hypothesis sample statistics

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Introduction to Hypothesis Testing

A statistical hypothesis is an assumption about a population parameter .

For example, we may assume that the mean height of a male in the U.S. is 70 inches.

The assumption about the height is the statistical hypothesis and the true mean height of a male in the U.S. is the population parameter .

A hypothesis test is a formal statistical test we use to reject or fail to reject a statistical hypothesis.

The Two Types of Statistical Hypotheses

To test whether a statistical hypothesis about a population parameter is true, we obtain a random sample from the population and perform a hypothesis test on the sample data.

There are two types of statistical hypotheses:

The null hypothesis , denoted as H 0 , is the hypothesis that the sample data occurs purely from chance.

The alternative hypothesis , denoted as H 1 or H a , is the hypothesis that the sample data is influenced by some non-random cause.

Hypothesis Tests

A hypothesis test consists of five steps:

1. State the hypotheses. 

State the null and alternative hypotheses. These two hypotheses need to be mutually exclusive, so if one is true then the other must be false.

2. Determine a significance level to use for the hypothesis.

Decide on a significance level. Common choices are .01, .05, and .1. 

3. Find the test statistic.

Find the test statistic and the corresponding p-value. Often we are analyzing a population mean or proportion and the general formula to find the test statistic is: (sample statistic – population parameter) / (standard deviation of statistic)

4. Reject or fail to reject the null hypothesis.

Using the test statistic or the p-value, determine if you can reject or fail to reject the null hypothesis based on the significance level.

The p-value  tells us the strength of evidence in support of a null hypothesis. If the p-value is less than the significance level, we reject the null hypothesis.

5. Interpret the results. 

Interpret the results of the hypothesis test in the context of the question being asked. 

The Two Types of Decision Errors

There are two types of decision errors that one can make when doing a hypothesis test:

Type I error: You reject the null hypothesis when it is actually true. The probability of committing a Type I error is equal to the significance level, often called  alpha , and denoted as α.

Type II error: You fail to reject the null hypothesis when it is actually false. The probability of committing a Type II error is called the Power of the test or  Beta , denoted as β.

One-Tailed and Two-Tailed Tests

A statistical hypothesis can be one-tailed or two-tailed.

A one-tailed hypothesis involves making a “greater than” or “less than ” statement.

For example, suppose we assume the mean height of a male in the U.S. is greater than or equal to 70 inches. The null hypothesis would be H0: µ ≥ 70 inches and the alternative hypothesis would be Ha: µ < 70 inches.

A two-tailed hypothesis involves making an “equal to” or “not equal to” statement.

For example, suppose we assume the mean height of a male in the U.S. is equal to 70 inches. The null hypothesis would be H0: µ = 70 inches and the alternative hypothesis would be Ha: µ ≠ 70 inches.

Note: The “equal” sign is always included in the null hypothesis, whether it is =, ≥, or ≤.

Related:   What is a Directional Hypothesis?

Types of Hypothesis Tests

There are many different types of hypothesis tests you can perform depending on the type of data you’re working with and the goal of your analysis.

The following tutorials provide an explanation of the most common types of hypothesis tests:

Introduction to the One Sample t-test Introduction to the Two Sample t-test Introduction to the Paired Samples t-test Introduction to the One Proportion Z-Test Introduction to the Two Proportion Z-Test

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4.4: Hypothesis Testing

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• Page ID 283

• David Diez, Christopher Barr, & Mine Çetinkaya-Rundel
• OpenIntro Statistics

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Is the typical US runner getting faster or slower over time? We consider this question in the context of the Cherry Blossom Run, comparing runners in 2006 and 2012. Technological advances in shoes, training, and diet might suggest runners would be faster in 2012. An opposing viewpoint might say that with the average body mass index on the rise, people tend to run slower. In fact, all of these components might be influencing run time.

In addition to considering run times in this section, we consider a topic near and dear to most students: sleep. A recent study found that college students average about 7 hours of sleep per night.15 However, researchers at a rural college are interested in showing that their students sleep longer than seven hours on average. We investigate this topic in Section 4.3.4.

Hypothesis Testing Framework

The average time for all runners who finished the Cherry Blossom Run in 2006 was 93.29 minutes (93 minutes and about 17 seconds). We want to determine if the run10Samp data set provides strong evidence that the participants in 2012 were faster or slower than those runners in 2006, versus the other possibility that there has been no change. 16 We simplify these three options into two competing hypotheses :

• H 0 : The average 10 mile run time was the same for 2006 and 2012.
• H A : The average 10 mile run time for 2012 was different than that of 2006.

We call H 0 the null hypothesis and H A the alternative hypothesis.

Null and alternative hypotheses

• The null hypothesis (H 0 ) often represents either a skeptical perspective or a claim to be tested.
• The alternative hypothesis (H A ) represents an alternative claim under consideration and is often represented by a range of possible parameter values.

15 theloquitur.com/?p=1161

16 While we could answer this question by examining the entire population data (run10), we only consider the sample data (run10Samp), which is more realistic since we rarely have access to population data.

The null hypothesis often represents a skeptical position or a perspective of no difference. The alternative hypothesis often represents a new perspective, such as the possibility that there has been a change.

Hypothesis testing framework

The skeptic will not reject the null hypothesis (H 0 ), unless the evidence in favor of the alternative hypothesis (H A ) is so strong that she rejects H 0 in favor of H A .

The hypothesis testing framework is a very general tool, and we often use it without a second thought. If a person makes a somewhat unbelievable claim, we are initially skeptical. However, if there is sufficient evidence that supports the claim, we set aside our skepticism and reject the null hypothesis in favor of the alternative. The hallmarks of hypothesis testing are also found in the US court system.

Exercise \(\PageIndex{1}\)

A US court considers two possible claims about a defendant: she is either innocent or guilty. If we set these claims up in a hypothesis framework, which would be the null hypothesis and which the alternative? 17

Jurors examine the evidence to see whether it convincingly shows a defendant is guilty. Even if the jurors leave unconvinced of guilt beyond a reasonable doubt, this does not mean they believe the defendant is innocent. This is also the case with hypothesis testing: even if we fail to reject the null hypothesis, we typically do not accept the null hypothesis as true. Failing to find strong evidence for the alternative hypothesis is not equivalent to accepting the null hypothesis.

17 H 0 : The average cost is $650 per month, \(\mu\) = $650.

In the example with the Cherry Blossom Run, the null hypothesis represents no difference in the average time from 2006 to 2012. The alternative hypothesis represents something new or more interesting: there was a difference, either an increase or a decrease. These hypotheses can be described in mathematical notation using \(\mu_{12}\) as the average run time for 2012:

• H 0 : \(\mu_{12} = 93.29\)
• H A : \(\mu_{12} \ne 93.29\)

where 93.29 minutes (93 minutes and about 17 seconds) is the average 10 mile time for all runners in the 2006 Cherry Blossom Run. Using this mathematical notation, the hypotheses can now be evaluated using statistical tools. We call 93.29 the null value since it represents the value of the parameter if the null hypothesis is true. We will use the run10Samp data set to evaluate the hypothesis test.

