In a typical situation, the null hypothesis of a statistical test is concerned
with a parameter; the parameter in this case, with continuous data, is the mean
m. Sample data are summarized into a statistic that is used to estimate the
parameter under investigation. Since the parameter under investigation is the
population meanm, our focus in this case is the sample meanx. In general, a
statistic is itself a variable with a specific sampling distribution (in the context
of repeated sampling). Our statistic in this case is the sample meanx; the cor-
responding sampling distribution is obtained easily by invoking thecentral limit
theorem. With large sample size and assuming that the null hypothesisH 0 is
true, it is the normal distribution with mean and variance given by
mx¼m 0
sx^2 ¼
s^2
n
respectively. The extra needed parameter, the population variances^2 , has to be
estimated from our data by the sample variances^2. From this sampling distri-
bution, the observed value of the sample mean can be converted to standard
units: the number of standard errors away from the hypothesized value ofm 0.
In other words, to perform a test of significance forH 0 , we proceed with the
following steps:
- Decide whether a one- or a two-sided test is appropriate; this decision
depends on the research question. - Choose a level of significance; a common choice is 0.05.
- Calculate thetstatistic:
t¼
xm 0
SEðxÞ
¼
xm 0
s=
ffiffiffi
n
p
- From the table fortdistribution (Appendix C) withðn 1 Þdegrees of
freedom and the choice ofa(e.g.,a¼ 0 :05), the rejection region is deter-
mined by:
(a) For a one-sided test, use the column corresponding to an upper tail
area of 0.05:
tatabulated value forHA:m<m 0
tbtabulated value forHA:m>m 0
(b) For a two-sided test orHA:m 0 m 0 , use the column corresponding to
an upper tail area of 0.025:
ONE-SAMPLE PROBLEM WITH CONTINUOUS DATA 247