METHODS FOR HYPOTHESIS TESTING
- z-Test
- Used when Sample Size is Large
- Used for single Population or single Sample
- Used for Proportion
- t-Test
- Used when Sample Size is small
- Used when Standard Deviation of the population is not known
- Types:
- One Sample
- Two Sample
- Paired t Test
- Chi-Square-Test
One Sample t-Test Example
A typical American mean mobile internet usage is 144 minutes. You select a sample size of 30.
- Is there a evidence that the population mean time spent accessing the internet via mobile is different than 144 minutes? Use P-Value approach and level of significance of 0.05
| Minutes |
| 72 |
| 144 |
| 48 |
| 72 |
| 36 |
| 360 |
| 44 |
| 30 |
| 432 |
| 24 |
| 288 |
| 144 |
| 144 |
| 240 |
| 432 |
| 144 |
| 144 |
| 144 |
| 576 |
| 216 |
| 72 |
| 72 |
| 144 |
| 288 |
| 144 |
| 36 |
| 288 |
| 48 |
| 288 |
| 144 |
Load this data to some file and read it into R variable mydata
attach(mydata)
#Hypothesis testing => H0: Mu = 144, Ha: Mu < 144
#Sample Mean
Xbar = mean(Minutes); Xbar
#Sample Standard Deviation
Sigma = sd(Minutes); Sigma
#Population Mean
Mu = 144; Mu
#Sample Size
n = 30; n
#Degrees of Freedom
dF = n - 1; dF
#Function sqrt or ^0.5 i.e. to power 0.5
tval = (Xbar - Mu)/(Sigma/sqrt(n)); tval
#P-Value
Pval = pt(tval, dF); Pval
OUTPUT
CONCLUSION
Since, P-value = 0.885 or 88.5% > Alpha = 0.05 or 5%, we do not reject the NULL hypothesis i.e. Average time spent is 144 minutes
NOTE:
- 1 - P-value => This is the lowest value for a One-Tail test. Excel function - T.DIST
- (1 - P-value) * 2 => This is the lowest value for a Two-Tail test. Excel function - T.DIST.2T
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