Testing Hypotheses using Confidence Intervals

We can start the evaluation of the hypothesis setup by comparing 2006 and 2012 run times using a point estimate from the 2012 sample: \(\bar {x}_{12} = 95.61\) minutes. This estimate suggests the average time is actually longer than the 2006 time, 93.29 minutes. However, to evaluate whether this provides strong evidence that there has been a change, we must consider the uncertainty associated with \(\bar {x}_{12}\).

1 6 The jury considers whether the evidence is so convincing (strong) that there is no reasonable doubt regarding the person's guilt; in such a case, the jury rejects innocence (the null hypothesis) and concludes the defendant is guilty (alternative hypothesis).

We learned in Section 4.1 that there is fluctuation from one sample to another, and it is very unlikely that the sample mean will be exactly equal to our parameter; we should not expect \(\bar {x}_{12}\) to exactly equal \(\mu_{12}\). Given that \(\bar {x}_{12} = 95.61\), it might still be possible that the population average in 2012 has remained unchanged from 2006. The difference between \(\bar {x}_{12}\) and 93.29 could be due to sampling variation, i.e. the variability associated with the point estimate when we take a random sample.

In Section 4.2, confidence intervals were introduced as a way to find a range of plausible values for the population mean. Based on run10Samp, a 95% confidence interval for the 2012 population mean, \(\mu_{12}\), was calculated as

\[(92.45, 98.77)\]

Because the 2006 mean, 93.29, falls in the range of plausible values, we cannot say the null hypothesis is implausible. That is, we failed to reject the null hypothesis, H 0 .

Double negatives can sometimes be used in statistics

In many statistical explanations, we use double negatives. For instance, we might say that the null hypothesis is not implausible or we failed to reject the null hypothesis. Double negatives are used to communicate that while we are not rejecting a position, we are also not saying it is correct.

Example \(\PageIndex{1}\)

Next consider whether there is strong evidence that the average age of runners has changed from 2006 to 2012 in the Cherry Blossom Run. In 2006, the average age was 36.13 years, and in the 2012 run10Samp data set, the average was 35.05 years with a standard deviation of 8.97 years for 100 runners.

First, set up the hypotheses:

• H 0 : The average age of runners has not changed from 2006 to 2012, \(\mu_{age} = 36.13.\)
• H A : The average age of runners has changed from 2006 to 2012, \(\mu _{age} 6 \ne 36.13.\)

We have previously veri ed conditions for this data set. The normal model may be applied to \(\bar {y}\) and the estimate of SE should be very accurate. Using the sample mean and standard error, we can construct a 95% con dence interval for \(\mu _{age}\) to determine if there is sufficient evidence to reject H 0 :

\[\bar{y} \pm 1.96 \times \dfrac {s}{\sqrt {100}} \rightarrow 35.05 \pm 1.96 \times 0.90 \rightarrow (33.29, 36.81)\]

This confidence interval contains the null value, 36.13. Because 36.13 is not implausible, we cannot reject the null hypothesis. We have not found strong evidence that the average age is different than 36.13 years.

Exercise \(\PageIndex{2}\)

Colleges frequently provide estimates of student expenses such as housing. A consultant hired by a community college claimed that the average student housing expense was $650 per month. What are the null and alternative hypotheses to test whether this claim is accurate? 18

H A : The average cost is different than $650 per month, \(\mu \ne\) $650.

18 Applying the normal model requires that certain conditions are met. Because the data are a simple random sample and the sample (presumably) represents no more than 10% of all students at the college, the observations are independent. The sample size is also sufficiently large (n = 75) and the data exhibit only moderate skew. Thus, the normal model may be applied to the sample mean.

Exercise \(\PageIndex{3}\)

The community college decides to collect data to evaluate the $650 per month claim. They take a random sample of 75 students at their school and obtain the data represented in Figure 4.11. Can we apply the normal model to the sample mean?

If the court makes a Type 1 Error, this means the defendant is innocent (H 0 true) but wrongly convicted. A Type 2 Error means the court failed to reject H 0 (i.e. failed to convict the person) when she was in fact guilty (H A true).

Example \(\PageIndex{2}\)

The sample mean for student housing is $611.63 and the sample standard deviation is $132.85. Construct a 95% confidence interval for the population mean and evaluate the hypotheses of Exercise 4.22.

The standard error associated with the mean may be estimated using the sample standard deviation divided by the square root of the sample size. Recall that n = 75 students were sampled.

\[ SE = \dfrac {s}{\sqrt {n}} = \dfrac {132.85}{\sqrt {75}} = 15.34\]

You showed in Exercise 4.23 that the normal model may be applied to the sample mean. This ensures a 95% confidence interval may be accurately constructed:

\[\bar {x} \pm z*SE \rightarrow 611.63 \pm 1.96 \times 15.34 \times (581.56, 641.70)\]

Because the null value $650 is not in the confidence interval, a true mean of $650 is implausible and we reject the null hypothesis. The data provide statistically significant evidence that the actual average housing expense is less than $650 per month.

Decision Errors

Hypothesis tests are not flawless. Just think of the court system: innocent people are sometimes wrongly convicted and the guilty sometimes walk free. Similarly, we can make a wrong decision in statistical hypothesis tests. However, the difference is that we have the tools necessary to quantify how often we make such errors.

There are two competing hypotheses: the null and the alternative. In a hypothesis test, we make a statement about which one might be true, but we might choose incorrectly. There are four possible scenarios in a hypothesis test, which are summarized in Table 4.12.

A Type 1 Error is rejecting the null hypothesis when H0 is actually true. A Type 2 Error is failing to reject the null hypothesis when the alternative is actually true.

Exercise 4.25

In a US court, the defendant is either innocent (H 0 ) or guilty (H A ). What does a Type 1 Error represent in this context? What does a Type 2 Error represent? Table 4.12 may be useful.

To lower the Type 1 Error rate, we might raise our standard for conviction from "beyond a reasonable doubt" to "beyond a conceivable doubt" so fewer people would be wrongly convicted. However, this would also make it more difficult to convict the people who are actually guilty, so we would make more Type 2 Errors.

Exercise 4.26

How could we reduce the Type 1 Error rate in US courts? What influence would this have on the Type 2 Error rate?

To lower the Type 2 Error rate, we want to convict more guilty people. We could lower the standards for conviction from "beyond a reasonable doubt" to "beyond a little doubt". Lowering the bar for guilt will also result in more wrongful convictions, raising the Type 1 Error rate.

