CHAPTER EIGHT TESTS OF HYPOTHESES

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11/18/213 CAPTER EIGT TESTS OF YPOTESES (8.1) Definition: A statistical hypothesis is a statement concerning one population or more. 1

11/18/213 8.1.1 The Null and The Alternative ypotheses: The structure of hypothesis testing will be formulated with the use of the term null hypothesis. This refers to any hypothesis we wish to test that called. The rejection of 1 leads to the acceptance of an. A null alternative hypothesis denoted by hypothesis concerning a population parameter, will always be stated so as to specify an exact value of the parameter, Ѳ whereas the alternative hypothesis allows for the possibility of several values. We usually test the null hypothesis: : against one of the following alternative hypothesis: : 1 Two Types of Errors: is true is false Accept Correct decision Type II error, Reject Type I error, Correct decision type I error: rejecting when is true. Type II error: accepting when is false. P (Type I error) =P (rejecting is true) = α. P (Type IIerror) = P (accepting is false) =β. 2

11/18/213 One Tailed and Two Tailed test: A test of any statistical hypothesis where the alternative is one sided such as: vs or 1 1 is called a one tailed test vs 1 : : is called a two tailed test The Use of P Values in Decision Making: Definition: A p value is the lowest level (of significance) at which the observed value of the test statistic is significant. P value 2 P( Z Z obs ) p value P( Z Z obs ) p value P( Z Z obs ) Note: when when when 1 1 1 is rejected if P-value < α. is as follows: is as follows: is as follows: 1 : 1 : 1 3

11/18/213 EX(1): : 1 vs : 1,.5 Z 1.87 1 P value 2 P ( Z 1.87 ) 2 P ( Z 1.87) 2[1 P ( Z 1.87)] 2[1.9693] 2(.37).614 Since P value then is accepted. EX(2): The manufacturer of a certain brand of cigarettes claims that the average nicotine content does not exceed 2.5 milligrams. State the null and alternative hypotheses to be used in testing this claim and determine where the critical region is located. : 2.5 against 1 : 2.5 4

11/18/213 EX(3): A real state agent claims that 6% of all private residence being built today are 3 bed room homes. To test this claim, a large sample of new residence is inspected, the proportion of the homes with 3 bed rooms is recorded and used as our test statistic. State the null and alternative hypotheses to be used in this test and determine the location of the critical region. : p.6 vs 1 : p.6 Tests Concerning a Single Mean (known σ) ypothesis 1 1 1 Test statistic (T.S.) R.R. and A.R. of Z X, known or n 3 / n Decision Reject (and accept ) at the significance level if: 1 Z Z 1 or Z Z 1 Two Sided Test Z Z 1 One Sided Test Z Z 1 One Sided Test 5

11/18/213 EX(4): A random sample of 1 recorded deaths in the United States during the past year showed an average life span of 71.8 years with a standard deviation of 8.9 years. Dose this seem to indicate that the average life span today is greater than 7 years? Use a.5 level of significance. 1 1.5.95 1 : 7 vs : 7,.5 n 1, X 71.8, 8.9 Z X n 71.8 7 8.9 1 2.2 Z Z Z 1.645 R. R.: Z 1.645 Z 2.2 Z 1.645 Since Z 2.2 R. R. we reject at.5 Reject since the value of the test statistic is in the critical region (R.R.) or P value P( Z 2.2) 1 P( Z 2.2) 1.9783.217 Reject since : P-value < α 6

11/18/213 EX(5): A manufacturer of sports equipment has developed a new synthetic fishing line that he claims has a standard deviation of.5 kilogram. Test the hypothesis that µ=8 kilograms against the alternative that µ 8 kilograms if a random sample of 5 lines is tested and found to have a mean breaking strength of 7.8 kilograms. Use a.1 level of significance. 1 : 8 vs : 8,.1 n 5, X 7.8,.5 Z X n 7.8 8.5 5 2.82 Z Z 2.575 and Z Z 2.575 1.995 1.995 R. R.: Z 2.575 or Z 2.575 Since Z 2.83 R. R. we reject at.1 Reject since the value of Z is in the critical region (R.R.) p value 2 P ( Z 2.83 ) 2 P ( Z 2.83) 2(1 PZ ( 2.83) 2(1.9977) 2(.23).46 p value 7

11/18/213 Tests Concerning a Single Mean (Variance Unknown) ypothesis Test statistic (T.S.) 1 1 1 X T, unknown or n 3 S / n R.R. and A.R. of Decision Reject (and accept ) at the significance level α if: 1 T t ort 1 t 1 Two Sided Test T t 1 One Sided Test T t 1 One Sided Test EX(6): If a random sample of 12 homes with a mean X 42 included in a planned study indicates that vacuum cleaners expend an average of 42 kilowatt hours per year with standard deviation of 11.9 kilowatt hours dose this suggest at the.5 level of significance that vacuum cleaners expend on the average less than 46 kilowatt hours annually, assume the population of kilowatt - hours to be normal? 8

11/18/213 accept : 46 vs : 46,.5 1 n 12, X 42, S 11.9 T X 42 46 S n 11.9 12 1.95 1.16 v n 1 11, t t 1.796 R. R.: T 1.796 Since T 1.16 A. R. we accept at.5 since the value of t is in the acceptance region (A.R.) ypothesis Test statistic (T.S.) R.R. and A.R. of Tests Concerning Proportions : p p : p p 1 pˆ p : p p : p p 1 Z q p pq n ( 1 ) : p p : p p 1 Decision Reject (and accept ) at the significance level if: 1 Z Z 1 or Z Z1 Two Sided Test Z Z 1 One Sided Test Z Z 1 One Sided Test 9

11/18/213 EX(7): A builder claims that heat pumps are installed in 7% of all homes being constructed today in the city of Richmond. Would you agree with this claim if a random survey of new homes in this city shows that 8 out of 15 had heat significance? : p.7 vs : p.7,.1 1 X 8 n 15, X 8, pˆ.533 n 15 Z pˆ p.533.7 pq n (.7)(.3) 15 1.42 Z Z Z 1.645, Z 1.645 1 1.5.95 1.5 R. R.: Z 1.645 or Z 1.645 Since Z 1.42 R. R. we accept at.1 1

11/18/213 Z 1.42 A. R. : p.7 p value 2 P ( Z 1.42 ) 2 P ( Z 1.42) 2 P (1 P ( Z 1.42)) 2(1.9222) 2(.778).1556 Since P-value >α, we accept 11