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Section 6.2 Introduction to Hypothesis Testing 1 •An important technique in the inferential statistics is hypothesis testing. A hypothesis is a process that uses the sample statistic to test the population parameter. Researchers in medicine, psychology and business rely on hypothesis testing to make informed decisions about new medicines, treatments and marketing strategies. 2 Suppose a cellular phone company advertises that the mean talk of a new cellular phone battery is 180 minutes. If you suspect that the mean talk time is not 180 minutes, how could you show that the ad is false? We could take a random sample from the population of batteries and measure the talk time of each. If the sample mean differs enough then we can decide that the ad is wrong or false. µ = 180 For instance, to test the mean talk time of all cellular phone batteries You could take a random sample of n = 100 batteries and measure the talk time of each. Suppose you obtain a sample mean of 174 minutes with a standard deviation of s =20 min, does this indicate that the company’s ad is false. 3 n n n n To decide, you do something unusual. We assume that the ad µ = 180 is correct! Then you examine the sampling distribution of the sample means (with n= 100) taken from the population in which mean µ = 180 and σ =20. From the Central limit theorem we know that this sampling distribution is normal with mean of 180 and standard deviation of 20/sqrt(100) = 2 4 0.25 0.2 0.15 0.1 0.05 0 168 170 172 174 176 178 180 182 184 186 188 190 192 -0.05 n The probability of obtaining 172 or less is a rare occurrence! You assumption that the company’s ad is right has led to an improbable result. So either you had an unusual sample or the ad is probably false. The logical conclusion is that the ad is false. 5 A statistical hypothesis is a claim about a population. Null hypothesis H0 contains a statement of equality such as ≥ , = or ≤. Alternative hypothesis Ha contains a statement of inequality such as < , ≠ or > Complementary Statements If I am false, you are true 6 If I am false, you are true Writing Hypotheses Write the claim about the population. Then, write its complement. Either hypothesis, the null or the alternative, can represent the claim. A hospital claims its ambulance response time is less than 10 minutes. claim A consumer magazine claims the proportion of cell phone calls made during evenings and weekends is at most 60%. claim 7 Hypothesis Test Strategy Begin by assuming the equality condition in the null hypothesis is true. This is regardless of whether the claim is represented by the null hypothesis or by the alternative hypothesis. Collect data from a random sample taken from the population and calculate the necessary sample statistics. If the sample statistic has a low probability of being drawn from a population in which the null hypothesis is true, you will reject H0. (As a consequence, you will support the alternative hypothesis.) If the probability is not low enough, fail to reject H0. 8 Error possible n n n n When you perform the hypothesis test, you make one of the two decisions. A. Reject null hypothesis B. Fail to reject the null hypothesis Remember that your decision is based on a sample rather than the entire population, so there is always a possibility that you make the wrong decision. 9 Decision Errors and Level of Significance Actual Truth of H0 Do not reject H0 Reject H0 H0 True Correct Decision Type I Error H0 False Type II Error Correct Decision A type I error: Null hypothesis is actually true but the decision is to reject it. Level of significance, Maximum probability of committing a type I error. 10 American Justice System verdict Truth about defendant Innocent Not guilty Reject H0 H0 False Justice Type II Error Type I Error Justice A type I error: Null hypothesis is actually true but the decision is to reject it. Level of significance, Maximum probability of committing a type I error. 11