Exercise 4.27

How could we reduce the Type 2 Error rate in US courts? What influence would this have on the Type 1 Error rate?

A skeptic would have no reason to believe that sleep patterns at this school are different than the sleep patterns at another school.

Exercises 4.25-4.27 provide an important lesson:

If we reduce how often we make one type of error, we generally make more of the other type.

Hypothesis testing is built around rejecting or failing to reject the null hypothesis. That is, we do not reject H 0 unless we have strong evidence. But what precisely does strong evidence mean? As a general rule of thumb, for those cases where the null hypothesis is actually true, we do not want to incorrectly reject H 0 more than 5% of the time. This corresponds to a significance level of 0.05. We often write the significance level using \(\alpha\) (the Greek letter alpha): \(\alpha = 0.05.\) We discuss the appropriateness of different significance levels in Section 4.3.6.

If we use a 95% confidence interval to test a hypothesis where the null hypothesis is true, we will make an error whenever the point estimate is at least 1.96 standard errors away from the population parameter. This happens about 5% of the time (2.5% in each tail). Similarly, using a 99% con dence interval to evaluate a hypothesis is equivalent to a significance level of \(\alpha = 0.01\).

A confidence interval is, in one sense, simplistic in the world of hypothesis tests. Consider the following two scenarios:

• The null value (the parameter value under the null hypothesis) is in the 95% confidence interval but just barely, so we would not reject H 0 . However, we might like to somehow say, quantitatively, that it was a close decision.
• The null value is very far outside of the interval, so we reject H 0 . However, we want to communicate that, not only did we reject the null hypothesis, but it wasn't even close. Such a case is depicted in Figure 4.13.

In Section 4.3.4, we introduce a tool called the p-value that will be helpful in these cases. The p-value method also extends to hypothesis tests where con dence intervals cannot be easily constructed or applied.

Formal Testing using p-Values

The p-value is a way of quantifying the strength of the evidence against the null hypothesis and in favor of the alternative. Formally the p-value is a conditional probability.

definition: p-value

The p-value is the probability of observing data at least as favorable to the alternative hypothesis as our current data set, if the null hypothesis is true. We typically use a summary statistic of the data, in this chapter the sample mean, to help compute the p-value and evaluate the hypotheses.

A poll by the National Sleep Foundation found that college students average about 7 hours of sleep per night. Researchers at a rural school are interested in showing that students at their school sleep longer than seven hours on average, and they would like to demonstrate this using a sample of students. What would be an appropriate skeptical position for this research?

This is entirely based on the interests of the researchers. Had they been only interested in the opposite case - showing that their students were actually averaging fewer than seven hours of sleep but not interested in showing more than 7 hours - then our setup would have set the alternative as \(\mu < 7\).

We can set up the null hypothesis for this test as a skeptical perspective: the students at this school average 7 hours of sleep per night. The alternative hypothesis takes a new form reflecting the interests of the research: the students average more than 7 hours of sleep. We can write these hypotheses as

• H 0 : \(\mu\) = 7.
• H A : \(\mu\) > 7.

Using \(\mu\) > 7 as the alternative is an example of a one-sided hypothesis test. In this investigation, there is no apparent interest in learning whether the mean is less than 7 hours. (The standard error can be estimated from the sample standard deviation and the sample size: \(SE_{\bar {x}} = \dfrac {s_x}{\sqrt {n}} = \dfrac {1.75}{\sqrt {110}} = 0.17\)). Earlier we encountered a two-sided hypothesis where we looked for any clear difference, greater than or less than the null value.

Always use a two-sided test unless it was made clear prior to data collection that the test should be one-sided. Switching a two-sided test to a one-sided test after observing the data is dangerous because it can inflate the Type 1 Error rate.

TIP: One-sided and two-sided tests

If the researchers are only interested in showing an increase or a decrease, but not both, use a one-sided test. If the researchers would be interested in any difference from the null value - an increase or decrease - then the test should be two-sided.

TIP: Always write the null hypothesis as an equality

We will find it most useful if we always list the null hypothesis as an equality (e.g. \(\mu\) = 7) while the alternative always uses an inequality (e.g. \(\mu \ne 7, \mu > 7, or \mu < 7)\).

The researchers at the rural school conducted a simple random sample of n = 110 students on campus. They found that these students averaged 7.42 hours of sleep and the standard deviation of the amount of sleep for the students was 1.75 hours. A histogram of the sample is shown in Figure 4.14.

Before we can use a normal model for the sample mean or compute the standard error of the sample mean, we must verify conditions. (1) Because this is a simple random sample from less than 10% of the student body, the observations are independent. (2) The sample size in the sleep study is sufficiently large since it is greater than 30. (3) The data show moderate skew in Figure 4.14 and the presence of a couple of outliers. This skew and the outliers (which are not too extreme) are acceptable for a sample size of n = 110. With these conditions veri ed, the normal model can be safely applied to \(\bar {x}\) and the estimated standard error will be very accurate.

What is the standard deviation associated with \(\bar {x}\)? That is, estimate the standard error of \(\bar {x}\). 25

The hypothesis test will be evaluated using a significance level of \(\alpha = 0.05\). We want to consider the data under the scenario that the null hypothesis is true. In this case, the sample mean is from a distribution that is nearly normal and has mean 7 and standard deviation of about 0.17. Such a distribution is shown in Figure 4.15.

The shaded tail in Figure 4.15 represents the chance of observing such a large mean, conditional on the null hypothesis being true. That is, the shaded tail represents the p-value. We shade all means larger than our sample mean, \(\bar {x} = 7.42\), because they are more favorable to the alternative hypothesis than the observed mean.

We compute the p-value by finding the tail area of this normal distribution, which we learned to do in Section 3.1. First compute the Z score of the sample mean, \(\bar {x} = 7.42\):

\[Z = \dfrac {\bar {x} - \text {null value}}{SE_{\bar {x}}} = \dfrac {7.42 - 7}{0.17} = 2.47\]

Using the normal probability table, the lower unshaded area is found to be 0.993. Thus the shaded area is 1 - 0.993 = 0.007. If the null hypothesis is true, the probability of observing such a large sample mean for a sample of 110 students is only 0.007. That is, if the null hypothesis is true, we would not often see such a large mean.

We evaluate the hypotheses by comparing the p-value to the significance level. Because the p-value is less than the significance level \((p-value = 0.007 < 0.05 = \alpha)\), we reject the null hypothesis. What we observed is so unusual with respect to the null hypothesis that it casts serious doubt on H 0 and provides strong evidence favoring H A .

p-value as a tool in hypothesis testing

The p-value quantifies how strongly the data favor H A over H 0 . A small p-value (usually < 0.05) corresponds to sufficient evidence to reject H 0 in favor of H A .

TIP: It is useful to First draw a picture to find the p-value

It is useful to draw a picture of the distribution of \(\bar {x}\) as though H 0 was true (i.e. \(\mu\) equals the null value), and shade the region (or regions) of sample means that are at least as favorable to the alternative hypothesis. These shaded regions represent the p-value.

The ideas below review the process of evaluating hypothesis tests with p-values:

• The null hypothesis represents a skeptic's position or a position of no difference. We reject this position only if the evidence strongly favors H A .
• A small p-value means that if the null hypothesis is true, there is a low probability of seeing a point estimate at least as extreme as the one we saw. We interpret this as strong evidence in favor of the alternative.
• We reject the null hypothesis if the p-value is smaller than the significance level, \(\alpha\), which is usually 0.05. Otherwise, we fail to reject H 0 .
• We should always state the conclusion of the hypothesis test in plain language so non-statisticians can also understand the results.

The p-value is constructed in such a way that we can directly compare it to the significance level ( \(\alpha\)) to determine whether or not to reject H 0 . This method ensures that the Type 1 Error rate does not exceed the significance level standard.

If the null hypothesis is true, how often should the p-value be less than 0.05?

About 5% of the time. If the null hypothesis is true, then the data only has a 5% chance of being in the 5% of data most favorable to H A .

Exercise 4.31

Suppose we had used a significance level of 0.01 in the sleep study. Would the evidence have been strong enough to reject the null hypothesis? (The p-value was 0.007.) What if the significance level was \(\alpha = 0.001\)? 27

27 We reject the null hypothesis whenever p-value < \(\alpha\). Thus, we would still reject the null hypothesis if \(\alpha = 0.01\) but not if the significance level had been \(\alpha = 0.001\).

Exercise 4.32

Ebay might be interested in showing that buyers on its site tend to pay less than they would for the corresponding new item on Amazon. We'll research this topic for one particular product: a video game called Mario Kart for the Nintendo Wii. During early October 2009, Amazon sold this game for $46.99. Set up an appropriate (one-sided!) hypothesis test to check the claim that Ebay buyers pay less during auctions at this same time. 28

28 The skeptic would say the average is the same on Ebay, and we are interested in showing the average price is lower.

Exercise 4.33

During early October, 2009, 52 Ebay auctions were recorded for Mario Kart.29 The total prices for the auctions are presented using a histogram in Figure 4.17, and we may like to apply the normal model to the sample mean. Check the three conditions required for applying the normal model: (1) independence, (2) at least 30 observations, and (3) the data are not strongly skewed. 30

30 (1) The independence condition is unclear. We will make the assumption that the observations are independent, which we should report with any nal results. (2) The sample size is sufficiently large: \(n = 52 \ge 30\). (3) The data distribution is not strongly skewed; it is approximately symmetric.

H 0 : The average auction price on Ebay is equal to (or more than) the price on Amazon. We write only the equality in the statistical notation: \(\mu_{ebay} = 46.99\).

H A : The average price on Ebay is less than the price on Amazon, \(\mu _{ebay} < 46.99\).

29 These data were collected by OpenIntro staff.

Example 4.34

The average sale price of the 52 Ebay auctions for Wii Mario Kart was $44.17 with a standard deviation of $4.15. Does this provide sufficient evidence to reject the null hypothesis in Exercise 4.32? Use a significance level of \(\alpha = 0.01\).

The hypotheses were set up and the conditions were checked in Exercises 4.32 and 4.33. The next step is to find the standard error of the sample mean and produce a sketch to help find the p-value.

Because the alternative hypothesis says we are looking for a smaller mean, we shade the lower tail. We find this shaded area by using the Z score and normal probability table: \(Z = \dfrac {44.17 \times 46.99}{0.5755} = -4.90\), which has area less than 0.0002. The area is so small we cannot really see it on the picture. This lower tail area corresponds to the p-value.

Because the p-value is so small - specifically, smaller than = 0.01 - this provides sufficiently strong evidence to reject the null hypothesis in favor of the alternative. The data provide statistically signi cant evidence that the average price on Ebay is lower than Amazon's asking price.

Two-sided hypothesis testing with p-values

We now consider how to compute a p-value for a two-sided test. In one-sided tests, we shade the single tail in the direction of the alternative hypothesis. For example, when the alternative had the form \(\mu\) > 7, then the p-value was represented by the upper tail (Figure 4.16). When the alternative was \(\mu\) < 46.99, the p-value was the lower tail (Exercise 4.32). In a two-sided test, we shade two tails since evidence in either direction is favorable to H A .

Exercise 4.35 Earlier we talked about a research group investigating whether the students at their school slept longer than 7 hours each night. Let's consider a second group of researchers who want to evaluate whether the students at their college differ from the norm of 7 hours. Write the null and alternative hypotheses for this investigation. 31

Example 4.36 The second college randomly samples 72 students and nds a mean of \(\bar {x} = 6.83\) hours and a standard deviation of s = 1.8 hours. Does this provide strong evidence against H 0 in Exercise 4.35? Use a significance level of \(\alpha = 0.05\).

First, we must verify assumptions. (1) A simple random sample of less than 10% of the student body means the observations are independent. (2) The sample size is 72, which is greater than 30. (3) Based on the earlier distribution and what we already know about college student sleep habits, the distribution is probably not strongly skewed.

Next we can compute the standard error \((SE_{\bar {x}} = \dfrac {s}{\sqrt {n}} = 0.21)\) of the estimate and create a picture to represent the p-value, shown in Figure 4.18. Both tails are shaded.

31 Because the researchers are interested in any difference, they should use a two-sided setup: H 0 : \(\mu\) = 7, H A : \(\mu \ne 7.\)

An estimate of 7.17 or more provides at least as strong of evidence against the null hypothesis and in favor of the alternative as the observed estimate, \(\bar {x} = 6.83\).

We can calculate the tail areas by rst nding the lower tail corresponding to \(\bar {x}\):

\[Z = \dfrac {6.83 - 7.00}{0.21} = -0.81 \xrightarrow {table} \text {left tail} = 0.2090\]

Because the normal model is symmetric, the right tail will have the same area as the left tail. The p-value is found as the sum of the two shaded tails:

\[ \text {p-value} = \text {left tail} + \text {right tail} = 2 \times \text {(left tail)} = 0.4180\]

This p-value is relatively large (larger than \(\mu\)= 0.05), so we should not reject H 0 . That is, if H 0 is true, it would not be very unusual to see a sample mean this far from 7 hours simply due to sampling variation. Thus, we do not have sufficient evidence to conclude that the mean is different than 7 hours.

Example 4.37 It is never okay to change two-sided tests to one-sided tests after observing the data. In this example we explore the consequences of ignoring this advice. Using \(\alpha = 0.05\), we show that freely switching from two-sided tests to onesided tests will cause us to make twice as many Type 1 Errors as intended.

