Hypothesis Tests
Hypothesis Tests
DNA Pot (c) 2009 - Current
Test population Mean with Large sample size, σ known
Here, let’s see how to test statistical hypotheses about one population mean when sample size is large. The sample size is considered large when it is greater than or equal to 30.
Suppose we have a random sample of X1, X2, X3, ..., Xn
the sample size is clearly n, and in this case it is large (n ⩾ 30)
This sample is drawn from a population
The probability density function is let say f(x)
The population mean is μ
The population standard deviation is σ
The population variance is σ2
The sample mean is X bar
The sample variance is S2
Then we have three hypothesis we want to test about the population mean, each having one null hypothesis versus an alternative hypothesis.
Step 1
State the null hypothesis
Ho : μ = μ0
Step 2
State the alternative hypothesis
(1) Ho : μ < μ0
(2) Ho : μ > μ0
(3) Ho : μ ≠ μ0
Step 3
Assign an appropriate value of level of significance α
Common Values: 0.01 (1%), 0.05 (5%), and 0.10 (10%)
Pick One: Here 0.05 is picked in this case, or it is given in the question
Step 4
Determine a suitable test statistic
The parameter under investigation is used as test statistic
The test statistic is
z = (X bar - μ)/(σ/√n) for μ
This test statistic is used to test hypothesis (1), (2), (3) about μ
Step 5
Determine the probability distribution in the test statistic
Since, the sample is large (n ⩾ 30), according to the central limit theorem the test statistic “ z= (X bar - μ)/(σ/√n) for μ” is distributed as standard normal (mean 0 and standard deviation 1).
Step 6
Locate all rejection region and find the critical point
The location of rejection region depends on the alternative hypothesis.
(1)Ho : μ < μ0
The rejection region locates on the left tail because μ < μ0
(2)Ho : μ > μ0
The rejection region locates on the right tail because μ > μ0
(3)Ho : μ ≠ μ0
The rejection region locates on both tails because μ ≠ μ0
Step 7
Find the critical point
The critical point depends on the value assigned to size of the rejection region or the level of significance which is type I error probability α
the level of significance = P( type I error) = α = 0.05
the critical point values can be read out of the table for α = 0.05
in each case (1),(2), and (3)
Level of significance α Left-tail Right Tail Both Tail
0.01 -2.33 +2.33 -2.575 and +2.575
0.05 -1.645 +1.645 -1.96 and +1.96
0.10 -1.28 +1.28 -1.645 and +1.645
location of rejection region depends on the alternative hypothesis.
(1)Ho : μ < μ0
The rejection region locates on the left tail because μ < μ0
(2)Ho : μ > μ0
The rejection region locates on the right tail because μ > μ0
(3)Ho : μ ≠ μ0
The rejection region locates on both tails because μ ≠ μ0
Step 8
Calculate the test statistic
Take a random sample from a population in question, calculate the value of the test statistic.
Take a random the sample X1, X2, X3, ..., Xn
Make sure n ⩾ 30
Calculate X bar = sample mean
σ and n are given or known
μ is the μ0 from the null hypothesis
use all values in calculating test statistic “ z = (X bar - μ)/(σ/√n) for μ”
Step 9
Make decision
Determine whether it falls in the rejection region. If it falls in the rejection region, we reject the null hypothesis. If it doesn’t fall in the rejection region, keep it.
Check the value from the calculation of test statistic
“ z = (X bar - μ)/(σ/√n) for μ”
If it falls in the rejection regions (1),(2) and (3) mentioned above, we reject the null hypothesis. If it doesn’t fall in the rejection region, keep it.