Hypothesis Testing
Introduction
We are in the middle of the part of the course that has to do with inference for one variable.
So far, we talked about point estimation and learned how interval estimation enhances it by quantifying the magnitude of the estimation error (with a certain level of confidence) in the form of the margin of error. The result is the confidence interval — an interval that, with a certain confidence, we believe captures the unknown parameter.
We are now moving to the other kind of inference, hypothesis testing. We say that hypothesis testing is “the other kind” because, unlike the inferential methods we presented so far, where the goal was estimating the unknown parameter, the idea, logic and goal of hypothesis testing are quite different.
In the first two parts of this section we will discuss the idea behind hypothesis testing, explain how it works, and introduce new terminology that emerges in this form of inference. The final two parts will be more specific and will discuss hypothesis testing for the population proportion (p) and the population mean (μ, mu).
If this is your first statistics course, you will need to spend considerable time on this topic as there are many new ideas. Many students find this process and its logic difficult to understand in the beginning.
In this section, we will use the hypothesis test for a population proportion to motivate our understanding of the process. We will conduct these tests manually. For all future hypothesis test procedures, including problems involving means, we will use software to obtain the results and focus on interpreting them in the context of our scenario.
General Idea and Logic of Hypothesis Testing
The purpose of this section is to gradually build your understanding about how statistical hypothesis testing works. We start by explaining the general logic behind the process of hypothesis testing. Once we are confident that you understand this logic, we will add some more details and terminology.
To start our discussion about the idea behind statistical hypothesis testing, consider the following example:
EXAMPLE:
A case of suspected cheating on an exam is brought in front of the disciplinary committee at a certain university.
There are two opposing claims in this case:
 The student’s claim: I did not cheat on the exam.
 The instructor’s claim: The student did cheat on the exam.
Adhering to the principle “innocent until proven guilty,” the committee asks the instructor for evidence to support his claim. The instructor explains that the exam had two versions, and shows the committee members that on three separate exam questions, the student used in his solution numbers that were given in the other version of the exam.
The committee members all agree that it would be extremely unlikely to get evidence like that if the student’s claim of not cheating had been true. In other words, the committee members all agree that the instructor brought forward strong enough evidence to reject the student’s claim, and conclude that the student did cheat on the exam.
What does this example have to do with statistics?
While it is true that this story seems unrelated to statistics, it captures all the elements of hypothesis testing and the logic behind it. Before you read on to understand why, it would be useful to read the example again. Please do so now.
Statistical hypothesis testing is defined as:
 Assessing evidence provided by the data against the null claim (the claim which is to be assumed true unless enough evidence exists to reject it).
Here is how the process of statistical hypothesis testing works:
 We have two claims about what is going on in the population. Let’s call them claim 1 (this will be the null claim or hypothesis) and claim 2 (this will be the alternative). Much like the story above, where the student’s claim is challenged by the instructor’s claim, the null claim 1 is challenged by the alternative claim 2. (For us, these claims are usually about the value of population parameter(s) or about the existence or nonexistence of a relationship between two variables in the population).
 We choose a sample, collect relevant data and summarize them (this is similar to the instructor collecting evidence from the student’s exam). For statistical tests, this step will also involve checking any conditions or assumptions.
 We figure out how likely it is to observe data like the data we obtained, if claim 1 is true. (Note that the wording “how likely …” implies that this step requires some kind of probability calculation). In the story, the committee members assessed how likely it is to observe evidence such as the instructor provided, had the student’s claim of not cheating been true.
 Based on what we found in the previous step, we make our decision:
 If, after assuming claim 1 is true, we find that it would be extremely unlikely to observe data as strong as ours or stronger in favor of claim 2, then we have strong evidence against claim 1, and we reject it in favor of claim 2. Later we will see this corresponds to a small pvalue.
 If, after assuming claim 1 is true, we find that observing data as strong as ours or stronger in favor of claim 2 is NOT VERY UNLIKELY, then we do not have enough evidence against claim 1, and therefore we cannot reject it in favor of claim 2. Later we will see this corresponds to a pvalue which is not small.
In our story, the committee decided that it would be extremely unlikely to find the evidence that the instructor provided had the student’s claim of not cheating been true. In other words, the members felt that it is extremely unlikely that it is just a coincidence (random chance) that the student used the numbers from the other version of the exam on three separate problems. The committee members therefore decided to reject the student’s claim and concluded that the student had, indeed, cheated on the exam. (Wouldn’t you conclude the same?)
Hopefully this example helped you understand the logic behind hypothesis testing.
To strengthen your understanding of the process of hypothesis testing and the logic behind it, let’s look at three statistical examples.
EXAMPLE:
A recent study estimated that 20% of all college students in the United States smoke. The head of Health Services at Goodheart University (GU) suspects that the proportion of smokers may be lower at GU. In hopes of confirming her claim, the head of Health Services chooses a random sample of 400 Goodheart students, and finds that 70 of them are smokers.
Let’s analyze this example using the 4 steps outlined above:
 Stating the claims: There are two claims here:
 claim 1: The proportion of smokers at Goodheart is 0.20.
 claim 2: The proportion of smokers at Goodheart is less than 0.20.
Claim 1 basically says “nothing special goes on at Goodheart University; the proportion of smokers there is no different from the proportion in the entire country.” This claim is challenged by the head of Health Services, who suspects that the proportion of smokers at Goodheart is lower.
 Choosing a sample and collecting data: A sample of n = 400 was chosen, and summarizing the data revealed that the sample proportion of smokers is phat = 70/400 = 0.175.While it is true that 0.175 is less than 0.20, it is not clear whether this is strong enough evidence against claim 1. We must account for sampling variation.
 Assessment of evidence: In order to assess whether the data provide strong enough evidence against claim 1, we need to ask ourselves: How surprising is it to get a sample proportion as low as phat = 0.175 (or lower), assuming claim 1 is true? In other words, we need to find how likely it is that in a random sample of size n = 400 taken from a population where the proportion of smokers is p = 0.20 we’ll get a sample proportion as low as phat = 0.175 (or lower).It turns out that the probability that we’ll get a sample proportion as low as phat = 0.175 (or lower) in such a sample is roughly 0.106 (do not worry about how this was calculated at this point – however, if you think about it hopefully you can see that the key is the sampling distribution of phat).
 Conclusion: Well, we found that if claim 1 were true there is a probability of 0.106 of observing data like that observed or more extreme. Now you have to decide …Do you think that a probability of 0.106 makes our data rare enough (surprising enough) under claim 1 so that the fact that we did observe it is enough evidence to reject claim 1? Or do you feel that a probability of 0.106 means that data like we observed are not very likely when claim 1 is true, but they are not unlikely enough to conclude that getting such data is sufficient evidence to reject claim 1. Basically, this is your decision. However, it would be nice to have some kind of guideline about what is generally considered surprising enough.
EXAMPLE:
A certain prescription allergy medicine is supposed to contain an average of 245 parts per million (ppm) of a certain chemical. If the concentration is higher than 245 ppm, the drug will likely cause unpleasant side effects, and if the concentration is below 245 ppm, the drug may be ineffective. The manufacturer wants to check whether the mean concentration in a large shipment is the required 245 ppm or not. To this end, a random sample of 64 portions from the large shipment is tested, and it is found that the sample mean concentration is 250 ppm with a sample standard deviation of 12 ppm.
 Stating the claims:
 Claim 1: The mean concentration in the shipment is the required 245 ppm.
 Claim 2: The mean concentration in the shipment is not the required 245 ppm.
Note that again, claim 1 basically says: “There is nothing unusual about this shipment, the mean concentration is the required 245 ppm.” This claim is challenged by the manufacturer, who wants to check whether that is, indeed, the case or not.
 Choosing a sample and collecting data: A sample of n = 64 portions is chosen and after summarizing the data it is found that the sample mean concentration is xbar = 250 and the sample standard deviation is s = 12.Is the fact that xbar = 250 is different from 245 strong enough evidence to reject claim 1 and conclude that the mean concentration in the whole shipment is not the required 245? In other words, do the data provide strong enough evidence to reject claim 1?
 Assessing the evidence: In order to assess whether the data provide strong enough evidence against claim 1, we need to ask ourselves the following question: If the mean concentration in the whole shipment were really the required 245 ppm (i.e., if claim 1 were true), how surprising would it be to observe a sample of 64 portions where the sample mean concentration is off by 5 ppm or more (as we did)? It turns out that it would be extremely unlikely to get such a result if the mean concentration were really the required 245. There is only a probability of 0.0007 (i.e., 7 in 10,000) of that happening. (Do not worry about how this was calculated at this point, but again, the key will be the sampling distribution.)
 Making conclusions: Here, it is pretty clear that a sample like the one we observed or more extreme is VERY rare (or extremely unlikely) if the mean concentration in the shipment were really the required 245 ppm. The fact that we did observe such a sample therefore provides strong evidence against claim 1, so we reject it and conclude with very little doubt that the mean concentration in the shipment is not the required 245 ppm.
Do you think that you’re getting it? Let’s make sure, and look at another example.
EXAMPLE:
Is there a relationship between gender and combined scores (Math + Verbal) on the SAT exam?
Following a report on the College Board website, which showed that in 2003, males scored generally higher than females on the SAT exam, an educational researcher wanted to check whether this was also the case in her school district. The researcher chose random samples of 150 males and 150 females from her school district, collected data on their SAT performance and found the following:
Females  Males  



Again, let’s see how the process of hypothesis testing works for this example:
 Stating the claims:
 Claim 1: Performance on the SAT is not related to gender (males and females score the same).
 Claim 2: Performance on the SAT is related to gender – males score higher.
Note that again, claim 1 basically says: “There is nothing going on between the variables SAT and gender.” Claim 2 represents what the researcher wants to check, or suspects might actually be the case.
 Choosing a sample and collecting data: Data were collected and summarized as given above. Is the fact that the sample mean score of males (1,025) is higher than the sample mean score of females (1,010) by 15 points strong enough information to reject claim 1 and conclude that in this researcher’s school district, males score higher on the SAT than females?
 Assessment of evidence: In order to assess whether the data provide strong enough evidence against claim 1, we need to ask ourselves: If SAT scores are in fact not related to gender (claim 1 is true), how likely is it to get data like the data we observed, in which the difference between the males’ average and females’ average score is as high as 15 points or higher? It turns out that the probability of observing such a sample result if SAT score is not related to gender is approximately 0.29 (Again, do not worry about how this was calculated at this point).
 Conclusion: Here, we have an example where observing a sample like the one we observed or more extreme is definitely not surprising (roughly 30% chance) if claim 1 were true (i.e., if indeed there is no difference in SAT scores between males and females). We therefore conclude that our data does not provide enough evidence for rejecting claim 1.
Comment:
 Go back and read the conclusion sections of the three examples, and pay attention to the wording. Note that there are two types of conclusions:
 “The data provide enough evidence to reject claim 1 and accept claim 2”; or
 “The data do not provide enough evidence to reject claim 1.”
In particular, note that in the second type of conclusion we did not say: “I accept claim 1,” but only “I don’t have enough evidence to reject claim 1.” We will come back to this issue later, but this is a good place to make you aware of this subtle difference.
Hopefully by now, you understand the logic behind the statistical hypothesis testing process. Here is a summary: