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    Hypothesis Testing Using P-Value Approach

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    B12 Bundang Klarence Timothy P.
    1. The document discusses hypothesis testing using the p-value approach. It defines p-value as the smallest probability at which the null hypothesis would be rejected and explains that a smaller p-value indicates stronger evidence against the null hypothesis. 2. The p-value method has advantages over the traditional approach as it does not require comparing the test statistic to a critical value and provides insight into the strength of evidence against the null hypothesis. 3. Two examples are provided to demonstrate applying the p-value method to test claims, calculate the test statistic and p-value, and make a decision to reject or fail to reject the null hypothesis based on comparing the p-value to the significance level.

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    Hypothesis Testing Using P-Value Approach

    Uploaded by

    B12 Bundang Klarence Timothy P.
    170 views16 pages
    1. The document discusses hypothesis testing using the p-value approach. It defines p-value as the smallest probability at which the null hypothesis would be rejected and explains that a smaller p-value indicates stronger evidence against the null hypothesis. 2. The p-value method has advantages over the traditional approach as it does not require comparing the test statistic to a critical value and provides insight into the strength of evidence against the null hypothesis. 3. Two examples are provided to demonstrate applying the p-value method to test claims, calculate the test statistic and p-value, and make a decision to reject or fail to reject the null hypothesis based on comparing the p-value to the significance level.

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    Lesson-5.3-P-Value-Method-of-Hypothesis-Testing-1

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    1. The document discusses hypothesis testing using the p-value approach. It defines p-value as the smallest probability at which the null hypothesis would be rejected and explains that a smaller p-value indicates stronger evidence against the null hypothesis. 2. The p-value method has advantages over the traditional approach as it does not require comparing the test statistic to a critical value and provides insight into the strength of evidence against the null hypothesis. 3. Two examples are provided to demonstrate applying the p-value method to test claims, calculate the test statistic and p-value, and make a decision to reject or fail to reject the null hypothesis based on comparing the p-value to the significance level.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    170 views16 pages

    Hypothesis Testing Using P-Value Approach

    Uploaded by

    B12 Bundang Klarence Timothy P.
    1. The document discusses hypothesis testing using the p-value approach. It defines p-value as the smallest probability at which the null hypothesis would be rejected and explains that a smaller p-value indicates stronger evidence against the null hypothesis. 2. The p-value method has advantages over the traditional approach as it does not require comparing the test statistic to a critical value and provides insight into the strength of evidence against the null hypothesis. 3. Two examples are provided to demonstrate applying the p-value method to test claims, calculate the test statistic and p-value, and make a decision to reject or fail to reject the null hypothesis based on comparing the p-value to the significance level.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 16

    HYPOTHESIS TESTING

    USING P-VALUE
    APPROACH
    What is p-value?
    • The p-value (probability value) of test
    statistic.
    • It is the smallest probability value at which
    the null hypothesis would be rejected. 
    • A smaller p-value indicates that there is
    stronger evidence against the null
    hypothesis.
    Comparing the P-Value Method to the
    Traditional Method
    Both approaches will ensure the same conclusion and
    either one will work. However, using the p-value approach
    has the following advantages:

    1. In p-value method, there is no need to compare the test


    statistic with the critical value.
    2. The p-value gives us some idea of the strength of the
    evidence against H0.
    P­Value and Strength of Evidence against
    H0
    P-value Interpretation
    Less than 0.01 >Difference is highly significant.
    >There is a very strong evidence to reject H0.
    0.01 to 0.05 >Difference is significant.
    >Strong evidence to reject H0.
    Greater than >Difference is not significant.
    0.05 >Weak evidence to reject H0.
    Determining p-value: One-Tailed Test
    Left-Tailed Right-Tailed

    p-value = P(ztest < zcomp) p-value = P(ztest > zcomp)


    Area below
    Determining p-value: Two-tailed Test

    left right

    p-value = 2 x P(ztest < - zcomp) or 2 x P(ztest > zcomp)


    Decision Rule (p-value method)
    For both one-tailed and two-tailed tests:

    Reject H0 if p ≤ α. Otherwise,
    do not reject H0 .
    Steps using the P-value Approach
    1. Null and Alternative Hypotheses
    2. Type of Test, α level
    3. Test Statistic (z or t), p-value
    4. Decision Rule: Reject H0 if p ≤ α. Otherwise, do not
    reject H0 .
    5. Compare p-value with α and decide whether to reject
    H0 or not.
    6. Conclusion
    Note: Only z-test will be used
    for all examples in this module
    since a graphing calculator is
    needed to get the p-value for t-
    test.
    Example 1:
    A dietitian claims that the average weight loss
    of women using a certain drug is 4.55 kg per
    month. Ten women chosen at random have
    reported losing an average of 4.05 kg within a
    month. If the population standard deviation is
    0.91 kg, does this data support the claim of the
    dietitian? Use 0.05 level of significance.
     Step p-value = 2 x P(z < -1.74)
    1: Hypotheses
    = 2(0.5 - 0.4591)
    H0 : The average weight loss per
    = 2(0.0409)
    month of women using the drug is
    4.55 kg/mo. (µ = 4.55) Claim p-value = 0.0818
    Step 4: Decision rule
    H1 : The average weight loss per
    month of women using the drug is Reject H0 if p ≤ 0.05. Otherwise, do not
    not equal to 4.55 kg/mo. (µ ≠ 4.55) reject H0.
    Step 5: Decision
    Since 0.0818 > 0.05, do not reject H0.
    Step 2: Type of test
    (Weak evidence against H0.)
    two-tailed, α = 0.05
    Step 6: Conclusion
    There is no significant difference between
    Step 3: Test Statistic and p-value the sample mean and the population mean.
    Thus, the average weight loss per month of
    women using the drug is 4.55kg.
    Example 2:
    The dean claims that the average height
    of HRM students is more than 155 cm. To
    verify this, a random sample of 100 HRM
    students of a certain college was selected
    and their average height is 157 cm.
    Previous study shows that σ = 5 cm. Use α
    = 0.01 to test the claim.
     Step 1: Hypotheses p-value = P(z > 4) = (0.5 – 0.4999)
    p-value = 0.0001
    H0 : The average height of HRM
    students is less than or equal to 155 Step 4: Decision rule
    cm. (µ ≤ 155) Reject H0 if p ≤ 0.01. Otherwise, do not
    H1 : The average height of HRM reject H0.
    students is more than 155 cm. Step 5: Decision
    (µ > 155) Claim Since 0.0001 < 0.01, reject H0.
    (very strong evidence against H0.)
    Step 2: Type of test Step 6: Conclusion
    right-tailed, α = 0.01 There is a significant difference
    between the sample mean and the
    Step 3: Test Statistic and p-value population mean.
    Thus, the average height of HRM
    students is more than 155 cm.
    Activity 7: P-value Method
    1. In a plant nursery, a botanist thinks that the seedlings sprayed with a
    new kind of fertilizer has an average height of 26 cm after three days.
    The botanist randomly selected 80 such seedlings and obtained a
    mean height of 25 cm. Assume that the population standard
    deviation is 10 cm. Test the claim using α = 0.01 and p-value method.
    2. A manufacturing firm has been averaging 18 orders per week with a
    population standard deviation of 2.3 orders for several years.
    However, during a recession, orders appear to have slowed down.
    Suppose the firm’s production manager randomly selects 32 weeks
    and finds a sample mean of 15 orders per week. Use α = 0.05 and
    the p-value approach to determine whether the average number of
    orders has decreased during recession.
     Step 1: Hypotheses Step 4: Decision rule
    H0 : µ = 26 Claim Reject H0 if p ≤ 0.05. Otherwise, do not
    H1 : µ ≠ 26 reject H0.
    Step 2: Type of test Step 5: Decision
    two-tailed, α = 0.01 Since 0.3734 > 0.05, do not reject H0.
    Step 3: Test Statistic and p-value (weak evidence against H0)
    Step 6: Conclusion
    p-value = 2 x P(z < -0.89) There is no significant difference
    = 2(0.5 - 0.3133) between the sample mean and the
    population mean.
    p-value = 0.3734
    Therfore, the average height of the
    seedlings sprayed with new fertilizer is
    equal to 26 cm after three days.
     Step 1: Hypotheses
    P(z < -7.37) = 0.5 – 0.4999
    H0 : The average number of orders
    P-value = 0.0001
    during recession greater than or
    equal to 18 orders/wk Step 4: Decision rule
    (µ ≥ 18) Reject H0 if p ≤ 0.05. Otherwise, do not
    reject H0.
    H1 : The average number of orders
    during recession is lower than 18 Step 5: Decision
    orders/wk. (µ < 18) Claim Since 0.0001 < 0.05, reject H0.
    Step2: Type of test (Very strong evidence against H0.)
    left tailed, α = 0.05 Step 6: Conclusion
    Step 3: Test Statistic There is a significant difference between
    the sample mean and the population mean.
    Thus, the average number of orders per
    week during recession is lower than 18.

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