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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
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Procedure for Hypothesis Testing
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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.
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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.
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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.
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