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AMMARA AFTAB [email protected] MSC (FINAL) (2014) Unlocking the Mysteries of Hypothesis Testing

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AMMARA [email protected]

MSC (FINAL)(2014)

Unlocking the Mysteries of Hypothesis Testing

BY AMMARA AFTAB

THE GAME OF

CERTAINITY

Certainty is the perfect knowledge that has a total security from errors, or the mental state is being without doubt.

“In this world nothing is to be certain except death and taxes”

------BENJAMIN FRANKLIN

UNCERTAINITY

The lack of certainity.A state of having limited knowledge where it is impossible to exactly describe the existing state or future outcome.“You can not be certain about certainty” ----DAVID THOMAS

BY AMMARA AFTAB

Jaints companies wants an ANGLE

BY AMMARA AFTAB

Instead of ANGLES they have STATISTICIAN

RONALD A FISHERBY AMMARA AFTAB

HYPOTHESIS…..???

BY AMMARA AFTAB

What’s this all about?• Hypothesis

• An educated guess

• An experienced guess

The goal in Hypothesis Testing is to analyze a sample in an attempt to distinguish between population characteristics that are likely to occur and population characteristics that are unlikely to occur.

BY AMMARA AFTAB

DEFINITION A proposition to be tested, predicts a

relationship b/w more than 2 variables.

(Webster’s New International Dictionary Of English)

A tentative statement about something, the validity of which is usually unknown.

(Black, James A Dean J Champion)

BY AMMARA AFTAB

FUNCTIONS

Bringing the clarity to the research problem.

Provide a study with focus. Signifies what specific aspect of a research

problem is to investigate. What data to b collected. Formulate the theory. Enable to conclude what is true or false.

BY AMMARA AFTAB

• Null Hypothesis vs. Alternative Hypothesis

• Type I vs. Type II Error

• vs.

The Basics

BY AMMARA AFTAB

Null Hypothesis vs. Alternative Hypothesis

Null Hypothesis

• Statement about the value of a population parameter

• Represented by H0• Always stated as an

Equality

Alternative Hypothesis

• Statement about the value of a population parameter that must be true if the null hypothesis is false

• Represented by H1

• Stated in on of three forms• >• <•

BY AMMARA AFTAB

Type I vs. Type II Error

Referring to Ho, the Null Hypothesis

True False

Reject Type I Error

O.K

Fail to Reject

O.K. Type I I Error

BY AMMARA AFTAB

BY AMMARA AFTAB

NowThe Main Thing Is

………….???????BY AMMARA AFTAB

INTERPRETATION

BY AMMARA AFTAB

Interpreting the p-value…

The smaller the p-value, the more statistical evidence exists to support the alternative hypothesis.

• If the p-value is less than 1%, there is overwhelming evidence that supports the alternative hypothesis.

• If the p-value is between 1% and 5%, there is a

BY AMMARA AFTAB

Interpreting the p-value…

• strong evidence that supports the alternative hypothesis.

• If the p-value is between 5% and 10% there is a weak evidence that supports the alternative hypothesis.

• If the p-value exceeds 10%, there is no evidence that supports the alternative hypothesis.

BY AMMARA AFTAB

Summary of One- and Two-Tail Tests…

I am the best. (In this situation)One-Tail Test

(left tail)Two-Tail Test One-Tail Test

(right tail)

BY AMMARA AFTAB

Type I and Type II Errors

True State of Nature

We decide to

reject the

null hypothesis

We fail to

reject the

null hypothesis

The null

hypothesis is

true

The null

hypothesis is

false

Type I error

(rejecting a true

null hypothesis)

Type II error

(rejecting a false

null hypothesis)

Correct

decision

Correct

decision

Dec

isio

n

BY AMMARA AFTAB

Forming Conclusions• Every hypothesis test ends with the experimenters (you

and I) either• Rejecting the Null Hypothesis, or• Failing to Reject the Null Hypothesis

• It may seem strange that, you never accept the Null Hypothesis. The best you can say about the Ho is that you don’t have enough evidence, based on a sample, to reject it!

• we do not say that we accept the null hypothesis

BY AMMARA AFTAB

Seven Steps to Hypothesis Testing Happiness

(Traditional or Classical Method)

BY AMMARA AFTAB

1) Describe in words the population characteristic about which hypotheses are to be tested

2) State the null hypothesis, Ho

3) State the alternative hypothesis, H1 or Ha

4) Display the test statistic to be used

The Seven Steps…

BY AMMARA AFTAB

5) Identify the rejection region

• Is it an upper, lower, or two-tailed test?

• Determine the critical value associated with , the level of significance of the test

6) Compute all the quantities in the test statistic, and compute the test statistic itself

The Seven Steps…

BY AMMARA AFTAB

The Seven Steps…

7) State the conclusion. That is, decide whether to reject the null hypothesis, Ho, or fail to reject the null hypothesis. The conclusion depends on the level of significance of the test. Also, remember to state your result in the context of the specific problem.

BY AMMARA AFTAB

THANKs tO

NOW ITS UNLOCK

SIR TAUQEER

Special

BY AMMARA AFTAB