Premium Essay

Hypothesis

In: Business and Management

Submitted By KBazile1
Words 23264
Pages 94
Hypothes9
9.1

Fundamentals of Hypothesis Testing: One-Sample Tests
A Connection Between Confidence Interval Estimation and Hypothesis Testing Can You Ever Know the Population Standard Deviation?

USING STATISTICS @ Oxford Cereals, Part II Fundamentals of Hypothesis-Testing Methodology The Null and Alternative Hypotheses The Critical Value of the Test Statistic Regions of Rejection and Nonrejection Risks in Decision Making Using Hypothesis Testing Hypothesis Testing Using the Critical Value Approach Hypothesis Testing Using the p-Value Approach

9.4

Z Test of Hypothesis for the Proportion The Critical Value Approach The p-Value Approach
Potential HypothesisTesting Pitfalls and Ethical Issues

9.5

9.2

t Test of Hypothesis for the Mean (S Unknown) The Critical Value Approach The p-Value Approach Checking the Normality Assumption
One-Tail Tests The Critical Value Approach The p-Value Approach

9.6

Online Topic: The Power of a Test

USING STATISTICS @ Oxford Cereals, Part II Revisited CHAPTER 9 EXCEL GUIDE CHAPTER 9 MINITAB GUIDE

9.3

Learning Objectives
In this chapter, you learn:
• The basic principles of hypothesis testing • How to use hypothesis testing to test a mean or proportion • The assumptions of each hypothesis-testing procedure, how to evaluate them, and the consequences if they are seriously violated • How to avoid the pitfalls involved in hypothesis testing • Ethical issues involved in hypothesis testing

U S I N G S TAT I S T I C S

@ Oxford Cereals, Part II s in Chapter 7, you again find yourself as plant operations manager for Oxford Cereals. You are responsible for monitoring the amount in each cereal box filled. Company specifications require a mean weight of 368 grams per box. It is your responsibility to adjust the process when the mean fill weight in the population of boxes differs from 368 grams. How can you

Similar Documents

Free Essay

Hypothesis

...Hypothesis Testing Paper PSY/315 - Statistical Reasoning in Psychology December 16, 2013 Jennifer Slothower Hypothesis Testing Paper There are many reliable sources that are readily available for researching topics, whether it is for personal or professional use. Two of these sources are known as the Internet and the Yellow Pages. Based upon the test performed, to determine if the Yellow Pages will become obsolete in the near future, the following information was found based on the hypothesis and test results that have been recorded in the passage. There are many people who would prefer the use of the Internet to the Yellow Pages because of the convenience and not having to flip through pages to find what you are looking for. The Yellow Pages have become a thing of the past and is quickly being replaced by new research methods individuals can access via the Internet. In the past twenty years the Internet has continued to grow into what we know today. In 1993 the first primitive search engine was released (Seymour, Frantsvog, & Kumar, 2011). Google became the prominent search engine around 2000 by using an algorithm to rank web pages; the desirable pages would be linked more than others based on importance (Seymour, Frantsvog, & Kumar, 2011). With the growth of the Internet and the rise of technology, there has been an increase in the number of businesses that use the Internet for marketing (Salehi, Mirzaei, Aghaei, &Abyari, 2012). Businesses...

Words: 1241 - Pages: 5

Premium Essay

Hypothesis

...the same on the exam as students in Math 163-02? 4. Is there any difference between the strengths of steel wire produced by the XY Company and Bob’s Wire Company? 5. A hospital spokesperson claims that the average daily room charge for a specific procedure is $622. Can we reject this claim? WHAT IS A HYPOTHESIS? Hypothesis: A statement about the value of a population parameter developed for the purpose of testing. Examples of hypotheses, or statements, made about a population parameter are: The mean monthly income from all sources for systems analysts is $3,625. Twenty percent of all juvenile offenders ultimately are caught and sentenced to prison. Hypothesis testing: A procedure, based on sample evidence and probability theory, used to determine whether the hypothesis is a reasonable statement and should not be rejected, or is unreasonable and should be rejected. lFollowing is a five-step procedure for testing a hypothesis. 5 STEPS IN THE HYPOTHESIS TESTING PROCEDURE 1. State the null hypothesis and the alternate hypothesis. Null Hypothesis – statement about the value of a population parameter. Alternate Hypothesis – statement that is accepted if evidence proves null hypothesis to be false. Tests of Hypotheses: z-test and...

Words: 1347 - Pages: 6

Premium Essay

Hypothesis

...A hypothesis is a conjecture about a population. Typically, these hypotheses will be stated in terms of a parameter. A test of hypothesis is a statistical procedure used to make a decision about the conjectured value of a parameter. We will make our decision based on observed values of a statistic. * The purpose of hypothesis testing is to determine whether there is enough statistical evidence in favor of a certain belief about a parameter. * There are two hypotheses which we are comparing. * The null hypothesis, H0, specifies a value of a parameter. This hypothesis is assumed to be true, and the collected data will be analyzed to see if it is contradictory to the null hypothesis. * The alternative hypothesis, Ha, gives an opposing statement about the value of the parameter. The collected data will be analyzed to see if it supports the alternative hypothesis. Example: * An operation manager needs to determine if the mean demand during lead time is greater than 350. * If so, changes in the ordering policy are needed. There are two hypotheses about a population mean: * H0: The null hypothesis m = 350 * Ha: The alternative hypothesis m > 350 Decision Rule: This tells us when we feel the observed data provided sufficient evident to conclude the alternative hypothesis is true. It will be phrased as: Accept the alternative hypothesis when the p-value of the test is less than a. Steps of the Test...

Words: 362 - Pages: 2

Premium Essay

Hypothesis

...The purpose of this paper is to review the hypothesis testing of the influence bank account balances have on ATM transactions.  Team A will use a two-sample hypothesis test to compare two means to examine the hypothesis.  The first part of the process will develop the hypothesis statement numerically and verbally.  The test begins with the determination of the level of significance and decision rule whether to accept or not reject the null hypothesis.  Calculating the test statistic will provide basis of the decision according to the critical region.  The final section will describe the results in relation to the research question of bank account balance influencing the number of ATM transactions.       Hypotheses ​Team A uses a five step hypothesis testing method as part of the research for this document in determining if two sample groups of bank account balances influence the number of ATM uses in one month.  As with the steps for a one population hypothesis test, a two population hypothesis test follows the same sequence.  Step one for Team A starts with stating the null hypothesis.  Given the data shown in Appendix A and Appendix B, Team A has a hunch that bank account holders with larger balances tend to use ATMs more frequently than low account balance holders.   Group A, from Appendix A, hold balances under $1600 for a given month and the Team measures the lower balance account’s ATM transactions during the given month.  Group B samples include accounts with balances...

Words: 350 - Pages: 2

Premium Essay

Hypothesis

...A hypothesis is a explanation for phenomenon that can be tested in some way that ideally approve or disapprove it. In the process of testing the hypothesis is taken to be true and the the goal of the researcher is to rigorously test its terms. The concept is a very inportant part of the scientific method, it also holds true in other disciplines as well. Some historians have put forward the hypothesis that the SalemWitch Trials were brought about by the consumption of grains contaminated with ergot, resulting in a mass hysteria. When someone formulates a hypothesis the individual has intentions of testing it. You can not know the outcome of potential tests before the hypothesis is made. When formulating a hypothesis the ideal scientific method are often keep in mind so that it is designed to be testable in a way that could be relicated by other people. It is always kept clear and simple and the hypothesis relies on known information and reasoning. I feel hypothesis is a needed study because if you test a problem properly you will most definitely get accurate results. The results are probably not what you expect but its best to have things tested so that you do not have to assume the results of the outcome. The results will be utilized because you will not have guessed the solution to the problem but you will have factual information about the things that was tested to give a complete and precise explanation. When you utilize the hypothesis you can determine the interest of...

Words: 308 - Pages: 2

Premium Essay

Hypothesis

...http://www.termpaperwarehouse.com/sign-in?save_page=%2Fessay-on%2FFive-Step-Hypothesis%2F34686 Five Step Hypothesis In: Business and Management Five Step Hypothesis The five-step step hypothesis test The team will use the five-step hypothesis test to support or reject the research problem. The following are five steps that will lead to accurate conclusions concerning the null hypothesis and the claim. The five-step step hypothesis testing consists of: 1. Step one - State the null hypothesis and the alternate hypothesis 2. Step two - level of significance/ Formulate testable hypothesis 3. Step three - Calculate the test statistic 4. Step four - Set up a decision rule 5. Step five - Collect some data The research topic: the team calculates the average cost of houses in cities with high crime rates against affluent cities with low crime rates in PGC. Step 1: State the null hypothesis and the alternate hypothesis. Home values in PGC have decreased because of the high crime rate in the county. H0: The average home sold is 203,069 that is, m = 203,068 Ha: The average home sold is 203,068 that is, m ≠ 203,068 Step 2: Select a level of significance (ά or alpha) In this step, we are able to evaluate if the hypothesis is suitable, and have met the requirements for the test. To do this we must select a type one error that is frequently used at the 0.5 or 0.1 significance level. For instance, to get the Z for a 95% confidence interval, make the shaded area 0.95. The...

Words: 385 - Pages: 2

Premium Essay

Hypothesis Testing

...The steps in testing a research hypothesis There are a total of five steps that are used in testing a hypothesis and they are: “(1) Making assumptions, (2) Stating the research and null hypotheses and selecting (setting) alpha, (3) Selecting the sampling distribution and specifying the test statistic, (4) Computing the test statistic, and (5) Making a decision and interpreting the results.” (Boston University Metropolitan College, n.d., Para. 1). When beginning the process of creating a hypothesis to test, the first thing that must be done is to make assumptions about the type of sampling method that would be used, the level of measurement for the variable, including the sample size. The second step is then to state the research and null hypotheses and selecting the alpha. “We always state research hypotheses in terms of population parameters because we want to use sample statistics to estimate population parameters.” (Boston University Metropolitan College, n.d., Para. 5). After the research has been stated, then the next step is to complete the null hypothesis, which will contradict the research hypothesis. The third step in testing a hypothesis is to select the sampling distribution and to specify the test statistic. The fourth step is to compute the test statistic following the specified formula to be able to test the statistic. The fifth and final step is to make a decision and to interpret the results. This simply means that we are looking over the results and deciding...

Words: 292 - Pages: 2

Premium Essay

Hypothesis

...Theft Cases in 2007 and 2008: Is There any Significant Change 1. Introduction Human society is faced with criminal activities of different kinds like theft, burglary, robbery, robbery, arson, rape, assault, murders etc. All these are unpleasant and something none of us will like, but unfortunately, we all have to live with it and learn to cope with it. To minimize and control these unpleasant occurrences there is police. Police has mandate to ensure a safe life for citizens by controlling and minimizing occurrence of criminal activities, which is evident from reduced criminal cases year after year. The data on criminal cases are logged and a suitable statistical analysis can be made to see if really there is any significant drop in criminal cases in subsequent years. Statistics is the branch of knowledge in which data pertaining to different variables are either collected or generated by suitable experimental design. However, the data is generally very huge in volume and the useful information and underlying trends are hidden in the noise. Therefore, data needs to be processed to extract suitable information and underlying trends. There are many statistical procedures, which helps in extracting suitable information and underlying trends from a large pool of data. One such procedure is “Descriptive Statistics”, which provides useful statistics pertaining to a variable like mean, median, mode, standard deviation, kurtosis, skewness etc. These...

Words: 1582 - Pages: 7

Free Essay

Hypothesis Test

...Saurabh Sunny Baghmar MNGT: 6361 Problem Statement: To determine if saving from the total monthly income is gender biased. Hypothesis: H0: Single Women save equal to single men from their total monthly income. (Null Hypothesis) H0 = µwomen - µmen = 0 Introduction: The thought behind this problem statement comes from the report which says that there is a huge difference between the number of single women applying for credit cards and men. There are studies done to project the spending/saving habits of men and women. Research shows that women and men have different interest areas where they like spending money [1]. These areas determine how much they spend. Men spend money mostly on eating out, sports ticket, drinking, cars and boys clubs. Whereas women like to spend money on clothes, jewelry, makeup/spa and other accessories. According to [2], the level of debt for men and women is different. Gender was more influential in predicting financial management practices than was affective credit attitude, with female students employing a greater number of financial practices. Research on credit card behavior [3] among college going men and women states that men apply for more than one credit card whereas women’s hold an average of one credit card during their college education. The identification of gender differences may also indicate the need to closely examine individual...

Words: 796 - Pages: 4

Free Essay

Testing Electrical Hypothesis

...working. As I explore though the house I find that the lights inside and outside the house are not working throughout. I have identified this by attempting to turn the lights on in each room with no luck of light. I know that if only one area of the house was affected that the issue would be likely found at the interior breaker of the home, but this is not the case. In developing a theory, I know none of the lights are working, which is an indicator that the problem is not a bulb issue or an interior breaker issue. I also know that the power company has no reported outages in the area. I do know that the house was built in the 50’s and the electrical panel has not been upgraded since the home was built. Based on this information my hypothesis is that issue is within the main breaker outside the home. Due to the age of the home and electrical panel, it is likely a burnt out fuse that has caused all the lights to not work. Just to be sure I have tested the interior breakers of the house by flipping them to the off position and back on, still no lights. I also tested the exterior breaker by flipping it to the off position and back on, still no light. Now by replacing the fuse and switching on the lights I have solved the problem and have light throughout the house. From the research above I have found the problem was in fact a burnt out fuse at the main breaker of the exterior of the house. Question 2: It’s dinner time, I have all the ingredients ready to cook but...

Words: 936 - Pages: 4

Premium Essay

Pill Bugs Hypothesis

...The findings in this experiment did not match our original hypothesis. In fact, it was our belief that the pill bugs would spend most of the time in the leafy mixture making it their most preferred environment. The experiment led to the disprovement of our hypothesis. From the very start of the first part of our experiment, we realized that the pill bugs were very fond of the soil substance, much more than the leafy mixture. Based upon the time that the pill bugs spent in the soil during the individual trial, it was clear that the soil was their preferred environment. In fact, each bug spent on average, 42 seconds in the soil during each one minute period. This average correlates to the fact that the combined totals of the time in which the pill bugs spent in the soil substrate was right at 70% of the entire individual trial. The question of what environment the pill bugs preferred the most of soil, sand, or a leafy mixture seems to have been solved through this experiment. Through the use of the three different environments in close proximity, we were given the best opportunity to analyse the decision making of the pill bugs. This determinization of what attracts these bugs can serve helpful to those...

Words: 471 - Pages: 2

Free Essay

Hypothesis

...A high school principal wanted to know if the racial makeup of her teachers mirrored that of the student body. The student body broke down into 47% White, 28% Latino, 15% African American, and 10% other. Of the 65 teachers, 42 were White, 4 were Latino, 15 were African American, and 4 were Other. Do these results suggest that the racial makeup of the faculty members is different from that of the students? (Use the .05 significance level.) Use the five steps of hypothesis testing and explain your findings. Since the teachers are given in numbers and the students in percentage therefore we will write both in percentage. | |White |Latino |Af.American |Other |Total | |% of students |47 |28 |15 |10 |100 | |% of faculty |64.6 |6.15 |23.1 |6.15 |100 | |Total |111.6 |34.15 |38.1 |16.15 |200 | Step1- H0: The racial makeup of faculty members is independent of that of the students. H1: The racial makeup of faculty members is same as that of the students. Step2- Level of significance as stated in the problem alpha=0.05 Step3- For this problem we will be using Chi-Square test. Step4- [pic] Degrees of freedom=1x2=2 ...

