Transcript Chapter 9

Chapter 9

Hypothesis Testing

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All Rights Reserved.

Hypothesis

• • • • Hypothesis is a statement population parameter.

about a certain It is usually about a parameter equal to (not equal to), less than or equal to ( greater than), greater than or equal to(or less than) some given number.

For example: the supporting rate of a candidate among all voters is greater than 50%.

A hypothesis testing is a statistical technique for evaluating if there is enough evidence to support a hypothesis. The strength of evidence is evaluated by the probability of certain statistic, called test statistic.

9-2

Rule of Rare Events

• If under probability current to assumption, observe the the sample (statistic) we have is extremely small, then we conclude the assumption is not right.

• How small is small?

if the probability to observe the sample is less than the Level of significance  .  =0.1, .05, .01

It is determined by the risk requirement of the problem. The risk is the probability to make a mistake. 9-3

Rule of Events, final version

• If under current assumption (H-null), the probability to observe the test statistic is   , then we conclude the assumption is not right.

• If under H-null, the p-value is   , then we conclude H-null assumption is not right.

9-4

How to set up the symbolic form of the hypothesis-

express relationship with math expressions

• Find out the hypothesis of interest about the population parameter (mean), and write down its symbolic expression. • Write down the symbolic expression of the complement.

• The expression with equal sign (=, ≤, ≥ ) is called H-null hypothesis (denoted by H 0 ), and the remaining expression not containing equal sign is called the H-A hypothesis (denoted by H a ). 9-5

Types of Hypotheses

• Right Sided tailed, “Greater Than” Alternative H 0 :    0 vs.

H a : 

>

 0 • Left Sided tailed, “Less Than” Alternative H 0 :    0 vs.

H a : 

<

 0 • Two Sided tailed, “Not Equal To” Alternative H 0 :  =  0 vs. H a :    0 where  0 is a given constant value (with the appropriate units) that is a comparative value 9-6

• • •

Types of Hypotheses

-the red part is the conversion followed by some textbooks

Right-Sided (Right Tailed), “Greater Than” Alternative H 0 :    0 H 0 :  =  0 vs.

vs.

H H a a : :  

> >

  0 0 Left-Sided (Left Tailed), “Less Than” Alternative H H 0 0 :    0 :  =  0 vs.

vs.

H a H a : :  

< <

 0  0 Two-Sided (Two Tailed) , “Not Equal To” Alternative H 0 :  =  0 vs. H a :    0 where  0 is a given constant value (with the appropriate units) that is a comparative value 9-7

Z Tests about a Population Mean: σ known

• The population standard deviation σ is known.

• Suppose the population being sampled is normally distributed, or sample size n is at least 30. Under these two conditions, use the Z distribution to calculate the p-value and then use the rule of rare events to perform the hypothesis testing.

9-8

Z Test Statistic σ is known

• Use the “test statistic”

t

.

s

.

x

  

n

0 • If the population is normal or n is large * , the test statistic t.s. follows a normal distribution *

n

30, by the Central Limit Theorem 9-9

Z Tests about a Population Mean: σ known Alternative Type of test p-value

H a : µ > µ 0 H a : µ < µ 0 P(Z>t.s.) P(Zt.s.) for t.s.>0 2*P(Z

Reject H 0

t

.

s

.

if:

p value≤ 

x

z

 

x

 0 

x

   0

n

9-10

Right-tailed Test

• Right-tailed test: P(Z>t.s.) •

H

0 :

μ

k

H

a :

μ

>

k

P

is the area to the right of the test statistic.

• -3 • -2 • -1 • 0 • 1 • Test statistic • 2 • 3 •

z

9-11

Left-tailed Test

• Left-tailed test: P(Z

H

0 :

μ

k

H

a :

μ

<

k

P

is the area to the left of the test statistic.

• 3 • 2 • • 1 Test statistic • 0 • 1 • 2 • 3 •

z

9-12

Two-tailed Test

Two-tailed test:

2*P(Z>t.s.) for t.s.>0 •

H

0 :

μ

=

k

H

a :

μ

k

P

is twice the area to the left of the negative test statistic.

