Testing of Hypothesis For Single Proportion - : Large Sample Test

Testing of hypothesis for single proportion – large sample test
FACULTY IN-CHARGE: Dr. MUTHU KUMAR P
BATCH MEMBERS
20Y126 - SRINATH R
20Y127 – SWETHA D
20Y128 - THANGARAJ M
21Y437 – SAKTHIVEL T
21Y439 – SURYA KRISHNAA P

HISTORY OF HYPOTHESIS – (KARL POPPER)
Any useful hypothesis will enable predictions by reasoning (including deductive

reasoning).
It might predict the outcome of an experiment in a laboratory setting or the

observation of a phenomenon in nature.
The prediction may also invoke statistics and only talk about probabilities.
Karl Popper, has argued that a hypothesis must be falsifiable, The notion of the
scientific hypothesis as both falsifiable and testable was advanced by Karl
Popper.
INTRODUCTION
Significance tests play a key role in experiments: they allow researchers to determine whether their data
supports or rejects the null hypothesis, and consequently whether they can accept their alternative
hypothesis.
NULL HYPOTHESIS :
◦ Null hypothesis is denoted by H0.
◦ It states that there is no true difference between the sample of data and the population
parameter.
◦ Thus, a null hypothesis states that:
◦ H0 = there is no difference between the assumed and the actual value of the parameter.
ALTERNATIVE HYPOTHESIS:
◦ Logical opposite of the null hypothesis.
◦ It is statistically significant difference does exist between the population parameter and the sample statistic being
compared.
◦ It is represented by H1.
LEVEL OF SIGNIFICANCE:
◦ P(Type I error) = α
◦ Maximum allowable probability of making a type I error.
◦ By setting the level of significance at a small value, the probability of rejecting a true null hypothesis to be small.
◦ Commonly used LOS:
◦ α = 0.05,0.02,0.01.
P(Type II error) = β beta . It is not used commonly.

FORMULATING METHODS
STEP 1 - Formulate H0 = p = p0 and H1.
STEP 2 - Specify α and specify criterion to reject H0.
STEP 3 - Calculate Test Statistic
STEP 4 - Conclusion
The critical values for some of the standard LOS are given in the following table.
Nature of test LOS = 0.01 or 1% LOS = 0.05 or 5%

Two tail test Zα = 2.58 Zα = 1.96
Right tail test Zα = 2.33 Zα = 1.64
Left tail test Zα = -2.33 Zα = -1.64
SCHEMATIC DIAGRAM OF ONE TAIL TEST AND
TWO TAIL TEST
PROBLEM -1
1. Transceivers provide wireless communication among electronic components
of consumer products. Responding to a need for a fast, low-cost test of
Bluetooth-capable transceivers, engineers developed a product test at the wafer
level. In one set of trials with 60 devices selected from different wafer lots, 48
devices passed. Test the null hypothesis p = 0.70 against the alternative
hypothesis p > 0.70 at the 0.05 level of significance.
SOLUTION
Given Data: n = 60 , X = 48, p = 0.70, LOS = 0.05.
Here, the sample size is 60 > 30. So, it is a large sample test.
p̂ = X / n = 48 / 60 = 0.8
STEP 1: Null hypothesis H0 = p = 0.70
Alternative Hypothesis H1 = p > 0.70 (right hand one tail test).
STEP 2: LOS = 0.05 ; then Zα = 1.64 .

SOLUTION
STEP 3: Test statistic
◦ Z= = 1.6903
STEP 4 : Since Z = 1.69 > 1.64 = Zα
Hence, the hypothesis is rejected.
i.e., (low-cost test of Bluetooth-capable transceivers will face errors while functioning )
Confidence interval for proportion
Substituting the values in the equation:
0.773 <p<0.826
But our hypothesis lies outside the confidence interval so, it must be rejected.
PROBLEM -2
2. A manufacturer of submersible pumps claims that at most 30% of the pumps
require repairs within the first 5 years of operation. If a random sample of 120 of
these pumps includes 47 which required repairs within the first 5 years, test the
null hypothesis p = 0.30 against the alternative hypothesis p > 0.30 at the 0.05
level of significance.
SOLUTION
Given Data: n = 120 , X = 47, p = 0.30, LOS = 0.05.
Here, the sample size is 120 > 30. So, it is a large sample test.
p̂ = X / n = 47 / 120 = 0.39.
STEP 1: Null hypothesis H0 = p = 0.30
Alternative Hypothesis H1 = p > 0.30 (right hand one tail test).
STEP 2: LOS = 0.05 ; then Zα = 1.64 .

SOLUTION
STEP 3: Test statistic
Z= = 2.153
STEP 4: Since Z = 2.153 > 1.64 Zα
Hence, the hypothesis is rejected.
i.e., ( 30% of the pumps will repairs within the first 5 years of operation)
Confidence interval for proportion
Substituting the values in the equation:
0.3608 <p<0.4192
But our hypothesis lies outside the confidence interval so, it must be rejected.
THANK YOU

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Testing of hypothesis for single proportion – large sample test

FACULTY IN-CHARGE: Dr. MUTHU KUMAR P

21Y439 – SURYA KRISHNAA P

Any useful hypothesis will enable predictions by reasoning (including deductive

It might predict the outcome of an experiment in a laboratory setting or the

P(Type II error) = β beta . It is not used commonly.

STEP 2 - Specify α and specify criterion to reject H0.

STEP 3 - Calculate Test Statistic

Nature of test LOS = 0.01 or 1% LOS = 0.05 or 5%

STEP 1: Null hypothesis H0 = p = 0.70

Alternative Hypothesis H1 = p > 0.70 (right hand one tail test).

STEP 2: LOS = 0.05 ; then Zα = 1.64 .

Substituting the values in the equation:

STEP 1: Null hypothesis H0 = p = 0.30

Alternative Hypothesis H1 = p > 0.30 (right hand one tail test).

STEP 2: LOS = 0.05 ; then Zα = 1.64 .

Substituting the values in the equation:

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