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¡ There are two actions that one can make on the hypothesis.
One can either reject or fail to reject (accept) a hypothesis. The
table below shows these actions:
ACTION HYPOTHESIS IS HYPOTHESIS IS
TRUE FALSE
REJECT THE HYPOTHESIS ERROR COMMITTED NO ERROR COMMITED
4
LESSON 4: LEVEL OF SIGNIFICANCE (a) – TYPE ONE ERROR
Example.
When α=0.10, there is a 10% chance of rejecting a true Ho
when in fact it is true.
5
LESSON 4: LEVEL OF SIGNIFICANCE (a)- TYPE OF TEST
TYPE OF TEST:
¡ One- Tailed Test
¡ Two-Tailed Test
6
LESSON 4: LEVEL OF SIGNIFICANCE (a)- TYPE OF TEST
9
LESSON 4: LEVEL OF SIGNIFICANCE (a)- TYPE OF TEST
Given: 𝜇0 = 100
n = 80
𝐻! : 𝜇 ≤ 100
𝑥̅ = 110
𝜎=5 𝐻" : 𝜇 > 100
Type of Test: One-tailed Test (right tail)
∝ = 1% = 0.01
11
LESSON 4: LEVEL OF SIGNIFICANCE (a)
Given: 𝜇0 = 20
n = 45
𝐻! : 𝜇 = 20
𝑥̅ = 14
𝜎=5 𝐻" : 𝜇≠20
Type of Test: Two-tailed Test
∝ = 10% = 0.10
12
LESSON 4: LEVEL OF SIGNIFICANCE (a)
Given: 𝜇0 = 0.78
n = 20
𝐻! : 𝜇 = 0.78
𝑥̅ = 0.62
s = 0.14 𝐻" : 𝜇 < 0.78
Type of Test: One-tailed Test (left tail)
∝ = 1% = 0.01
13
14
LESSON 5: P-VALUE ≫≫ DECISION MAKING
Ø Two-tailed Test:
Syntax: = T.Dist.2T(/t/,df)
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LESSON 6: P-VALUE FOR T-TEST
∝ = 1% v. Since p-value ≤ 𝛂
0.98% ≤ 1%
23
Thus, reject Ho
LESSON 6: P-VALUE FOR T-TEST
∝ = 5% v. Since p-value ≤ 𝛂
4.39% ≤ 5%
25
Thus, reject Ho
26
Ho: Mathematical Sentence Form:
Form:
Newly graduate students receive an average salary
𝜇 = 1𝑀 of 1M pesos per year.
WORD PROBLEMS
27
Ho: Mathematical Sentence Form:
Form:
The average time to find a parking space on campus
𝜇 ≥ 30 𝑚𝑖𝑛. is at least 30 minutes.
WORD PROBLEMS
Ha: Mathematical Sentence Form:
Trying to encourage people to stop Form:
The average time to find a parking space on campus
driving to campus, the university 𝜇 < 30 𝑚𝑖𝑛. is less than 30 minutes.
claims that on average it takes at least
30 minutes to find a parking space on
campus. “I don’t think it takes so long Type of Test
∝ Given Test Statistic
to find a spot. In fact I have a sample
of the last five times I drove to 10% One-tailed Test 30
𝝁𝟎 = _______ Computation
df (if applicable) P-value
campus, and I calculated that the 20
B = ________
𝒙
mean is 20 minutes with a s = 6 n-1 = 5-1 = 4 1.01%
minutes.” Perform a hypothesis
𝝈 = ________ t = -3.73
6
𝒔 = ________
testing with α = 1 % to see if the claim Conclusion Since 1.01% ≮ 1%
is correct. Thus, Reject Ho. 5
𝒏 = ________
-Driver’s claim is true.
28
Ho: Mathematical Sentence Form:
Form:
The average teacups sold per day is 500.
𝜇 = 500 𝑡𝑒𝑎𝑐𝑢𝑝𝑠
WORD PROBLEMS
A tea stall near a certain university is Ha: Mathematical Sentence Form:
making a sales of 500 teacups per Form:
day. Because of the development of The average teacups sold per day is more than 500.
𝜇 > 500.
MRT nearby , it expects to increase
its sales. During the first 12 days after
the start of the MRT, the daily sales
were recorded which are as under: ∝ Type of Test Given Test Statistic
550, 570, 490, 615, 505, 580, 570, 5% One-tailed Test 500
𝝁𝟎 = _______ Computation
df (if applicable) P-value 548
460, 600, 580, 530, 526 B = ________
𝒙
n-1 = 12-1 = 11 0.22%
On the basis of this sample 𝝈 = ________ t = 3.56
information, can one conclude that
Since 0.22% < 5% 𝒔 = 46.69
________
that the tea stall’s sales have Conclusion
increased? Use 5% level of Thus, reject Ho. 12
𝒏 = ________
significance.
-A tea stall is selling more than
500 teacups.
29
Ho: Mathematical Sentence Form:
Form:
Monthly electricity consumption in the country is at
𝜇 ≥ 248 𝑘𝑤ℎ least 248 kwh.
WORD PROBLEMS
Ha: Mathematical Sentence Form:
Form:
It was reported that the mean Monthly electricity consumption in the country is less
household electricity consumption 𝜇 < 248 𝑘𝑤ℎ than 248 kwh.
in the country is at least 248 kwh
per month with a standard deviation
of 32 kwh. A random sample of 76
households has a mean electricity ∝ Type of Test Given Test Statistic
consumption of 238 kwh pe month. 248 Computation
10% One-tailed Test 𝝁𝟎 = _______
At 10% alpha, is there enough df (if applicable) P-value
evidence to reject the claim that the 𝒙 238
B = ________
mean household electricity n/a 0.33% 32
𝝈 = ________
consumption is at least 248 kwh per z = -2.72
month? Conclusion Since 0.33% ≤ 10% 𝒔 = ________
Thus, Reject Ho. 76
𝒏 = ________