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Hypothesis Testing - Z and T-Tests

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HYPOTHESIS TESTING

Steps to follow when using Critical Value Approach

-
the observed value of test statistic is compare to critical values

1.

State the null and alternative hypotheses.2.

State the level of significance and the sample size.3.

Determine the appropriate test statistic and sampling distribution. Find the critical value that divides
thedistribution into rejection and non

rejection.4.

Collect the data, compute the value of the test statistic.5.

Compare the computed test statistic and the critical value, then make a decision and formulate your
conclusion.

I.

Testing a Claim about the Mean Using a Large and Small Samples (One sample group)

When a hypothesis test involves a claim about a population mean, then we will draw a sample and look
at the samplemean to test the claim. If the sample drawn is large enough (), then the Central Limit
Theorem applies, and thedistribution of sample means is approximately normal.

Note:

Since the null hypothesis must be of one of the followingtypes:






, or



, where

is a constant, we will always assume for the purpose of our test that



Case 1: Z

test of Hypothesis for the Mean, (

is known)

There are two methods we will use to determine whether

to reject or not reject the null hypothesis

, but in both cases itwill be more convenient to convert our sample mean
x

to a z-score which will be called our

standardized test statistic

.Since we are assuming



, we also have



, and so:

xx

xxzn

 

  

As long as



as assumed, the distribution of the standardized test statistic

z
 defined above will be the StandardNormal Distribution. (Note: Z test is specifically used for large
samples,

30

).

Example 1:

Suppose we believe that the mean body temperature of healthy adults is less than the commonly
acceptedmeasurement of

98.6

F and a standard deviation of 1.1°. A sample of 60 healthy adults is drawn with anaverage temperature
of

98.2

F. Test if the claim is true using 5% level of significance?

Step 1: Ho:

The mean body temperature of healthy adults is greater than or equal to 98.6°

(H

98.6



)Ha:

The mean body temperature of healthy adults is less than 98.6°

(H
o

98.6



)Step 2: Level of significance,

0.05,



and sample size

60

Step 3:

Choice of Statistic/Type of Test:

test for mean, one

tail test (left tail)

Step 4:
Critical Value:

since Ha indicates left tail test, Critical Value,

CV =

1.65

Step 5: Computation:

98.2 98.6 0.402.82.142/ 1.1/ 60

xzn



     

Step 6: Decision/Conclusion:

Since the computed z value (

2.82) falls within the rejection region, then we reject thenull hypothesis. In other words, since

2.82 1.65



, we reject H

. The data provide significant evidence toshow that the mean body temperature of healthy adults is
indeed less than the commonly accepted 98.6°. Thusthe claim is true.

Example 2:
The manager of a certain large department store wants to determine if the mean sale amount of all
sales on apromotion day is just the same with that on a regular day which is $78 with a standard
deviation of $25. On a specialholiday promotion day, the total purchase amount of 80 different
randomly selected sales has a mean of $82. Test thehypothesis at 10% significance level.

Step 1: Ho:

The mean sale amount of all sales on a promotion day is equal to that on a regular day which is $78.

: $78

)Ha:

The mean sale amount of all sales on a promotion day is not equal to that on a regular day which is $78.

: $78

)Step 2: Level of significance,

0.10,



and sample size

,
80

Step 3:

Choice of Statistic/Type of Test:

test for mean, two

tail test

30

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Step 4:

Critical Value:
since Ha is non

directional, Critical Value,

CV =

1.65

Step 5: Computation:

82 7801.43/ 25/

80

xzn



  

Step 6: Decision/Conclusion:

Since the computed z value (1.43) falls within the acceptance region, then we accept thenull hypothesis.
In other words, since

1.43 1.65

, we accept H

. There is significant evidence that the meansale amount of all sales on a promotion day is just the same
with that on a regular day which is $78. The meanof all sale amounts during the said days are just
comparable, at 10% significance and based on the samplesselected.

ACTIVITY # 1KINDLY REFER TO ITEM NOS. 9.46 (A

–
C) AND 9.47A IN PAGE 318 OF OUR TEXTBOOK. FOR SPSS ACTIVITY, KINDLYREFER TO 9.61 IN PAGE 324
AND 9.65 IN PAGE 325.

Case 2: T

test of Hypothesis for the Mean (

UNKNOWN)

In most hypothesis

testing situations dealing with numerical data, we do not know the population standarddeviation,

Instead, we use the sample standard deviation, s. If we assume that the population standarddeviation is
normally distributed, the sampling distribution will follow a

distribution

with

degrees of freedom.


If the population is not normally distributed, t

test can still be used, provided that the sample size is

large enough

for the Central Limit Theorem to take effect.

test of hypothesis for the mean

UNKNOWN):

xt s n



where

the test statistic

follows a t

–
distributionhaving n

1 degrees of freedom.

Example 1:

A company claims that the mean selling price for a certain type of imported sports car is $42,000. A
survey of 16randomly selected owners of such cars shows that they actually paid a mean of $44,200
with a standard deviation of$6,000 for their

cars. Test if the company’s claim is TOO LOW at 1% level of significance.

Step 1: Ho:

The mean selling price for a certain type of imported sports car is $42,000.

: $42,000

)Ha:

The mean selling price for a certain type of imported sports car is $42,000.

: $42,000


)Step 2: Level of significance,

0.01



and sample size

16

Step 3:

Choice of Statistic/Type of Test:

test for mean, one

tail test

Step 4:

Critical Value:

since Ha indicates an upper

tail test, Critical Value,

CV = 2.6025, with df = 15.

Step 5: Computation:

44200 420001.47/ 6000/ 16

xt s n

   

Step 6: Decision/Conclusion:

Since the computed z value 1.47 falls within the acceptance region, then we accept thenull hypothesis.
In other words, since

1.47 2.6025

, we accept H

. There is significant evidence that themean

selling price for a certain type of imported sports car is $42,000. Therefore, the company’s claim is not

too low at 1% significance level.

ACTIVITY # 2KINDLY REFER TO ITEM NOS. 9.55 & 9.57A IN PAGE 323 OF OUR TEXTBOOK. FOR SPSS
ACTIVITY, KINDLY REFER TO9.58A AND 9.59A IN PAGE 324.

II.

The P-Value Method

The

P-value

of a test is the probability of getting a test statistic equal to or more extreme than the sample result,
giventhat the null hypothesis, Ho is true. The p- value, often referred as the
observed level of significance,

is the smallest levelwhich Ho can be rejected.The rule we will use to decide whether to reject is:

Reject if

Do not reject if

Steps to follow:

1.

State the null and alternative hypotheses.2.

State the level of significance and the sample size.

0
H

3.

Determine the appropriate test statistic and sampling distribution.4.

Collect the data, compute the value of the test statistic and compute the p

value.5.

Make the statistical decision and state the managerial conclusion.

Example 1:

Suppose we believe that the mean body temperature of healthy adults is less than the commonly
acceptedmeasurement of

98.6

F and a standard deviation of 1.1°. A sample of 60 healthy adults is drawn with anaverage temperature
of

98.2

F. Test if the claim is true using 5% level of significance?

Step 1: Ho:

The mean body temperature of healthy adults is greater than or equal to 98.6°
(H

98.6



)Ha:

The mean body temperature of healthy adults is less than 98.6°

(H

98.6



)Step 2: Level of significance,

0.05,



and sample size

60

.
Step 3:

Choice of Statistic/Type of Test:

test for mean, one

tail test (left tail)

Step 4: Computation:

98.2 98.6 0.402.82.142/ 1.1/ 60

xzn



     

Step 5:

The P

value that z would be less than

2.82, that is



2.82 0.0024

Pz

 

.
Step 6: Decision/Conclusion:

Since the p-value (0.0024) is less than

0.05

, then we reject the null hypothesis. Thereis significant evidence that the mean body temperature of
healthy adults is indeed less than the commonlyaccepted 98.6°. Thus the claim is true.