Suppose the sample mean was larger than the null value, \(\mu_0\) (e.g. \(\mu_0\) would represent 7 if H 0 : \(\mu\) = 7). Then if we can ip to a one-sided test, we would use H A : \(\mu > \mu_0\). Now if we obtain any observation with a Z score greater than 1.65, we would reject H 0 . If the null hypothesis is true, we incorrectly reject the null hypothesis about 5% of the time when the sample mean is above the null value, as shown in Figure 4.19.

Suppose the sample mean was smaller than the null value. Then if we change to a one-sided test, we would use H A : \(\mu < \mu_0\). If \(\bar {x}\) had a Z score smaller than -1.65, we would reject H 0 . If the null hypothesis is true, then we would observe such a case about 5% of the time.

By examining these two scenarios, we can determine that we will make a Type 1 Error 5% + 5% = 10% of the time if we are allowed to swap to the "best" one-sided test for the data. This is twice the error rate we prescribed with our significance level: \(\alpha = 0.05\) (!).

Caution: One-sided hypotheses are allowed only before seeing data

After observing data, it is tempting to turn a two-sided test into a one-sided test. Avoid this temptation. Hypotheses must be set up before observing the data. If they are not, the test must be two-sided.

Choosing a Significance Level

Choosing a significance level for a test is important in many contexts, and the traditional level is 0.05. However, it is often helpful to adjust the significance level based on the application. We may select a level that is smaller or larger than 0.05 depending on the consequences of any conclusions reached from the test.

• If making a Type 1 Error is dangerous or especially costly, we should choose a small significance level (e.g. 0.01). Under this scenario we want to be very cautious about rejecting the null hypothesis, so we demand very strong evidence favoring H A before we would reject H 0 .
• If a Type 2 Error is relatively more dangerous or much more costly than a Type 1 Error, then we should choose a higher significance level (e.g. 0.10). Here we want to be cautious about failing to reject H 0 when the null is actually false. We will discuss this particular case in greater detail in Section 4.6.

Significance levels should reflect consequences of errors

The significance level selected for a test should reflect the consequences associated with Type 1 and Type 2 Errors.

Example 4.38

A car manufacturer is considering a higher quality but more expensive supplier for window parts in its vehicles. They sample a number of parts from their current supplier and also parts from the new supplier. They decide that if the high quality parts will last more than 12% longer, it makes nancial sense to switch to this more expensive supplier. Is there good reason to modify the significance level in such a hypothesis test?

The null hypothesis is that the more expensive parts last no more than 12% longer while the alternative is that they do last more than 12% longer. This decision is just one of the many regular factors that have a marginal impact on the car and company. A significancelevel of 0.05 seems reasonable since neither a Type 1 or Type 2 error should be dangerous or (relatively) much more expensive.

Example 4.39

The same car manufacturer is considering a slightly more expensive supplier for parts related to safety, not windows. If the durability of these safety components is shown to be better than the current supplier, they will switch manufacturers. Is there good reason to modify the significance level in such an evaluation?

The null hypothesis would be that the suppliers' parts are equally reliable. Because safety is involved, the car company should be eager to switch to the slightly more expensive manufacturer (reject H 0 ) even if the evidence of increased safety is only moderately strong. A slightly larger significance level, such as \(\mu = 0.10\), might be appropriate.

Exercise 4.40

A part inside of a machine is very expensive to replace. However, the machine usually functions properly even if this part is broken, so the part is replaced only if we are extremely certain it is broken based on a series of measurements. Identify appropriate hypotheses for this test (in plain language) and suggest an appropriate significance level. 32

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Statistics and probability

Course: statistics and probability   >   unit 12, hypothesis testing and p-values.

• One-tailed and two-tailed tests
• Z-statistics vs. T-statistics
• Small sample hypothesis test
• Large sample proportion hypothesis testing

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Video transcript

Tutorial Playlist

Statistics tutorial, everything you need to know about the probability density function in statistics, the best guide to understand central limit theorem, an in-depth guide to measures of central tendency : mean, median and mode, the ultimate guide to understand conditional probability.

A Comprehensive Look at Percentile in Statistics

The Best Guide to Understand Bayes Theorem

Everything you need to know about the normal distribution, an in-depth explanation of cumulative distribution function, a complete guide to chi-square test, a complete guide on hypothesis testing in statistics, understanding the fundamentals of arithmetic and geometric progression, the definitive guide to understand spearman’s rank correlation, a comprehensive guide to understand mean squared error, all you need to know about the empirical rule in statistics, the complete guide to skewness and kurtosis, a holistic look at bernoulli distribution.

All You Need to Know About Bias in Statistics

A Complete Guide to Get a Grasp of Time Series Analysis

The Key Differences Between Z-Test Vs. T-Test

The Complete Guide to Understand Pearson's Correlation

A complete guide on the types of statistical studies, everything you need to know about poisson distribution, your best guide to understand correlation vs. regression, the most comprehensive guide for beginners on what is correlation, what is hypothesis testing in statistics types and examples.

Lesson 10 of 24 By Avijeet Biswal

Table of Contents

In today’s data-driven world , decisions are based on data all the time. Hypothesis plays a crucial role in that process, whether it may be making business decisions, in the health sector, academia, or in quality improvement. Without hypothesis & hypothesis tests, you risk drawing the wrong conclusions and making bad decisions. In this tutorial, you will look at Hypothesis Testing in Statistics.

What Is Hypothesis Testing in Statistics?

Hypothesis Testing is a type of statistical analysis in which you put your assumptions about a population parameter to the test. It is used to estimate the relationship between 2 statistical variables.

Let's discuss few examples of statistical hypothesis from real-life - 

• A teacher assumes that 60% of his college's students come from lower-middle-class families.
• A doctor believes that 3D (Diet, Dose, and Discipline) is 90% effective for diabetic patients.

Now that you know about hypothesis testing, look at the two types of hypothesis testing in statistics.

Hypothesis Testing Formula

Z = ( x̅ – μ0 ) / (σ /√n)

• Here, x̅ is the sample mean,
• μ0 is the population mean,
• σ is the standard deviation,
• n is the sample size.

How Hypothesis Testing Works?

An analyst performs hypothesis testing on a statistical sample to present evidence of the plausibility of the null hypothesis. Measurements and analyses are conducted on a random sample of the population to test a theory. Analysts use a random population sample to test two hypotheses: the null and alternative hypotheses.

The null hypothesis is typically an equality hypothesis between population parameters; for example, a null hypothesis may claim that the population means return equals zero. The alternate hypothesis is essentially the inverse of the null hypothesis (e.g., the population means the return is not equal to zero). As a result, they are mutually exclusive, and only one can be correct. One of the two possibilities, however, will always be correct.

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Null Hypothesis and Alternate Hypothesis

The Null Hypothesis is the assumption that the event will not occur. A null hypothesis has no bearing on the study's outcome unless it is rejected.

H0 is the symbol for it, and it is pronounced H-naught.

The Alternate Hypothesis is the logical opposite of the null hypothesis. The acceptance of the alternative hypothesis follows the rejection of the null hypothesis. H1 is the symbol for it.

Let's understand this with an example.

A sanitizer manufacturer claims that its product kills 95 percent of germs on average. 

To put this company's claim to the test, create a null and alternate hypothesis.

H0 (Null Hypothesis): Average = 95%.

Alternative Hypothesis (H1): The average is less than 95%.

Another straightforward example to understand this concept is determining whether or not a coin is fair and balanced. The null hypothesis states that the probability of a show of heads is equal to the likelihood of a show of tails. In contrast, the alternate theory states that the probability of a show of heads and tails would be very different.

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Hypothesis Testing Calculation With Examples

Let's consider a hypothesis test for the average height of women in the United States. Suppose our null hypothesis is that the average height is 5'4". We gather a sample of 100 women and determine that their average height is 5'5". The standard deviation of population is 2.

To calculate the z-score, we would use the following formula:

z = ( x̅ – μ0 ) / (σ /√n)

z = (5'5" - 5'4") / (2" / √100)

z = 0.5 / (0.045)

 We will reject the null hypothesis as the z-score of 11.11 is very large and conclude that there is evidence to suggest that the average height of women in the US is greater than 5'4".

Steps of Hypothesis Testing

Step 1: specify your null and alternate hypotheses.

It is critical to rephrase your original research hypothesis (the prediction that you wish to study) as a null (Ho) and alternative (Ha) hypothesis so that you can test it quantitatively. Your first hypothesis, which predicts a link between variables, is generally your alternate hypothesis. The null hypothesis predicts no link between the variables of interest.

Step 2: Gather Data

For a statistical test to be legitimate, sampling and data collection must be done in a way that is meant to test your hypothesis. You cannot draw statistical conclusions about the population you are interested in if your data is not representative.

Step 3: Conduct a Statistical Test

Other statistical tests are available, but they all compare within-group variance (how to spread out the data inside a category) against between-group variance (how different the categories are from one another). If the between-group variation is big enough that there is little or no overlap between groups, your statistical test will display a low p-value to represent this. This suggests that the disparities between these groups are unlikely to have occurred by accident. Alternatively, if there is a large within-group variance and a low between-group variance, your statistical test will show a high p-value. Any difference you find across groups is most likely attributable to chance. The variety of variables and the level of measurement of your obtained data will influence your statistical test selection.

Step 4: Determine Rejection Of Your Null Hypothesis

Your statistical test results must determine whether your null hypothesis should be rejected or not. In most circumstances, you will base your judgment on the p-value provided by the statistical test. In most circumstances, your preset level of significance for rejecting the null hypothesis will be 0.05 - that is, when there is less than a 5% likelihood that these data would be seen if the null hypothesis were true. In other circumstances, researchers use a lower level of significance, such as 0.01 (1%). This reduces the possibility of wrongly rejecting the null hypothesis.

Step 5: Present Your Results 

The findings of hypothesis testing will be discussed in the results and discussion portions of your research paper, dissertation, or thesis. You should include a concise overview of the data and a summary of the findings of your statistical test in the results section. You can talk about whether your results confirmed your initial hypothesis or not in the conversation. Rejecting or failing to reject the null hypothesis is a formal term used in hypothesis testing. This is likely a must for your statistics assignments.

Types of Hypothesis Testing

To determine whether a discovery or relationship is statistically significant, hypothesis testing uses a z-test. It usually checks to see if two means are the same (the null hypothesis). Only when the population standard deviation is known and the sample size is 30 data points or more, can a z-test be applied.

A statistical test called a t-test is employed to compare the means of two groups. To determine whether two groups differ or if a procedure or treatment affects the population of interest, it is frequently used in hypothesis testing.

Chi-Square 

You utilize a Chi-square test for hypothesis testing concerning whether your data is as predicted. To determine if the expected and observed results are well-fitted, the Chi-square test analyzes the differences between categorical variables from a random sample. The test's fundamental premise is that the observed values in your data should be compared to the predicted values that would be present if the null hypothesis were true.

Hypothesis Testing and Confidence Intervals

Both confidence intervals and hypothesis tests are inferential techniques that depend on approximating the sample distribution. Data from a sample is used to estimate a population parameter using confidence intervals. Data from a sample is used in hypothesis testing to examine a given hypothesis. We must have a postulated parameter to conduct hypothesis testing.

Bootstrap distributions and randomization distributions are created using comparable simulation techniques. The observed sample statistic is the focal point of a bootstrap distribution, whereas the null hypothesis value is the focal point of a randomization distribution.

A variety of feasible population parameter estimates are included in confidence ranges. In this lesson, we created just two-tailed confidence intervals. There is a direct connection between these two-tail confidence intervals and these two-tail hypothesis tests. The results of a two-tailed hypothesis test and two-tailed confidence intervals typically provide the same results. In other words, a hypothesis test at the 0.05 level will virtually always fail to reject the null hypothesis if the 95% confidence interval contains the predicted value. A hypothesis test at the 0.05 level will nearly certainly reject the null hypothesis if the 95% confidence interval does not include the hypothesized parameter.

Simple and Composite Hypothesis Testing

Depending on the population distribution, you can classify the statistical hypothesis into two types.

Simple Hypothesis: A simple hypothesis specifies an exact value for the parameter.

Composite Hypothesis: A composite hypothesis specifies a range of values.

A company is claiming that their average sales for this quarter are 1000 units. This is an example of a simple hypothesis.

Suppose the company claims that the sales are in the range of 900 to 1000 units. Then this is a case of a composite hypothesis.

One-Tailed and Two-Tailed Hypothesis Testing

The One-Tailed test, also called a directional test, considers a critical region of data that would result in the null hypothesis being rejected if the test sample falls into it, inevitably meaning the acceptance of the alternate hypothesis.

In a one-tailed test, the critical distribution area is one-sided, meaning the test sample is either greater or lesser than a specific value.

In two tails, the test sample is checked to be greater or less than a range of values in a Two-Tailed test, implying that the critical distribution area is two-sided.

If the sample falls within this range, the alternate hypothesis will be accepted, and the null hypothesis will be rejected.

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Right Tailed Hypothesis Testing

If the larger than (>) sign appears in your hypothesis statement, you are using a right-tailed test, also known as an upper test. Or, to put it another way, the disparity is to the right. For instance, you can contrast the battery life before and after a change in production. Your hypothesis statements can be the following if you want to know if the battery life is longer than the original (let's say 90 hours):

• The null hypothesis is (H0 <= 90) or less change.
• A possibility is that battery life has risen (H1) > 90.

