hypothesis testing - z test, t test, and chi square test.
  • Hypothesis testing can be classified as right tail, left tail, and two tail tests.

Examples on Hypothesis Testing

  • Example 1: The average weight of a dumbbell in a gym is 90lbs. However, a physical trainer believes that the average weight might be higher. A random sample of 5 dumbbells with an average weight of 110lbs and a standard deviation of 18lbs. Using hypothesis testing check if the physical trainer's claim can be supported for a 95% confidence level. Solution: As the sample size is lesser than 30, the t-test is used. \(H_{0}\): \(\mu\) = 90, \(H_{1}\): \(\mu\) > 90 \(\overline{x}\) = 110, \(\mu\) = 90, n = 5, s = 18. \(\alpha\) = 0.05 Using the t-distribution table, the critical value is 2.132 t = \(\frac{\overline{x}-\mu}{\frac{s}{\sqrt{n}}}\) t = 2.484 As 2.484 > 2.132, the null hypothesis is rejected. Answer: The average weight of the dumbbells may be greater than 90lbs
  • Example 2: The average score on a test is 80 with a standard deviation of 10. With a new teaching curriculum introduced it is believed that this score will change. On random testing, the score of 38 students, the mean was found to be 88. With a 0.05 significance level, is there any evidence to support this claim? Solution: This is an example of two-tail hypothesis testing. The z test will be used. \(H_{0}\): \(\mu\) = 80, \(H_{1}\): \(\mu\) ≠ 80 \(\overline{x}\) = 88, \(\mu\) = 80, n = 36, \(\sigma\) = 10. \(\alpha\) = 0.05 / 2 = 0.025 The critical value using the normal distribution table is 1.96 z = \(\frac{\overline{x}-\mu}{\frac{\sigma}{\sqrt{n}}}\) z = \(\frac{88-80}{\frac{10}{\sqrt{36}}}\) = 4.8 As 4.8 > 1.96, the null hypothesis is rejected. Answer: There is a difference in the scores after the new curriculum was introduced.
  • Example 3: The average score of a class is 90. However, a teacher believes that the average score might be lower. The scores of 6 students were randomly measured. The mean was 82 with a standard deviation of 18. With a 0.05 significance level use hypothesis testing to check if this claim is true. Solution: The t test will be used. \(H_{0}\): \(\mu\) = 90, \(H_{1}\): \(\mu\) < 90 \(\overline{x}\) = 110, \(\mu\) = 90, n = 6, s = 18 The critical value from the t table is -2.015 t = \(\frac{\overline{x}-\mu}{\frac{s}{\sqrt{n}}}\) t = \(\frac{82-90}{\frac{18}{\sqrt{6}}}\) t = -1.088 As -1.088 > -2.015, we fail to reject the null hypothesis. Answer: There is not enough evidence to support the claim.

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FAQs on Hypothesis Testing

What is hypothesis testing.

Hypothesis testing in statistics is a tool that is used to make inferences about the population data. It is also used to check if the results of an experiment are valid.

What is the z Test in Hypothesis Testing?

The z test in hypothesis testing is used to find the z test statistic for normally distributed data . The z test is used when the standard deviation of the population is known and the sample size is greater than or equal to 30.

What is the t Test in Hypothesis Testing?

The t test in hypothesis testing is used when the data follows a student t distribution . It is used when the sample size is less than 30 and standard deviation of the population is not known.

What is the formula for z test in Hypothesis Testing?

The formula for a one sample z test in hypothesis testing is z = \(\frac{\overline{x}-\mu}{\frac{\sigma}{\sqrt{n}}}\) and for two samples is z = \(\frac{(\overline{x_{1}}-\overline{x_{2}})-(\mu_{1}-\mu_{2})}{\sqrt{\frac{\sigma_{1}^{2}}{n_{1}}+\frac{\sigma_{2}^{2}}{n_{2}}}}\).

What is the p Value in Hypothesis Testing?

The p value helps to determine if the test results are statistically significant or not. In hypothesis testing, the null hypothesis can either be rejected or not rejected based on the comparison between the p value and the alpha level.

What is One Tail Hypothesis Testing?

When the rejection region is only on one side of the distribution curve then it is known as one tail hypothesis testing. The right tail test and the left tail test are two types of directional hypothesis testing.

What is the Alpha Level in Two Tail Hypothesis Testing?

To get the alpha level in a two tail hypothesis testing divide \(\alpha\) by 2. This is done as there are two rejection regions in the curve.

Statology

Statistics Made Easy

Introduction to Hypothesis Testing

A statistical hypothesis is an assumption about a population parameter .

For example, we may assume that the mean height of a male in the U.S. is 70 inches.

The assumption about the height is the statistical hypothesis and the true mean height of a male in the U.S. is the population parameter .

A hypothesis test is a formal statistical test we use to reject or fail to reject a statistical hypothesis.

The Two Types of Statistical Hypotheses

To test whether a statistical hypothesis about a population parameter is true, we obtain a random sample from the population and perform a hypothesis test on the sample data.

There are two types of statistical hypotheses:

The null hypothesis , denoted as H 0 , is the hypothesis that the sample data occurs purely from chance.

The alternative hypothesis , denoted as H 1 or H a , is the hypothesis that the sample data is influenced by some non-random cause.

Hypothesis Tests

A hypothesis test consists of five steps:

1. State the hypotheses. 

State the null and alternative hypotheses. These two hypotheses need to be mutually exclusive, so if one is true then the other must be false.

2. Determine a significance level to use for the hypothesis.

Decide on a significance level. Common choices are .01, .05, and .1. 

3. Find the test statistic.

Find the test statistic and the corresponding p-value. Often we are analyzing a population mean or proportion and the general formula to find the test statistic is: (sample statistic – population parameter) / (standard deviation of statistic)

4. Reject or fail to reject the null hypothesis.

Using the test statistic or the p-value, determine if you can reject or fail to reject the null hypothesis based on the significance level.

The p-value  tells us the strength of evidence in support of a null hypothesis. If the p-value is less than the significance level, we reject the null hypothesis.

5. Interpret the results. 

Interpret the results of the hypothesis test in the context of the question being asked. 

The Two Types of Decision Errors

There are two types of decision errors that one can make when doing a hypothesis test:

Type I error: You reject the null hypothesis when it is actually true. The probability of committing a Type I error is equal to the significance level, often called  alpha , and denoted as α.

Type II error: You fail to reject the null hypothesis when it is actually false. The probability of committing a Type II error is called the Power of the test or  Beta , denoted as β.

One-Tailed and Two-Tailed Tests

A statistical hypothesis can be one-tailed or two-tailed.

A one-tailed hypothesis involves making a “greater than” or “less than ” statement.

For example, suppose we assume the mean height of a male in the U.S. is greater than or equal to 70 inches. The null hypothesis would be H0: µ ≥ 70 inches and the alternative hypothesis would be Ha: µ < 70 inches.

A two-tailed hypothesis involves making an “equal to” or “not equal to” statement.

For example, suppose we assume the mean height of a male in the U.S. is equal to 70 inches. The null hypothesis would be H0: µ = 70 inches and the alternative hypothesis would be Ha: µ ≠ 70 inches.

Note: The “equal” sign is always included in the null hypothesis, whether it is =, ≥, or ≤.

Related:   What is a Directional Hypothesis?

Types of Hypothesis Tests

There are many different types of hypothesis tests you can perform depending on the type of data you’re working with and the goal of your analysis.

The following tutorials provide an explanation of the most common types of hypothesis tests:

Introduction to the One Sample t-test Introduction to the Two Sample t-test Introduction to the Paired Samples t-test Introduction to the One Proportion Z-Test Introduction to the Two Proportion Z-Test

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Hey there. My name is Zach Bobbitt. I have a Masters of Science degree in Applied Statistics and I’ve worked on machine learning algorithms for professional businesses in both healthcare and retail. I’m passionate about statistics, machine learning, and data visualization and I created Statology to be a resource for both students and teachers alike.  My goal with this site is to help you learn statistics through using simple terms, plenty of real-world examples, and helpful illustrations.

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S.3 hypothesis testing.

In reviewing hypothesis tests, we start first with the general idea. Then, we keep returning to the basic procedures of hypothesis testing, each time adding a little more detail.

The general idea of hypothesis testing involves:

  • Making an initial assumption.
  • Collecting evidence (data).
  • Based on the available evidence (data), deciding whether to reject or not reject the initial assumption.

Every hypothesis test — regardless of the population parameter involved — requires the above three steps.

Example S.3.1

Is normal body temperature really 98.6 degrees f section  .

Consider the population of many, many adults. A researcher hypothesized that the average adult body temperature is lower than the often-advertised 98.6 degrees F. That is, the researcher wants an answer to the question: "Is the average adult body temperature 98.6 degrees? Or is it lower?" To answer his research question, the researcher starts by assuming that the average adult body temperature was 98.6 degrees F.

Then, the researcher went out and tried to find evidence that refutes his initial assumption. In doing so, he selects a random sample of 130 adults. The average body temperature of the 130 sampled adults is 98.25 degrees.

Then, the researcher uses the data he collected to make a decision about his initial assumption. It is either likely or unlikely that the researcher would collect the evidence he did given his initial assumption that the average adult body temperature is 98.6 degrees:

  • If it is likely , then the researcher does not reject his initial assumption that the average adult body temperature is 98.6 degrees. There is not enough evidence to do otherwise.
  • either the researcher's initial assumption is correct and he experienced a very unusual event;
  • or the researcher's initial assumption is incorrect.

In statistics, we generally don't make claims that require us to believe that a very unusual event happened. That is, in the practice of statistics, if the evidence (data) we collected is unlikely in light of the initial assumption, then we reject our initial assumption.

Example S.3.2

Criminal trial analogy section  .

One place where you can consistently see the general idea of hypothesis testing in action is in criminal trials held in the United States. Our criminal justice system assumes "the defendant is innocent until proven guilty." That is, our initial assumption is that the defendant is innocent.

In the practice of statistics, we make our initial assumption when we state our two competing hypotheses -- the null hypothesis ( H 0 ) and the alternative hypothesis ( H A ). Here, our hypotheses are:

  • H 0 : Defendant is not guilty (innocent)
  • H A : Defendant is guilty

In statistics, we always assume the null hypothesis is true . That is, the null hypothesis is always our initial assumption.

The prosecution team then collects evidence — such as finger prints, blood spots, hair samples, carpet fibers, shoe prints, ransom notes, and handwriting samples — with the hopes of finding "sufficient evidence" to make the assumption of innocence refutable.

In statistics, the data are the evidence.

The jury then makes a decision based on the available evidence:

  • If the jury finds sufficient evidence — beyond a reasonable doubt — to make the assumption of innocence refutable, the jury rejects the null hypothesis and deems the defendant guilty. We behave as if the defendant is guilty.
  • If there is insufficient evidence, then the jury does not reject the null hypothesis . We behave as if the defendant is innocent.

In statistics, we always make one of two decisions. We either "reject the null hypothesis" or we "fail to reject the null hypothesis."

Errors in Hypothesis Testing Section  

Did you notice the use of the phrase "behave as if" in the previous discussion? We "behave as if" the defendant is guilty; we do not "prove" that the defendant is guilty. And, we "behave as if" the defendant is innocent; we do not "prove" that the defendant is innocent.

This is a very important distinction! We make our decision based on evidence not on 100% guaranteed proof. Again:

  • If we reject the null hypothesis, we do not prove that the alternative hypothesis is true.
  • If we do not reject the null hypothesis, we do not prove that the null hypothesis is true.

We merely state that there is enough evidence to behave one way or the other. This is always true in statistics! Because of this, whatever the decision, there is always a chance that we made an error .

Let's review the two types of errors that can be made in criminal trials:

Table S.3.1
Jury Decision Truth
  Not Guilty Guilty
Not Guilty OK ERROR
Guilty ERROR OK

Table S.3.2 shows how this corresponds to the two types of errors in hypothesis testing.

Table S.3.2
Decision
  Null Hypothesis Alternative Hypothesis
Do not Reject Null OK Type II Error
Reject Null Type I Error OK

Note that, in statistics, we call the two types of errors by two different  names -- one is called a "Type I error," and the other is called  a "Type II error." Here are the formal definitions of the two types of errors:

There is always a chance of making one of these errors. But, a good scientific study will minimize the chance of doing so!

Making the Decision Section  

Recall that it is either likely or unlikely that we would observe the evidence we did given our initial assumption. If it is likely , we do not reject the null hypothesis. If it is unlikely , then we reject the null hypothesis in favor of the alternative hypothesis. Effectively, then, making the decision reduces to determining "likely" or "unlikely."

In statistics, there are two ways to determine whether the evidence is likely or unlikely given the initial assumption:

  • We could take the " critical value approach " (favored in many of the older textbooks).
  • Or, we could take the " P -value approach " (what is used most often in research, journal articles, and statistical software).

