Comparing the Sample Mean and the Population Mean in Large Sample Size

Steps in Testing the Hypothesis

Whenever we test hypotheses, we follow these steps.
Step 1: Identify the claim and formulate the null (Ho) and alternative (Ha) hypothesis.
Step 2: Set the level of significance and determine whether the test is one-tailed or two-tailed by looking at how the
alternative hypothesis is expressed. Decide on the test statistic to be used and find the critical value for the test. Draw or
illustrate the rejection region.
Step 3: Compute the test value, using the test statistic for formula for the test.
Step4: Make a decision whether to accept or reject the null hypothesis.
Step5: Formulate a conclusion by answering the research question.

Accepting or Rejecting the Null Hypothesis.

1. Determine the critical value, using appropriate statistical test.

2. Draw the rejection region and the critical value.
3. If the test value or the computed value falls in the rejection region, then reject the null hypothesis; otherwise,
accept the null hypothesis.

The z-test of One-Sample Mean

The z-test of one sample mean is used to compare sample mean and population mean. We use the z-score formula for sample means because we
are dealing with sample means. Thus, by the Central Limit Theorem we have

X
z= where
X =
X n
( X ) n Table 5.1: Critical Value of z
The formula can be written as z=
Type of Test Level of Significance
where, =0.01 =0.05
X = mean of the sample One-tailed 2.33 1.65
Two-tailed 2.58 1.96
= mean of the population
n= size of the sample
= standard deviation of the population
Example 1
A new drug on the market is claimed by its manufacturers to reduce overweight women by 4.55 kg per month with a standard deviation of 0.91 kg.
Ten women chosen at random have reported losing an average of 4.05 kg within a month. Does this data support the claim of the manufacturer at
0.05 level of significance?
Solution
Follow the five-step procedure in testing hypothesis.
Step 1: Ho: The average weight loss per month using a new drug is equal to 4.55 kg ( = 4.55)
Ha: The average weight loss per month using a new drug is not equal to 4.55 kg ( 4.55)
Step 2: Type of test: two-tailed or nondirectional test.
Critical value: With the use of table 5.1, = 0.05, two-tailed test, the critical value is
z=1.960.
Rejection Region:
Step 3: Compute the test value, using the formula or test statistics.
Given:
X = 26.2
=22.8
n = 70
= 4.6

Substitute the given values in the formula.

The population standard deviation is not known but we can use the sample standard deviation (s) to replace the population standard deviation
because the sample size is large ( n > 30)
( X ) n
Substitute the given values in the formula. z=

( X ) n
z=

Prepared by: Ms. Jealyn C. Flores

 (26.222.8) 70
=
4.6
z = 6.18
The test value or computed value is z = 6.18
Step 4: Decision: Since the computed value or test value does not fall within the rejection region, we accept the null hypothesis.
Step 5: Conclusion: There is no significant difference between the sample mean and the population mean. Thus, the treasurer of the firm can
conclude that the manager is incorrect in his estimate that the mean age of the employees is 22. 8 years.

Prepared by: Ms. Jealyn C. Flores