Sample Problem A clothing store owner believes that the mean income of its customers is P30,000 per month.

One-hundred fifty customers are randomly selected and asked of their monthly income. The sample mean is P30,500 per month and the SD is P4,200. Is there a sufficient evidence to indicate that the mean income of the customers of the store is P30,000 per month? Use =0.05. One tailed Test 1. State the null and alternative hypotheses. Ho: The average income of the customers is P30,000 per month (=30,000). Ha: The average income of the customers is greater than P30,000 per month (>30,000). 2. Specify the level of the significance. Use =0.05. 3. Determine the test statistic. Z test using one sample shall be used, since n = 150 (n 30). At =0.05, the Ztabular = 1.645 for a onetailed test. 4. Compute the value of Zcomputed. Zc=

5. Make a decision. | The | | | Since the is less than the , accept the null hypothesis (Ho) and reject the alternative hypothesis (Ha). 6. State the conclusion. The clothing store owners claim that the average income of the customers is P30,000 is true at =0.05. Two-tailed test 1. State the null and alternative hypotheses. Ho: The average income of the customers is P30,000 per month (=30,000). Ha: The average income of the customers is not equal to P30,000 per month (30,000). 2. Specify the level of the significance. Use =0.05. 3. Determine the test statistic. Z test using one sample shall be used, since n = 150 (n 30). At =0.05, the Ztabular = 1.96 for a two-tailed test. 4. Compute the value of Zcomputed. Zc=

5. Make a decision. | The | | | Since the is less than the , accept the null hypothesis (Ho) and reject the alternative hypothesis (Ha). 6. State the conclusion. The clothing store owners claim that the average income of the customers is P30,000 is true at =0.05. Sample A and Sample B Ho: The average income of Sample A is equal to the income of Sample B (1=2). Ha: The average income of Sample A is not equal to the income of Sample B (12).