welcome to mm207 – statistics hypothesis testing with one sample chapter 7 7.1 – 7.4 anthony j....

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Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

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Page 1: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Welcome to MM207 – Statistics

Hypothesis Testing with One SampleChapter 7 7.1 – 7.4

Anthony J. Feduccia

Page 2: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Chapter Outline

• 7.1 Introduction to Hypothesis Testing

• 7.2 Hypothesis Testing for the Mean (Large Samples)

• 7.3 Hypothesis Testing for the Mean (Small Samples)

• 7.4 Hypothesis Testing for Proportions

• 0mit Section 7.5

2Larson/Farber 4th ed.

Page 3: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Guidelines -- Hypothesis Testing Steps:

•State H0 and Ha.

•Specify the level of significance alpha .

•Determine the test statistic, either z or t. Find the test statistic using the given data.

•Find the P-value or the critical value(s) z0 or t0. Use the method specified in the problem statement.

•Define the rejection region using either the P-value method or critical values from the Normal distribution.

•Make a decision to reject or fail to reject the null hypothesis.

•Interpret the decision in the context of the original claim.

Page 4: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Section 7.1 Objectives

• State a null hypothesis and an alternative hypothesis

• Identify type I and type I errors and interpret the level of significance

• Determine whether to use a one-tailed or two-tailed statistical test and find a p-value

• Make and interpret a decision based on the results of a statistical test

4Larson/Farber 4th ed.

Page 5: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Hypothesis TestsHypothesis test

• A process that uses sample statistics to test a claim about the value of a population parameter.

• For example: An automobile manufacturer advertises that its new hybrid car has a mean mileage of 50 miles per gallon. To test this claim, a sample would be taken. If the sample mean differs enough from the advertised mean, you can decide the advertisement is wrong.

5Larson/Farber 4th ed.

Page 6: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Hypothesis TestsStatistical hypothesis

• A statement, or claim, about a population parameter.

• Need a pair of hypotheses• one that represents the claim

• the other, its complement

• When one of these hypotheses is false, the other must be true.

6Larson/Farber 4th ed.

Page 7: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Example: Stating the Null and Alternative Hypotheses

Write the claim as a mathematical sentence. State the null and alternative hypotheses and identify which represents the claim.1.A university publicizes that the proportion of its students who graduate in 4 years is 82%.

Equality condition

Complement of H0

H0:

Ha:

(Claim)p = 0.82

p ≠ 0.82

Solution:

7Larson/Farber 4th ed.

Page 8: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

μ ≥ 2.5 gallons per minute

Example: Stating the Null and Alternative Hypotheses

Write the claim as a mathematical sentence. State the null and alternative hypotheses and identify which represents the claim.2.A water faucet manufacturer announces that the mean flow rate of a certain type of faucet is less than 2.5 gallons per minute.

Inequality condition

Complement of HaH0:

Ha:(Claim)μ < 2.5 gallons per minute

Solution:

8Larson/Farber 4th ed.

Page 9: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

μ ≤ 20 ounces

Example: Stating the Null and Alternative Hypotheses

Write the claim as a mathematical sentence. State the null and alternative hypotheses and identify which represents the claim.3.A cereal company advertises that the mean weight of the contents of its 20-ounce size cereal boxes is more than 20 ounces.

Inequality condition

Complement of HaH0:

Ha:(Claim)μ > 20 ounces

Solution:

9Larson/Farber 4th ed.

Page 10: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

1.a.A candidate for mayor of a city claims to be favored by at least half the voters. Test this candidates claim. (4 points)

claim: H0 : Ha :

Test :

b.The mean age of bus drivers in Chicago is 50.9 years. Test the claim that the mean age differs from this. (4 points)

claim: H0 : Ha :

Test :

Page 11: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Types of Errors• No matter which hypothesis represents the claim, always

begin the hypothesis test assuming that the equality condition in the null hypothesis is true.

• At the end of the test, one of two decisions will be made:

– reject the null hypothesis

– fail to reject the null hypothesis

• Because your decision is based on a sample, there is the possibility of making the wrong decision.

11Larson/Farber 4th ed.

Page 12: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Types of Errors

• A type I error occurs if the null hypothesis is rejected when it is true.

• A type II error occurs if the null hypothesis is not rejected when it is false.

Actual Truth of H0

Decision H0 is true H0 is false

Do not reject H0 Correct Decision Type II Error

Reject H0 Type I Error Correct Decision

12Larson/Farber 4th ed.

Page 13: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

P-values(see page 370)

P-value (or probability value)

• Find test statistic from the data. Either a z or a t.

• For a left-tail test: p value is area to the left of the test statistic.

• For a right-tail test: p value is area to the right of the test statistic (recall tables give area to the left)

• For a double-tail test: p value is twice the area to the left of a negative test statistic or twice the area to the right of a positive test statistic.

13

Page 14: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Left-tailed Test• The alternative hypothesis Ha contains the

less-than inequality symbol (<).

z0 1 2 3-3 -2 -1

Test statistic

H0: μ k

Ha: μ < k

P is the area to the left of the test statistic.

14

Page 15: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

• The alternative hypothesis Ha contains the greater-than inequality symbol (>).

z0 1 2 3-3 -2 -1

Right-tailed Test

H0: μ ≤ k

Ha: μ > k

Test statistic

P is the area to the right of the test statistic.

15Larson/Farber 4th ed.

Page 16: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Two-tailed Test

• The alternative hypothesis Ha contains the not equal inequality symbol (≠). Each tail has an area of ½P.

z0 1 2 3-3 -2 -1

Test statistic

Test statistic

H0: μ = k

Ha: μ kP is twice the area to the left of the negative test statistic.

P is twice the area to the right of the positive test statistic.

16Larson/Farber 4th ed.

Page 17: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

In an advertisement, a pizza shop claims that its mean delivery time is less than 30 minutes. A random selection of 36 delivery times has a sample mean of 28.5 minutes and a standard deviation of 3.5 minutes. Is there enough evidence to support the claim at = 0.01? Use a P-value.

17Larson/Farber 4th ed.

Example Using P-Value

Page 18: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

• H0:

• Ha:

• = • Test Statistic:

μ ≥ 30 min

μ < 30 min (claim)

0.01

28.5 30

3.5 36

2.57

xz

n

• Decision:

At the 1% level of significance, you have sufficient evidence to conclude the mean delivery time is less than 30 minutes.

z0-2.57

0.0051

• P-value

0.0051 < 0.01Reject H0

18

In an advertisement, a pizza shop claims that its mean delivery time is less than 30 minutes. A random selection of 36 delivery times has a sample mean of 28.5 minutes and a standard deviation of 3.5 minutes

Page 19: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Employees in a large accounting firm claim that the mean salary of the firm’s accountants is less than that of its competitor’s, which is $45,000. A random sample of 30 of the firm’s accountants has a mean salary of $43,500 with a standard deviation of $5200. At α = 0.05, test the employees’ claim.

19Larson/Farber 4th ed.

An alternative approach to Hypothesis testingUsing Rejection regions (page 386)

Page 20: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

• H0:

• Ha:

• = • Rejection Region:

μ ≥ $45,000

μ < $45,000

0.05

43,500 45,000

5200 30

1.58

xz

n

• Decision:At the 5% level of significance, there is not sufficient evidence to support the employees’ claim that the mean salary is less than $45,000.

• Test Statistic

z0-1.645

0.05

-1.58

-1.645

Fail to reject H0

20Larson/Farber 4th ed.

The critical z based on alpha, Critical value of z has area of (0.0500) to it’s left

Page 21: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Example: Testing μ with a Small Sample

A used car dealer says that the mean price of a 2005 Honda Pilot LX is at least $23,900. You suspect this claim is incorrect and find that a random sample of 14 similar vehicles has a mean price of $23,000 and a standard deviation of $1113. Is there enough evidence to reject the dealer’s claim at α = 0.05? Assume the population is normally distributed. (Adapted from Kelley Blue Book)

21Larson/Farber 4th ed.

Page 22: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Solution: Testing μ with a Small Sample

• H0:

• Ha:

• α =

• df = • Rejection Region:

• Test Statistic: use t

• Decision:

μ ≥ $23,900 (claim)μ < $23,900

0.0514 – 1 = 13

23,000 23,9003.026

1113 14

xt

s n

t0-1.771

0.05

-3.026

-1.771

At the 0.05 level of significance, there is enough evidence to reject the claim that the mean price of a 2005 Honda Pilot LX is at least $23,900

Reject H0

22Larson/Farber 4th ed.

A used car dealer says that the mean price of a 2005 Honda Pilot LX is at least $23,900. You suspect this claim is incorrect and find that a random sample of 14 similar vehicles has a mean price of $23,000 and a standard deviation of $1113. Is there enough evidence to reject the dealer’s claim at α = 0.05

Page 23: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

•A fast food outlet claims that the mean waiting time in line is less than 4.9 minutes. A random sample of 60 customers yield a sample mean of 4.8 minutes. From past studies it is know that the standard deviation is 0.6 minutes. At alpha = 0.05, test the fast food outlet’s claim a. Use the critical value z0 method from the normal distribution.

Known: u = 4.9, x bar = 4.8, sigma = 0.6; alpha = 0.05; n =60

Ho:Ha:

Test statistic:

Critical zo

Rejection Region:

Decision:

Page 24: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

60,05.0,6.0,8.4,9.4 nx

9.49.4

29.160/6.0

9.48.4

/

n

xz

Use the P-value method.

•H0 :

Ha :

•: Test statistic

claim

Page 25: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

z-Test for a Population Proportion

z-Test for a Population Proportion• A statistical test for a population proportion. • Can be used when a binomial distribution is given such

that np 5 and nq 5.• The test statistic is the sample proportion . • The standardized test statistic is z.

ˆ

ˆ

ˆ ˆp

p

p p pzpq n

25Larson/Farber 4th ed.

Page 26: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

Example: Hypothesis Test for Proportions

Zogby International claims that 45% of people in the United States support making cigarettes illegal within the next 5 to 10 years. You decide to test this claim and ask a random sample of 200 people in the United States whether they support making cigarettes illegal within the next 5 to 10 years. Of the 200 people, 49% support this law. At α = 0.05 is there enough evidence to reject the claim?

Solution:•Verify that np ≥ 5 and nq ≥ 5.

np = 200(0.45) = 90 and nq = 200(0.55) = 11026Larson/Farber 4th ed.

Page 27: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia

• H0:

• Ha:

• = • Rejection Region:

p = 0.45

p ≠ 0.45

0.05

ˆ 0.49 0.45

(0.45)(0.55) 200

1.14

p pz

pq n

• Decision:At the 5% level of significance, there is not enough evidence to reject the claim that 45% of people in the U.S. support making cigarettes illegal within the next 5 to 10 years.

• Test Statistic

z0-1.96

0.025

1.96

0.025

-1.96 1.96

1.14

Fail to reject H0

27Larson/Farber 4th ed.

Use Normal z for proportions

Page 28: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia
Page 29: Welcome to MM207 – Statistics Hypothesis Testing with One Sample Chapter 7 7.1 – 7.4 Anthony J. Feduccia