Example 2:

The manager of a certain large department store wants to determine if the mean sale amount of all
sales on apromotion day is just the same with that on a regular day which is $78 with a standard
deviation of $25. On a specialholiday promotion day, the total purchase amount of 80 different
randomly selected sales has a mean of $82. Test thehypothesis at 10% significance level.

Step 1: Ho:

The mean sale amount of all sales on a promotion day is equal to that on a regular day which is $78.

: $78

)Ha:

The mean sale amount of all sales on a promotion day is not equal to that on a regular day which is $78.

: $78

H


)Step 2: Level of significance,

0.10,



and sample size

80

Step 3:

Choice of Statistic/Type of Test:

test for mean, two

tail test

Step 4: Computation:

78 8201.43/ 25/

80

xzn


   

Step 5:

Since this is a two

tail test, so we would find the P

value that z would either be less than

1.43 or greater than1.43, that is



1.43 1.43 0.0764 0764 0.1528

P z or z

    

Step 6: Decision/Conclusion:

Since the p

–value (0.1528) is greater than α (0.10)

, then we accept the null hypothesis.The data provide significant evidence that the mean sale amount of
all sales on a promotion day is just thesame with that on a regular day which is $78. The mean of all sale
amounts during the said days are justcomparable, at 10% significance and based on the samples
selected.

ACTIVITY # 3KINDLY REFER TO ITEM NOS. 9.57B IN PAGE 323 AND 9.63B IN PAGE 325 OF OUR
TEXTBOOK. FOR SPSS ACTIVITY,KINDLY REFER TO 9.58B AND 9.59 IN PAGE 324.

III.

Testing a Claim about a Population Proportion

(One sample group)

TEST OF HYPOTHESIS FOR PROPORTION

a comparable technique for testing claims regarding a population proportion,

πorP

the ideas involving hypothesis testing for proportions are very similar to those for the means

our decision as to whether we reject the null hypothesis on

πorP

is based on a set of sample data. This consists ofeither

(sample size) and

(the sample proportion) or

n&x

(the number of successes) from which we find

p= x/n

When testing a claim about a population proportion, the null hypothesis has one of the following forms:,
, or so as with the mean, we will assume

the distribution of sample proportions is approximately normal provided that both



π 5 andn 1-π 5

with

pp

pp

pp

pp




p-Pz =P 1-Pn

where,

is the sample proportion,

is the population proportion &

is the sample size

Example 1.

A cereal company claims that two-thirds of all children prefer Rice Crunchies to Rice Flakies. In a sample
of

100 children, 55 prefer Rice Crunchies. Test if the company’s claim is overstated at the 5% level of
significance.

Step 1: Ho:

Two-thirds of all children prefer Rice Crunchies to Rice Flakies.

(Ho:

2/3

)Ha:
Less than two

thirds of all children prefer Rice Crunchies to Rice Flakies.

(Ha:

2/3

Step 2: Level of significance,

0.05,



and sample size

100

Step 3:

Choice of Statistic/Type of Test:

Z-test proportion/one tail test

Step 4:
Critical Value:

since Ha indicates lower tail test, Critical Value,

CV =-1.65

Step 5: Computation:



0.55-0.667z =0.667 1-0.667100

-2.49

,Since x = 55 and n = 100 so p = 55% and

P=2/3=0.666 0.667

Step 6: Decision/Conclusion:

Since the computed Z

value

2.49

is greater than the

critical value

1.65

,
reject Ho.

Therefore, based on the sample data we conclude that the company’s claim regarding the proportion of

children who prefer Rice Crunchies to Rice Flakies is overstated at 5% level of significance.

Example 2.

A drug rehabilitation center claims that at most 22% of its patients who are certified as drug

free suffer arelapse within 2 years. A study of 35 randomly selected graduates of the program shows
that 10 have goneback to drugs within 2 years. Test if the claim is overstated at the 1% level of
significance.

