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1 1 Hypothesis Testing In Statistics, a hypothesis proposes a model for the world. Then we look at the data. If the data are consistent with that model, we have no reason to disbelieve the hypothesis. Data consistent with the model lend support to the hypothesis, but do not prove it. But if the facts are inconsistent with the model, we need to make a choice as to whether they are inconsistent enough to disbelieve the model. If they are inconsistent enough, we can reject the model. Think about the logic of jury trials: To prove someone is guilty, we start by assuming they are innocent. We retain that hypothesis until the facts make it unlikely beyond a reasonable doubt. Then, and only then, we reject the hypothesis of innocence and declare the person guilty. The statistical twist is that we can quantify our level of doubt. We can use the model proposed by our hypothesis to calculate the probability that the event we ve witnessed could happen. That s just the probability we re looking for; it quanti es exactly how surprised we are to see our results. This probability is called a P-value. When the data are consistent with the model from the null hypothesis, the P-value is high and we are unable to reject the null hypothesis. In that case, we have to retain the null hypothesis we started with. We can t claim to have proved it; instead we fail to reject the null hypothesis when the data are consistent with the null hypothesis model and in line with what we would expect from natural sampling variability. If the P-value is low enough, we ll reject the null hypothesis, since what we observed would be very unlikely were the null model true. The null hypothesis, which we denote H 0, speci es a population model parameter of interest and proposes a value for that parameter. We might have, for example, H 0 : = 7:23: We want to compare our data to what we would expect given that H 0 is true. We can do this by nding out how many standard deviations away from the proposed value we are. We then ask how likely it is to get results like we did if the null hypothesis were true. To perform a hypothesis test, we must rst translate our question of interest into a statement about model parameters. In general, we have H 0 : population parameter = hypothesized value: 1

2 The alternative hypothesis, H A, contains the values of the parameter we accept if we reject the null. There are three possible alternative hypotheses: H A : parameter < hypothesized value H A : parameter 6= hypothesized value H A : parameter > hypothesized value The tests are either two-tailed or one-tailed depending upon the alternative hypothesis. In the previous section on con dence intervals we encountered the question of the number of hours KSU students watch football. We answered the question there with a con dence interval. We can also tackle the problem with hypothesis testing. Example 1 The KSU football exploratory committee claims that KSU students watch an average of 10 hours of football per week during football season. A study group collects data from 50 KSU students which yields an average of 9.5 hours watching football with a standard deviation of 3.5 hours. Has the KSU football exploratory committee overestimated the average number of hours KSU students watch football or is this just chance variation in the sample? Test at 95% con dence. Formulate H 0 and H A. H 0 : = 10: H A : < 10 We use a one-tail test since the question indicates a direction in which we disagree with the null hypothesis. Example 2 During a world series game, Chipper Jones comes up to bat. The announcers highlight his.310 batting average for the regular season but then go on to say that those numbers don t apply to the playo s. Formulate H 0 and H A for the announcers comments. H 0 : p = :310 H A : p 6= :310 When the conditions are met (for the Central Limit Theorem) and the null hypothesis is true, this statistic follows the standard Normal model, so we can use that model to obtain a P-value. Before we obtain the P-value, we rst compute the test statistic (which looks very much like a z-score). When testing averages, the test statistic is 2

3 z = x = x x p n : Example 3 Compute the test statistic for our KSU football exploratory committee problem. z = x p = n 9:5 10 3:5 p 50 = 1: We then compare the critical value to the test statistic. The critical values depend on the level of con dence and the number of tails in the test. level of con dence 1-tailed test 2-tailed test 90% % % % The critical value for this test is We compare the absolute value of the test statistic to the critical value. If the test statistic is larger then we reject the null in favor of the alternative. If the critical value is larger than the test statistic we fail to reject the null hypothesis. In this case, 1:645 > 1:0102 and we fail to reject the null hypothesis. Exercise 1 The average GPA at a particular university is The 40 member fraternity Kappa Epsilon Gamma has an average GPA of 1.89 with a standard deviation of 1.2. Dean Wormer believes the fraternity is a disgrace to academic standards with their low GPA. The fraternity believes their GPA is just an example of chance variation. At 99% signi cance, with whom do you agree? Exercise 2 Josh s lifetime average word score in Scrabble is 15.5 points per turn. However, in 30 games with Brenda, his average score is 12.7 points per turn with a standard deviation of 7 points. Brenda thinks Josh is distracted by her great beauty. Josh claims chance variation. At 90% signi cance, with whom do you agree? 3

4 The average is an important population parameter but by no means (pun fully intended) it is the only population parameter of note. Population proportions (or percentages) are also quite valuable. Everything we did in hypothesis testing for a population mean works the same way for population proportions with only a small change when computing the test statistic. Example 4 The KSU football exploratory committee claims that 30% of all KSU students will attend a KSU football game. The KSU Sentinel believes the football exploratory committee has over-estimated their claim. Formulate the null and alternative hypothesis. H 0 : p = 0:3 H A : p < 0:3 Example 5 At 95% con dence what is the critical value? This is a one-tailed test. So at 95% signi cance, the critical value z = 1:645. Furthermore since we are looking at the left tail the critical value is actually z = 1:645: The only di erence when running a test of hypothesis for proportions rather than means is in the test statistic. The numerator will contain the di erence of the sample proportion and the claimed population proportion. The numerator will contain the standard error for sample proportions. Where p is the sample percentage, the test statistic z = p p r : p(1 p) Example 6 The KSU Sentinel collects a sample of 150 students where 35 students state they will attend a KSU football game. Has the Sentinel collected statistically signi cant data in order to reject the exploratory committees claim? The sample proportion is p = = 0: The test statistic is z = 0:233 0:3 r = 1: The test statistic falls into the rejection region 0:233(1 0:233) 150 and we can reject the null hypothesis in favor of the alternative hypothesis. So, yes, the Sentinel has statistically signi cant evidence the exploratory committee has over-estimated their claim about the percentage of KSU students that will attend a football game. Example 7 During a world series game, Chipper Jones comes up to bat. The announcers highlight his.310 batting average for the regular season but then go on to say that those numbers don t apply to the playo s. At the end of the World Series, Chipper has batted 11 for 29. Are the announcers correct or is this just an example of chance variation. Conduct a hypothesis test at 99% signi cance. n 4

5 H 0 : p = :310 H A : p 6= :310 Here we use a two-tailed test since the announcers indicate that batting averages are di erent in the playo s without indicating if the averages are better or worse. So, the critical value is 2:575. Chipper s batting average (which is really a proportion) is p = = 0: The test statistic is 0:379 0:310 z = r = 0: The test statistic does not fall into the 0:379(1 0:379) 29 rejection region. We interpret this to mean that Chipper is the same batter during the regular season as he is during the World Series. We can also construct con dence intervals for proportions using the new formula for standard errors. Example 8 A sample of KSU students nds 52 students who own a PS3 or Xbox 360. Construct a 95% con dence interval for the true proportion of all KSU students who own a PS3 or Xbox 360. The sample proportion is p = 52 = 0: The endpoints of the con - r p(1 p) dence interval are given by p M = p z p = p z = 0:297 r r n 1:96. The lower bound is 0:297 1:96 = r 0: and the upper bound is 0: :96 = 0: We are 95% con dent that the true proportion of KSU students who own a PS3 or Xbox 360 falls somewhere in the interval (0:229; 0:365). 2 Exercises Gould: Read 6.3: Do problems

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