Hypothesis Testing

Statistical Hypothesis

A statistical test is a procedure based on a random and significant sample that will allow the acceptance or rejection of a hypothesis previously issued on the value of an unknown parameter of a population.

The presented hypothesis is denoted by H0 and is referred to as the null hypothesis.

The contrary hypothesis is denoted by H1 and is called the alternative hypothesis.

Hypothesis Testing

To perform a hypothesis test, there are four steps that must be followed.

1. State the null H0 and the alternative H1 hypothesis.

Two Tailed H0= k H1 ≠ k
One Tailed H0 ≥ k H1 < k
H0 ≤ k H1 > k

2.From a confidence level, (1 − α), or a significance level, α, determine:

The value of zα/2 (two tailed), or zα (one tailed)

The limit of acceptance of the sample parameter μ o p.

3.Calculate: the value of x or p' from the sample.

4.If the sample parameter value is within the limit of acceptance, accept the hypothesis with a significance level α.

If not, reject it.