Presented by: John Melvin V. Baranda
CHAPTER 10:
Hypothesis Tests Involving a
Sample Mean or Sample
Proportion
Business Mathematics 41
Describe the meaning of a null and an alternative hypothesis.
Transform a verbal statement into appropriate null and alternative hypotheses, including the
determination of whether a two-tail test or a one-tail test is appropriate.
Describe what is meant by Type I and Type II errors, and explain how their probabilities can be reduced
in hypothesis testing.
Carry out a hypothesis test for a population mean or a population proportion, interpret the results of the
test, and determine the appropriate business decision that should be made.
Determine and explain the p-value for a hypothesis test.
Learning
Objectives
The null hypothesis is a statement about the value of a population
parameter and is put up for testing in the face of numerical evidence.
The null hypothesis is either rejected or fails to be rejected.
The alternative hypothesis, H1 (“H sub one”), is an assertion that holds if the null
hypothesis is false.
For a given test, the null and alternative hypotheses include all possible values of the
population parameter, so either one or the other must be false.
Null and Alternative
Hypotheses
Null and Alternative
Hypotheses
Null Hypothesis Alternative
Hypothesis
Interpretation
Directional and
Nondirectional Testing
When formulating the null and alternative hypotheses, the nature, or
purpose, of the test must also be taken into account.
To demonstrate how (1) directionality versus nondirectionality and (2) the purpose of
the test can guide us toward the appropriate testing approach, we will consider the
two examples at the beginning of the chapter.
For each situation, we’ll examine (1) the claim or assertion leading to the test, (2) the
null hypothesis to be evaluated, (3) the alternative hypothesis, (4) whether the test
will be two-tail or one-tail, and (5) a visual representation of the test itself.
Hypothesis Testing and the Nature of
the Test
Hypothesis Testing and the Nature of
