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17-1
Part Four
                        ANALYSIS AND
                    PRESENTATION OF DATA



 17-2
McGraw-Hill/Irwin             © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.
Chapter Seventeen
       HYPOTHESIS TESTING




17-3
Approaches to Hypothesis Testing

       • Classical Statistics
         – sampling-theory approach
         – objective view of probability
         – decision making rests on analysis of
           available sampling data
       • Bayesian Statistics
         – extension of classical statistics
         – consider all other available information


17-4
Types of Hypotheses

       • Null
         – that no statistically significant difference
           exists between the parameter and the
           statistic being compared
       • Alternative
         – logical opposite of the null hypothesis
         – that a statistically significant difference
           does exist between the parameter and the
           statistic being compared.

17-5
Logic of Hypothesis Testing

       • Two tailed test
         – nondirectional test
         – considers two possibilities
       • One tailed test
         – directional test
         – places entire probability of an unlikely
           outcome to the tail specified by the
           alternative hypothesis


17-6
Decision Errors in Testing

       • Type I error
         – a true null hypothesis is rejected
       • Type II error
         – one fails to reject a false null hypothesis




17-7
Testing for Statistical Significance

   •   State the null hypothesis
   •   Choose the statistical test
   •   Select the desired level of significance
   •   Compute the calculated difference value
   •   Obtain the critical value
   •   Interpret the test



17-8
Classes of Significance Tests

       • Parametric tests
         – Z or t test is used to determine the
           statistical significance between a sample
           distribution mean and a population
           parameter
       • Assumptions:
         – independent observations
         – normal distributions
         – populations have equal variances
         – at least interval data measurement scale
17-9
Classes of Significance Tests

         Nonparametric tests
          – Chi-square test is used for situations in
            which a test for differences between
            samples is required
        • Assumptions
          – independent observations for some tests
          – normal distribution not necessary
          – homogeneity of variance not necessary
          – appropriate for nominal and ordinal data,
            may be used for interval or ratio data
17-10
How to Test the Null Hypothesis

        • Analysis of variance (ANOVA)
          – the statistical method for testing the
            null hypothesis that means of several
            populations are equal




17-11
Multiple Comparison Tests

        • Multiple comparison procedures
          – test the difference between each pair of
            means and indicate significantly different
            group means at a specified alpha level
            (<.05)
          – use group means and incorporate the MSerror
            term of the F ratio




17-12
How to Select a Test

        • Which does the test involve?
          – one sample,
          – two samples
          – k samples
        • If two or k samples,are the individual
          cases independent or related?
        • Is the measurement scale nominal,
          ordinal, interval, or ratio?

17-13
K Related Samples Test

        Use when:
        • The grouping factor has more than two
          levels
        • Observations or participants are
          – matched . . . or
          – the same participant is measured more
            than once
        • Interval or ratio data

17-14

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Business Research Methods Chap017

  • 2. Part Four ANALYSIS AND PRESENTATION OF DATA 17-2 McGraw-Hill/Irwin © 2003 The McGraw-Hill Companies, Inc.,All Rights Reserved.
  • 3. Chapter Seventeen HYPOTHESIS TESTING 17-3
  • 4. Approaches to Hypothesis Testing • Classical Statistics – sampling-theory approach – objective view of probability – decision making rests on analysis of available sampling data • Bayesian Statistics – extension of classical statistics – consider all other available information 17-4
  • 5. Types of Hypotheses • Null – that no statistically significant difference exists between the parameter and the statistic being compared • Alternative – logical opposite of the null hypothesis – that a statistically significant difference does exist between the parameter and the statistic being compared. 17-5
  • 6. Logic of Hypothesis Testing • Two tailed test – nondirectional test – considers two possibilities • One tailed test – directional test – places entire probability of an unlikely outcome to the tail specified by the alternative hypothesis 17-6
  • 7. Decision Errors in Testing • Type I error – a true null hypothesis is rejected • Type II error – one fails to reject a false null hypothesis 17-7
  • 8. Testing for Statistical Significance • State the null hypothesis • Choose the statistical test • Select the desired level of significance • Compute the calculated difference value • Obtain the critical value • Interpret the test 17-8
  • 9. Classes of Significance Tests • Parametric tests – Z or t test is used to determine the statistical significance between a sample distribution mean and a population parameter • Assumptions: – independent observations – normal distributions – populations have equal variances – at least interval data measurement scale 17-9
  • 10. Classes of Significance Tests Nonparametric tests – Chi-square test is used for situations in which a test for differences between samples is required • Assumptions – independent observations for some tests – normal distribution not necessary – homogeneity of variance not necessary – appropriate for nominal and ordinal data, may be used for interval or ratio data 17-10
  • 11. How to Test the Null Hypothesis • Analysis of variance (ANOVA) – the statistical method for testing the null hypothesis that means of several populations are equal 17-11
  • 12. Multiple Comparison Tests • Multiple comparison procedures – test the difference between each pair of means and indicate significantly different group means at a specified alpha level (<.05) – use group means and incorporate the MSerror term of the F ratio 17-12
  • 13. How to Select a Test • Which does the test involve? – one sample, – two samples – k samples • If two or k samples,are the individual cases independent or related? • Is the measurement scale nominal, ordinal, interval, or ratio? 17-13
  • 14. K Related Samples Test Use when: • The grouping factor has more than two levels • Observations or participants are – matched . . . or – the same participant is measured more than once • Interval or ratio data 17-14