Z TEST

Definition:
• A Z-test is a statistical test for which
the distribution of the test
statistic under the null
hypothesis can be approximated by
a normal distribution.
Assumptions:
Z test is based on the following
assumptions:

1. The sampling distribution of a sample

stastic is approximately normal.
2. Values given by the samples are
sufficiently close to the population
value and can be used in its place for
the standard error of the estimate.
Factors Influencing Power:
 Alpha (a). Alpha and beta are inversely related. In
other words, as one increases, the other decreases
(i.e., a ´ b = K). Thus, all other things being equal,
using an alpha of .05 will result in a more powerful
test than using an alpha of .01.
 Sample Size (N). The bigger the sample, the more
powerful the test.
 Type of Test. Metric tests compared
to nonparametric tests are generally more powerful
due to assumptions that are more restrictive.
 Test Directionality. One-tailed tests have the
potential to be more powerful than two-tailed tests.
Applications:
When a sample size is greater
than or equal to 30. There are four
tests in Z test for testing the
significant difference between,
1. Population mean & Sample mean.
2. Two sample mean .
3. Population proportion & Sample
proportion.
4. Two Sample Proportions.
 Numerical Example

Testing Hypothesis about Population mean:

 The mean lifetime of a sample of 100 light tubes produced by a
company is found to be 1,580 hours with the standard deviation
of 90 hours. Test the hypothesis that the mean lifetime of the
tubes produced by the company is 1,600 hours.

Solution:
x = 1580 hrs
µ = 1600 hrs
n = 100
s = 90 hrs.
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Null Hypothesis:
There is no significant diference between the
sample mean & Population mean.
i.e., H0: µ = µ0
Alternate Hypothesis:
H1 : µ ≠ µ0
Test Statistics:
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where standard error,α = s/√n

= 2.22
Level of significance at 5% for two tail test is 1.96.
Decision :
Since the calculated value > table value,reject H0.
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Conclusion:
The Mean lifetime of the tubes produced
by the company may not be 1,600 hours.
Limitations: