Hypothesis testing

Definition

Hypothesis testing is a statistical method used to make decisions or inferences about population parameters based on sample data. It involves formulating a null hypothesis, which represents a default position, and an alternative hypothesis, which represents a new claim. The process assesses the likelihood of observing the sample data if the null hypothesis is true, often using a significance level to determine whether to reject the null hypothesis in favor of the alternative.

5 Must Know Facts For Your Next Test

1. Hypothesis testing typically involves two competing hypotheses: the null hypothesis (H0) and the alternative hypothesis (H1 or Ha).
2. A common significance level used in hypothesis testing is 0.05, indicating a 5% risk of concluding that an effect exists when there is none.
3. The outcome of hypothesis testing can either lead to rejection of the null hypothesis or failure to reject it, but it does not prove either hypothesis to be true.
4. Power of a test refers to the probability of correctly rejecting a false null hypothesis, indicating the test's ability to detect an effect when one truly exists.
5. In hypothesis testing, confidence intervals can also be used to provide a range of values for which we can be reasonably sure contains the population parameter.

Review Questions

• How do you distinguish between a null hypothesis and an alternative hypothesis in the context of hypothesis testing?
  • In hypothesis testing, the null hypothesis is denoted as H0 and represents the default assumption that there is no effect or difference in the population. The alternative hypothesis, denoted as H1 or Ha, is what the researcher aims to support, suggesting that there is an effect or difference. The distinction is critical because statistical tests are designed to assess whether evidence from sample data is strong enough to reject the null hypothesis in favor of the alternative.
• What role does the p-value play in making decisions during hypothesis testing?
  • The p-value measures how compatible the sample data are with the null hypothesis. A small p-value indicates that observing such extreme sample data would be unlikely under the assumption that the null hypothesis is true. When the p-value is less than or equal to the predetermined significance level (such as 0.05), it suggests strong evidence against H0, prompting researchers to reject it in favor of the alternative hypothesis. However, if the p-value is larger, we fail to reject H0.
• Evaluate how power analysis can impact research outcomes and decision-making in hypothesis testing.
  • Power analysis helps researchers determine the sample size needed to detect an effect when one exists, which directly affects decision-making and research outcomes. A high power means there is a greater likelihood of correctly rejecting a false null hypothesis. If power is low due to small sample sizes or low effect sizes, it increases the risk of type II errors, where researchers fail to detect a true effect. By conducting power analysis before collecting data, researchers can design studies that are more likely to yield meaningful results and support effective decision-making based on those results.

Related terms

null hypothesis: The hypothesis that there is no effect or no difference, serving as a starting point for statistical testing.

p-value: The probability of obtaining a result at least as extreme as the observed data, assuming that the null hypothesis is true.

type I error: The error made when the null hypothesis is incorrectly rejected when it is actually true.