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Hypothsis Testing Process 2

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BUSINESS, MKT, ECON
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INSTRUCTIONS:

Hypothsis Testing Process 2

SOLUTION:

One Sample t-Test

Used when interval or ratio scaled variables are tested non-comparatively

Hypothesis

H0: Members of generation Y do not …….

H1: Members of generation Y do ……..

In other words:

H0: µ 3

H1: µ > 3

It is a one-tailed test

Test Process

Level of Significance (Critical Sig): .05

Critical t: 1.645

Conduct One Sample t-Test using SPSS (note below about how to conduct One Sample t-Test using SPSS)

If calculated Significance (form SPSS output) is less than critical significance (.05) null hypothesis (H0) is to be rejected and alternate hypothesis (H1) is to be accepted, otherwise null hypothesis is not rejected.

Alternatively, if the calculated t-value (form SPSS output) is more than critical t-value (1.645) null hypothesis (H0) is to be rejected and alternate hypothesis (H1) is to be accepted, otherwise null hypothesis is not rejected.

Note: Either of the above is ok. However, because it is one-tail test sometimes even if calculated significance is less than .05, null hypothesis may not be rejected if the corresponding calculated t is negative.

Interpretation

If the null hypothesis is not rejected, nothing happens. If null is rejected and alternate is accepted that is significant to answer your relevant research question. 

Conducting One Sample t-Test using SPSS

Using SPSS for Windows, click:

 

Analyze>Compare Means>One-Sample T Test

From the list of variables select the test variable(s). Select Test Value 3. Click OK. You get both calculated t and calculated significance from the output.

Paired Samples t-Test

Used when interval or ratio scaled variables are tested comparatively to see which one is stronger

Hypothesis

H0:  Members of generation Y do not see difference between two variables

H1: Members of generation Y do  see difference between two variables

In other words:

H0: µD = 0

H1: µD 0

It is a two-tailed test

Test Process

Level of Significance (Critical Sig): .025

Critical t: 1.96

Conduct Paired t-Test using SPSS (note below about how to conduct Paired Sample t-Test using SPSS)

If calculated Significance (form SPSS output) is less than critical significance (.025) null hypothesis (H0) is to be rejected and alternate hypothesis (H1) is to be accepted, otherwise null hypothesis is not rejected.

Alternatively, if the calculated t-value (form SPSS output) is more than critical t-value (1.96) null hypothesis (H0) is to be rejected and alternate hypothesis (H1) is to be accepted, otherwise null hypothesis is not rejected.

Note: Either of the above is ok.

If the null is rejected and alternate hypothesis is accepted, find out which variable is stronger by looking at the mean. Variable with higher mean is stronger.

Interpretation

If the null hypothesis is not rejected, nothing happens. If null is rejected and alternate is accepted that is significant to answer your relevant research question. 

Conducting Paired Sample t-Test using SPSS

Using SPSS for Windows, click:

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