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Chapter 18. Hypothesis Testing. Learning Objectives. Understand . . . the nature and logic of hypothesis testing a statistically significant difference six-step hypothesis testing procedure. Learning Objectives. Understand . . .
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Chapter 18 Hypothesis Testing
Learning Objectives Understand . . . • the nature and logic of hypothesis testing • a statistically significant difference • six-step hypothesis testing procedure
Learning Objectives Understand . . . • differences between parametric and nonparametric tests and when to use each • factors that influence the selection of an appropriate test of statistical significance • how to interpret the various test statistics
Hypothesis Testing Inductive Reasoning Deductive Reasoning
Statistical Procedures Inferential Statistics Descriptive Statistics
Classical statistics Objective view of probability Established hypothesis is rejected or fails to be rejected Analysis based on sample data Bayesian statistics Extension of classical approach Analysis based on sample data Also considers established subjective probability estimates Approaches to Hypothesis Testing
Types of Hypotheses • Null • H0: = 50 mpg • H0: < 50 mpg • H0: > 50 mpg • Alternate • HA: = 50 mpg • HA: > 50 mpg • HA: < 50 mpg
Take no corrective action if the analysis shows that one cannot reject the null hypothesis. Decision Rule
Factors Affecting Probability of Committing a Error True value of parameter Alpha level selected One or two-tailed test used Sample standard deviation Sample size
State null hypothesis Interpret the test Choose statistical test Obtain critical test value Select level of significance Compute difference value Statistical Testing Procedures Stages
Tests of Significance Parametric Nonparametric
Assumptions for Using Parametric Tests Independent observations Normal distribution Equal variances Interval or ratio scales
Advantages of Nonparametric Tests Easy to understand and use Usable with nominal data Appropriate for ordinal data Appropriate for non-normal population distributions
How To Select A Test How many samples are involved? If two or more samples are involved, are the individual cases independent or related? Is the measurement scale nominal, ordinal, interval, or ratio?
Questions Answered by One-Sample Tests • Is there a difference between observed frequencies and the frequencies we would expect? • Is there a difference between observed and expected proportions? • Is there a significant difference between some measures of central tendency and the population parameter?
Parametric Tests Z-test t-test
Two-Related-Samples Tests Parametric Nonparametric
k-Independent-Samples Tests: ANOVA • Tests the null hypothesis that the means of three or more populations are equal • One-way: Uses a single-factor, fixed-effects model to compare the effects of a treatment or factor on a continuous dependent variable
Exhibit 18-12 ANOVA Example All data are hypothetical