Lecture 8 – Hypothesis Testing
Process of Hypothesis Testing
The procedure of hypothesis testing is the
same for different RQs. What is different is
–
1.
The test you use, and
2.
How to interpret the results if you reject the null hypothesis
One sample ttest

Compare the average value of one variable to a constant

Variable needs to be metric
o
E.g. is the mean service rating above 5?
o
Is average customer spending equal to $500?
Paired samples ttest

Compare the average value of two variables

Both variables need to be metric
o
E.g. is consumers mean willingness to pay for iPhone 7 different from that of
Samsung 7?
o
Do student’s average preference for solving math problems differ from that of
working on creative tasks?
Two independent samples t test

Compare the average value of one variable from two different groups

Variable of comparison – metric

Grouping variable – categorical
o
E.g. does the mean rating for new iPhone 7 differ between users and non
users?
o
Do men and women differ in average satisfaction with crown casino?