In the next two sections, we review the procedures behind each of these two approaches. To make our review concrete, let's imagine that μ is the average grade point average of all American students who major in mathematics. We first review the critical value approach for conducting each of the following three hypothesis tests about the population mean $\mu$:

: = 3 : > 3
: = 3 : < 3
: = 3 : ≠ 3

In Practice

  • We would want to conduct the first hypothesis test if we were interested in concluding that the average grade point average of the group is more than 3.
  • We would want to conduct the second hypothesis test if we were interested in concluding that the average grade point average of the group is less than 3.
  • And, we would want to conduct the third hypothesis test if we were only interested in concluding that the average grade point average of the group differs from 3 (without caring whether it is more or less than 3).

Upon completing the review of the critical value approach, we review the P -value approach for conducting each of the above three hypothesis tests about the population mean \(\mu\). The procedures that we review here for both approaches easily extend to hypothesis tests about any other population parameter.

9.4 Full Hypothesis Test Examples

Tests on means, example 9.8.

Jeffrey, as an eight-year old, established a mean time of 16.43 seconds for swimming the 25-yard freestyle, with a standard deviation of 0.8 seconds . His dad, Frank, thought that Jeffrey could swim the 25-yard freestyle faster using goggles. Frank bought Jeffrey a new pair of expensive goggles and timed Jeffrey for 15 25-yard freestyle swims . For the 15 swims, Jeffrey's mean time was 16 seconds. Frank thought that the goggles helped Jeffrey to swim faster than the 16.43 seconds. Conduct a hypothesis test using a preset α = 0.05. Assume that the swim times for the 25-yard freestyle are normal.

Set up the Hypothesis Test:

Since the problem is about a mean, this is a test of a single population mean .

H 0 : μ = 16.43   H a : μ < 16.43

For Jeffrey to swim faster, his time will be less than 16.43 seconds. The "<" tells you this is left-tailed.

Determine the distribution needed:

Random variable: X ¯ X ¯ = the mean time to swim the 25-yard freestyle.

Distribution for the test: X ¯ X ¯ is normal (population standard deviation is known: σ = 0.8)

X ¯ ~ N ( μ , σ X n ) X ¯ ~ N ( μ , σ X n ) Therefore, X ¯ ~ N ( 16.43 , 0.8 15 ) X ¯ ~ N ( 16.43 , 0.8 15 )

μ = 16.43 comes from H 0 and not the data. σ = 0.8, and n = 15.

Calculate the p -value using the normal distribution for a mean:

p -value = P ( x ¯ x ¯ < 16) = 0.0187 where the sample mean in the problem is given as 16.

p -value = 0.0187 (This is called the actual level of significance .) The p -value is the area to the left of the sample mean is given as 16.

μ = 16.43 comes from H 0 . Our assumption is μ = 16.43.

Interpretation of the p -value: If H 0 is true , there is a 0.0187 probability (1.87%)that Jeffrey's mean time to swim the 25-yard freestyle is 16 seconds or less. Because a 1.87% chance is small, the mean time of 16 seconds or less is unlikely to have happened randomly. It is a rare event.

Compare α and the p -value:

α = 0.05 p -value = 0.0187 α > p -value

Make a decision: Since α > α > p -value, reject H 0 .

This indicates that you reject the null hypothesis that the mean time to swim the 25-yard freestyle is at least 16.43 seconds.

Conclusion: At the 5% significance level, there is sufficient evidence that Jeffrey's mean time to swim the 25-yard freestyle is less than 16.43 seconds. Thus, based on the sample data, we conclude that Jeffrey swims faster using the new goggles.

The Type I and Type II errors for this problem are as follows: The Type I error is to conclude that Jeffrey swims the 25-yard freestyle, on average, in less than 16.43 seconds when, in fact, he actually swims the 25-yard freestyle, on average, in at least 16.43 seconds. (Reject the null hypothesis when the null hypothesis is true.)

The Type II error is that there is not evidence to conclude that Jeffrey swims the 25-yard freestyle, on average, in less than 16.43 seconds when, in fact, he actually does swim the 25-yard free-style, on average, in less than 16.43 seconds. (Do not reject the null hypothesis when the null hypothesis is false.)

The mean throwing distance of a football for Marco, a high school quarterback, is 40 yards, with a standard deviation of two yards. The team coach tells Marco to adjust his grip to get more distance. The coach records the distances for 20 throws. For the 20 throws, Marco’s mean distance was 45 yards. The coach thought the different grip helped Marco throw farther than 40 yards. Conduct a hypothesis test using a preset α = 0.05. Assume the throw distances for footballs are normal.

First, determine what type of test this is, set up the hypothesis test, find the p -value, sketch the graph, and state your conclusion.

Example 9.9

Jasmine has just begun her new job on the sales force of a very competitive company. In a sample of 16 sales calls it was found that she closed the contract for an average value of 108 dollars with a standard deviation of 12 dollars. Test at 5% significance that the population mean is at least 100 dollars against the alternative that it is less than 100 dollars. Company policy requires that new members of the sales force must exceed an average of $100 per contract during the trial employment period. Can we conclude that Jasmine has met this requirement at the significance level of 95%?

  • H 0 : µ ≤ 100 H a : µ > 100 The null and alternative hypothesis are for the parameter µ because the number of dollars of the contracts is a continuous random variable. Also, this is a one-tailed test because the company has only an interested if the number of dollars per contact is below a particular number not "too high" a number. This can be thought of as making a claim that the requirement is being met and thus the claim is in the alternative hypothesis.
  • Test statistic: t c = x ¯ − µ 0 s n = 108 − 100 ( 12 16 ) = 2.67 t c = x ¯ − µ 0 s n = 108 − 100 ( 12 16 ) = 2.67
  • Critical value: t a = 1.753 t a = 1.753 with n-1 degrees of freedom= 15

The test statistic is a Student's t because the sample size is below 30; therefore, we cannot use the normal distribution. Comparing the calculated value of the test statistic and the critical value of t t ( t a ) ( t a ) at a 5% significance level, we see that the calculated value is in the tail of the distribution. Thus, we conclude that 108 dollars per contract is significantly larger than the hypothesized value of 100 and thus we cannot accept the null hypothesis. There is evidence that supports Jasmine's performance meets company standards.

It is believed that a stock price for a particular company will grow at a rate of $5 per week with a standard deviation of $1. An investor believes the stock won’t grow as quickly. The changes in stock price is recorded for ten weeks and are as follows: $4, $3, $2, $3, $1, $7, $2, $1, $1, $2. Perform a hypothesis test using a 5% level of significance. State the null and alternative hypotheses, state your conclusion, and identify the Type I errors.

Example 9.10

A manufacturer of salad dressings uses machines to dispense liquid ingredients into bottles that move along a filling line. The machine that dispenses salad dressings is working properly when 8 ounces are dispensed. Suppose that the average amount dispensed in a particular sample of 35 bottles is 7.91 ounces with a variance of 0.03 ounces squared, s 2 s 2 . Is there evidence that the machine should be stopped and production wait for repairs? The lost production from a shutdown is potentially so great that management feels that the level of significance in the analysis should be 99%.

Again we will follow the steps in our analysis of this problem.

STEP 1 : Set the Null and Alternative Hypothesis. The random variable is the quantity of fluid placed in the bottles. This is a continuous random variable and the parameter we are interested in is the mean. Our hypothesis therefore is about the mean. In this case we are concerned that the machine is not filling properly. From what we are told it does not matter if the machine is over-filling or under-filling, both seem to be an equally bad error. This tells us that this is a two-tailed test: if the machine is malfunctioning it will be shutdown regardless if it is from over-filling or under-filling. The null and alternative hypotheses are thus:

STEP 2 : Decide the level of significance and draw the graph showing the critical value.

This problem has already set the level of significance at 99%. The decision seems an appropriate one and shows the thought process when setting the significance level. Management wants to be very certain, as certain as probability will allow, that they are not shutting down a machine that is not in need of repair. To draw the distribution and the critical value, we need to know which distribution to use. Because this is a continuous random variable and we are interested in the mean, and the sample size is greater than 30, the appropriate distribution is the normal distribution and the relevant critical value is 2.575 from the normal table or the t-table at 0.005 column and infinite degrees of freedom. We draw the graph and mark these points.

STEP 3 : Calculate sample parameters and the test statistic. The sample parameters are provided, the sample mean is 7.91 and the sample variance is .03 and the sample size is 35. We need to note that the sample variance was provided not the sample standard deviation, which is what we need for the formula. Remembering that the standard deviation is simply the square root of the variance, we therefore know the sample standard deviation, s, is 0.173. With this information we calculate the test statistic as -3.07, and mark it on the graph.

STEP 4 : Compare test statistic and the critical values Now we compare the test statistic and the critical value by placing the test statistic on the graph. We see that the test statistic is in the tail, decidedly greater than the critical value of 2.575. We note that even the very small difference between the hypothesized value and the sample value is still a large number of standard deviations. The sample mean is only 0.08 ounces different from the required level of 8 ounces, but it is 3 plus standard deviations away and thus we cannot accept the null hypothesis.

STEP 5 : Reach a Conclusion

Three standard deviations of a test statistic will guarantee that the test will fail. The probability that anything is within three standard deviations is almost zero. Actually it is 0.0026 on the normal distribution, which is certainly almost zero in a practical sense. Our formal conclusion would be “ At a 99% level of significance we cannot accept the hypothesis that the sample mean came from a distribution with a mean of 8 ounces” Or less formally, and getting to the point, “At a 99% level of significance we conclude that the machine is under filling the bottles and is in need of repair”.

Try It 9.10

A company records the mean time of employees working in a day. The mean comes out to be 475 minutes, with a standard deviation of 45 minutes. A manager recorded times of 20 employees. The times of working were (frequencies are in parentheses) 460(3); 465(2); 470(3); 475(1); 480(6); 485(3); 490(2).

Conduct a hypothesis test using a 2.5% level of significance to determine if the mean time is more than 475 .

Hypothesis Test for Proportions

Just as there were confidence intervals for proportions, or more formally, the population parameter p of the binomial distribution, there is the ability to test hypotheses concerning p .

The population parameter for the binomial is p . The estimated value (point estimate) for p is p′ where p′ = x/n , x is the number of successes in the sample and n is the sample size.

When you perform a hypothesis test of a population proportion p , you take a simple random sample from the population. The conditions for a binomial distribution must be met, which are: there are a certain number n of independent trials meaning random sampling, the outcomes of any trial are binary, success or failure, and each trial has the same probability of a success p . The shape of the binomial distribution needs to be similar to the shape of the normal distribution. To ensure this, the quantities np′ and nq′ must both be greater than five ( np′ > 5 and nq′ > 5). In this case the binomial distribution of a sample (estimated) proportion can be approximated by the normal distribution with μ = np μ = np and σ = npq σ = npq . Remember that q = 1 – p q = 1 – p . There is no distribution that can correct for this small sample bias and thus if these conditions are not met we simply cannot test the hypothesis with the data available at that time. We met this condition when we first were estimating confidence intervals for p .

Again, we begin with the standardizing formula modified because this is the distribution of a binomial.

Substituting p 0 p 0 , the hypothesized value of p , we have:

This is the test statistic for testing hypothesized values of p , where the null and alternative hypotheses take one of the following forms:

Two-tailed test One-tailed test One-tailed test
H : p = p H : p ≤ p H : p ≥ p
H : p ≠ p H : p > p H : p < p

The decision rule stated above applies here also: if the calculated value of Z c shows that the sample proportion is "too many" standard deviations from the hypothesized proportion, the null hypothesis cannot be accepted. The decision as to what is "too many" is pre-determined by the analyst depending on the level of significance required in the test.

Example 9.11

The mortgage department of a large bank is interested in the nature of loans of first-time borrowers. This information will be used to tailor their marketing strategy. They believe that 50% of first-time borrowers take out smaller loans than other borrowers. They perform a hypothesis test to determine if the percentage is the same or different from 50% . They sample 100 first-time borrowers and find 53 of these loans are smaller that the other borrowers. For the hypothesis test, they choose a 5% level of significance.

STEP 1 : Set the null and alternative hypothesis.

H 0 : p = 0.50   H a : p ≠ 0.50

The words "is the same or different from" tell you this is a two-tailed test. The Type I and Type II errors are as follows: The Type I error is to conclude that the proportion of borrowers is different from 50% when, in fact, the proportion is actually 50%. (Reject the null hypothesis when the null hypothesis is true). The Type II error is there is not enough evidence to conclude that the proportion of first time borrowers differs from 50% when, in fact, the proportion does differ from 50%. (You fail to reject the null hypothesis when the null hypothesis is false.)

STEP 2 : Decide the level of significance and draw the graph showing the critical value

The level of significance has been set by the problem at the 5% level. Because this is two-tailed test one-half of the alpha value will be in the upper tail and one-half in the lower tail as shown on the graph. The critical value for the normal distribution at the 95% level of confidence is 1.96. This can easily be found on the student’s t-table at the very bottom at infinite degrees of freedom remembering that at infinity the t-distribution is the normal distribution. Of course the value can also be found on the normal table but you have go looking for one-half of 95 (0.475) inside the body of the table and then read out to the sides and top for the number of standard deviations.

STEP 3 : Calculate the sample parameters and critical value of the test statistic.

