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Hypothesis Testing

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Hypothesis Testing

Hypothesis testing is basically a process that uses statistical inference to test claims about population parameters. In hypothesis testing we begin by making a tentative assumption about a population parameter. This assumption is called the null hypothesis and is denoted by Ho. We then define another hypothesis, called the alternative hypothesis, which is the opposite of what is stated is the null hypothesis. The alternative hypothesis is denoted by Ha. The hypothesis testing procedure involves using data from a sample to test the competing claims indicated by the null and alternate hypotheses.

Testing the hypothesis is similar to a criminal trail. Ho: The defendant is innocent Ha: The …show more content…

Testing this will entail taking a sample of the 2-liter bottles and measuring their contents. In terms of the hypotheses formulation you give the company the benefit of the doubt and assume that their claim is true. Using this approach the hypothesis will be stated as given below: H0: [pic]> 67 Ha: [pic]< 67
In a situation where we are testing the validity of an assumption, the null hypothesis is generally formulated based on the assumption. The alternate hypothesis is formulated so that the rejection of the null will provide statistical evidence that the stated assumption is incorrect.

Decision Making

A hypothesis-testing situation involving decision making occurs when a decision maker must choose between two courses of action, one associated with the null hypothesis and the other with the alternate hypothesis. For example, on the basis of a sample of parts from a shipment that has just been received, a quality control inspector must decide whether to accept the shipment or return it to the supplier because it does not meet specifications. Assume that a specification for the part indicates a mean length of 1 inch per part is required. If the average length of the part is greater than or less than the 1inch standard, the parts will cause quality problems. In this case the null and alternative hypotheses would be formulated as follows: H0: [pic]=

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