HYPOTHESIS TESTING

GROUP MEMBERS
HEMANT KAUSHIK SANDEEP KUMAR SINGH DEEPAK CHAUDHARY SATYAJEET BHATTACHARYA SUSHANT SHETTY DHARMENDRA MEHTA : : : : : : 011194 011195 011193 011189 011160 011171

HYPOTHESIS TESTING
Inductive Reasoning inductive logic, is a kind of reasoning that constructs or evaluates propositions that are abstractions of observations of individual instances of members of the same class. Inductive reasoning contrasts with deductive reasoning in that a general conclusion is arrived at by specific examples.
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Deductive Reasoning

also called deductive logic, is reasoning which constructs or evaluates deductive arguments. Deductive reasoning contrasts with inductive reasoning in that a specific conclusion is arrived at from a general principle.

STATISTICAL PROCEDURES

Inferential Statistics Inferential statistics includes the estimation of population values and the testing of statistical hypotheses.

Descriptive Statistics is the term given to the analysis of data that helps describe, show or summarize data in a meaningful way such that, for example, patterns might emerge from the data.
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APPROACHES TO HYPOTHESIS TESTING

CLASSICAL STATISTICS Objective view of probability Established hypothesis is rejected or fails to be rejected Analysis based on sample data

BAYESIAN STATISTICS Extension of classical approach Analysis based on sample data Also considers established subjective probability estimates

TYPES OF HYPOTHESES
Null

H0: = 50 mpg H0: < 50 mpg H0: > 50 mpg HA: = 50 mpg HA: > 50 mpg HA: < 50 mpg

Alternate

TESTS OF SIGNIFICANCE
Parametric
Parametric tests are significance tests for data from interval or ratio scales. They are more powerful than nonparametric tests.

Nonparametric Nonparametric tests are used to test hypotheses with nominal and ordinal data. Parametric tests should be used if their assumptions are met.
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ASSUMPTIONS FOR USING PARAMETRIC TESTS

Independent observations Normal distribution Equal variances

Interval or ratio scales

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The

assumptions for parametric tests include the following: 1)The observations must be independent that is, the selection of any one case should not affect the chances for any other case to be included in the sample. 2)The observations should be drawn from normally distributed populations. 3)These populations should have equal variances. 4)The measurement scales should be at least interval so that arithmetic operations can be used with them.

ADVANTAGES OF NONPARAMETRIC TESTS

Easy to understand and use Usable with nominal data

Appropriate for ordinal data

Appropriate for non-normal population distributions
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HOW TO SELECT A TEST

How many samples are involved?

If two or more samples are involved, are the individual cases independent or related? Is the measurement scale nominal, ordinal, interval, or ratio?

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The Z test or t-test is used to determine the statistical significance between a sample distribution mean and a parameter.

PARAMETRIC TESTS

The Z distribution and t distribution differ. The t has more tail area than that found in the normal distribution.

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This is a compensation for the lack of information about the population standard deviation. Although the sample standard deviation is used as a proxy figure, the imprecision makes it necessary to go farther away from 0 to include the percentage of values in the t distribution necessarily found in the standard normal.

TWO-SAMPLE PARAMETRIC TESTS

USES OF MULTIPLE REGRESSION

Develop self-weighting estimating equation to predict values for a DV

Control for confounding Variables

Test and explain causal theories

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TWO-RELATED-SAMPLES TESTS
Parametric The t-test for independent samples is inappropriate here because of its assumption that observations are independent. The problem is solved by a formula where the difference is found between each matched pair of observations, thereby reducing the two samples to the equivalent of a one-sample case. In other words, there are now several differences, each independent of the other, for which one can compute various statistics.

Nonparametric Tests The McNemar test may be used with either nominal or ordinal data and is especially useful with before-after measurement of the same subjects.

CLASSIFYING MULTIVARIATE TECHNIQUES

Dependency

Interdependency

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If criterion and predictor variables exist in the research question, we will have an assumption of dependence. Multiple regression, multivariate analysis of variance, and discriminant analysis are techniques where criterion or dependent variables and predictor or independent variables are present.

If the variables are interrelated without designating some as dependent and others independent, then interdependence of the variables is assumed. Factor analysis, cluster analysis, and multidimensional scaling are example of interdependency techniques.

CLUSTER ANALYSIS
Select sample to cluster Define variables

Compute similarities Select mutually exclusive clusters

Compare and validate cluster 20-22

REGRESSION ANALYSIS
Refers

to statistical techniques for measuring the relationship between a dependent variable and one or more independent variables. The relationship between two variables is characterized by how they vary together.

CORRELATION ANALYSIS

Statistical techniques for measuring the closeness of the relationship between variables. It measures the degree to which changes in one variable are associated with changes in another.

It can only indicate the degree of association or covariance between variables. Covariance is a measure of the extent to which two variables are related.

WHAT IS FACTOR ANALYSIS ?

Factor

Analysis is a method of data reduction Take many variables and explain them with a few factors or components Correlated variables are grouped together and separated from other variables with low or no correlation

WHAT IS SPSS?

A commercially produced statistical software package that is widely used in the fields of Education and Psychology Program functionality is broken into over a dozen different modules which are sold individually Most commonly used are Base, Regression Models, and Advanced Models Other modules can be installed to run more complex analyses SPSS data files include both the data and also variable information (variable and value labels, formats and missing values)

SPSS - STRENGTHS

Easily opens data from other programs such as Excel and SAS

Variable view screen allows for quick overview of file contents and allows for easy modifications of names, formats, labels, and variable order Having all data information in a single file allows sharing files on a project to be very easy Point-and-click menus do not require memorizing syntax for majority of procedures Many procedures can be expanded beyond the menu options in syntax Split-file command allows all output to be replicated for various groups through a single command

SPSS - WEAKNESSES

Ease of doing data manipulation can sometimes lead to mistakes as the program does not preclude inappropriate modifications to the data Matching feature requires exact match

Duplicate records generate warnings but can be marked in file

Error logs are hard to interpret at times Incompleteness of menus means some options are only available via syntax While the majority of output is saved as pivot tables allowing great flexibility in modifying tables

Output tables and graphs generally not done as well as Excel and are harder to manipulate