# hypothesis testing for beginners

Post on 21-Jan-2015

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Hypothesis testing is the method of making decisions using data from a scientific study

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• 1. Prem Sankar C M Tech Technology Management Dept of Futures Studies Kerala University HYPOTHESIS TESTING Prem Sankar C - Dept of Futures Studies
• 2. 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
• 3. BASIC CONCEPTS Null hypothesis Alternate hypothesis Prem Sankar C - Dept of Futures Studies
• 4. NULL HYPOTHESIS Null hypothesis is the hypothesis which we want to reject denoted by H0 Prem Sankar C - Dept of Futures Studies
• 5. ALTERNATE HYPOTHESIS Alternate hypothesis is the hypothesis which we want to prove denoted by Ha Prem Sankar C - Dept of Futures Studies
• 6. TYPE I AND TYPE II ERRORS Two possible types of errors are i. ii. Rejecting Ho when it is true Accepting Ho when it is false Accept Ho Reject Ho Ho is true Correct decision Type I error () Ho is false Type II error () Correct decision 1- - Level of significance - power Sankartest of Futures Prem of C - Dept Studies
• 7. LEVEL OF SIGNIFICANCE - 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
• 8. 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
• 9. THANK YOU Prem Sankar C M Tech Technology Management Dept of Futures Studies Kerala University Prem Sankar C - Dept of Futures Studies
• 10. THANK YOU Prem Sankar C M Tech Technology Management Dept of Futures Studies Kerala University Prem Sankar C - Dept of Futures Studies