Words: 272 - Pages: 2

Premium Essay

Hypothesis Testing

...Hypothesis Testing Tricia Gifford PSY/315 May 4, 2015 Karen Hoeve Hypothesis Testing Before a hypothesis test can be performed, it would be beneficial to have an understanding of what a hypothesis test is inclusive. A hypothesis is a declaration made in advance based on informal observation, a theory, or previous research, which is tested in a study. When this hypothesis declaration has been made, the hypothesis test can then be performed, which is a process for making a decision as to the outcome of a study supporting a particular theory or realistic innovation primarily thought to pertain to a population. In this hypothesis-testing scenario presented, a chosen research topic will be described along with its hypothesis statement concerning the topic. A population and its description will be determined and how the sampling method was obtained. The statistical technique will also be analyzed determining of the data. Research Issue The hypothesis test always starts out with a question regarding a subject of interest. The subject of interest is to determine if the suicide rate in the Pacific Northwest population is higher than the suicide rate in the South Midwest population. The states included in the Pacific Northwest are Idaho, Oregon, and Washington, and the states inclusive in the South Midwest are Arizona, New Mexico, and Texas. The populations are: 1) residents in the Pacific Northwest, and 2) residents in the South Midwest. With...

Words: 1484 - Pages: 6

Premium Essay

Hypothesis Testing

...able to fully understand hypothesis testing and the five steps involved in the complete process, one must first understand what a hypothesis and a hypothesis test is and why it is used. To begin with, a hypothesis, when involved in statistics, is an idea which could be set in the form of an assumption or a theory that shows the characteristics of a single or even multiple variables of a single or group of populations (Aron, Aron & Coups, 2009). These ideas or predictions need to be explored so as to give them validation, possibly creating further research, or these ideas need to be shown to be invalid, thus saving time by not putting more research into an idea that shows itself to be incorrect, however, sometimes an invalid result can create further research of another facet of the original idea set forth. Hypothesis testing is a process that uses statistical data in order to determine if an idea is able to be supported or warrants further research within a certain population that the idea or prediction seems to apply to, and is used by researchers (Aron et. al., 2009). There are five steps involved in this research process. The first step is to pose the question related to the idea or prediction as a logically formed statement called a research hypothesis. In addition to this statement, there is also a statement that is the complete opposite of the research hypothesis statement, called a null hypothesis statement (Aron et. al., 2009). Both these hypothesis statements are made in...

Words: 729 - Pages: 3

Free Essay

Hypothesis of Spss

...29, 29, 30, 30, 31, 30, 33, 27, 30, 32 and 31 mmole/kg. Test at 5% level of significance appropriate hypothesis to conclude whether members of this species maintain a coelomic calcium concentration less than that of their environment. A study was conducted to examine the beliefs held by adolescents regarding smoking and weight. Smoking Yes No Underweight 17 97 Overweight 25 142 Appropriate 96 816 Do the data provide sufficient evidence to suggest that weight perception and smoking status are related in adolescents? ( = 0.05 (Given that[pic] =5.991, [pic] = 12.592) In a study of Margan syndrome, the following severity scores of patients with none and marked dural ectasia were reported No dural ectasia : 18, 18, 20, 21, 23, 23, 24, 26, 28 Marked dural ectasia : 17, 24, 26, 30, 30, 33, 34, 35 Can we conclude at 5% level of significance, that the mean severity scores differ between the two populations represented in the study? (Given t15(0.025) = 2.13, t16(0.025) = 2.12, Z0.025 = 1.96) Two pain-relieving drugs were compared for effectiveness on the basis of length of time elapsing between administration of the drug and cessation of pain. Thirteen patients received drug 1 and 13 received drug 2. The sample variances were 64 and 16 respectively. Test the null hypothesis that the two population variances are equal. Let ( =0.05 Independent simple random samples from...

Words: 1164 - Pages: 5