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B AD 6243: Applied Univariate Statistics. Hypothesis Testing and the T-test Professor Laku Chidambaram Price College of Business University of Oklahoma. Steps in Hypothesis Testing. Determine hypotheses (null & alternative) Select significance level (  level/p level) Choose a sample size

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B ad 6243 applied univariate statistics

B AD 6243: Applied Univariate Statistics

Hypothesis Testing and the T-test

Professor Laku Chidambaram

Price College of Business

University of Oklahoma


Steps in hypothesis testing
Steps in Hypothesis Testing

  • Determine hypotheses (null & alternative)

  • Select significance level ( level/p level)

  • Choose a sample size

  • Calculate the value of the statistic

  • Obtain critical value

  • Compare results

BAD 6243: Applied Univariate Statistics


Errors in hypothesis testing
Errors in Hypothesis Testing

Sample (“Trial”)

Population (“Truth”)

BAD 6243: Applied Univariate Statistics


Maxmincon principle
MAXMINCON Principle

  • Maximize experimental variance

    • Design, plan and conduct research so that the experimental conditions are as different as possible

  • Minimize error variance

    • Reduce error through controlling experimental conditions

    • Reduce error by increasing reliability of measures

  • Control extraneous variance

    • Randomization: Groups can be considered statistically equal in all possible ways

    • Selection: To eliminate the effect of an extraneous variable on a dependent variable, choose subjects so that they are as homogenous as possible (on that variable)

    • Addition: To control the effect of an extraneous variable, build it into the research design, so as to measure its effect on the dependent variable

BAD 6243: Applied Univariate Statistics


Differences between groups
Differences between Groups

  • Randomized groups

    • Random sampling; random assignment

    • Simple vs. factorial designs

    • Concerns:

      • (Pre-experimental) equality of groups

      • Unequal cell sizes

  • Correlated group(s)

    • Use same units in different treatments

    • Single vs. multi-group designs

    • Concerns:

      • History, maturation and sensitization

BAD 6243: Applied Univariate Statistics


Concepts related to the t test
Concepts Related to the T-test

  • Degrees of freedom

  • T-distribution vs. standard normal distribution

  • Level of significance

  • Between subjects design:

    • Equal sample sizes

    • Equal variance

  • Within subjects design

BAD 6243: Applied Univariate Statistics


Standard normal distribution
Standard Normal Distribution

BAD 6243: Applied Univariate Statistics


T distributions
t Distributions

t-distributions refer to a family of distributions, which like normal distributions, are

bell-shaped, but whose shape changes with the sample size; smaller sample

sizes have flatter distributions, while larger sizes approximate normal distributions

BAD 6243: Applied Univariate Statistics


Independent samples t test
Independent Samples t-test

BAD 6243: Applied Univariate Statistics


Independent samples error bar
Independent Samples Error Bar

BAD 6243: Applied Univariate Statistics


T test as a regression model
T-test as a Regression Model

BAD 6243: Applied Univariate Statistics


Dependent samples t test
Dependent Samples T-test

BAD 6243: Applied Univariate Statistics


Dependent samples error bar
Dependent Samples Error Bar

BAD 6243: Applied Univariate Statistics