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HYPOTHESIS TESTING The use of sample data to make a decision either to accept or to reject a statement about a parameter value or about a population distribution Jump to first page Procedure for Hypothesis Testing Establish the hypotheses; Obtain the sample results; Choose the test statistic, set the significance level, and look up the critical values of z or t; Calculate the standard error; Calculate the test statistic; Decide whether to reject the null hypothesis; and Take action. Jump to first page Example A manufacturer of cereal wants to test the performance of one of its filling machines. The machine is designed to discharge a mean amount of 12 ounces per box, and the manufacturer wants to detect any departure from this setting. This quality control study calls for sampling 100 boxes to determine whether the machine is performing to specifications. The sample resulted in a mean amount of 11.85 ounces per box with a standard deviation of 0.5. Setup a test of hypothesis for this study, using = 0.01. Jump to first page Formulation of Hypotheses Null Hypothesis: H0 Alternative Hypothesis: HA The Null Hypothesis is usually the hypothesis that the researcher wants to gather evidence against. The Alternative Hypothesis is usually the hypothesis for which the researcher wants to gather supportive evidence. Jump to first page