Stat 104 – Lecture 23 Testing Hypotheses • Hypothesis – a tentative theory. • Statistical hypothesis – a tentative theory about the value of a population parameter. 1 Testing Hypotheses • Use sample data, in the form of a sample statistic, to support or refute hypotheses. • How likely is it to get the sample data if a hypothesis is true? 2 Example • The hog processing plant wants to see if the population mean hot carcass weight of hogs is 200 lbs or is it something less than 200 lbs. 3 1 Stat 104 – Lecture 23 Example • Null hypothesis – H0:μ = 200 • Alternative hypothesis – HA:μ < 200 • μ is the population mean hot carcass weight. 4 Decisions & Conclusions • Reject H0 – the population mean is a value given in the alternative hypothesis. • Fail to Reject H0 – the population mean could be the value given in the null hypothesis. 5 Errors H0 is True Fail to reject H0 Reject H0 H0 is False Correct Decision Type II Error Type I Error Correct Decision 6 2 Stat 104 – Lecture 23 Errors • Would like to reduce the chance of making either error. • One way to do this is to have a large sample of data. 7 Level of Significance • Denoted by the Greek letter, α • The probability of making a Type I error. • Typically,α is chosen to be 5% or 0.05. 8 Test Statistic • Summary of the sample data used to make a decision in a test of hypothesis. • Depends on what is known about the population. 9 3 Stat 104 – Lecture 23 Testing – Step by Step • • • • • Step 1 – Set-Up Step 2 – Test Criteria Step 3 – Sample Evidence Step 4 – Probability Value Step 5 – Results 10 Step 1 – Set-Up • μ is the population mean hot carcass weight of hogs. • Null hypothesis – H0:μ = 200 • Alternative hypothesis – HA: μ < 200 11 Step 2 – Test Criteria • Distribution of the sample mean is approximately normal. • σ = 26.1 lbs • z test statistic. • α = 0.05 12 4 Stat 104 – Lecture 23 Step 3 – Sample Evidence • Sample mean, y = 187.5 • Test statistic, z= y − μ0 ⎛ ⎜ ⎝ σ n ⎞ ⎟ ⎠ = 187.5 − 200 − 12.5 = = −3.39 3.961 ⎛ 26.1 ⎞ ⎜ ⎟ ⎝ 50 ⎠ 13 Step 4 – Probability Value • Alternative hypothesis – HA:μ < 200 • P-value is the probability of getting a value of z smaller than –3.39 • Table Z: 0.0003 14 Step 5 - Results • Reject the null hypothesis because the P-value is smaller than 0.05 • The population mean hot carcass weight of hogs is less than 200 lbs. 15 5