In statistics, as in life, nothing is as certain as the presence of uncertainty.

However, just because we are not 100% sure of something, that is no reason why
we can’t reach some conclusions that are highly likely to be true. In this chapter,
the concept of hypothesis testing shall be discussed. The methods used in testing
hypothesis about the population mean when the population standard deviation is
given and other conditions about hypothesis testing will be developed. In this text,
the critical value method in testing hypothesis will be discussed. Other topics related
to hypothesis testing are also discussed.

General Objectives

At the end of the chapter, you should be able to:

1. define the different concepts related to testing hypothesis correctly;

2. explain the difference between the Type 1 error and Type II error;
3. differentiate directional and non-directional alternative hypothesis;
4. determine the critical value of test statistics at a given alpha level;
5. apply the different steps in testing hypothesis; and
6. compute the z-test and t-test values correctly.
LESSON I. DEFINITION OF HYPOTHESIS
Hypothesis is an assertion or conjecture about a population parameter or
parameter. It is also called statistical hypothesis. It explains what you expect to
happen, clear and understandable, testable, measurable, and contain independent
and dependent variable. A hypothesis is a proposed explanation of phenomenon.
For a hypothesis to be specific, the scientific method requires that one can test it.
Scientist generally base scientific hypotheses on previous observations that cannot
satisfactorily be explained with the available scientific theories. Even though the
words “hypothesis” and “theory” are often used synonymously, a scientific
hypothesis is not same as a scientific theory. A working hypothesis is a provisionally
accepted hypothesis proposed for further research. In this lesson, we discussed the
types of statistical hypothesis: the null and alternative hypothesis, the types of errors,
level of significance, the test statistics and the critical value that will be used in the
computation of some statistical tools.

At the end of the lesson, you should be able to:

1. differentiate a null from alternative hypothesis;
2. identify the use of the level of significance in calculating statistical tools;
and
3. analyze the rejection region of one tailed and two tailed test.

EXAMPLE OF HYPOTHESIS
An example of parameter is the population mean or population standard
deviation. Example of hypothesis are:

1. The population of the consumers who purchased Brand X of female facial

wash exceeds 60%.
2. The mean daily allowance of high school students in rural areas is at most
P150.
3. The average lifetime of light bulb manufactured by RL Company will last at
most 5,500 hours.
4. There is no significant difference between the monthly expenditures of
families in the rural and urban areas.
 5. The average nicotine content of Brand Y cigarette does not exceed 3.25
milligrams.
The statements above are subject to statistical testing to determine their
truthfulness. When statistical testing fails to reject the hypothesis, then that
hypothesis should be accepted.

TYPES OF STATISTICAL HYPOTHESIS

1. Null Hypothesis
Null Hypothesis, denoted by Ho, is a statement which states that there
is no significant relationship or no significant different between two or more
variables, or one variable does not affect another variable. In statistical
research, hypotheses should be written in null form. For example, suppose we
want to know whether method A is more effective than method B in teaching
high method B in teaching high school Mathematics. The null hypothesis for
this study is “There is no significant difference between the effectiveness of
Method A and Method B”.

2. Alternative Hypothesis
Alternative Hypothesis denoted by Ha. This is the hypothesis that
challenges the null hypothesis. The alternative hypothesis for the example is
“There is a significant difference between the effectiveness of Method A and
Method B.” or “Method A is more effective than Method B.” or “Method A is
less effective than Method B.” depending on whether the type of type of test is
one-or two-tailed which will be discussed in the succeeding lessons.

TYPES OF DECISION ERRORS

When dealing with hypothesis tests, there are four possible outcomes: the two
outcomes lead to incorrect decision and the other two lead to correct decision. The
outcomes are described in the given table.

TABLE 5.1 Possible Outcomes for a Hypothesis Test

 Fact H0 is true H0 is false
Decision

Failed to reject H0 Correct decision Type II error

Reject H0 Type 1 error Correct decision

Based on the given table, a researcher commits an error if a true H 0 is

rejected or accepted by a false H0. When a researcher rejects a true H0, he commits
a Type I error or alpha error (α). When a researcher accepts a false H0, he commits a
Type II error or beta error (β).

1. Type I error or alpha error (α). A type I error is committed when the researcher
rejects a null hypothesis when in fact it is true.
2. Type II error or beta error (β). A type II error I committed when the researcher
accepts a null hypothesis when in fact it is false.

Level of Significance
When a researcher tests the hypothesis, he is not certain that the decision is
100% correct. However, he is confident at a certain level that the decision is correct,
say 99% of the decision he made is a correct one. The confidence level is 99% or
the level of significance is 1%. When the confidence level is 95%, the level of
significance is 5%. On the other hand, when the confidence level is 90%, the level of
significance is 10%. In this case, the higher the confidence level, the more certain
that the decision od rejecting the null hypothesis is correct.

Level of significance is the probability of committing a Type I error or alpha (α)

error or the probability of rejecting the correct null hypothesis.
Power of a Test
Power of a test is the probability of not committing a Type II error or beta (β)
error.

Test Statistics
The test statistic is a mathematical formula that allows researchers to
determine the likelihood of obtaining sample outcomes if the null hypothesis were
true. The value of the test statistic is used to make a decision regarding the null
hypothesis. The test statistic is used as a basis for deciding whether to reject or
accept the null hypothesis. The rejection lies at either the left or right tail of the
normal curve of one-tailed test is being used. On the other hand, the rejection region
lies at both end tails of the normal curve if two-tailed test will be utilized.

Non-Rejection Rejection Region

Region

FIGURE 5.1 Graphical Representation of Rejection

and Non-Rejection Region

• Rejection Region. When the test statistics lies on the rejection region, then
the null hypothesis will be rejected.
• Non-Rejection Region. The non-rejection region is the probability of making
a Type I error equals to the level of significance. Non-rejection region is also
known as the acceptance region. When the test statistic lies within the non-
rejection region, the null hypothesis will be accepted or the critical value is
greater than the computed value of the test statistic.
 • Critical Value. The critical value is a value that separates the non-rejection
region and the rejection region.

ONE-TAILED AND TWO-TAILED TESTS

The use of one-tailed test or two-tailed test will depend on how the alternative
is formulated. If the alternative hypothesis is expressed in non-directional, it will
utilize the two-tailed test. However, use the one-tailed test if the alternative
hypothesis is directional. In two-tailed test, the two rejection regions lie at both end
tails of the normal curve; each part will be half of the alpha vale. If α = 0.05, the area
at both end tail is α = 0.025. in one-tailed test, the rejection region lies either at the
left or right end tail of the normal curve.

Non-Rejection
Region
Rejection Region

ẋ Z = 1.645
Critical Value

FIGURE 5.2 Graphical Representation of the Critical Value

 Non-Rejection
Region
Rejection Region

FIGURE 5.3 One – Tailed Test

Non-Rejection
Region

Rejection Region Rejection Region

FIGURE 5.4 Two – Tailed Test

 Non-Rejection
Region

Rejection Region

Z = 1.645 ẋ

FIGURE 5.5 Graphical Representation of Left – Tailed Test at α =

0.05

Non-Rejection
Region
Rejection Region

ẋ Z = 1.645

FIGURE 5.6 Graphical Representation of Right –Tailed Test at α =

0.05
TABLE 5.2 Critical Values of Z-Test

One-Tailed Test
Type of Test
Two-Tailed Test
Left-Tailed Right-Tailed
Level of
Significance
Reject Ho f z ≤ - Reject Ho if z Reject Ho if z ≥ 1.96
α = 0.05
1.645 ≥ 1.645 or reject Ho if z ≤ -1.96
Reject Ho if z ≤ Reject Ho if z Reject Ho if z ≥ 2.575
α=0.01 -2.33 ≥ 2.33 or reject Ho if z ≤ -
2.575
Reject Ho if z ≤ Reject Ho if z Reject Ho if z ≥ 1.645
α=0.10 -1.28 ≥ 1.28 or reject Ho if z ≤ -
1.645

Note: The level of significance is usually determined by the

statistician or the researcher.

EXERCISES
CONCEPTS AND PROCEDURES
1.1. Briefly discuss difference between Null and Alternative Hypothesis. Give
an example in each type of hypothesis.
1.2. Briefly discuss the difference of Type I error and Type II error. Give an
example in each type of errors.
1.3. Briefly discuss the importance of level of significance in accepting or
rejecting the null hypothesis.
 APPLICATIONS
1.4. Some of the following statements refer to the null hypothesis, some to
the alternate hypothesis. State the null hypothesis, H0, and the
alternative hypothesis, Ha. State also the Type I and Type II errors in
complete sentences.
a. The mean number of years Filipinos work before retiring is 34.
b. At most 60% of Filipinos vote in presidential elections.
c. The mean starting salary for San Jose State University graduates is
at least Php100,000 per year.
d. Twenty-nine percent of first year college students get drunk each
month.
e. Fewer than 5% of adults ride the bus to work in Region XII.
f. The mean number of cars a person owns in her lifetime is not more
than ten.
g. About half of Filipinos prefer to live away from cities, given the
choice.
h. Filipinos have a mean paid vacation each year of six weeks.
i. The chance of developing breast cancer is under 11% for women.
j. Private universities' mean tuition cost is more than Php50,000 per
year.
LESSON II. DEFINITION OF HYPOTHESIS TESTING
To determine whether to accept or reject the null hypothesis based on a
sample data, a statistician usually follows a certain process. This process is known
as hypothesis testing.

Hypothesis testing is a type of statistical inference, which examines the claim

about a population based on the information obtained in the random sample.

At the end of the lesson, you should be able to:

1. determine the steps in hypothesis testing; and
2. analyze the cases in hypothesis test about means specifically on test
about means, test between two sample means, test about single
proportion, and test about two proportions.

STEPS IN HYPOTHESIS TESTING

The goal of hypothesis testing is to determine the likelihood that a population
parameter, such as the mean, is likely to be true. The following are the four steps of
hypothesis testing:
Step 1: State the hypothesis. We begin by stating the value of a population mean
in a null hypothesis, which we
presume is true. Keep in mind
Note: In hypothesis testing, we
that the only reason we are testing the
conduct a study to test whether
null hypothesis is because we think it
the null hypothesis is likely true.
is wrong. We state what we think is
wrong about the null hypothesis in an
alternative hypothesis.

Step 2: Set the criteria for a decision. To set the criteria for a decision, we state
the level of significance for a test. In hypothesis testing, we collect data to show
that the null hypothesis is not true, based on the likelihood of selecting a sample
mean from a population. The likelihood or level of significance is typically set at
5% in behavioral research studies. When the probability of obtaining a sample
mean is less than 5% if the null hypothesis were true, then we conclude that the
sample we selected is too unlike and so we reject the null hypothesis.
Step 3: Compute the test statistics. We use test statistic to determine the
likelihood of obtaining sample outcomes. The larger the value of the test statistic,
the further the distance, or number of standard deviations, a sample mean is from
the population mean stated in the
null hypothesis. The value of the test
Note: We use the value of the
statistic is used to make a decision in
test statistic to make a decision
Step 4.
regarding the null hypothesis

Step 4: Make a decision. We use the value

of the test statistic to make a decision about the null hypothesis. The decision is
based on the probability of obtaining a sample mean, given that the value stated in
the null hypothesis is true. If the probability of obtaining a sample mean is less
than 5% when the null hypothesis is true, then the decision is to reject the null
hypothesis. If the probability of obtaining a sample mean is greater than 5% when
the null hypothesis is true, then the decision is to retain the null hypothesis. In sum
there are two decisions a researcher can make:
1. Reject the null hypothesis. The sample mean is associated with a low
probability of occurrence when the null hypothesis is true.
2. Accept the null hypothesis. The sample mean is associated with a high
probability of occurrence when the null hypothesis is true.

The probability of obtaining a sample mean, given that the value stated in the
null hypothesis is true, is stated by the p-value. The p-value is a probability: it
varies between 0 and 1 can never be negative. In step 2, we stated the criterion or
probability of obtaining a sample mean at which point we will decide to reject the
value stated in the null hypothesis, which is typically set at 5% in behavioral
research. To make decision, we compare the p value to the criterion we set in
Step 2.

A p-value is the probability of obtaining a sample outcome, given that the

value stated in the null hypothesis is true. The p value for obtaining a sample
outcome is compared to the level of significance.
Significance, or statistical significance, describe a decision made
concerning a value stated in the null hypothesis. When the null hypothesis is
 rejected, we reach significance. When the null hypothesis is retained, we fail to
reach significance.

When the p value is less than 5% (p<.05), we reject the null hypothesis. We
will refer to p<.05 as the criterion for deciding to reject the null hypothesis,
although note that when p = .05, the decision is also to reject the null hypothesis.
When the p value is greater than 5% (p > .05), we retain the null hypothesis. The
decision to reject or retain the null hypothesis is called significance. When the p
value is less than .05, we reach significance; the decision is to retain the null
hypothesis. Figure 5.6 shows the four steps of hypothesis testing

FIGURE 5.7 A Summary of Hypothesis Testing

HYPOTHESIS TEST ABOUT MEANS

In testing hypothesis about means, the following conditions must be met: first,
the sample sampling procedure used is simple random sampling; second, the
sample is drawn from normal or approximately normal population.
 Sampling distribution is approximately normal when any of the following
conditions are applied.

1. The population is normally distributed.

2. The sample size is at most 15 and the sampling distribution is symmetric,
unimodal, and without outliers.
3. The sample size is between 16 and 40 and the sampling distribution is
moderately skewed, unimodal, and without outliers.

In this case, z-test will be used when the population standard deviation is
known. Whereas utilize the t-test when the population standard deviation is not
known in the given distribution or problem and the number of cases is less than 30.

Using z-test, consider the following assumptions: the distribution is normal;

n>30; and known σ (z-value is the distance from the mean in relation to the standard
deviation).

In this section, some of the different cases in testing hypothesis shall be

discussed. The first case is hypothesis testing about means (comparing population
mean and sample mean when n≥30 or n<30). The second case is testing the
difference between two sample means.
CASE 1. Hypothesis Testing About Means (Comparing Population and Sample
Means)

z-test
ẋ−µ Where:
𝑧= 𝜎 z is the z-test value
√𝑛 µ is the value of the population mean
ẋ is the sample mean
σ is the population standard deviation
n is the number of case, n≥30

t-test
ẋ−µ Where:
𝑡= 𝑠 t is the t-test value
√𝑛 µ is the value of the population mean
ẋ is the sample mean
s is the sample standard deviation
n is the number of case, n<30

Example:
PLJ Corporation is a company that produces RGC brand of laundry soap and
uses a machine to package 425 grams per pack. Assume that the net weight is
normally distributed with a population standard deviation of 8.5 grams. A researcher
randomly selected 32 packs of RGC brand of laundry soap with net weight of 430
grams. Can be conclude that the packaging machine functioned properly? Test the
significance at 0.05 level.

Solution:
Given:
µ 425 grams
ẋ 430 grams
σ 8.5 grams
α 0.05
Step 1. State the hypotheses.
H0 : µ = 425 grams or the mean weight is 425 grams.
H1 : µ > 425 grams or the mean weight is greater than 425 grams.
Step 2. Set the criteria for a decision (α).
α =0.05
Step 3. Select and compute the appropriate test statistic when it is not stated in
the problem.
Use the z-test because the population standard deviation is
given and n=32. Consider one-tailed test because the H1 is directional
alternative hypothesis.
Solution:

ẋ−µ
𝑧= 𝜎
√𝑛
430 − 425
𝑧=
8.5
√32
5
𝑧=
1.5026
𝒛 = 𝟑. 𝟑𝟑

Step 4. Make a decision. Compare the value of the test statistic and the critical value
obtained from α.
The critical value of z=1.645 at α=0.05 and the computed value of
z=3.33.
The computed value of z=3.33 is greater than the critical value = 1.645;
hence, the null hypothesis is rejected. In other words, the computed value of
z=3.33 lies within the rejection region. Based on the given information, the
packaging machine does not function properly.

Z = 1.645 Z = 3.33
α = 0.05

FIGURE 5.8 Graph of z = 1.645 and z = 3.33

CASE 2. Test Between Two Sample Means
In testing hypothesis when two means are given, use either z-test r t-test. Use
z-test when the population standard deviation is known and n≥30. Se t-test when the
population standard deviation is unknown and n<30. In this text, there are two cases
presented.

z-test Independent Samples

ẋ1 − ẋ2 Where:
𝑧= 𝑧 is the z-value
𝜎12 𝜎22 ẋ1 is the mean of the first sample
√
𝑛1 + 𝑛2 ẋ2 is the mean of the second sample
𝜎12 is the population variance of the first
sample
𝜎22 is the population variance of the second
sample
𝑛1 is the number of cases of the first sample
𝑛2 is the number of cases of the second
sample
t-test Independent Samples
ẋ1 − ẋ2
𝑧=
𝑠2 𝑠2 Where:
√ 1+ 2
𝑛1 𝑛2 𝑡 is the t-value
ẋ1 is the mean of the first sample
ẋ2 is the mean of the second sample
𝑠12 is the sample variance of the first sample
𝑠22 is the sample variance of the second
sample
𝑛1 is the number of cases of the first sample
𝑛2 is the number of cases of the second
sample

Example:
A group of researchers of a certain university conducted a research on the
perception of consumers about ABC product with two (2) different places. A random
sample of 125 respondents from the first group found out to have a sample mean of
85 with a variance of 14. A random sample of 150 respondents from the second
group found out to have a sample mean of 87 with a variance of 10. At α=0.05, is
there a difference between the two means?
Solution:
Step 1. State the hypotheses.
H0: ẋ1 = ẋ2
H1: ẋ1 ≠ ẋ2
Step 2: Set the criteria for a decision.
α=0.05
Step 3. Select and computer the appropriate test statistic when it is not stated
in the problem.

Use z-test of two means and utilize two-tailed test since the
alternative hypothesis is non-direction.

ẋ1 − ẋ2
𝑧=
𝜎12 𝜎22
√
𝑛1 + 𝑛2

85 − 87
𝑧=
√ 14 + 10
125 150
−2
𝑧=
√0.1787
−2
𝑧=
0.4227
𝑧 = −4.731

Step 4. Make a decision.

The critical value of z=-1.645 at α=0.05 and the computed value
of z=04.4731. Reject the null hypothesis because the computed value
of z=-4.731 lies at the rejection region. There is a significance
difference between the two sample means.

2. Given: ẋ1 = 118, ẋ2 = 115, 𝑠12 = 5, 𝑠22 = 9, 𝑛1 = 16, 𝑛2 = 10

Step 1. State the hypothesis
Ho : ẋ1 = ẋ2
H1 : ẋ1 = ẋ2
 Step 2: Set the criteria for a decision.
α= 0.01
Step 3. Select and compute the appropriate test statistic when it is not
stated in the problem

Use t-test of two means and utilize two-tailed test since the
alternative hypothesis is non-direction.

ẋ1 − ẋ2
𝑡=
𝑠12 𝑠22
√
𝑛1 + 𝑛2

118 − 115
𝑡=
√5 + 9
16 10

3
𝑡=
√1.2125

3
𝑡=
1.1011

𝒕 = 𝟐. 𝟕𝟐𝟓

Step 4. Make a decision

Based on the given data, it failed to reject the null hypothesis.

Hence, accept the null hypothesis. The is no significant difference
between the two means.

Case 3. Test About Single Proportion

Hypothesis testing about the means has been discussed. Now let us consider
the test about single proportion. The process in finding hypothesis testing about
single proportion is the same although there is a need to consider this formula:
 Test about Single Proportion

𝑝−𝑝 Where:
𝑧= p is the sample proportion
𝑝𝑞 p is the population proportion
√
𝑛 q is 1 – p
n is the number of cases

Example:
The owner of XYZ Corporation claims that more than 65% of their toy
products will last for two months. To test this claim, a researcher randomly selected
200 toys and found out that 150 of them lasted for two months. Test the claim at α =
010 level of significance.

Solution:

Step 1. State the hypothesis.

Ho : µ = 65%

H1 : µ > 65%

Step 2: Set the criteria for a decision.

α = 0.10

Step 3. Select and compute the appropriate test statistic when it is not stated
in the problem.

𝑝−𝑝
𝑧=
𝑝𝑞
√
𝑛

75% − 65%
𝑧=
√(65%)(35%)
200

0.10
𝑧=
0.0337

z = 2.97
 Step 4. Make a decision.

The computed value of z = 2.97 is greater than the

critical value = 1.28; hence, it rejected the null hypothesis. In other
words, the computed value of z = 2.97 lies within the rejection region.
Reject the null hypothesis. There is a significant difference between the
proportions.

Case 4. Test About Two Proportions

𝑃1 − 𝑃2 Where:
𝑧=
𝑃1 𝑄1 𝑃2 𝑄2 Q1 = 1 – P1
√ +
𝑛1 𝑛2
Q2 = 1 – P2

Example:

A group of researchers made a survey regarding the proportion of male and

female holding an executive position in certain company. In a sample of 250 male
officers, 225 hold an executive position. In a sample of 150 female officers, 120 hold
an executive position. Is there a significant difference between the proportion of male
and female officers holding an executive position? Use α = 0.01 level of significance
to test the claim.

Solution:

Step 1. State the hypothesis.

H0 : P1 = P2

H1 : P1 ≠ P2

Step 2: Set the criteria for a decision.

α = 0.01

Step 3. Select and compute the appropriate test statistic when it is not stated
in the problem.
 Use z-test of two proportions and use two-tailed test because H1 is
expressed in non-directional alternative
hypothesis.
225
P1 = 250 = 90%
𝑷𝟏 − 𝑷𝟐
𝒛=
𝑷𝟏 𝑸𝟏 𝑷𝟐 𝑸𝟐 n1 = 250
√
𝒏𝟏 + 𝒏𝟐 120
P1 = 250 = 80%
90% − 80%
𝑧= N2 = 150
√(90%)(10%) + (80%)(20%)
250 150

10%
𝑧=
√0.036 + 0.0011

10%
𝑧=
√0.00146

𝒛 = 𝟐. 𝟔𝟏𝟖

Step 4. Make a decision.

The computed value of z = 2.618 is greater than the critical

value = 2.575; hence, it rejected the null hypothesis. In other words, the
computed value of z = 2.618 lies within the rejection region. Reject the null
hypothesis. There is a significant difference between the two sample
proportions.

EXERCISES
CONCEPTS AND PROCEDURES
1.1. Present and explain the different steps in testing hypothesis.
1.2. Present and explain the different cases in hypothesis testing.
1.3. Explain the meaning of the level of significance 1%, 5%, and 10%.

APPLICATIONS
1.4. According to the result of a research conducted by BS Economics
students of a certain university, 25% of the female teenagers aged 13 –
 19 whose family belong to poverty level got married at the age of 17. To
validate this claim, another group of researchers got a random sample of
250 female teenagers aged 13 – 19 years old whose family belong to
poverty level, and 55 of them got married at the age of 17. Is there
enough evidence that the proportion of female teenagers aged 13 – 19
got married at the age of 17? Test at α = 0.05.

1.5. An economist claims that the mean monthly family income of a family
that belongs to poverty level is Php11,500.00. A group of researchers
gets a sample of 100 families living within the squatter area of RL City.
Assuming that their salaries are normally distributed with mean monthly
income of Php12,750.00 with a standard deviation of Php125.00, test the
claim at α = 0.01.

1.6. Suppose that a researcher interviews 500 new registered voters who will
vote for the 2016 Presidential elections. Out of 500 new voters, 270 of
them will vote for a candidate with a good program for education and
environment. Is there a sufficient piece of evidence that suggests a
candidate with good program for education and environment will win the
presidential elections? Test at 0.05 level of significance.

1.7. The following hypotheses are given:

Ho : ẋ1 = ẋ2
Ho : ẋ1 ≠ ẋ2
A group of marketing students from the University of Excellence
conducted a research on the perception of consumers about XYZ product in
two different places. A random sample of 88 respondents from the first group
was found out to have a sample mean of 90 with standard deviation of 7.5. A
random sample of 112 respondents from the second group was found out to
have a sample mean of 92 with a standard deviation of 12.5. At 0.01 level of
significance, is there a significant difference between the two means?

SUMMARY
 A test of hypothesis is a procedure based on a random sample of observation
with a given level of probability of committing an error in making decision, whether
the hypothesis is true or false. In hypothesis testing, we first formulate the
hypotheses to be tested. There are two kinds of statistical hypothesis discussed in
this chapter, the null and the alternative hypothesis. A null hypothesis is the
statement or claim or conjecture to be tested while an alternative hypothesis is the
claim that is accepted in case the null hypothesis is rejected. As discussed in this
chapter, there are two actions that one can make on the hypothesis testing. One can
either reject or fail to reject (accept) a hypothesis. There are no errors committed
when we reject a false hypothesis and when we fail to reject a true hypothesis. On
the other hand, an error is committed when we reject a true hypothesis and such
error is called a Type I error. Also, when we fail to reject (accept) a false hypothesis,
we are committing a Type II error.

There are four steps discussed in this chapter on testing hypothesis. First, we
formulate the hypothesis to be tested, the null and alternative hypothesis. Second
step is to state the decision rule that we will follow in making a decision on whether
to reject or accept the null hypothesis. Level of significance is set this step, usually
researchers or statistician set α equal to 0.05. The third step is then to compute the
appropriate test statistic; in this step the gathered evidences are presented. Fourth
step is to make a decision, compare the value of the test statistic and the critical
value obtained from α. The decision rule to make decision whether to reject or
accept the null hypothesis. Conclusions or interpretation of the result are made
which are in relation to the purpose of the test of hypothesis.
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