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Dilfraz Singh, Lovely Professional University Unit 12: Hypothesis Testing

Unit 12: Hypothesis Testing Notes

CONTENTS
Objectives
Introduction

12.1 Meaning of Hypothesis
12.2 Statistical Testing Procedure
12.2.1 Formulate the Hypothesis
12.2.2 Statistical Significance Level

12.2.3 One-tailed and Two-tailed Tests
12.2.4 Degree of Freedom
12.2.5 Select Test Criteria

12.2.6 Compute
12.2.7 Make Decisions
12.3 Errors in Hypothesis Testing

12.4 Types of Tests
12.4.1 Parametric Test
12.4.2 Non-parametric Test

12.5 P-values
12.6 Summary
12.7 Keywords
12.8 Review Questions

12.9 Further Readings

Objectives

After studying this unit, you will be able to:
 Identify the steps involved in hypothesis testing;
 Explain the statistical testing procedure;
 Discuss the errors in hypothesis testing;
 Explain the types of tests.

Introduction

A statistical hypothesis test is a method of making statistical decisions using experimental data.
In statistics, a result is called statistically significant if it is unlikely to have occurred by chance.
The phrase “test of significance” was coined by Ronald Fisher: “Critical tests of this kind may be
called tests of significance, and when such tests are available we may discover whether a second
sample is or is not significantly different from the first.”

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