6.1 Hypothesis Testing — Introduction

Hypothesis testing is a statistical procedure used to make decisions about population parameters based on sample data. It involves making an assumption (hypothesis) about the population and then testing it using sample evidence.

6.2 Null and Alternative Hypothesis

Null Hypothesis (H₀): A statement of no effect, no difference, or no relationship. It is the hypothesis we are testing and assume to be true unless evidence suggests otherwise.

Alternative Hypothesis (H₁ or Hₐ): A statement that contradicts the null hypothesis. It represents what we are trying to prove or detect.

Examples of H₀ and H₁


H₀: μ = 50  (Population mean equals 50)  vs  H₁: μ ≠ 50  (Two-tailed)


H₀: μ ≤ 50  vs  H₁: μ > 50  (One-tailed right)


H₀: μ ≥ 50  vs  H₁: μ < 50  (One-tailed left)


H₀: There is no significant difference between two groups.


Basis Null Hypothesis (H₀) Alternative Hypothesis (H₁ or Ha)
Meaning States that there is no effect or no difference States that there is an effect or difference
Assumption Assumes the situation is true by default Contradicts the null hypothesis
Purpose Used for testing and verification Represents the research claim or expectation
Symbol H₀ H₁ or Ha
Nature Conservative statement Experimental or research-based statement
Decision Outcome Either rejected or not rejected Accepted only when H₀ is rejected
Example H₀: There is no difference in marks between boys and girls H₁: There is a difference in marks between boys and girls
Role in Testing Acts as the hypothesis to be tested directly Represents the result supported if H₀ is rejected
Equality Sign Always contains equality (=, ≤, ≥) Contains inequality (≠, <, >)
Decision Focus We test whether there is enough evidence to reject H₀ We try to find evidence to support H₁

6.3 Types of Errors

Type of Error Description
Type I Error (α) Rejecting H₀ when it is actually true. Also called 'False Positive'. α = P(Type I Error) = Level of Significance.
Type II Error (β) Accepting H₀ when it is actually false. Also called 'False Negative'. β = P(Type II Error).
Power of Test (1-β) Probability of correctly rejecting a false H₀.
Level of Significance (α) Maximum allowable probability of committing a Type I error. Common values: 0.05 (5%) and 0.01 (1%).

6.4 Critical Region and Region of Acceptance

Critical Region (Rejection Region): The set of values of the test statistic for which the null hypothesis is rejected. It is located in the tail(s) of the distribution.