One Sample Hypothesis Testing

One Sample Hypothesis

Numerical and Verbal Hypothesis

Hypothesis testing is widely used by most people and many different types of businesses to test assumptions or theories. The research question in which a research hypothesis was formed is from using CIA Global Demographics Data Set. One population shows the life expectancy at birth (University, CIA 2009). One can assume that countries with high life expectancies (65 years of age or older) should have higher literacy rates, due to the natives being able to educate themselves on how to care for his, or her own health and well-being. With this assumption the hypothesis question raised is: Do countries with high life expectancies have 95% or greater literacy rates? With this question the numerical hypothesis statement reads, that if the null hypothesis is rejected or proven false, then the alternative hypothesis holds true. The alternative would mean that countries with life expectancy from birth (over 65 years of age) will have literacy rates lower than 95%.

H0: µ ≤ 0.5

H1: µ > 0.5

5 Step Hypothesis Test

To put this assumption to the test the 5 step hypothesis test will be used. These steps involves stating the null and alternate hypothesis, selecting the level of significance, identifying the statistic, stating the decision rule, and finally taking samples and arriving at decisions. Each one of these steps will help us accept or reject our null hypothesis.

1. State the null and alternate hypothesis

The null hypothesis states that countries with a life expectancy of over 65 years of age have 95% or greater literacy rates. Our alternate hypothesis states the literacy rate would be lower than 95% in an area with a life expectancy of over 65 years of age. The research is relying on the assumption that all of the samples taken are over 65 we are considering only one side of the hypothesis distribution, thus making it a one tailed test.

2. Select the level of significance

The significance level...