Stat 101 – Lecture 35 Alternatives H 0 : μ = μ0 H A : μ < μ0 , One tail prob (Pr < t ) H A : μ > μ0 , One tail prob (Pr > t ) H A : μ ≠ μ0 , Two tail prob (Pr > t ) 1 JMP:Analyze – Distribution • Test Mean t-test Hypothesized value Actual Estimate df Std Dev 70 Test statistic 3.87 74.16 Prob > |t| 0.0007 24 Prob > t 0.0004 5.375 Prob < t 0.9996 2 Another Example • Is the population mean octane rating 90 or is it something different? 3 Stat 101 – Lecture 35 Test of Hypothesis for μ • Step 1: State your null and alternative hypotheses. H 0 : μ = 90 H A : μ ≠ 90 4 Test of Hypothesis for μ • Step 2: Check conditions. –Randomization condition, met. –10% condition, met. –Nearly normal condition, met. 5 Normal Quantile Plot 3 .99 2 .95 .90 1 .75 0 .50 .25 -1 .10 .05 -2 .01 -3 6 4 Count 8 2 87 88 89 90 91 92 93 Octane Rating 94 95 6 Stat 101 – Lecture 35 Test of Hypothesis for μ • Step 3: Calculate the test statistic and convert to a P-value. t= y − μ0 SE( y ) SE( y ) = s n 7 Summary of Data • n = 40 • y = 90.9475 • s = 1.530 • SE( y ) = s = 0.2419 n 8 Value of Test Statistic y − μ0 90.9475 − 90 = SE( y ) 0.2419 t = 3.92 t= Use Table T to find the P-value. 9 Stat 101 – Lecture 35 Table T Two tail probability 0.20 0.10 0.05 0.02 0.01 2.021 2.423 2.704 P-value df 1 2 3 4 M 39 40 3.92 The P-value is less than 0.01. 10 Test of Hypothesis for μ • Step 4: Use the P-value to reach a decision. • The P-value is very small, therefore we should reject the null hypothesis. 11 Test of Hypothesis for μ • Step 5: State your conclusion within the context of the problem. • The population mean octane rating is not 90 but something different. 12 Stat 101 – Lecture 35 Confidence Interval for μ y − tn*−1SE( y ) to y + tn*−1SE( y ) 90.9475 ± 2.021(0.2419 ) 90.95 − 0.49 to 90.95 + 0.49 90.46 to 91.44 13 Interpretation • We are 95% confident that the population mean octane rating is between 90.46 and 91.44 14 Interpretation • This confidence interval agrees with the test of hypothesis. • 90 is not in the interval and so must be rejected as a value for the population mean. 15