The crucial point in this situation is that the alternate hypothesis (H1), not the null hypothesis, decides whether you get a right-tailed test.

Left Tailed Hypothesis Testing

Alternative hypotheses that assert the true value of a parameter is lower than the null hypothesis are tested with a left-tailed test; they are indicated by the asterisk "<".

Suppose H0: mean = 50 and H1: mean not equal to 50

According to the H1, the mean can be greater than or less than 50. This is an example of a Two-tailed test.

In a similar manner, if H0: mean >=50, then H1: mean <50

Here the mean is less than 50. It is called a One-tailed test.

Type 1 and Type 2 Error

A hypothesis test can result in two types of errors.

Type 1 Error: A Type-I error occurs when sample results reject the null hypothesis despite being true.

Type 2 Error: A Type-II error occurs when the null hypothesis is not rejected when it is false, unlike a Type-I error.

Suppose a teacher evaluates the examination paper to decide whether a student passes or fails.

H0: Student has passed

H1: Student has failed

Type I error will be the teacher failing the student [rejects H0] although the student scored the passing marks [H0 was true]. 

Type II error will be the case where the teacher passes the student [do not reject H0] although the student did not score the passing marks [H1 is true].

Level of Significance

The alpha value is a criterion for determining whether a test statistic is statistically significant. In a statistical test, Alpha represents an acceptable probability of a Type I error. Because alpha is a probability, it can be anywhere between 0 and 1. In practice, the most commonly used alpha values are 0.01, 0.05, and 0.1, which represent a 1%, 5%, and 10% chance of a Type I error, respectively (i.e. rejecting the null hypothesis when it is in fact correct).

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A p-value is a metric that expresses the likelihood that an observed difference could have occurred by chance. As the p-value decreases the statistical significance of the observed difference increases. If the p-value is too low, you reject the null hypothesis.

Here you have taken an example in which you are trying to test whether the new advertising campaign has increased the product's sales. The p-value is the likelihood that the null hypothesis, which states that there is no change in the sales due to the new advertising campaign, is true. If the p-value is .30, then there is a 30% chance that there is no increase or decrease in the product's sales.  If the p-value is 0.03, then there is a 3% probability that there is no increase or decrease in the sales value due to the new advertising campaign. As you can see, the lower the p-value, the chances of the alternate hypothesis being true increases, which means that the new advertising campaign causes an increase or decrease in sales.

Why is Hypothesis Testing Important in Research Methodology?

Hypothesis testing is crucial in research methodology for several reasons:

• Provides evidence-based conclusions: It allows researchers to make objective conclusions based on empirical data, providing evidence to support or refute their research hypotheses.
• Supports decision-making: It helps make informed decisions, such as accepting or rejecting a new treatment, implementing policy changes, or adopting new practices.
• Adds rigor and validity: It adds scientific rigor to research using statistical methods to analyze data, ensuring that conclusions are based on sound statistical evidence.
• Contributes to the advancement of knowledge: By testing hypotheses, researchers contribute to the growth of knowledge in their respective fields by confirming existing theories or discovering new patterns and relationships.

Limitations of Hypothesis Testing

Hypothesis testing has some limitations that researchers should be aware of:

• It cannot prove or establish the truth: Hypothesis testing provides evidence to support or reject a hypothesis, but it cannot confirm the absolute truth of the research question.
• Results are sample-specific: Hypothesis testing is based on analyzing a sample from a population, and the conclusions drawn are specific to that particular sample.
• Possible errors: During hypothesis testing, there is a chance of committing type I error (rejecting a true null hypothesis) or type II error (failing to reject a false null hypothesis).
• Assumptions and requirements: Different tests have specific assumptions and requirements that must be met to accurately interpret results.

After reading this tutorial, you would have a much better understanding of hypothesis testing, one of the most important concepts in the field of Data Science . The majority of hypotheses are based on speculation about observed behavior, natural phenomena, or established theories.

If you are interested in statistics of data science and skills needed for such a career, you ought to explore Simplilearn’s Post Graduate Program in Data Science.

If you have any questions regarding this ‘Hypothesis Testing In Statistics’ tutorial, do share them in the comment section. Our subject matter expert will respond to your queries. Happy learning!

1. What is hypothesis testing in statistics with example?

Hypothesis testing is a statistical method used to determine if there is enough evidence in a sample data to draw conclusions about a population. It involves formulating two competing hypotheses, the null hypothesis (H0) and the alternative hypothesis (Ha), and then collecting data to assess the evidence. An example: testing if a new drug improves patient recovery (Ha) compared to the standard treatment (H0) based on collected patient data.

2. What is hypothesis testing and its types?

Hypothesis testing is a statistical method used to make inferences about a population based on sample data. It involves formulating two hypotheses: the null hypothesis (H0), which represents the default assumption, and the alternative hypothesis (Ha), which contradicts H0. The goal is to assess the evidence and determine whether there is enough statistical significance to reject the null hypothesis in favor of the alternative hypothesis.

Types of hypothesis testing:

• One-sample test: Used to compare a sample to a known value or a hypothesized value.
• Two-sample test: Compares two independent samples to assess if there is a significant difference between their means or distributions.
• Paired-sample test: Compares two related samples, such as pre-test and post-test data, to evaluate changes within the same subjects over time or under different conditions.
• Chi-square test: Used to analyze categorical data and determine if there is a significant association between variables.
• ANOVA (Analysis of Variance): Compares means across multiple groups to check if there is a significant difference between them.

3. What are the steps of hypothesis testing?

The steps of hypothesis testing are as follows:

• Formulate the hypotheses: State the null hypothesis (H0) and the alternative hypothesis (Ha) based on the research question.
• Set the significance level: Determine the acceptable level of error (alpha) for making a decision.
• Collect and analyze data: Gather and process the sample data.
• Compute test statistic: Calculate the appropriate statistical test to assess the evidence.
• Make a decision: Compare the test statistic with critical values or p-values and determine whether to reject H0 in favor of Ha or not.
• Draw conclusions: Interpret the results and communicate the findings in the context of the research question.

4. What are the 2 types of hypothesis testing?

• One-tailed (or one-sided) test: Tests for the significance of an effect in only one direction, either positive or negative.
• Two-tailed (or two-sided) test: Tests for the significance of an effect in both directions, allowing for the possibility of a positive or negative effect.

The choice between one-tailed and two-tailed tests depends on the specific research question and the directionality of the expected effect.

