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Tests of Hypotheses: z-test and t-test 0801-HypothesisTests.doc

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TESTS OF HYPOTHESES
As was mentioned earlier, sometimes we cannot survey or test all persons or objects; therefore, we have to take a sample. From the results of analysis from the sample data, we can predict the results from the population. Some questions that one may want to answer are 1. Are unmarried workers more likely to be absent from work than married workers? 2. Are the sixth graders in a certain school significantly less skilled in their mathematical abilities than the average student in the district? 3. In Fall 1996, did students in Math 163-01 score 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

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