2*P(Z

P

is twice the area to the right of the positive test statistic.

z

• -3 • -2 • -1 • Test statistic • 0 • 1 • Test statistic • 2 • 3 9-13

Hypothesis Testing Conclusion

• • If p value≤  , then we say we reject H null and accept Ha. If p-value>  , we say we

fail to reject

H null and do not accept Ha. Never say we accept H-null. 9-14

Z Tests about a Population Mean: σ known, rejection region method

• To use the rule of rare events we only need to know the relationship between p-value and the given significance level. See slide 3. • The rejection region method explores the property and sets up rejection regions in which any value corresponds to a p-value less than the given significance level  . That means if the t.s. is on the rejection region then we reject H 0 . 9-15

Z

a

and Right Hand Tail Areas

• The definition of the critical value Z α • The area to the right if 1 α • Z α • Z α is the percentile such that • P(Z< Z α ) =1 α 9-16

Right-tailed Test, rejection region

• Right-tailed test, for any given significance level  •

H

0 :

μ

k

H

a :

μ

>

k

• The area to the left of z  is

α.

z

• -3 • -2 • -1 z  • 0 • 1 • 2 • 3 • Test statistic 9-17

Left-tailed Test, rejection region

• Left-tailed test •

H

0 :

μ

k

H

a :

μ

<

k

The area to the left of z  is

α.

z

• 3 • Test statistic • 2 • 1 • 0 -z  • 1 • 2 • 3 9-18

Two-tailed Test, rejection region

Two-tailed test

The area to the left of z /2 is

α/2.

H

0 :

μ

=

k

H

a :

μ

k

The area to the right of z /2 is

α/2.

z

• -3 • -2 • -1 z /2 • 0 • 1 z /2 • 2 • 3 9-19

Z Tests about a Population Mean: σ known, rejection region method Alternative Reject H 0 if: Rejection region

H a :

μ

> µ 0 t.s

. ≥ z  [z , ∞ ) H a :

μ

< µ 0 t.s

. ≤ –z  ( ∞ , z  ] H a :

μ

 µ 0 either t.s

. ≥

z

 /2 or t.s

. ≤ –

z

 /2 Where the test statistics is ( ∞ , z /2 ] [z /2, ∞ )

t

.

s

.

x

   0

n

9-20

t Tests about a Population Mean: σ Unknown

• The population standard deviation σ is unknown, as is the usual situation, but the sample standard deviation s is given. • The population being sampled is normally distributed or sample size is n≥30.

• Under these two conditions, we can use the t distribution to test hypotheses 9-21

Defining the t Statistic: σ Unknown

• • • • • Let x be the mean of a sample of size n with standard deviation s Also, µ 0 mean is the claimed value of the population Define a new test statistic

t

.

s

.

x s

  0

n

If the population being sampled is normal or sample size is big enough, and s is given… The sampling distribution of the t.s. is a t distribution with n – 1 degrees of freedom 9-22

t Tests about a Population Mean: σ Unknown Continued Alternative Reject H 0 if: Rejection region

H a : µ > µ 0 t.s

. ≥ t  [t , ∞ ) H a : µ < µ 0 t.s

. ≤ –t  ( ∞ , t  ] H a : µ  µ 0

t.s.

t

 /2 or

t.s.

≤ –

t

 /2 ( ∞ , t /2 ] [t /2, ∞ )

t

 ,

t

 /2 , and p-values are based on

n

freedom (for a sample of size

n

) – 1 degrees of 9-23

Definition of the critical value t

α

9-24

Type I and Type II errors

• If we reject H 0 , then it is possible to make type I error • If we fail to reject H 0 and do not accept H a (or equivalently: fail to reject H 0 and reject H a ), then it is possible to make type II error. 9-25

Selecting an Appropriate Test Statistic for a Test about a Population Mean

9-26