5. What are the 3 major types of hypothesis?

The three major types of hypotheses are:

• Null Hypothesis (H0): Represents the default assumption, stating that there is no significant effect or relationship in the data.
• Alternative Hypothesis (Ha): Contradicts the null hypothesis and proposes a specific effect or relationship that researchers want to investigate.
• Nondirectional Hypothesis: An alternative hypothesis that doesn't specify the direction of the effect, leaving it open for both positive and negative possibilities.

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Avijeet is a Senior Research Analyst at Simplilearn. Passionate about Data Analytics, Machine Learning, and Deep Learning, Avijeet is also interested in politics, cricket, and football.

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10.1 - setting the hypotheses: examples.

A significance test examines whether the null hypothesis provides a plausible explanation of the data. The null hypothesis itself does not involve the data. It is a statement about a parameter (a numerical characteristic of the population). These population values might be proportions or means or differences between means or proportions or correlations or odds ratios or any other numerical summary of the population. The alternative hypothesis is typically the research hypothesis of interest. Here are some examples.

Example 10.2: Hypotheses with One Sample of One Categorical Variable Section  

About 10% of the human population is left-handed. Suppose a researcher at Penn State speculates that students in the College of Arts and Architecture are more likely to be left-handed than people found in the general population. We only have one sample since we will be comparing a population proportion based on a sample value to a known population value.

• Research Question : Are artists more likely to be left-handed than people found in the general population?
• Response Variable : Classification of the student as either right-handed or left-handed

State Null and Alternative Hypotheses

• Null Hypothesis : Students in the College of Arts and Architecture are no more likely to be left-handed than people in the general population (population percent of left-handed students in the College of Art and Architecture = 10% or p = .10).
• Alternative Hypothesis : Students in the College of Arts and Architecture are more likely to be left-handed than people in the general population (population percent of left-handed students in the College of Arts and Architecture > 10% or p > .10). This is a one-sided alternative hypothesis.

Example 10.3: Hypotheses with One Sample of One Measurement Variable Section  

A generic brand of the anti-histamine Diphenhydramine markets a capsule with a 50 milligram dose. The manufacturer is worried that the machine that fills the capsules has come out of calibration and is no longer creating capsules with the appropriate dosage.

• Research Question : Does the data suggest that the population mean dosage of this brand is different than 50 mg?
• Response Variable : dosage of the active ingredient found by a chemical assay.
• Null Hypothesis : On the average, the dosage sold under this brand is 50 mg (population mean dosage = 50 mg).
• Alternative Hypothesis : On the average, the dosage sold under this brand is not 50 mg (population mean dosage ≠ 50 mg). This is a two-sided alternative hypothesis.

Example 10.4: Hypotheses with Two Samples of One Categorical Variable Section  

Many people are starting to prefer vegetarian meals on a regular basis. Specifically, a researcher believes that females are more likely than males to eat vegetarian meals on a regular basis.

• Research Question : Does the data suggest that females are more likely than males to eat vegetarian meals on a regular basis?
• Response Variable : Classification of whether or not a person eats vegetarian meals on a regular basis
• Explanatory (Grouping) Variable: Sex
• Null Hypothesis : There is no sex effect regarding those who eat vegetarian meals on a regular basis (population percent of females who eat vegetarian meals on a regular basis = population percent of males who eat vegetarian meals on a regular basis or p females = p males ).
• Alternative Hypothesis : Females are more likely than males to eat vegetarian meals on a regular basis (population percent of females who eat vegetarian meals on a regular basis > population percent of males who eat vegetarian meals on a regular basis or p females > p males ). This is a one-sided alternative hypothesis.

Example 10.5: Hypotheses with Two Samples of One Measurement Variable Section  

Obesity is a major health problem today. Research is starting to show that people may be able to lose more weight on a low carbohydrate diet than on a low fat diet.

• Research Question : Does the data suggest that, on the average, people are able to lose more weight on a low carbohydrate diet than on a low fat diet?
• Response Variable : Weight loss (pounds)
• Explanatory (Grouping) Variable : Type of diet
• Null Hypothesis : There is no difference in the mean amount of weight loss when comparing a low carbohydrate diet with a low fat diet (population mean weight loss on a low carbohydrate diet = population mean weight loss on a low fat diet).
• Alternative Hypothesis : The mean weight loss should be greater for those on a low carbohydrate diet when compared with those on a low fat diet (population mean weight loss on a low carbohydrate diet > population mean weight loss on a low fat diet). This is a one-sided alternative hypothesis.

Example 10.6: Hypotheses about the relationship between Two Categorical Variables Section  

• Research Question : Do the odds of having a stroke increase if you inhale second hand smoke ? A case-control study of non-smoking stroke patients and controls of the same age and occupation are asked if someone in their household smokes.
• Variables : There are two different categorical variables (Stroke patient vs control and whether the subject lives in the same household as a smoker). Living with a smoker (or not) is the natural explanatory variable and having a stroke (or not) is the natural response variable in this situation.
• Null Hypothesis : There is no relationship between whether or not a person has a stroke and whether or not a person lives with a smoker (odds ratio between stroke and second-hand smoke situation is = 1).
• Alternative Hypothesis : There is a relationship between whether or not a person has a stroke and whether or not a person lives with a smoker (odds ratio between stroke and second-hand smoke situation is > 1). This is a one-tailed alternative.

This research question might also be addressed like example 11.4 by making the hypotheses about comparing the proportion of stroke patients that live with smokers to the proportion of controls that live with smokers.

Example 10.7: Hypotheses about the relationship between Two Measurement Variables Section  

• Research Question : A financial analyst believes there might be a positive association between the change in a stock's price and the amount of the stock purchased by non-management employees the previous day (stock trading by management being under "insider-trading" regulatory restrictions).
• Variables : Daily price change information (the response variable) and previous day stock purchases by non-management employees (explanatory variable). These are two different measurement variables.
• Null Hypothesis : The correlation between the daily stock price change (\$) and the daily stock purchases by non-management employees (\$) = 0.
• Alternative Hypothesis : The correlation between the daily stock price change (\$) and the daily stock purchases by non-management employees (\$) > 0. This is a one-sided alternative hypothesis.

Example 10.8: Hypotheses about comparing the relationship between Two Measurement Variables in Two Samples Section  

• Research Question : Is there a linear relationship between the amount of the bill (\$) at a restaurant and the tip (\$) that was left. Is the strength of this association different for family restaurants than for fine dining restaurants?
• Variables : There are two different measurement variables. The size of the tip would depend on the size of the bill so the amount of the bill would be the explanatory variable and the size of the tip would be the response variable.
• Null Hypothesis : The correlation between the amount of the bill (\$) at a restaurant and the tip (\$) that was left is the same at family restaurants as it is at fine dining restaurants.
• Alternative Hypothesis : The correlation between the amount of the bill (\$) at a restaurant and the tip (\$) that was left is the difference at family restaurants then it is at fine dining restaurants. This is a two-sided alternative hypothesis.