Download - Hypothesis Testing for Beginners
HYPOTHESIS TESTING
Prem Sankar CM Tech Technology ManagementDept of Futures StudiesKerala University
Prem Sankar C - Dept of Futures Studies
INTRODUCTION
• A statement which is capable of being tested by scientific methods.
• A statistical hypothesis is a statement which we want to test on the basis of result obtained from a random sample
• The procedure by which either accept or reject the hypothesis is called testing hypothesis
Prem Sankar C - Dept of Futures Studies
BASIC CONCEPTS
Null hypothesisAlternate hypothesis
Prem Sankar C - Dept of Futures Studies
NULL HYPOTHESIS
• Null hypothesis is the hypothesis which we want to reject
• denoted by H0
Prem Sankar C - Dept of Futures Studies
ALTERNATE HYPOTHESIS
• Alternate hypothesis is the hypothesis which we want to prove
• denoted by Ha
Prem Sankar C - Dept of Futures Studies
TYPE I AND TYPE II ERRORS
• Two possible types of errors arei. Rejecting Ho when it is true
ii. Accepting Ho when it is false
α - Level of significance
1-β - power of test
Accept Ho Reject Ho
Ho is true Correct decision Type I error (α)
Ho is false Type II error (β) Correct decision
Prem Sankar C - Dept of Futures Studies
LEVEL OF SIGNIFICANCE - α
• The probability of rejecting hypothesis H0 when it is true
• 5% Level of significance means that there is a risk of 5% of rejecting H0
Prem Sankar C - Dept of Futures Studies
PROCEDURE FOR TESTING A HYPOTHESIS
1. Formulate a null hypothesis and an Alternate hypothesis
2. Specify the level of significance
3. Select an appropriate sampling distribution
4. Select a random sample
5. Decide whether to reject Ho or not Prem Sankar C - Dept of Futures
Studies
THANK YOU
Prem Sankar CM Tech Technology Management
Dept of Futures StudiesKerala University
Prem Sankar C - Dept of Futures Studies