Module 8: Introduction to Hypothesis Testing

Supporting Lectures:
EGN3443 Module 8 - Introduction to Statistical Hypothesis Testing

1. Null and Alternative Hypotheses

Definition

A hypothesis test is a statistical method for making decisions about a population parameter based on sample data. It involves two competing hypotheses:

Examples

  1. Medical Research

  2. Quality Control

Calculation Example

Consider a quality control scenario where we want to test if the mean diameter of manufactured parts differs from 10 cm.

Web References

2. Type I and Type II Errors

Definitions

Error Probability Table

Hypothesis State

Fail to Reject H₀

Reject H₀

H₀ is True

Correct Decision

Type I Error (α)

H₀ is False

Type II Error (β)

Correct Decision

Calculation Example

Suppose a medical test for a disease:

Web References

3. p-values and Significance Levels

Definitions

Calculation Example

If p-value ≤ α, reject the null hypothesis.

Example calculation:

p-value = 0.03

Significance level (α) = 0.05

0.03 < 0.05, so reject H₀

Web References

4. Power Analysis

Definition

Power analysis determines the sample size needed to detect a statistically significant effect, considering:

Calculation Example

Power = 1 - β β = Probability of Type II Error

Sample size calculation:

  1. Choose α (typically 0.05)

  2. Specify desired power (usually 0.80 or 80%)

  3. Estimate effect size

  4. Use power analysis calculators or statistical software

Web References

5. Statistical vs. Practical Significance

Definitions

Example

A study shows a statistically significant 0.5 cm height difference between two groups. However, this may not be practically significant in most contexts.

Considerations

Web References

Additional Resources