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bulbs use 75% less energy and last 10 times longer than incandescent
bulbs. 3 A Wall Street Journal article, from June 2010, titled ‗Does
the
Internet Make You Smarter or Dumber?‘ posed the possibility that
online activities turn us into shallow thinkers. Each of these examples
could be stated as a pair of opposing claims or
hypotheses. ( Business Statistics) Chapter 8 January 4, 2017 4 / 48
Introduction to Hypothesis Testing Null vs. Alternative
Looking at the three examples above, state the null and alternative
hypotheses.
General form
H0 vs. H1
1 H0 : The fees charged by banks for late credit card payments have
remained the same or decreased (not increased) after the recession.
H1 : The fees charged by banks for late credit card payments
increased after the recession. 2 H0 : Fluorescent light bulbs do not use
75% less energy and last 10
times longer than incandescent bulbs.
H1 : Fluorescent light bulbs use 75% less energy and last 10 times
longer than incandescent bulbs. 3 H0 : Online activities do not turn us
into shallow thinkers.
H1 : Online activities turn us into shallow thinkers.
( Business Statistics) Chapter 8 January 4, 2017 5 / 48 Introduction to
Hypothesis Testing Null vs. Alternative Hypothesis testing typically
begins with some claim (or belief) about
a particular parameter of a population.
Our initial assumption is known as the null hypothesis, denoted H0
(‗H naught‘). This typically is hinting that nothing is happening, the
status quo, no relationship, no difference, etc.
The null hypothesis is believed to be true unless there is
overwhelming evidence not to.
We use the sample data to see if the alternative hypothesis, denoted
Ha or H1 , is true.
The alternative hypothesis states that something is going on: a
difference, increase, decrease or relationship exists.
Typically, H1 is what the researchers hope to show. ( Business
Statistics) Chapter 8 January 4, 2017 6 / 48 Introduction to