Now let’s move on to step-3Ĭritical Values are basically the z-value or t-value which separates the area shaded in red(area in the tail) and the middle area of the curve. We have now stated our level of significance. Since the total areas of the tails equal 0.05, then the area of the middle of the curve will be 95% or 0.95. Last thing that we need to see here in the curve is, that the total area of the curve is 1 or 100%. This means that each tail has an area of 0.025. In the above curve, you could see that the level of significance is 0.05, and the two tails are symmetrical which means that they have the same area. Please refer the below table for more clarity. He doesn’t know whether the average has gone up or down, but he believes that it has changed and is not 100 anymore.Īlways remember that an alternate hypothesis is always written with a ≠ or sign. “In our case, Tedd believes( Claims) that the actual value has changed”. In our case it will be the average height of students in the batch is 100.Īlternate hypothesis (H1): The alternate hypothesis is always what is being claimed. Null hypothesis (H0): The null hypothesis here is what currently stated to be true about the population. So let’s perform the step -1 of hypothesis testing which is: Specify the Null(H0) and Alternate(H1) hypothesis.Let’s reiterate back to the steps for performing hypothesis testing: Is there enough evidence to suggest that the average height has changed? The average height of the sample comes out to be 105. However, Tedd believes that this has changed, so he decides to test the height of 75 random students in the batch. Problem Statement: The average height of students in a batch is 100 cm and the standard deviation is 15. During the course of solving the question, I will explain the necessary concepts to make the approach more clear for you. So, let’s dive right into a question and see how to solve it. Rather we will directly see how a 2-tailed test is carried out, what are the conditions and criteria to implement this approach. So, in this post, I won’t be going into the what and how of hypothesis testing. I have discussed in detail with examples about hypothesis testing and how to validate it using the Null(H0) and Alternate(H1) hypothesis in my previous post. In this post, we will discuss how to do hypothesis testing for a 2-tailed test.
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