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Instructor: We are not done
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with hypothesis testing just yet.
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Remember how we started with confidence intervals
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for a single population mean and then switched
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to examples considering multiple populations?
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Well, we are in the same situation here.
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Single populations are just the beginning.
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Time to do multiple means.
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We will start with dependent samples.
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The most intuitive examples of dependent samples
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are the ones you have been through,
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like weight loss and blood tests.
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The sample is drawn from weight loss data
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or concentration of nutrients data
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but the subject of interest
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is the same person before and after.
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Okay, let's get to work.
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Do you recall our example with the magnesium levels
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in one's blood?
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There was this drug company developing a new pill
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that supposedly increased levels of magnesium of recipients.
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There were 10 people involved in the study
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that were taking the drug for some time
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and we calculated confidence intervals
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that helped us study the effects of that drug.
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They indicated the range of plausible values
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for the population mean.
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This time, we wanna come to a single definite conclusion
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about the effectiveness of the drug.
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All right, let's state the null hypothesis.
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The population mean before is greater
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or equal than the population mean after.
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The alternative is that the population mean before
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is lower than the one after.
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Once again, we wanna know
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if the magnesium levels are higher.
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We construct the null and alternative hypotheses
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in such a way so that we are aiming
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to reject the null hypothesis.
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We expect the levels to be higher
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so when the null hypothesis,
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we state then to be lower or equal.
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Okay, let's reorder a bit.
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H0 is mu before, which is equal or higher than mu after.
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This is equivalent to mu before minus mu after
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is equal to zero or positive.
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We can substitute this with capital D0.
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It stands for the hypothesized population mean difference.
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So we restate our hypotheses using D for simplicity.
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Now we have our test designed, let's crunch some numbers.
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Here's the dataset.
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We have 10 observations people
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have registered before and after.
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Naturally, the difference is equal to before minus after.
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We can calculate the sample mean of the difference.
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We get -0.33.
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The sample standard deviation is 0.45
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and the standard error is 0.14.
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The appropriate statistic to use here
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is the t-statistic.
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We have a small sample we assume normal distribution
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of the population and we don't know the variance.
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So the t-score is equal to the following expression.
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Now we can simply carry out the calculations
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and find that its value is -2.29.
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Since we don't wanna choose a level of significance,
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let's solve this problem with the p-value.
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In order to find the p-value of this one-sided test,
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we may go to the table
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and see it as somewhere between 0.01 and 0.025.
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As I told you earlier, using software is much easier.
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So after using an online p-value calculator,
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I can tell you that it is exactly 0.024.
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What was the decision rule again?
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If the p-value is lower
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than the significance level we are interested in,
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we reject the null hypothesis.
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Okay, so if the level of significance is 0.05,
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and the p-value is lower,
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we will be able to reject the hypothesis at 5%.
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If the level of significance is 0.01, however,
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the p-value is higher,
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so we cannot reject the null hypothesis
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at a 1% level of significance.
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The lowest value for which we can reject it is 0.0024,
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which is exactly the p-value.
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What does this tell us?
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Well, it is up to the researcher
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to choose the level of significance.
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In the case of the magnesium pill,
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we expect that the researcher
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will be very cautious
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as he would wanna know if this is an effective pill
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that will be able to actually help people.
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If we cannot say that the pill works
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at a 1% significance level,
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perhaps it is better to take it back to the laboratory.
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An alternative would be to test again
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and increase the sample size for better results.
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A sample of 100 people would improve the level
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of precision significantly.
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All right, so we've done some more hypothesis testing
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and we've explored some factors
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that helped you determine the significance level
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of the test.
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Stay with us for our next lesson
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where we will learn how to test independent samples.
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Thanks for watching.
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