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Mathematics Semester 3  STPM  Chapter 5 Hypothesis Testing

                       5.1  Hypothesis Tests


               In  the  last  chapter  we  have  discussed  an  important  statistical  inference:  estimation  of  parameters,  where
               our  objective  is  to  estimate  the  unknown  true  value  of  a  parameter.  In  this  chapter  we  introduce  another
               important type of statistical inference: testing of statistical hypothesis, where we shall be interested  to examine
               whether the data from a random sample support or refute a conjecture about the true value of a parameter.
               As an example, the manufacturer of a certain water filter may claim that the filtered water, has an average,
               a pH value of 6.4. As another example, an insurance company may claim that the percentage of population
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               who buy health insurance this year has increased compared to last year’s 12%. In the first example, it is
               to test a hypothesis about the population mean. In the second example, it is to test a hypothesis about the
               population proportion.
               The truth or falsity of a statistical hypothesis is never known to us with absolute certainly unless we examine
               the entire population. This, of course, would be impractical in most situations. Instead, we examine a random
               sample from the population to produce evidence that either supports or refutes the hypothesis. The evidence
               from the sample that is inconsistent with the stated hypothesis leads to the rejection of the hypothesis. A
               hypothesis test or significance test is a method of using sample data as evidence to test a statistical hypothesis
               about a population parameter.

               The null and alternative hypothesis

               The structure of hypothesis testing will be formulated with a null hypothesis denoted by H  and an alternative
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               hypothesis denoted by H . Usually H  specifies a particular value for a population parameter, and H  specifies
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               a range of values. In general, the null hypothesis H  represents there is no difference between the claim and
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               reality whereas the alternative hypothesis  H  represents there is statistically significant difference between
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               the claim and reality. In a hypothesis test, H  is assumed to be true and information obtained for a sample
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               statistic is used to determine whether there is strong evidence to reject H .
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                    Example 1
                 A hypothesis test is performed to determine whether the mean value of filtered water from a certain
                 type of water filter is 6.4.
                 State the null hypothesis and alternative hypothesis for the hypothesis test.
                 Solution:           Let µ denote the mean pH value of filtered water.
                                     The null hypothesis is that the mean pH value is 6.4, i.e. H  : µ = 6.4
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           5                         The alternative hypothesis is H  : µ ≠ 6.4
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                    Example 2

                 A hypothesis test is performed to determine whether the percentage of population who buy health
                 insurance this year has increased compared to last year’s 12%.
                 State the null hypothesis and alternative hypothesis for the hypothesis test.
                 Solution:           Let p denote the proportion of population who buy health insurance this year.
                                     The null hypothesis is that this year’s percentage remains the same as last year.
                                                                H  : p = 0.12
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                                     The alternative hypothesis is that this year’s percentage has increased.
                                                                H  : p . 0.12
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               Note: The null hypothesis H  is usually stated using the equality sign.
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