The test statistic is a normal distribution, Z, for testing proportions and is:

For this case, the sample of 100 found 53 of these loans were smaller than those of other borrowers. The sample proportion, p′ = 53/100= 0.53 The test question, therefore, is : “Is 0.53 significantly different from .50?” Putting these values into the formula for the test statistic we find that 0.53 is only 0.60 standard deviations away from .50. This is barely off of the mean of the standard normal distribution of zero. There is virtually no difference from the sample proportion and the hypothesized proportion in terms of standard deviations.

STEP 4 : Compare the test statistic and the critical value.

The calculated value is well within the critical values of ± 1.96 standard deviations and thus we cannot reject the null hypothesis. To reject the null hypothesis we need significant evident of difference between the hypothesized value and the sample value. In this case the sample value is very nearly the same as the hypothesized value measured in terms of standard deviations.

STEP 5 : Reach a conclusion

The formal conclusion would be “At a 5% level of significance we cannot reject the null hypothesis that 50% of first-time borrowers take out smaller loans than other borrowers.” Notice the length to which the conclusion goes to include all of the conditions that are attached to the conclusion. Statisticians, for all the criticism they receive, are careful to be very specific even when this seems trivial. Statisticians cannot say more than they know, and the data constrain the conclusion to be within the metes and bounds of the data.

Try It 9.11

A teacher believes that 85% of students in the class will want to go on a field trip to the local zoo. The teacher performs a hypothesis test to determine if the percentage is the same or different from 85%. The teacher samples 50 students and 39 reply that they would want to go to the zoo. For the hypothesis test, use a 1% level of significance.

Example 9.12

Suppose a consumer group suspects that the proportion of households that have three or more cell phones is 30%. A cell phone company has reason to believe that the proportion is not 30%. Before they start a big advertising campaign, they conduct a hypothesis test. Their marketing people survey 150 households with the result that 43 of the households have three or more cell phones.

Here is an abbreviate version of the system to solve hypothesis tests applied to a test on a proportions.

Try It 9.12

Marketers believe that 92% of adults in the United States own a cell phone. A cell phone manufacturer believes that number is actually lower. 200 American adults are surveyed, of which, 174 report having cell phones. Use a 5% level of significance. State the null and alternative hypothesis, find the p -value, state your conclusion, and identify the Type I and Type II errors.

Example 9.13

The National Institute of Standards and Technology provides exact data on conductivity properties of materials. Following are conductivity measurements for 11 randomly selected pieces of a particular type of glass.

1.11; 1.07; 1.11; 1.07; 1.12; 1.08; .98; .98; 1.02; .95; .95 Is there convincing evidence that the average conductivity of this type of glass is greater than one? Use a significance level of 0.05.

Let’s follow a four-step process to answer this statistical question.

  • H 0 : μ ≤ 1
  • H a : μ > 1
  • Plan : We are testing a sample mean without a known population standard deviation with less than 30 observations. Therefore, we need to use a Student's-t distribution. Assume the underlying population is normal.
  • Do the calculations and draw the graph .
  • State the Conclusions : We cannot accept the null hypothesis. It is reasonable to state that the data supports the claim that the average conductivity level is greater than one.

Try It 9.13

The boiling point of a specific liquid is measured for 15 samples, and the boiling points are obtained as follows:

205; 206; 206; 202; 199; 194; 197; 198; 198; 201; 201; 202; 207; 211; 205

Is there convincing evidence that the average boiling point is greater than 200? Use a significance level of 0.1. Assume the population is normal.

Example 9.14

In a study of 420,019 cell phone users, 172 of the subjects developed brain cancer. Test the claim that cell phone users developed brain cancer at a greater rate than that for non-cell phone users (the rate of brain cancer for non-cell phone users is 0.0340%). Since this is a critical issue, use a 0.005 significance level. Explain why the significance level should be so low in terms of a Type I error.

  • H 0 : p ≤ 0.00034
  • H a : p > 0.00034

If we commit a Type I error, we are essentially accepting a false claim. Since the claim describes cancer-causing environments, we want to minimize the chances of incorrectly identifying causes of cancer.

  • We will be testing a sample proportion with x = 172 and n = 420,019. The sample is sufficiently large because we have np' = 420,019(0.00034) = 142.8, nq' = 420,019(0.99966) = 419,876.2, two independent outcomes, and a fixed probability of success p' = 0.00034. Thus we will be able to generalize our results to the population.

Try It 9.14

In a study of 390,000 moisturizer users, 138 of the subjects developed skin diseases. Test the claim that moisturizer users developed skin diseases at a greater rate than that for non-moisturizer users (the rate of skin diseases for non-moisturizer users is 0.041%). Since this is a critical issue, use a 0.005 significance level. Explain why the significance level should be so low in terms of a Type I error.

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Hypothesis Testing

About hypothesis testing.

critical values

Contents (Click to skip to the section):

What is a Hypothesis?

What is hypothesis testing.

  • Hypothesis Testing Examples (One Sample Z Test).
  • Hypothesis Test on a Mean (TI 83).

Bayesian Hypothesis Testing.

  • More Hypothesis Testing Articles
  • Hypothesis Tests in One Picture
  • Critical Values

What is the Null Hypothesis?

Need help with a homework problem? Check out our tutoring page!

What is a Hypothesis

A hypothesis is an educated guess about something in the world around you. It should be testable, either by experiment or observation. For example:

  • A new medicine you think might work.
  • A way of teaching you think might be better.
  • A possible location of new species.
  • A fairer way to administer standardized tests.

It can really be anything at all as long as you can put it to the test.

What is a Hypothesis Statement?

If you are going to propose a hypothesis, it’s customary to write a statement. Your statement will look like this: “If I…(do this to an independent variable )….then (this will happen to the dependent variable ).” For example:

  • If I (decrease the amount of water given to herbs) then (the herbs will increase in size).
  • If I (give patients counseling in addition to medication) then (their overall depression scale will decrease).
  • If I (give exams at noon instead of 7) then (student test scores will improve).
  • If I (look in this certain location) then (I am more likely to find new species).

A good hypothesis statement should:

  • Include an “if” and “then” statement (according to the University of California).
  • Include both the independent and dependent variables.
  • Be testable by experiment, survey or other scientifically sound technique.
  • Be based on information in prior research (either yours or someone else’s).
  • Have design criteria (for engineering or programming projects).

hypothesis testing

Hypothesis testing can be one of the most confusing aspects for students, mostly because before you can even perform a test, you have to know what your null hypothesis is. Often, those tricky word problems that you are faced with can be difficult to decipher. But it’s easier than you think; all you need to do is:

  • Figure out your null hypothesis,
  • State your null hypothesis,
  • Choose what kind of test you need to perform,
  • Either support or reject the null hypothesis .

If you trace back the history of science, the null hypothesis is always the accepted fact. Simple examples of null hypotheses that are generally accepted as being true are:

  • DNA is shaped like a double helix.
  • There are 8 planets in the solar system (excluding Pluto).
  • Taking Vioxx can increase your risk of heart problems (a drug now taken off the market).

How do I State the Null Hypothesis?

You won’t be required to actually perform a real experiment or survey in elementary statistics (or even disprove a fact like “Pluto is a planet”!), so you’ll be given word problems from real-life situations. You’ll need to figure out what your hypothesis is from the problem. This can be a little trickier than just figuring out what the accepted fact is. With word problems, you are looking to find a fact that is nullifiable (i.e. something you can reject).

Hypothesis Testing Examples #1: Basic Example

A researcher thinks that if knee surgery patients go to physical therapy twice a week (instead of 3 times), their recovery period will be longer. Average recovery times for knee surgery patients is 8.2 weeks.

The hypothesis statement in this question is that the researcher believes the average recovery time is more than 8.2 weeks. It can be written in mathematical terms as: H 1 : μ > 8.2

Next, you’ll need to state the null hypothesis .  That’s what will happen if the researcher is wrong . In the above example, if the researcher is wrong then the recovery time is less than or equal to 8.2 weeks. In math, that’s: H 0 μ ≤ 8.2

Rejecting the null hypothesis

Ten or so years ago, we believed that there were 9 planets in the solar system. Pluto was demoted as a planet in 2006. The null hypothesis of “Pluto is a planet” was replaced by “Pluto is not a planet.” Of course, rejecting the null hypothesis isn’t always that easy— the hard part is usually figuring out what your null hypothesis is in the first place.

Hypothesis Testing Examples (One Sample Z Test)

The one sample z test isn’t used very often (because we rarely know the actual population standard deviation ). However, it’s a good idea to understand how it works as it’s one of the simplest tests you can perform in hypothesis testing. In English class you got to learn the basics (like grammar and spelling) before you could write a story; think of one sample z tests as the foundation for understanding more complex hypothesis testing. This page contains two hypothesis testing examples for one sample z-tests .

One Sample Hypothesis Testing Example: One Tailed Z Test

A principal at a certain school claims that the students in his school are above average intelligence. A random sample of thirty students IQ scores have a mean score of 112.5. Is there sufficient evidence to support the principal’s claim? The mean population IQ is 100 with a standard deviation of 15.

Step 1: State the Null hypothesis . The accepted fact is that the population mean is 100, so: H 0 : μ = 100.

Step 2: State the Alternate Hypothesis . The claim is that the students have above average IQ scores, so: H 1 : μ > 100. The fact that we are looking for scores “greater than” a certain point means that this is a one-tailed test.

hypothesis testing examples

Step 4: State the alpha level . If you aren’t given an alpha level , use 5% (0.05).

Step 5: Find the rejection region area (given by your alpha level above) from the z-table . An area of .05 is equal to a z-score of 1.645.

z score formula

Step 6: If Step 6 is greater than Step 5, reject the null hypothesis. If it’s less than Step 5, you cannot reject the null hypothesis. In this case, it is more (4.56 > 1.645), so you can reject the null.

One Sample Hypothesis Testing Examples: #3

Blood glucose levels for obese patients have a mean of 100 with a standard deviation of 15. A researcher thinks that a diet high in raw cornstarch will have a positive or negative effect on blood glucose levels. A sample of 30 patients who have tried the raw cornstarch diet have a mean glucose level of 140. Test the hypothesis that the raw cornstarch had an effect.

  • State the null hypothesis : H 0 :μ=100
  • State the alternate hypothesis : H 1 :≠100
  • State your alpha level. We’ll use 0.05 for this example. As this is a two-tailed test, split the alpha into two. 0.05/2=0.025
  • Find the z-score associated with your alpha level . You’re looking for the area in one tail only . A z-score for 0.75(1-0.025=0.975) is 1.96. As this is a two-tailed test, you would also be considering the left tail (z = 1.96)
  •   If Step 5 is less than -1.96 or greater than 1.96 (Step 3), reject the null hypothesis . In this case, it is greater, so you can reject the null.

*This process is made much easier if you use a TI-83 or Excel to calculate the z-score (the “critical value”). See:

  • Critical z value TI 83
  • Z Score in Excel

Hypothesis Testing Examples: Mean (Using TI 83)

You can use the TI 83 calculator for hypothesis testing, but the calculator won’t figure out the null and alternate hypotheses; that’s up to you to read the question and input it into the calculator.

Example problem : A sample of 200 people has a mean age of 21 with a population standard deviation (σ) of 5. Test the hypothesis that the population mean is 18.9 at α = 0.05.

Step 1: State the null hypothesis. In this case, the null hypothesis is that the population mean is 18.9, so we write: H 0 : μ = 18.9

Step 2: State the alternative hypothesis. We want to know if our sample, which has a mean of 21 instead of 18.9, really is different from the population, therefore our alternate hypothesis: H 1 : μ ≠ 18.9

Step 3: Press Stat then press the right arrow twice to select TESTS.

Step 4: Press 1 to select 1:Z-Test… . Press ENTER.

Step 5: Use the right arrow to select Stats .

Step 6: Enter the data from the problem: μ 0 : 18.9 σ: 5 x : 21 n: 200 μ: ≠μ 0

Step 7: Arrow down to Calculate and press ENTER. The calculator shows the p-value: p = 2.87 × 10 -9

This is smaller than our alpha value of .05. That means we should reject the null hypothesis .

Bayesian Hypothesis Testing: What is it?

bayesian hypothesis testing

Bayesian hypothesis testing helps to answer the question: Can the results from a test or survey be repeated? Why do we care if a test can be repeated? Let’s say twenty people in the same village came down with leukemia. A group of researchers find that cell-phone towers are to blame. However, a second study found that cell-phone towers had nothing to do with the cancer cluster in the village. In fact, they found that the cancers were completely random. If that sounds impossible, it actually can happen! Clusters of cancer can happen simply by chance . There could be many reasons why the first study was faulty. One of the main reasons could be that they just didn’t take into account that sometimes things happen randomly and we just don’t know why.

It’s good science to let people know if your study results are solid, or if they could have happened by chance. The usual way of doing this is to test your results with a p-value . A p value is a number that you get by running a hypothesis test on your data. A P value of 0.05 (5%) or less is usually enough to claim that your results are repeatable. However, there’s another way to test the validity of your results: Bayesian Hypothesis testing. This type of testing gives you another way to test the strength of your results.

Traditional testing (the type you probably came across in elementary stats or AP stats) is called Non-Bayesian. It is how often an outcome happens over repeated runs of the experiment. It’s an objective view of whether an experiment is repeatable. Bayesian hypothesis testing is a subjective view of the same thing. It takes into account how much faith you have in your results. In other words, would you wager money on the outcome of your experiment?

Differences Between Traditional and Bayesian Hypothesis Testing.

Traditional testing (Non Bayesian) requires you to repeat sampling over and over, while Bayesian testing does not. The main different between the two is in the first step of testing: stating a probability model. In Bayesian testing you add prior knowledge to this step. It also requires use of a posterior probability , which is the conditional probability given to a random event after all the evidence is considered.

Arguments for Bayesian Testing.

Many researchers think that it is a better alternative to traditional testing, because it:

  • Includes prior knowledge about the data.
  • Takes into account personal beliefs about the results.

Arguments against.

  • Including prior data or knowledge isn’t justifiable.
  • It is difficult to calculate compared to non-Bayesian testing.

Back to top

Hypothesis Testing Articles

  • What is Ad Hoc Testing?
  • Composite Hypothesis Test
  • What is a Rejection Region?
  • What is a Two Tailed Test?
  • How to Decide if a Hypothesis Test is a One Tailed Test or a Two Tailed Test.
  • How to Decide if a Hypothesis is a Left Tailed Test or a Right-Tailed Test.
  • How to State the Null Hypothesis in Statistics.
  • How to Find a Critical Value .
  • How to Support or Reject a Null Hypothesis.

Specific Tests:

  • Brunner Munzel Test (Generalized Wilcoxon Test).
  • Chi Square Test for Normality.
  • Cochran-Mantel-Haenszel Test.
  • Granger Causality Test .
  • Hotelling’s T-Squared.
  • KPSS Test .
  • What is a Likelihood-Ratio Test?
  • Log rank test .
  • MANCOVA Assumptions.
  • MANCOVA Sample Size.
  • Marascuilo Procedure
  • Rao’s Spacing Test
  • Rayleigh test of uniformity.
  • Sequential Probability Ratio Test.
  • How to Run a Sign Test.
  • T Test: one sample.
  • T-Test: Two sample .
  • Welch’s ANOVA .
  • Welch’s Test for Unequal Variances .
  • Z-Test: one sample .
  • Z Test: Two Proportion.
  • Wald Test .

Related Articles:

  • What is an Acceptance Region?
  • How to Calculate Chebyshev’s Theorem.
  • Contrast Analysis
  • Decision Rule.
  • Degrees of Freedom .
  • Directional Test
  • False Discovery Rate
  • How to calculate the Least Significant Difference.
  • Levels in Statistics.
  • How to Calculate Margin of Error.
  • Mean Difference (Difference in Means)
  • The Multiple Testing Problem .
  • What is the Neyman-Pearson Lemma?
  • What is an Omnibus Test?
  • One Sample Median Test .
  • How to Find a Sample Size (General Instructions).
  • Sig 2(Tailed) meaning in results
  • What is a Standardized Test Statistic?
  • How to Find Standard Error
  • Standardized values: Example.
  • How to Calculate a T-Score.
  • T-Score Vs. a Z.Score.
  • Testing a Single Mean.
  • Unequal Sample Sizes.
  • Uniformly Most Powerful Tests.
  • How to Calculate a Z-Score.
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Statistics By Jim

Making statistics intuitive

Test Statistic: Definition, Types & Formulas

By Jim Frost 8 Comments

What is a Test Statistic?

A test statistic assesses how consistent your sample data are with the null hypothesis in a hypothesis test. Test statistic calculations take your sample data and boil them down to a single number that quantifies how much your sample diverges from the null hypothesis. As a test statistic value becomes more extreme, it indicates larger differences between your sample data and the null hypothesis.

When your test statistic indicates a sufficiently large incompatibility with the null hypothesis, you can reject the null and state that your results are statistically significant—your data support the notion that the sample effect exists in the population . To use a test statistic to evaluate statistical significance, you either compare it to a critical value or use it to calculate the p-value .

Statisticians named the hypothesis tests after the test statistics because they’re the quantity that the tests actually evaluate. For example, t-tests assess t-values, F-tests evaluate F-values, and chi-square tests use, you guessed it, chi-square values.

In this post, learn about test statistics, how to calculate them, interpret them, and evaluate statistical significance using the critical value and p-value methods.

How to Find Test Statistics

Each test statistic has its own formula. I present several common test statistics examples below. To see worked examples for each one, click the links to my more detailed articles.

Formulas for Test Statistics

T-value for 1-sample t-test Take the sample mean, subtract the hypothesized mean, and divide by the .
T-value for 2-sample t-test Take one sample mean, subtract the other, and divide by the pooled standard deviation.
F-value for F-tests and ANOVA Calculate the ratio of two .
Chi-squared value (χ ) for a Chi-squared test Sum the squared differences between observed and expected values divided by the expected values.

Understanding the Null Values and the Test Statistic Formulas

In the formulas above, it’s helpful to understand the null condition and the test statistic value that occurs when your sample data match that condition exactly. Also, it’s worthwhile knowing what causes the test statistics to move further away from the null value, potentially becoming significant. Test statistics are statistically significant when they exceed a critical value.

All these test statistics are ratios, which helps you understand their null values.

T-Tests, Null = 0

When a t-value equals 0, it indicates that your sample data match the null hypothesis exactly.

For a 1-sample t-test, when the sample mean equals the hypothesized mean, the numerator is zero, which causes the entire t-value ratio to equal zero. As the sample mean moves away from the hypothesized mean in either the positive or negative direction, the test statistic moves away from zero in the same direction.

A similar case exists for 2-sample t-tests. When the two sample means are equal, the numerator is zero, and the entire test statistic ratio is zero. As the two sample means become increasingly different, the absolute value of the numerator increases, and the t-value becomes more positive or negative.

Related post : How T-tests Work

F-tests including ANOVA, Null = 1

When an F-value equals 1, it indicates that the two variances in the numerator and denominator are equal, matching the null hypothesis.

As the numerator and denominator become less and less similar, the F-value moves away from one in either direction.

Related post : The F-test in ANOVA

Chi-squared Tests, Null = 0

When a chi-squared value equals 0, it indicates that the observed values always match the expected values. This condition causes the numerator to equal zero, making the chi-squared value equal zero.

As the observed values progressively fail to match the observed values, the numerator increases, causing the test statistic to rise from zero.

Related post : How a Chi-Squared Test Works

You’ll never see a test statistic that equals the null value precisely in practice. However, trivial differences been sample values and the null value are not uncommon.

Interpreting Test Statistics

Test statistics are unitless. This fact can make them difficult to interpret on their own. You know they evaluate how well your data agree with the null hypothesis. If your test statistic is extreme enough, your data are so incompatible with the null hypothesis that you can reject it and conclude that your results are statistically significant. But how does that translate to specific values of your test statistic? Where do you draw the line?

For instance, t-values of zero match the null value. But how far from zero should your t-value be to be statistically significant? Is 1 enough? 2? 3? If your t-value is 2, what does it mean anyway? In this case, we know that the sample mean doesn’t equal the null value, but how exceptional is it? To complicate matters, the dividing line changes depending on your sample size and other study design issues.

Similar types of questions apply to the other test statistics too.

To interpret individual values of a test statistic, we need to place them in a larger context. Towards this end, let me introduce you to sampling distributions for test statistics!

Sampling Distributions for Test Statistics

Performing a hypothesis test on a sample produces a single test statistic. Now, imagine you carry out the following process:

  • Assume the null hypothesis is true in the population.
  • Repeat your study many times by drawing many random samples of the same size from this population.
  • Perform the same hypothesis test on all these samples and save the test statistics.
  • Plot the distribution of the test statistics.

This process produces the distribution of test statistic values that occurs when the effect does not exist in the population (i.e., the null hypothesis is true). Statisticians refer to this type of distribution as a sampling distribution, a kind of probability distribution.

Why would we need this type of distribution?

It provides the larger context required for interpreting a test statistic. More specifically, it allows us to compare our study’s single test statistic to values likely to occur when the null is true. We can quantify our sample statistic’s rareness while assuming the effect does not exist in the population. Now that’s helpful!

Fortunately, we don’t need to collect many random samples to create this distribution! Statisticians have developed formulas allowing us to estimate sampling distributions for test statistics using the sample data.

To evaluate your data’s compatibility with the null hypothesis, place your study’s test statistic in the distribution.

Related post : Understanding Probability Distributions

Example of a Test Statistic in a Sampling Distribution

Suppose our t-test produces a t-value of two. That’s our test statistic. Let’s see where it fits in.

The sampling distribution below shows a t-distribution with 20 degrees of freedom, equating to a 1-sample t-test with a sample size of 21. The distribution centers on zero because it assumes the null hypothesis is correct. When the null is true, your analysis is most likely to obtain a t-value near zero and less likely to produce t-values further from zero in either direction.

Sampling distribution for the t-value test statistic.

The sampling distribution indicates that our test statistic is somewhat rare when we assume the null hypothesis is correct. However, the chances of observing t-values from -2 to +2 are not totally inconceivable. We need a way to quantify the likelihood.

From this point, we need to use the sampling distributions’ ability to calculate probabilities for test statistics.

Related post : Sampling Distributions Explained

Test Statistics and Critical Values

The significance level uses critical values to define how far the test statistic must be from the null value to reject the null hypothesis. When the test statistic exceeds a critical value, the results are statistically significant.

The percentage of the area beneath the sampling distribution curve that is shaded represents the probability that the test statistic will fall in those regions when the null is true. Consequently, to depict a significance level of 0.05, I’ll shade 5% of the sampling distribution furthest away from the null value.

The two shaded areas are equidistant from the null value in the center. Each region has a likelihood of 0.025, which sums to our significance level of 0.05. These shaded areas are the critical regions for a two-tailed hypothesis test. Let’s return to our example t-value of 2.

Related post : What are Critical Values?

Sampling distribution that displays the critical values for our t-value.

In this example, the critical values are -2.086 and +2.086. Our test statistic of 2 is not statistically significant because it does not exceed the critical value.

Other hypothesis tests have their own test statistics and sampling distributions, but their processes for critical values are generally similar.

Learn how to find critical values for test statistics using tables:

  • T-distribution table
  • Chi-square table

Related post : Understanding Significance Levels

Using Test Statistics to Find P-values

P-values are the probability of observing an effect at least as extreme as your sample’s effect if you assume no effect exists in the population.

Test statistics represent effect sizes in hypothesis tests because they denote the difference between your sample effect and no effect —the null hypothesis. Consequently, you use the test statistic to calculate the p-value for your hypothesis test.

The above p-value definition is a bit tortuous. Fortunately, it’s much easier to understand how test statistics and p-values work together using a sampling distribution graph.

Let’s use our hypothetical test statistic t-value of 2 for this example. However, because I’m displaying the results of a two-tailed test, I need to use t-values of +2 and -2 to cover both tails.

Related post : One-tailed vs. Two-Tailed Hypothesis Tests

The graph below displays the probability of t-values less than -2 and greater than +2 using the area under the curve. This graph is specific to our t-test design (1-sample t-test with N = 21).

Graph of t-distribution that displays the probability for a t-value of 2.

The sampling distribution indicates that each of the two shaded regions has a probability of 0.02963—for a total of 0.05926. That’s the p-value! The graph shows that the test statistic falls within these areas almost 6% of the time when the null hypothesis is true in the population.

While this likelihood seems small, it’s not low enough to justify rejecting the null under the standard significance level of 0.05. P-value results are always consistent with the critical value method. Learn more about using test statistics to find p values .

While test statistics are a crucial part of hypothesis testing, you’ll probably let your statistical software calculate the p-value for the test. However, understanding test statistics will boost your comprehension of what a hypothesis test actually assesses.

Related post : Interpreting P-values

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May 9, 2024 at 1:40 am

Thank you very much (great page on one and two-tailed tests)!

May 6, 2024 at 12:17 pm

I would like to ask a question. If only positive numbers are the possible values in a sample (e.g. absolute values without 0), is it meaningful to test if the sample is significantly different from zero (using for example a one sample t-test or a Wilcoxon signed-rank test) or can I assume that if given a large enough sample, the result will by definition be significant (even if a small or very variable sample results in a non-significant hypothesis test).

Thank you very much,

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May 6, 2024 at 4:35 pm

If you’re talking about the raw values you’re assessing using a one-sample t-test, it doesn’t make sense to compare them to zero given your description of the data. You know that the mean can’t possibly equal zero. The mean must be some positive value. Yes, in this scenario, if you have a large enough sample size, you should get statistically significant results. So, that t-test isn’t tell you anything that you don’t already know!

However, you should be aware of several things. The 1-sample test can compare your sample mean to values other than zero. Typically, you’ll need to specify the value of the null hypothesis for your software. This value is the comparison value. The test determines whether your sample data provide enough evidence to conclude that the population mean does not equal the null hypothesis value you specify. You’ll need to specify the value because there is no obvious default value to use. Every 1-sample t-test has its subject-area context with a value that makes sense for its null hypothesis value and it is frequently not zero.

I suspect that you’re getting tripped up with the fact that t-tests use a t-value of zero for its null hypothesis value. That doesn’t mean your 1-sample t-test is comparing your sample mean to zero. The test converts your data to a single t-value and compares the t-value to zero. But your actual null hypothesis value can be something else. It’s just converting your sample to a standardized value to use for testing. So, while the t-test compares your sample’s t-value to zero, you can actually compare your sample mean to any value you specify. You need to use a value that makes sense for your subject area.

I hope that makes sense!

May 8, 2024 at 8:37 am

Thank you very much Jim, this helps a lot! Actually, the value I would like to compare my sample to is zero, but I just couldn’t find the right way to test it apparently (it’s about EEG data). The original data was a sample of numbers between -1 and +1, with the question if they are significantly different from zero in either direction (in which case a one sample t-test makes sense I guess, since the sample mean can in fact be zero). However, since a sample mean of 0 can also occur if half of the sample differs in the negative, and the other half in the positive direction, I also wanted to test if there is a divergence from 0 in ‘absolute’ terms – that’s how the absolute valued numbers came about (I know that absolute values can also be zero, but in this specific case, they were all positive numbers) And a special thanks for the last paragraph – I will definitely keep in mind, it is a potential point of confusion.

May 8, 2024 at 8:33 pm

You can use a 1-sample t test for both cases but you’ll need to set them up slightly different. To detect a positive or negative difference from zero, use a 2-tailed test. For the case with absolute values, use a one-tailed test with a critical region in the positive end. To learn more, read about One- and Two-Tailed Tests Explained . Use zero for the comparison value in both cases.

' src=

February 12, 2024 at 1:00 am

Very helpful and well articulated! Thanks Jim 🙂

' src=

September 18, 2023 at 10:01 am

Thank you for brief explanation.

' src=

July 25, 2022 at 8:32 am

the content was helpful to me. thank you

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  • Knowledge Base
  • Null and Alternative Hypotheses | Definitions & Examples

Null & Alternative Hypotheses | Definitions, Templates & Examples

Published on May 6, 2022 by Shaun Turney . Revised on June 22, 2023.

The null and alternative hypotheses are two competing claims that researchers weigh evidence for and against using a statistical test :

  • Null hypothesis ( H 0 ): There’s no effect in the population .
  • Alternative hypothesis ( H a or H 1 ) : There’s an effect in the population.

Table of contents

Answering your research question with hypotheses, what is a null hypothesis, what is an alternative hypothesis, similarities and differences between null and alternative hypotheses, how to write null and alternative hypotheses, other interesting articles, frequently asked questions.

The null and alternative hypotheses offer competing answers to your research question . When the research question asks “Does the independent variable affect the dependent variable?”:

  • The null hypothesis ( H 0 ) answers “No, there’s no effect in the population.”
  • The alternative hypothesis ( H a ) answers “Yes, there is an effect in the population.”

The null and alternative are always claims about the population. That’s because the goal of hypothesis testing is to make inferences about a population based on a sample . Often, we infer whether there’s an effect in the population by looking at differences between groups or relationships between variables in the sample. It’s critical for your research to write strong hypotheses .

You can use a statistical test to decide whether the evidence favors the null or alternative hypothesis. Each type of statistical test comes with a specific way of phrasing the null and alternative hypothesis. However, the hypotheses can also be phrased in a general way that applies to any test.

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The null hypothesis is the claim that there’s no effect in the population.

If the sample provides enough evidence against the claim that there’s no effect in the population ( p ≤ α), then we can reject the null hypothesis . Otherwise, we fail to reject the null hypothesis.

Although “fail to reject” may sound awkward, it’s the only wording that statisticians accept . Be careful not to say you “prove” or “accept” the null hypothesis.

Null hypotheses often include phrases such as “no effect,” “no difference,” or “no relationship.” When written in mathematical terms, they always include an equality (usually =, but sometimes ≥ or ≤).

You can never know with complete certainty whether there is an effect in the population. Some percentage of the time, your inference about the population will be incorrect. When you incorrectly reject the null hypothesis, it’s called a type I error . When you incorrectly fail to reject it, it’s a type II error.

Examples of null hypotheses

The table below gives examples of research questions and null hypotheses. There’s always more than one way to answer a research question, but these null hypotheses can help you get started.

( )
Does tooth flossing affect the number of cavities? Tooth flossing has on the number of cavities. test:

The mean number of cavities per person does not differ between the flossing group (µ ) and the non-flossing group (µ ) in the population; µ = µ .

Does the amount of text highlighted in the textbook affect exam scores? The amount of text highlighted in the textbook has on exam scores. :

There is no relationship between the amount of text highlighted and exam scores in the population; β = 0.

Does daily meditation decrease the incidence of depression? Daily meditation the incidence of depression.* test:

The proportion of people with depression in the daily-meditation group ( ) is greater than or equal to the no-meditation group ( ) in the population; ≥ .

*Note that some researchers prefer to always write the null hypothesis in terms of “no effect” and “=”. It would be fine to say that daily meditation has no effect on the incidence of depression and p 1 = p 2 .

The alternative hypothesis ( H a ) is the other answer to your research question . It claims that there’s an effect in the population.

Often, your alternative hypothesis is the same as your research hypothesis. In other words, it’s the claim that you expect or hope will be true.

The alternative hypothesis is the complement to the null hypothesis. Null and alternative hypotheses are exhaustive, meaning that together they cover every possible outcome. They are also mutually exclusive, meaning that only one can be true at a time.

Alternative hypotheses often include phrases such as “an effect,” “a difference,” or “a relationship.” When alternative hypotheses are written in mathematical terms, they always include an inequality (usually ≠, but sometimes < or >). As with null hypotheses, there are many acceptable ways to phrase an alternative hypothesis.

Examples of alternative hypotheses

The table below gives examples of research questions and alternative hypotheses to help you get started with formulating your own.

Does tooth flossing affect the number of cavities? Tooth flossing has an on the number of cavities. test:

The mean number of cavities per person differs between the flossing group (µ ) and the non-flossing group (µ ) in the population; µ ≠ µ .

Does the amount of text highlighted in a textbook affect exam scores? The amount of text highlighted in the textbook has an on exam scores. :

There is a relationship between the amount of text highlighted and exam scores in the population; β ≠ 0.

Does daily meditation decrease the incidence of depression? Daily meditation the incidence of depression. test:

The proportion of people with depression in the daily-meditation group ( ) is less than the no-meditation group ( ) in the population; < .

Null and alternative hypotheses are similar in some ways:

  • They’re both answers to the research question.
  • They both make claims about the population.
  • They’re both evaluated by statistical tests.

However, there are important differences between the two types of hypotheses, summarized in the following table.

A claim that there is in the population. A claim that there is in the population.

Equality symbol (=, ≥, or ≤) Inequality symbol (≠, <, or >)
Rejected Supported
Failed to reject Not supported

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hypothesis testing statistics examples

To help you write your hypotheses, you can use the template sentences below. If you know which statistical test you’re going to use, you can use the test-specific template sentences. Otherwise, you can use the general template sentences.

General template sentences

The only thing you need to know to use these general template sentences are your dependent and independent variables. To write your research question, null hypothesis, and alternative hypothesis, fill in the following sentences with your variables:

Does independent variable affect dependent variable ?

  • Null hypothesis ( H 0 ): Independent variable does not affect dependent variable.
  • Alternative hypothesis ( H a ): Independent variable affects dependent variable.

Test-specific template sentences

Once you know the statistical test you’ll be using, you can write your hypotheses in a more precise and mathematical way specific to the test you chose. The table below provides template sentences for common statistical tests.

( )
test 

with two groups

The mean dependent variable does not differ between group 1 (µ ) and group 2 (µ ) in the population; µ = µ . The mean dependent variable differs between group 1 (µ ) and group 2 (µ ) in the population; µ ≠ µ .
with three groups The mean dependent variable does not differ between group 1 (µ ), group 2 (µ ), and group 3 (µ ) in the population; µ = µ = µ . The mean dependent variable of group 1 (µ ), group 2 (µ ), and group 3 (µ ) are not all equal in the population.
There is no correlation between independent variable and dependent variable in the population; ρ = 0. There is a correlation between independent variable and dependent variable in the population; ρ ≠ 0.
There is no relationship between independent variable and dependent variable in the population; β = 0. There is a relationship between independent variable and dependent variable in the population; β ≠ 0.
Two-proportions test The dependent variable expressed as a proportion does not differ between group 1 ( ) and group 2 ( ) in the population; = . The dependent variable expressed as a proportion differs between group 1 ( ) and group 2 ( ) in the population; ≠ .

Note: The template sentences above assume that you’re performing one-tailed tests . One-tailed tests are appropriate for most studies.

If you want to know more about statistics , methodology , or research bias , make sure to check out some of our other articles with explanations and examples.

  • Normal distribution
  • Descriptive statistics
  • Measures of central tendency
  • Correlation coefficient

Methodology

  • Cluster sampling
  • Stratified sampling
  • Types of interviews
  • Cohort study
  • Thematic analysis

Research bias

  • Implicit bias
  • Cognitive bias
  • Survivorship bias
  • Availability heuristic
  • Nonresponse bias
  • Regression to the mean

Hypothesis testing is a formal procedure for investigating our ideas about the world using statistics. It is used by scientists to test specific predictions, called hypotheses , by calculating how likely it is that a pattern or relationship between variables could have arisen by chance.

Null and alternative hypotheses are used in statistical hypothesis testing . The null hypothesis of a test always predicts no effect or no relationship between variables, while the alternative hypothesis states your research prediction of an effect or relationship.

The null hypothesis is often abbreviated as H 0 . When the null hypothesis is written using mathematical symbols, it always includes an equality symbol (usually =, but sometimes ≥ or ≤).

The alternative hypothesis is often abbreviated as H a or H 1 . When the alternative hypothesis is written using mathematical symbols, it always includes an inequality symbol (usually ≠, but sometimes < or >).

A research hypothesis is your proposed answer to your research question. The research hypothesis usually includes an explanation (“ x affects y because …”).

A statistical hypothesis, on the other hand, is a mathematical statement about a population parameter. Statistical hypotheses always come in pairs: the null and alternative hypotheses . In a well-designed study , the statistical hypotheses correspond logically to the research hypothesis.

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Statistics and probability

Course: statistics and probability   >   unit 12, hypothesis testing and p-values.

  • One-tailed and two-tailed tests
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7.5: Full Hypothesis Test Examples

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Tests on Means

Example \(\pageindex{8}\).

Jeffrey, as an eight-year old, established a mean time of 16.43 seconds for swimming the 25-yard freestyle, with a standard deviation of 0.8 seconds . His dad, Frank, thought that Jeffrey could swim the 25-yard freestyle faster using goggles. Frank bought Jeffrey a new pair of expensive goggles and timed Jeffrey for 15 25-yard freestyle swims . For the 15 swims, Jeffrey's mean time was 16 seconds. Frank thought that the goggles helped Jeffrey to swim faster than the 16.43 seconds. Conduct a hypothesis test using a preset \(\alpha = 0.05\).

Set up the Hypothesis Test:

Since the problem is about a mean, this is a test of a single population mean .

Set the null and alternative hypothesis:

In this case there is an implied challenge or claim. This is that the goggles will reduce the swimming time. The effect of this is to set the hypothesis as a one-tailed test. The claim will always be in the alternative hypothesis because the burden of proof always lies with the alternative. Remember that the status quo must be defeated with a high degree of confidence, in this case 95 % confidence. The null and alternative hypotheses are thus:

\(H_0: \mu \geq 16.43\)  \(H_a: \mu < 16.43\)

For Jeffrey to swim faster, his time will be less than 16.43 seconds. The "<" tells you this is left-tailed.

Determine the distribution needed:

Random variable: \(\overline X\) = the mean time to swim the 25-yard freestyle.

Distribution for the test statistic:

The sample size is less than 30 and we do not know the population standard deviation so this is a t-test. and the proper formula is: \(t_{c}=\frac{\overline{X}-\mu_{0}}{\sigma / \sqrt{n}}\)

\(\mu_ 0 = 16.43\) comes from \(H_0\) and not the data. \(\overline X = 16\). \(s = 0.8\), and \(n = 15\).

Our step 2, setting the level of significance, has already been determined by the problem, .05 for a 95 % significance level. It is worth thinking about the meaning of this choice. The Type I error is to conclude that Jeffrey swims the 25-yard freestyle, on average, in less than 16.43 seconds when, in fact, he actually swims the 25-yard freestyle, on average, in 16.43 seconds. (Reject the null hypothesis when the null hypothesis is true.) For this case the only concern with a Type I error would seem to be that Jeffery’s dad may fail to bet on his son’s victory because he does not have appropriate confidence in the effect of the goggles.

