2. Inferential Statistics
Consist of generalization from sample to population,
performing estimation and hypothesis test, determining
relationship among variables and making predictions.
3. Let’s say you wanted to know about the favorite ice cream flavors of
everyone in the world. Well, there are about 8 billion people in the
world, and it would be impossible to ask every single person about
their ice cream preferences.
Instead, you would try to sample a representative population of
people and then extrapolate your sample results to entire
population.
While this process isn’t perfect and it is very difficult to avoid errors,
it allows researcher to make well reasoned inference about the
population in question. This is the idea behind the inferential
statistics.
Inferential Statistics
4. Hypothesis
A hypothesis is an assumption about one or more population
parameters.
A parameter is a characteristic of the population, like its mean or
variance.
The parameter must be identified before analysis.
I assume the mean
height of a class is
5.3 feet
5. Purpose of hypothesis
The purpose of hypothesis testing is to aid clinician,
researcher or administrator in reaching a conclusion
about a population by examining a sample from
that population.
6. Examples of hypothesis
• Mean height of IoBM students is μ = 5.1 feet
• The population mean monthly cell phone bill of city is: μ = 425
• The average number of TV sets in U.S. Homes is equal to three; μ = 3
7. • It Is always about a population parameter, not
about a sample statistic.
• Sample evidence is used to assess the probability
that the claim about the population parameter is
true
Hypothesis
Remember
9. Research Hypothesis
• It is the assumption that motivate the
research.
• It is usually the result of long observation by
the researcher.
• This hypothesis led directly to the second
type of hypothesis
11. Statistical hypothesis
It is composed of two types:
Null hypothesis( Ho):
It is the particular hypothesis under test, and it is
the hypothesis of “no difference”
Alternative hypothesis (HA):
Apposite null hypothesis
12. Properties of Null hypothesis
• Always contains ‘=‘ sign i.e., (=, ≤, ≥ )
e.g., the average height of students of a class is 5.6
feet. H0 : µ = 5.6
• Null hypothesis may or may not be rejected.
Null Hypothesis H0
• H0: µ = 5.6
• H0: µ ≤ 5.6
• H0: µ ≥ 5.6
Examples of Null hypothesis
13. • Apposite of null hypothesis
• Never contains ‘=‘ sign but include( ≠, < ,>)
e.g., the average height of students of a class is
< 5.6 feet. HA : µ < 5.6
• Alternative hypothesis may or may not be
accepted.
• Is generally the hypothesis that the researcher is
trying to prove. Evidence is always examined
with respect to H1, never with respect to H0.
Properties of Alternative hypothesis
15. Remember
What we hope or expect to able to conclude as a result of the
test usually should be placed in alternative hypothesis
The null hypothesis should contain statement of equality (=, ≤, ≥ )
The null hypothesis is the hypothesis that is tested.
The null and alternative hypothesis are complementary
17. Researchers are interested in the mean age of certain population. Let
us say that they are asking the question. Can we conclude that the
mean age of this population is different from 30 years?
Example
H0: µ = 30 years (i.e. population mean age is not different from 30)
HA: µ ≠ 30 years (i.e. population mean age is different from 30)
18. Rejection of null hypothesis means acceptance of
alternative hypothesis
Rejection of alternative hypothesis means
acceptance of null hypothesis
Errors
19. We test null hypothesis
We will either reject or accept null
hypothesis
There is a possibility that we may reject true null hypothesis or
accept false null hypothesis
20. Errors
Type I error
This error is committed when true null hypothesis is rejected.
Reject null hypothesis when it is true
The rate of type I error is also called size of the test
The probability of committing type I error is α (level of significance)
If type I error is fixed as 5%, it means that there are about 5
chance in 100 that we will reject null hypothesis when null
hypothesis is true.
21. Errors
Type II error
This error is committed when false null hypothesis is accepted
Accept = Fail to reject.
Accept null hypothesis when it is false
The probability of committing type II error is β
NOTE: we do not say that we accept the null hypothesis if
a statistician is around…
Fail to reject false null hypothesis
22. Actual state of nature
H0 is true H0 is false
Decision
Reject H0
Correct
Correct
Type I
Error
Type II
Error
Accept H0
23. Power of the test
“Power” of a test is the probability of rejecting null
hypothesis when it is false.
“Power” = 1 -P(Type II error)
To minimize the P(Type II error), we equivalently want to
maximize power.
But power depends on the value under the alternative
hypothesis ...
Probability of rejection of false null hypothesis
24. Power of the test
Power is probability, so number between
0 and 1.
0 is bad!
1 is good!
Need to make power as high as
possible.
25. 11.25
Hypothesis Testing…
The probability of a Type I error is denoted as α (Greek letter alpha).
The probability of a type II error is β (Greek letter beta).
The two probabilities are inversely related. Decreasing one increases
the other, for a fixed sample size.
In other words, you can’t have and β both real small for
any old sample size. You may have to take a much larger
sample size, or in the court example, you need much more
evidence.
26. The goal is to determine whether there is enough evidence to infer that
the alternative hypothesis is true, or the null is not likely to be true.
There are two possible decisions:
Conclude that there is enough evidence to support the alternative
hypothesis. Reject the null.
Conclude that there is not enough evidence to support the
alternative hypothesis. Fail to reject the null.