1. McGraw-Hill/Irwin Business Research Methods, 10eCopyright © 2008 by The McGraw-Hill Companies, Inc. All Rights Reserved. Chapter 17 Hypothesis Testing

2. 17-2 PulsePoint: Research Revelation 96 The percent of U.S. college students interviewed at 375 universities in 2006 who misidentified the country of origin of products made in Finland (Nokia).

3. 17-3 Hypothesis Testing Deductive Reasoning Inductive Reasoning

4. 17-4 Statistical Procedures Descriptive Statistics Inferential Statistics

5. 17-5 Hypothesis Testing and the Research Process

6. 17-6 Types of Hypotheses Null –H 0 :  = 50 mpg –H 0 :  < 50 mpg –H 0 :  > 50 mpg Alternate –H A :  = 50 mpg –H A :  > 50 mpg –H A :  < 50 mpg

7. 17-7 Two-Tailed Test of Significance

8. 17-8 One-Tailed Test of Significance

9. 17-9 Decision Rule Take no corrective action if the analysis shows that one cannot reject the null hypothesis.

10. 17-10 Statistical Decisions

11. 17-11 Probability of Making a Type I Error

12. 17-12 Exhibit 17-4 Probability of Making A Type I Error

13. 17-13 Factors Affecting Probability of Committing a  Error True value of parameter Alpha level selected One or two-tailed test used Sample standard deviation Sample size

14. 17-14 Probability of Making A Type II Error

15. 17-15 Statistical Testing Procedures Obtain critical test value Interpret the test Interpret the test Stages Choose statistical test State null hypothesis Select level of significance Compute difference value

16. 17-16 Tests of Significance NonparametricParametric

17. 17-17 Assumptions for Using Parametric Tests Independent observations Normal distribution Equal variances Interval or ratio scales

18. 17-18 Advantages of Nonparametric Tests Easy to understand and use Usable with nominal data Appropriate for ordinal data Appropriate for non-normal population distributions

19. 17-19 How to Select a Test How many samples are involved? If two or more samples are involved, are the individual cases independent or related? Is the measurement scale nominal, ordinal, interval, or ratio?