To find the critical value we need to select the appropriate test statistic. We have concluded that this is a t-test on the basis of the sample size and that we are interested in a population mean. We can now draw the graph of the t-distribution and mark the critical value. For this problem the degrees of freedom are n-1, or 14. Looking up 14 degrees of freedom at the 0.05 column of the t-table we find 1.761. This is the critical value and we can put this on our graph.

Step 3 is the calculation of the test statistic using the formula we have selected. We find that the calculated test statistic is 2.08, meaning that the sample mean is 2.08 standard deviations away from the hypothesized mean of 16.43.

\[t_{c}=\frac{\overline{x}-\mu_{0}}{s / \sqrt{n}}=\frac{16-16.43}{.8 / \sqrt{15}}=-2.08\nonumber\]

Normal distribution curve for the average time to swim the 25-yard freestyle with values 16, as the sample mean, and 16.43 on the x-axis. A vertical upward line extends from 16 on the x-axis to the curve. An arrow points to the left tail of the curve.

Step 4 has us compare the test statistic and the critical value and mark these on the graph. We see that the test statistic is in the tail and thus we move to step 4 and reach a conclusion. The probability that an average time of 16 minutes could come from a distribution with a population mean of 16.43 minutes is too unlikely for us to accept the null hypothesis. We cannot accept the null.

Step 5 has us state our conclusions first formally and then less formally. A formal conclusion would be stated as: “With a 95% level of significance we cannot accept the null hypothesis that the swimming time with goggles comes from a distribution with a population mean time of 16.43 minutes.” Less formally, “With 95% significance we believe that the goggles improves swimming speed”

If we wished to use the \(p\)-value system of reaching a conclusion we would calculate the statistic and take the additional step to find the probability of being 2.08 standard deviations from the mean on a t-distribution. This value is .0187. Comparing this to the \alpha-level of .05 we see that we cannot accept the null. The \(p\)-value has been put on the graph as the shaded area beyond -2.08 and it shows that it is smaller than the hatched area which is the alpha level of 0.05. Both methods reach the same conclusion that we cannot accept the null hypothesis.

Exercise \(\PageIndex{8}\)

The mean throwing distance of a football for Marco, a high school freshman quarterback, is 40 yards, with a standard deviation of two yards. The team coach tells Marco to adjust his grip to get more distance. The coach records the distances for 20 throws. For the 20 throws, Marco’s mean distance was 45 yards. The coach thought the different grip helped Marco throw farther than 40 yards. Conduct a hypothesis test using a preset \(\alpha = 0.05\). Assume the throw distances for footballs are normal.

First, determine what type of test this is, set up the hypothesis test, find the \(p\)-value, sketch the graph, and state your conclusion.

Example \(\PageIndex{9}\)

Jane has just begun her new job as on the sales force of a very competitive company. In a sample of 16 sales calls it was found that she closed the contract for an average value of 108 dollars with a standard deviation of 12 dollars. Test at 5% significance that the population mean is at least 100 dollars against the alternative that it is less than 100 dollars. Company policy requires that new members of the sales force must exceed an average of $100 per contract during the trial employment period. Can we conclude that Jane has met this requirement at the significance level of 95%?

  • \(H_0: \mu \leq 100\) \(H_a: \mu > 100\) The null and alternative hypothesis are for the parameter \(\mu\) because the number of dollars of the contracts is a continuous random variable. Also, this is a one-tailed test because the company has only an interested if the number of dollars per contact is below a particular number not "too high" a number. This can be thought of as making a claim that the requirement is being met and thus the claim is in the alternative hypothesis.
  • Test statistic: \(t_{c}=\frac{\overline{x}-\mu_{0}}{\frac{s}{\sqrt{n}}}=\frac{108-100}{\left(\frac{12}{\sqrt{16}}\right)}=2.67\)
  • Critical value: \(t_a=1.753\) with \(n-1\) degrees of freedom = 15

The test statistic is a Student's t because the sample size is below 30; therefore, we cannot use the normal distribution. Comparing the calculated value of the test statistic and the critical value of tt (ta)(ta) at a 5% significance level, we see that the calculated value is in the tail of the distribution. Thus, we conclude that 108 dollars per contract is significantly larger than the hypothesized value of 100 and thus we cannot accept the null hypothesis. There is evidence that supports Jane's performance meets company standards.

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Exercise \(\PageIndex{9}\)

It is believed that a stock price for a particular company will grow at a rate of $5 per week with a standard deviation of $1. An investor believes the stock won’t grow as quickly. The changes in stock price is recorded for ten weeks and are as follows: $4, $3, $2, $3, $1, $7, $2, $1, $1, $2. Perform a hypothesis test using a 5% level of significance. State the null and alternative hypotheses, state your conclusion, and identify the Type I errors.

Example \(\PageIndex{10}\)

A manufacturer of salad dressings uses machines to dispense liquid ingredients into bottles that move along a filling line. The machine that dispenses salad dressings is working properly when 8 ounces are dispensed. Suppose that the average amount dispensed in a particular sample of 35 bottles is 7.91 ounces with a variance of 0.03 ounces squared,\(s^2\). Is there evidence that the machine should be stopped and production wait for repairs? The lost production from a shutdown is potentially so great that management feels that the level of significance in the analysis should be 99%.

Again we will follow the steps in our analysis of this problem.

STEP 1 : Set the Null and Alternative Hypothesis. The random variable is the quantity of fluid placed in the bottles. This is a continuous random variable and the parameter we are interested in is the mean. Our hypothesis therefore is about the mean. In this case we are concerned that the machine is not filling properly. From what we are told it does not matter if the machine is over-filling or under-filling, both seem to be an equally bad error. This tells us that this is a two-tailed test: if the machine is malfunctioning it will be shutdown regardless if it is from over-filling or under-filling. The null and alternative hypotheses are thus:

\[H_0:\mu=8\nonumber\]

\[Ha:\mu \neq 8\nonumber\]

STEP 2 : Decide the level of significance and draw the graph showing the critical value.

This problem has already set the level of significance at 99%. The decision seems an appropriate one and shows the thought process when setting the significance level. Management wants to be very certain, as certain as probability will allow, that they are not shutting down a machine that is not in need of repair. To draw the distribution and the critical value, we need to know which distribution to use. Because this is a continuous random variable and we are interested in the mean, and the sample size is greater than 30, the appropriate distribution is the normal distribution and the relevant critical value is 2.575 from the normal table or the t-table at 0.005 column and infinite degrees of freedom. We draw the graph and mark these points.

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STEP 3 : Calculate sample parameters and the test statistic. The sample parameters are provided, the sample mean is 7.91 and the sample variance is .03 and the sample size is 35. We need to note that the sample variance was provided not the sample standard deviation, which is what we need for the formula. Remembering that the standard deviation is simply the square root of the variance, we therefore know the sample standard deviation, s, is 0.173. With this information we calculate the test statistic as -3.07, and mark it on the graph.

\[Z_{c}=\frac{\overline{x}-\mu_{0}}{s / \sqrt{n}}=\frac{7.91-8}{\cdot 173 / \sqrt{35}}=-3.07\nonumber\]

STEP 4 : Compare test statistic and the critical values Now we compare the test statistic and the critical value by placing the test statistic on the graph. We see that the test statistic is in the tail, decidedly greater than the critical value of 2.575. We note that even the very small difference between the hypothesized value and the sample value is still a large number of standard deviations. The sample mean is only 0.08 ounces different from the required level of 8 ounces, but it is 3 plus standard deviations away and thus we cannot accept the null hypothesis.

STEP 5 : Reach a Conclusion

Three standard deviations of a test statistic will guarantee that the test will fail. The probability that anything is within three standard deviations is almost zero. Actually it is 0.0026 on the normal distribution, which is certainly almost zero in a practical sense. Our formal conclusion would be “ At a 99% level of significance we cannot accept the hypothesis that the sample mean came from a distribution with a mean of 8 ounces” Or less formally, and getting to the point, “At a 99% level of significance we conclude that the machine is under filling the bottles and is in need of repair”.

Hypothesis Test for Proportions

Just as there were confidence intervals for proportions, or more formally, the population parameter \(p\) of the binomial distribution, there is the ability to test hypotheses concerning \(p\).

The population parameter for the binomial is \(p\). The estimated value (point estimate) for \(p\) is \(p^{\prime}\) where \(p^{\prime} = x/n\), \(x\) is the number of successes in the sample and \(n\) is the sample size.

When you perform a hypothesis test of a population proportion \(p\), you take a simple random sample from the population. The conditions for a binomial distribution must be met, which are: there are a certain number n of independent trials meaning random sampling, the outcomes of any trial are binary, success or failure, and each trial has the same probability of a success \(p\). The shape of the binomial distribution needs to be similar to the shape of the normal distribution. To ensure this, the quantities \(np^{\prime}\) and \(nq^{\prime}\) must both be greater than five (\(np^{\prime} > 5\) and \(nq^{\prime} > 5\)). In this case the binomial distribution of a sample (estimated) proportion can be approximated by the normal distribution with \(\mu=np\) and \(\sigma=\sqrt{n p q}\). Remember that \(q=1–p\). There is no distribution that can correct for this small sample bias and thus if these conditions are not met we simply cannot test the hypothesis with the data available at that time. We met this condition when we first were estimating confidence intervals for \(p\).

Again, we begin with the standardizing formula modified because this is the distribution of a binomial.

\[Z=\frac{\mathrm{p}^{\prime}-p}{\sqrt{\frac{\mathrm{pq}}{n}}}\nonumber\]

Substituting \(p_0\), the hypothesized value of \(p\), we have:

\[Z_{c}=\frac{\mathrm{p}^{\prime}-p_{0}}{\sqrt{\frac{p_{0} q_{0}}{n}}}\nonumber\]

This is the test statistic for testing hypothesized values of p, where the null and alternative hypotheses take one of the following forms:

Two-tailed test One-tailed test One-tailed test
\(H_0: p = p_0\) \(H_0: p \leq p_0\) \(H_0: p \geq p_0\)
\(H_a: p \neq p_0\) \(H_a: p > p_0\) \(H_a: p < p_0\)
Table \(\PageIndex{5}\)

The decision rule stated above applies here also: if the calculated value of \(Z_c\) shows that the sample proportion is "too many" standard deviations from the hypothesized proportion, the null hypothesis cannot be accepted. The decision as to what is "too many" is pre-determined by the analyst depending on the level of significance required in the test.

Example \(\PageIndex{11}\)

The mortgage department of a large bank is interested in the nature of loans of first-time borrowers. This information will be used to tailor their marketing strategy. They believe that 50% of first-time borrowers take out smaller loans than other borrowers. They perform a hypothesis test to determine if the percentage is the same or different from 50% . They sample 100 first-time borrowers and find 53 of these loans are smaller that the other borrowers. For the hypothesis test, they choose a 5% level of significance.

STEP 1 : Set the null and alternative hypothesis.

\(H_0: p = 0.50\)  \(H_a: p \neq 0.50\)

The words "is the same or different from" tell you this is a two-tailed test. The Type I and Type II errors are as follows: The Type I error is to conclude that the proportion of borrowers is different from 50% when, in fact, the proportion is actually 50%. (Reject the null hypothesis when the null hypothesis is true). The Type II error is there is not enough evidence to conclude that the proportion of first time borrowers differs from 50% when, in fact, the proportion does differ from 50%. (You fail to reject the null hypothesis when the null hypothesis is false.)

STEP 2 : Decide the level of significance and draw the graph showing the critical value

The level of significance has been set by the problem at the 95% level. Because this is two-tailed test one-half of the alpha value will be in the upper tail and one-half in the lower tail as shown on the graph. The critical value for the normal distribution at the 95% level of confidence is 1.96. This can easily be found on the student’s t-table at the very bottom at infinite degrees of freedom remembering that at infinity the t-distribution is the normal distribution. Of course the value can also be found on the normal table but you have go looking for one-half of 95 (0.475) inside the body of the table and then read out to the sides and top for the number of standard deviations.

5a27121f5d92c295a6eb01eee274ff03e35a8f77

STEP 3 : Calculate the sample parameters and critical value of the test statistic.

The test statistic is a normal distribution, \(Z\), for testing proportions and is:

\[Z=\frac{p^{\prime}-p_{0}}{\sqrt{\frac{p_{0} q_{0}}{n}}}=\frac{.53-.50}{\sqrt{\frac{.5(.5)}{100}}}=0.60\nonumber\]

For this case, the sample of 100 found 53 first-time borrowers were different from other borrowers. The sample proportion, \(p^{\prime} = 53/100= 0.53\) The test question, therefore, is : “Is 0.53 significantly different from .50?” Putting these values into the formula for the test statistic we find that 0.53 is only 0.60 standard deviations away from .50. This is barely off of the mean of the standard normal distribution of zero. There is virtually no difference from the sample proportion and the hypothesized proportion in terms of standard deviations.

STEP 4 : Compare the test statistic and the critical value.

The calculated value is well within the critical values of \(\pm 1.96\) standard deviations and thus we cannot reject the null hypothesis. To reject the null hypothesis we need significant evident of difference between the hypothesized value and the sample value. In this case the sample value is very nearly the same as the hypothesized value measured in terms of standard deviations.

STEP 5 : Reach a conclusion

The formal conclusion would be “At a 95% level of significance we cannot reject the null hypothesis that 50% of first-time borrowers have the same size loans as other borrowers”. Less formally we would say that “There is no evidence that one-half of first-time borrowers are significantly different in loan size from other borrowers”. Notice the length to which the conclusion goes to include all of the conditions that are attached to the conclusion. Statisticians for all the criticism they receive, are careful to be very specific even when this seems trivial. Statisticians cannot say more than they know and the data constrain the conclusion to be within the metes and bounds of the data.

Exercise \(\PageIndex{11}\)

A teacher believes that 85% of students in the class will want to go on a field trip to the local zoo. She performs a hypothesis test to determine if the percentage is the same or different from 85%. The teacher samples 50 students and 39 reply that they would want to go to the zoo. For the hypothesis test, use a 1% level of significance.

Example \(\PageIndex{12}\)

Suppose a consumer group suspects that the proportion of households that have three or more cell phones is 30%. A cell phone company has reason to believe that the proportion is not 30%. Before they start a big advertising campaign, they conduct a hypothesis test. Their marketing people survey 150 households with the result that 43 of the households have three or more cell phones.

Here is an abbreviate version of the system to solve hypothesis tests applied to a test on a proportions.

\[H_0 : p = 0.3 \nonumber\]

\[H_a : p \neq 0.3 \nonumber\]

\[n = 150\nonumber\]

\[\mathrm{p}^{\prime}=\frac{x}{n}=\frac{43}{150}=0.287\nonumber\]

\[Z_{c}=\frac{\mathrm{p}^{\prime}-p_{0}}{\sqrt{\frac{p_{0} q_{0}}{n}}}=\frac{0.287-0.3}{\sqrt{\frac{3(7)}{150}}}=0.347\nonumber\]

19fe5d22449dd299e15a0e99b2f1f8cf7882369c

Example \(\PageIndex{13}\)

The National Institute of Standards and Technology provides exact data on conductivity properties of materials. Following are conductivity measurements for 11 randomly selected pieces of a particular type of glass.

1.11; 1.07; 1.11; 1.07; 1.12; 1.08; .98; .98 1.02; .95; .95 Is there convincing evidence that the average conductivity of this type of glass is greater than one? Use a significance level of 0.05.

Let’s follow a four-step process to answer this statistical question.

State the Question : We need to determine if, at a 0.05 significance level, the average conductivity of the selected glass is greater than one. Our hypotheses will be

  • \(H_0: \mu \leq 1\)
  • \(H_a: \mu > 1\)

Example \(\PageIndex{14}\)

In a study of 420,019 cell phone users, 172 of the subjects developed brain cancer. Test the claim that cell phone users developed brain cancer at a greater rate than that for non-cell phone users (the rate of brain cancer for non-cell phone users is 0.0340%). Since this is a critical issue, use a 0.005 significance level. Explain why the significance level should be so low in terms of a Type I error.

  • \(H_0: p \leq 0.00034\)
  • \(H_a: p > 0.00034\)

If we commit a Type I error, we are essentially accepting a false claim. Since the claim describes cancer-causing environments, we want to minimize the chances of incorrectly identifying causes of cancer.

  • We will be testing a sample proportion with \(x = 172\) and \(n = 420,019\). The sample is sufficiently large because we have \(np^{\prime} = 420,019(0.00034) = 142.8\), \(n q^{\prime}=420,019(0.99966)=419,876.2\), two independent outcomes, and a fixed probability of success \(p^{\prime} = 0.00034\). Thus we will be able to generalize our results to the population.

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What is Hypothesis Testing in Statistics? Types and Examples

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Hypothesis testing in statistics involves testing an assumption about a population parameter using sample data. Learners can download Hypothesis Testing PDF to get instant access to all information!

Hypothesis Testing

What exactly is hypothesis testing, and how does it work in statistics? Can I find practical examples and understand the different types from this blog?

Hypothesis Testing : Ever wonder how researchers determine if a new medicine actually works or if a new marketing campaign effectively drives sales? They use hypothesis testing! It is at the core of how scientific studies, business experiments and surveys determine if their results are statistically significant or just due to chance.

Hypothesis testing allows us to make evidence-based decisions by quantifying uncertainty and providing a structured process to make data-driven conclusions rather than guessing. In this post, we will discuss hypothesis testing types, examples, and processes!

Table of Contents

Hypothesis Testing

Hypothesis testing is a statistical method used to evaluate the validity of a hypothesis using sample data. It involves assessing whether observed data provide enough evidence to reject a specific hypothesis about a population parameter. 

Hypothesis Testing in Data Science

Hypothesis testing in data science is a statistical method used to evaluate two mutually exclusive population statements based on sample data. The primary goal is to determine which statement is more supported by the observed data.

Hypothesis testing assists in supporting the certainty of findings in research and data science projects. This statistical inference aids in making decisions about population parameters using sample data. For those who are looking to deepen their knowledge in data science and expand their skillset, we highly recommend checking out Master Generative AI: Data Science Course by Physics Wallah .

Also Read: What is Encapsulation Explain in Details

What is the Hypothesis Testing Procedure in Data Science?

The hypothesis testing procedure in data science involves a structured approach to evaluating hypotheses using statistical methods. Here’s a step-by-step breakdown of the typical procedure:

1) State the Hypotheses:

  • Null Hypothesis (H0): This is the default assumption or a statement of no effect or difference. It represents what you aim to test against.
  • Alternative Hypothesis (Ha): This is the opposite of the null hypothesis and represents what you want to prove.

2) Choose a Significance Level (α):

  • Decide on a threshold (commonly 0.05) beyond which you will reject the null hypothesis. This is your significance level.

3) Select the Appropriate Test:

  • Depending on your data type (e.g., continuous, categorical) and the nature of your research question, choose the appropriate statistical test (e.g., t-test, chi-square test, ANOVA, etc.).

4) Collect Data:

  • Gather data from your sample or population, ensuring that it’s representative and sufficiently large (or as per your experimental design).

5)Compute the Test Statistic:

  • Using your data and the chosen statistical test, compute the test statistic that summarizes the evidence against the null hypothesis.

6) Determine the Critical Value or P-value:

  • Based on your significance level and the test statistic’s distribution, determine the critical value from a statistical table or compute the p-value.

7) Make a Decision:

  • If the p-value is less than α: Reject the null hypothesis.
  • If the p-value is greater than or equal to α: Fail to reject the null hypothesis.

8) Draw Conclusions:

  • Based on your decision, draw conclusions about your research question or hypothesis. Remember, failing to reject the null hypothesis doesn’t prove it true; it merely suggests that you don’t have sufficient evidence to reject it.

9) Report Findings:

  • Document your findings, including the test statistic, p-value, conclusion, and any other relevant details. Ensure clarity so that others can understand and potentially replicate your analysis.

Also Read: Binary Search Algorithm

How Hypothesis Testing Works?

Hypothesis testing is a fundamental concept in statistics that aids analysts in making informed decisions based on sample data about a larger population. The process involves setting up two contrasting hypotheses, the null hypothesis and the alternative hypothesis, and then using statistical methods to determine which hypothesis provides a more plausible explanation for the observed data.

The Core Principles:

  • The Null Hypothesis (H0): This serves as the default assumption or status quo. Typically, it posits that there is no effect or no difference, often represented by an equality statement regarding population parameters. For instance, it might state that a new drug’s effect is no different from a placebo.
  • The Alternative Hypothesis (H1 or Ha): This is the counter assumption or what researchers aim to prove. It’s the opposite of the null hypothesis, indicating that there is an effect, a change, or a difference in the population parameters. Using the drug example, the alternative hypothesis would suggest that the new drug has a different effect than the placebo.

Testing the Hypotheses:

Once these hypotheses are established, analysts gather data from a sample and conduct statistical tests. The objective is to determine whether the observed results are statistically significant enough to reject the null hypothesis in favor of the alternative.

Examples to Clarify the Concept:

  • Null Hypothesis (H0): The sanitizer’s average efficacy is 95%.
  • By conducting tests, if evidence suggests that the sanitizer’s efficacy is significantly less than 95%, we reject the null hypothesis.
  • Null Hypothesis (H0): The coin is fair, meaning the probability of heads and tails is equal.
  • Through experimental trials, if results consistently show a skewed outcome, indicating a significantly different probability for heads and tails, the null hypothesis might be rejected.

What are the 3 types of Hypothesis Test?

Hypothesis testing is a cornerstone in statistical analysis, providing a framework to evaluate the validity of assumptions or claims made about a population based on sample data. Within this framework, several specific tests are utilized based on the nature of the data and the question at hand. Here’s a closer look at the three fundamental types of hypothesis tests:

The z-test is a statistical method primarily employed when comparing means from two datasets, particularly when the population standard deviation is known. Its main objective is to ascertain if the means are statistically equivalent. 

A crucial prerequisite for the z-test is that the sample size should be relatively large, typically 30 data points or more. This test aids researchers and analysts in determining the significance of a relationship or discovery, especially in scenarios where the data’s characteristics align with the assumptions of the z-test.

The t-test is a versatile statistical tool used extensively in research and various fields to compare means between two groups. It’s particularly valuable when the population standard deviation is unknown or when dealing with smaller sample sizes. 

By evaluating the means of two groups, the t-test helps ascertain if a particular treatment, intervention, or variable significantly impacts the population under study. Its flexibility and robustness make it a go-to method in scenarios ranging from medical research to business analytics.

3. Chi-Square Test:

The Chi-Square test stands distinct from the previous tests, primarily focusing on categorical data rather than means. This statistical test is instrumental when analyzing categorical variables to determine if observed data aligns with expected outcomes as posited by the null hypothesis. 

By assessing the differences between observed and expected frequencies within categorical data, the Chi-Square test offers insights into whether discrepancies are statistically significant. Whether used in social sciences to evaluate survey responses or in quality control to assess product defects, the Chi-Square test remains pivotal for hypothesis testing in diverse scenarios.

Also Read: Python vs Java: Which is Best for Machine learning algorithm

Hypothesis Testing in Statistics

Hypothesis testing is a fundamental concept in statistics used to make decisions or inferences about a population based on a sample of data. The process involves setting up two competing hypotheses, the null hypothesis H 0​ and the alternative hypothesis H 1​. 

Through various statistical tests, such as the t-test, z-test, or Chi-square test, analysts evaluate sample data to determine whether there’s enough evidence to reject the null hypothesis in favor of the alternative. The aim is to draw conclusions about population parameters or to test theories, claims, or hypotheses.

Hypothesis Testing in Research

In research, hypothesis testing serves as a structured approach to validate or refute theories or claims. Researchers formulate a clear hypothesis based on existing literature or preliminary observations. They then collect data through experiments, surveys, or observational studies. 

Using statistical methods, researchers analyze this data to determine if there’s sufficient evidence to reject the null hypothesis. By doing so, they can draw meaningful conclusions, make predictions, or recommend actions based on empirical evidence rather than mere speculation.

Hypothesis Testing in R

R, a powerful programming language and environment for statistical computing and graphics, offers a wide array of functions and packages specifically designed for hypothesis testing. Here’s how hypothesis testing is conducted in R:

  • Data Collection : Before conducting any test, you need to gather your data and ensure it’s appropriately structured in R.
  • Choose the Right Test : Depending on your research question and data type, select the appropriate hypothesis test. For instance, use the t.test() function for a t-test or chisq.test() for a Chi-square test.
  • Set Hypotheses : Define your null and alternative hypotheses. Using R’s syntax, you can specify these hypotheses and run the corresponding test.
  • Execute the Test : Utilize built-in functions in R to perform the hypothesis test on your data. For instance, if you want to compare two means, you can use the t.test() function, providing the necessary arguments like the data vectors and type of t-test (one-sample, two-sample, paired, etc.).
  • Interpret Results : Once the test is executed, R will provide output, including test statistics, p-values, and confidence intervals. Based on these results and a predetermined significance level (often 0.05), you can decide whether to reject the null hypothesis.
  • Visualization : R’s graphical capabilities allow users to visualize data distributions, confidence intervals, or test statistics, aiding in the interpretation and presentation of results.

Hypothesis testing is an integral part of statistics and research, offering a systematic approach to validate hypotheses. Leveraging R’s capabilities, researchers and analysts can efficiently conduct and interpret various hypothesis tests, ensuring robust and reliable conclusions from their data.

Do Data Scientists do Hypothesis Testing?

