Professional Documents
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What is Hypothesis?
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Characteristics of Hypothesis
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Null Hypothesis
0 : = 0
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Alternative Hypothesis
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Level of significance and
confidence
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Risk of rejecting a Null Hypothesis
when it is true
Risk Confidence
Designation Description
More than $100 million
0.001 0.999
Supercritical (Large loss of life, e.g. nuclear
0.1% 99.9%
disaster
0.01 0.99 Less than $100 million
Critical
1% 99% (A few lives lost)
0.05 0.95 Less than $100 thousand
Important
5% 95% (No lives lost, injuries occur)
0.10 0.90 Less than $500
Moderate
10% 90% (No injuries occur)
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Type I and Type II Error
Decision
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Two tailed test @ 10
5% Significance level
/ /
( = 0.025 2.5%) ( = 0.025 2.5%)
(1 ) = 95%
0 : = 0
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Left tailed test @ 11
5% Significance level
/
( = 0.05 5%) (1 ) = 95%
0 : = 0
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Right tailed test @ 12
5% Significance level
/
(1 ) = 95% ( = 0.05 5%)
0 : = 0
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Procedure for Hypothesis
Testing
Compare
Calculate the p-
the p-value P-value >
value at given
with Calculated Accept Ho
significance level
calculated value
from the table
value
P-value <
Calculated Reject Ho
value
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Hypothesis
Testing of Z-TEST AND T-TEST
Means
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Z-Test for testing means
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Z-Test for testing means
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Z-Test for testing means
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Z-Test for testing means
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T-Test for testing means
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T-Test for testing means
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Hypothesis
testing for
difference Z-TEST, T-TEST
between
means
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Z-Test for testing difference
between means
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Z-Test for testing difference
between means
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T-Test for testing difference
between means
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Hypothesis
Testing for
comparing PAIRED T-TEST
two related
samples
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Paired T-Test for comparing
two related samples
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Hypothesis
Testing of Z-TEST
proportions
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Z-test for testing of proportions
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Hypothesis
Testing for
difference Z-TEST
between
proportions
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Z-test for testing difference
between proportions
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Hypothesis
testing of
equality of F-TEST
variances of
two normal
populations
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F-Test for testing equality of 32
variances of two normal
populations
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Limitations of the test of
Hypothesis
Thank You
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Shakehand with Life
Corporate Training and Management Education
www.shakehandwithlife.in , www.shakehandwithlife.puzl.com
Leading Training, Coaching, Consulting services in Delhi NCR for Managers at all levels,
Future Managers and Engineers in MBA and B.E. / B. Tech.,
Students in Graduation and Post-Graduation, Researchers, Academicians.
Training with MS-Excel for managerial decision making skills,
Working with MS-Excel to solve all mathematical and statistical problem.
E-mail: shakehandwithlife@gmail.com
www.shakehandwithlife.in