Yes, data scientists frequently engage in hypothesis testing as part of their analytical toolkit. Hypothesis testing is a foundational statistical technique used to make data-driven decisions, validate assumptions, and draw conclusions from data. Here’s how data scientists utilize hypothesis testing:

  • Validating Assumptions : Before diving into complex analyses or building predictive models, data scientists often need to verify certain assumptions about the data. Hypothesis testing provides a structured approach to test these assumptions, ensuring that subsequent analyses or models are valid.
  • Feature Selection : In machine learning and predictive modeling, data scientists use hypothesis tests to determine which features (or variables) are most relevant or significant in predicting a particular outcome. By testing hypotheses related to feature importance or correlation, they can streamline the modeling process and enhance prediction accuracy.
  • A/B Testing : A/B testing is a common technique in marketing, product development, and user experience design. Data scientists employ hypothesis testing to compare two versions (A and B) of a product, feature, or marketing strategy to determine which performs better in terms of a specified metric (e.g., conversion rate, user engagement).
  • Research and Exploration : In exploratory data analysis (EDA) or when investigating specific research questions, data scientists formulate hypotheses to test certain relationships or patterns within the data. By conducting hypothesis tests, they can validate these relationships, uncover insights, and drive data-driven decision-making.
  • Model Evaluation : After building machine learning or statistical models, data scientists use hypothesis testing to evaluate the model’s performance, assess its predictive power, or compare different models. For instance, hypothesis tests like the t-test or F-test can help determine if a new model significantly outperforms an existing one based on certain metrics.
  • Business Decision-making : Beyond technical analyses, data scientists employ hypothesis testing to support business decisions. Whether it’s evaluating the effectiveness of a marketing campaign, assessing customer preferences, or optimizing operational processes, hypothesis testing provides a rigorous framework to validate assumptions and guide strategic initiatives.

Hypothesis Testing Examples and Solutions

Let’s delve into some common examples of hypothesis testing and provide solutions or interpretations for each scenario.

Example: Testing the Mean

Scenario : A coffee shop owner believes that the average waiting time for customers during peak hours is 5 minutes. To test this, the owner takes a random sample of 30 customer waiting times and wants to determine if the average waiting time is indeed 5 minutes.

Hypotheses :

  • H 0​ (Null Hypothesis): 5 μ =5 minutes (The average waiting time is 5 minutes)
  • H 1​ (Alternative Hypothesis): 5 μ =5 minutes (The average waiting time is not 5 minutes)

Solution : Using a t-test (assuming population variance is unknown), calculate the t-statistic based on the sample mean, sample standard deviation, and sample size. Then, determine the p-value and compare it with a significance level (e.g., 0.05) to decide whether to reject the null hypothesis.

Example: A/B Testing in Marketing

Scenario : An e-commerce company wants to determine if changing the color of a “Buy Now” button from blue to green increases the conversion rate.

  • H 0​: Changing the button color does not affect the conversion rate.
  • H 1​: Changing the button color affects the conversion rate.

Solution : Split website visitors into two groups: one sees the blue button (control group), and the other sees the green button (test group). Track the conversion rates for both groups over a specified period. Then, use a chi-square test or z-test (for large sample sizes) to determine if there’s a statistically significant difference in conversion rates between the two groups.

Hypothesis Testing Formula

The formula for hypothesis testing typically depends on the type of test (e.g., z-test, t-test, chi-square test) and the nature of the data (e.g., mean, proportion, variance). Below are the basic formulas for some common hypothesis tests:

Z-Test for Population Mean :

Z=(σ/n​)(xˉ−μ0​)​

  • ˉ x ˉ = Sample mean
  • 0 μ 0​ = Population mean under the null hypothesis
  • σ = Population standard deviation
  • n = Sample size

T-Test for Population Mean :

t= (s/ n ​ ) ( x ˉ −μ 0 ​ ) ​ 

s = Sample standard deviation 

Chi-Square Test for Goodness of Fit :

χ2=∑Ei​(Oi​−Ei​)2​

  • Oi ​ = Observed frequency
  • Ei ​ = Expected frequency

Also Read: Full Form of OOPS

Hypothesis Testing Calculator

While you can perform hypothesis testing manually using the above formulas and statistical tables, many online tools and software packages simplify this process. Here’s how you might use a calculator or software:

  • Z-Test and T-Test Calculators : These tools typically require you to input sample statistics (like sample mean, population mean, standard deviation, and sample size). Once you input these values, the calculator will provide you with the test statistic (Z or t) and a p-value.
  • Chi-Square Calculator : For chi-square tests, you’d input observed and expected frequencies for different categories or groups. The calculator then computes the chi-square statistic and provides a p-value.
  • Software Packages (e.g., R, Python with libraries like scipy, or statistical software like SPSS) : These platforms offer more comprehensive tools for hypothesis testing. You can run various tests, get detailed outputs, and even perform advanced analyses, including regression models, ANOVA, and more.

When using any calculator or software, always ensure you understand the underlying assumptions of the test, interpret the results correctly, and consider the broader context of your research or analysis.

Hypothesis Testing FAQs

What are the key components of a hypothesis test.

The key components include: Null Hypothesis (H0): A statement of no effect or no difference. Alternative Hypothesis (H1 or Ha): A statement that contradicts the null hypothesis. Test Statistic: A value computed from the sample data to test the null hypothesis. Significance Level (α): The threshold for rejecting the null hypothesis. P-value: The probability of observing the given data, assuming the null hypothesis is true.

What is the significance level in hypothesis testing?

The significance level (often denoted as α) is the probability threshold used to determine whether to reject the null hypothesis. Commonly used values for α include 0.05, 0.01, and 0.10, representing a 5%, 1%, or 10% chance of rejecting the null hypothesis when it's actually true.

How do I choose between a one-tailed and two-tailed test?

The choice between one-tailed and two-tailed tests depends on your research question and hypothesis. Use a one-tailed test when you're specifically interested in one direction of an effect (e.g., greater than or less than). Use a two-tailed test when you want to determine if there's a significant difference in either direction.

What is a p-value, and how is it interpreted?

The p-value is a probability value that helps determine the strength of evidence against the null hypothesis. A low p-value (typically ≤ 0.05) suggests that the observed data is inconsistent with the null hypothesis, leading to its rejection. Conversely, a high p-value suggests that the data is consistent with the null hypothesis, leading to no rejection.

Can hypothesis testing prove a hypothesis true?

No, hypothesis testing cannot prove a hypothesis true. Instead, it helps assess the likelihood of observing a given set of data under the assumption that the null hypothesis is true. Based on this assessment, you either reject or fail to reject the null hypothesis.

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COMMENTS

  1. Hypothesis Testing

    There are 5 main steps in hypothesis testing: State your research hypothesis as a null hypothesis and alternate hypothesis (H o) and (H a or H 1 ). Collect data in a way designed to test the hypothesis. Perform an appropriate statistical test. Decide whether to reject or fail to reject your null hypothesis. Present the findings in your results ...

  2. Hypothesis Testing: Uses, Steps & Example

    Hypothesis testing in statistics uses sample data to infer the properties of a whole population. These tests determine whether a random sample provides sufficient evidence to conclude an effect or relationship exists in the population. Researchers use them to help separate genuine population-level effects from false effects that random chance ...

  3. S.3.3 Hypothesis Testing Examples

    If the biologist set her significance level \(\alpha\) at 0.05 and used the critical value approach to conduct her hypothesis test, she would reject the null hypothesis if her test statistic t* were less than -1.6939 (determined using statistical software or a t-table):s-3-3. Since the biologist's test statistic, t* = -4.60, is less than -1.6939, the biologist rejects the null hypothesis.

  4. What is Hypothesis Testing in Statistics? Types and Examples

    Hypothesis Testing is a type of statistical analysis in which you put your assumptions about a population parameter to the test. It is used to estimate the relationship between 2 statistical variables. Let's discuss few examples of statistical hypothesis from real-life -. A teacher assumes that 60% of his college's students come from lower ...

  5. Significance tests (hypothesis testing)

    Unit test. Significance tests give us a formal process for using sample data to evaluate the likelihood of some claim about a population value. Learn how to conduct significance tests and calculate p-values to see how likely a sample result is to occur by random chance. You'll also see how we use p-values to make conclusions about hypotheses.

  6. 4 Examples of Hypothesis Testing in Real Life

    In statistics, hypothesis tests are used to test whether or not some hypothesis about a population parameter is true. To perform a hypothesis test in the real world, researchers will obtain a random sample from the population and perform a hypothesis test on the sample data, using a null and alternative hypothesis:. Null Hypothesis (H 0): The sample data occurs purely from chance.

  7. PDF Hypothesis Testing

    23.1 How Hypothesis Tests Are Reported in the News 1. Determine the null hypothesis and the alternative hypothesis. 2. ... Collect and summarize data into a test statistic. Sample proportion is: 233/518 = 0.45. The standard deviation = (0.50) × (1 - 0.50) = 0.022. 518

  8. Hypothesis Testing

    Learn how to perform hypothesis testing to make statistical inferences about the population data. Find out the types, steps, formulas, and examples of hypothesis testing with z, t, and chi-square tests.

  9. 7.1: Basics of Hypothesis Testing

    Test Statistic: z = x¯¯¯ −μo σ/ n−−√ z = x ¯ − μ o σ / n since it is calculated as part of the testing of the hypothesis. Definition 7.1.4 7.1. 4. p - value: probability that the test statistic will take on more extreme values than the observed test statistic, given that the null hypothesis is true.

  10. Introduction to Hypothesis Testing

    The Two Types of Statistical Hypotheses. To test whether a statistical hypothesis about a population parameter is true, we obtain a random sample from the population and perform a hypothesis test on the sample data. There are two types of statistical hypotheses: The null hypothesis, denoted as H 0, is the hypothesis that the sample data occurs ...

  11. Statistical Hypothesis Testing Overview

    Hypothesis testing is a crucial procedure to perform when you want to make inferences about a population using a random sample. These inferences include estimating population properties such as the mean, differences between means, proportions, and the relationships between variables. This post provides an overview of statistical hypothesis testing.

  12. S.3 Hypothesis Testing

    S.3 Hypothesis Testing. In reviewing hypothesis tests, we start first with the general idea. Then, we keep returning to the basic procedures of hypothesis testing, each time adding a little more detail. The general idea of hypothesis testing involves: Making an initial assumption. Collecting evidence (data).

  13. Choosing the Right Statistical Test

    Learn how to choose the right statistical test for your data based on the types of variables and the research question. See examples of parametric and nonparametric tests for regression, comparison, and correlation.

  14. 9.4 Full Hypothesis Test Examples

    A teacher believes that 85% of students in the class will want to go on a field trip to the local zoo. The teacher performs a hypothesis test to determine if the percentage is the same or different from 85%. The teacher samples 50 students and 39 reply that they would want to go to the zoo. For the hypothesis test, use a 1% level of significance.

  15. Hypothesis Testing

    Step 2: State the Alternate Hypothesis. The claim is that the students have above average IQ scores, so: H 1: μ > 100. The fact that we are looking for scores "greater than" a certain point means that this is a one-tailed test. Step 3: Draw a picture to help you visualize the problem. Step 4: State the alpha level.

  16. Test Statistic: Definition, Types & Formulas

    Test statistics represent effect sizes in hypothesis tests because they denote the difference between your sample effect and no effect —the null hypothesis. Consequently, you use the test statistic to calculate the p-value for your hypothesis test. The above p-value definition is a bit tortuous.

  17. 9.E: Hypothesis Testing with One Sample (Exercises)

    Registered nurses earned an average annual salary of $69,110. For that same year, a survey was conducted of 41 California registered nurses to determine if the annual salary is higher than $69,110 for California nurses. The sample average was $71,121 with a sample standard deviation of $7,489. Conduct a hypothesis test.

  18. Null & Alternative Hypotheses

    Statistical test: Null hypothesis (H 0) Alternative hypothesis (H a) Two-sample t test or. One-way ANOVA with two groups: The mean dependent variable does not differ between group 1 (µ 1) and group 2 (µ 2) in the population; µ 1 = µ 2. The mean dependent variable differs between group 1 (µ 1) and group 2 (µ 2) in the population; µ 1 ≠ ...

  19. Hypothesis testing and p-values (video)

    In this video there was no critical value set for this experiment. In the last seconds of the video, Sal briefly mentions a p-value of 5% (0.05), which would have a critical of value of z = (+/-) 1.96. Since the experiment produced a z-score of 3, which is more extreme than 1.96, we reject the null hypothesis.

  20. 7.5: Full Hypothesis Test Examples

    Answer. Example 7.5.14. In a study of 420,019 cell phone users, 172 of the subjects developed brain cancer. Test the claim that cell phone users developed brain cancer at a greater rate than that for non-cell phone users (the rate of brain cancer for non-cell phone users is 0.0340%).

  21. A Gentle Introduction to Statistical Hypothesis Testing

    A statistical hypothesis test may return a value called p or the p-value. This is a quantity that we can use to interpret or quantify the result of the test and either reject or fail to reject the null hypothesis. This is done by comparing the p-value to a threshold value chosen beforehand called the significance level.

  22. What is Hypothesis Testing in Statistics? Types and Examples

    Hypothesis Testing in Statistics. Hypothesis testing is a fundamental concept in statistics used to make decisions or inferences about a population based on a sample of data. The process involves setting up two competing hypotheses, the null hypothesis H 0 and the alternative hypothesis H 1 .

  23. Simple hypothesis testing

    Practice this lesson yourself on KhanAcademy.org right now: https://www.khanacademy.org/math/probability/probability-and-combinatorics-topic/decisions-with-p...