Step 1: Ho:

At most 22% of a drug rehabilitation center’s patients who are certified as drug–

free suffer a relapsewithin 2 years.

(Ho:

22%

)Ha:

More than 22% of a drug rehabilitation center’s patients who are certified as drug–

free suffer a relapsewithin 2 years.

(Ha:

22%

Step 2: Level of significance,

0.01,



and sample size

35

Step 3:

Choice of Statistic/Type of Test:

Z-test proportion/one tail test

Step 4:

Critical Value:

since Ha indicates upper tail test, Critical Value,

CV =2.33

Step 5: Computation:



35

0.2857-0.22z =0.22 1-0.22

0.94

, since x = 10 and n = 35 so p = 28.57 % and P = 22%.

Step 6: Decision/Conclusion:

Since the computed Z

value (0.94)

is lesser than the

critical value (2.33),

accept Ho.

Therefore, based on the sample data, we conclude that the drug

rehabilitation center’s claim regarding the

proportion of their patients who are certified as drug free yet still suffer a relapse within 2 years is
notoverstated at 5% level of significance. The data gathered justified that the true proportion of at most
22%.

ACTIVITY # 4KINDLY REFER TO ITEM NOS. 9.71 AND 9.75 IN PAGE 329 OF OUR TEXTBOOK. FOR SPSS
ACTIVITY, KINDLY REFER TO9.71 AND 9.75 IN PAGE 329.IV.

DIFFERENCE OF MEANS: HYPOTHESIS TESTS AND ESTIMATION

This permits us to compare two different groups to see if they represent different populations of if they
areessentially equivalent with respect to a particular parameter.

In this case, we’ll have two different populations with potentially different means,
12

μ and μ

. These two populationshave two standard deviations,

12

σ andσ

. We seek to determine whether any of the following hypotheses would betrue :

12

H:

μ =μ ;

12

H:

μμ;

12

H:

μμ

12

a


H:

μμ;

12

H:

μ >μ

12

or H :

μ<μ.

To perform this hypothesis test, we need two separate independent random samples, one drawn from
eachpopulation. Thus the sample date give:

11 1

,,

nxs

from the first group and

22 2

,,

nxs

from the second group. Weconsider the difference between the means of these two samples:
12

xx

. The set of all such differences of samplemeans from the two populations forms a new sampling
distribution known as the

distribution of differences ofsample means.

CASE 1: Z

TEST FOR THE DIFFERENCE BETWEEN TWO MEANS(

1212

n30andn30 and

≥ ≥ and σ are known

The distribution of differences of sample means is approximately normal with mean:

12

12

xx

  

and standarddeviation

12
2 21 21 2

xx

nn

  

, provided that both

12



n 30 andn 30.

When we work with this normal distribution for differences of sample means, the

z values

are calculated according tothe formula:





12

1 2 1 2x -x

x -x -

μ -μ

z=

where

12
2 21 2x -x1 2

σ σσ = +

nn

. Since the null hypothesis asserts that

12

 

or

12

  

, this formula reduces to

12

1 2x -x

x -xz =

EXAMPLES

1. A study is made comparing the prices asked for existing one

family homes in two adjacent communities. In CollegeHeights, the mean asking price for a random
sample of 50 homes is $142,000 with a standard deviation of $30,000. InUniversity Gardens, the mean
asking price for a random sample of 35 homes is $168,000 with a standard deviation of$40,000. Test
whether there is a difference in the mean asking prices for homes in these two areas at the 5% level
ofsignificance.

HypothesesHo:

There is no significant difference in the mean asking prices for homes in these two adjacent
communities.
12



Ha:

There is a significant difference in the mean asking prices for homes in these two adjacent communities.

12



Level of Significance and sample sizes

12

α = 0.05,n = 50 andn = 35

Choice of Statistic and Type of Test

Since both

12

n > 30 andn > 30,

we use Z
–

test mean difference and since

Ha

indicates that

12



, the problementails a two

tail test.

Critical Value

Using

are

α = 0.05, two tail test,Critical Values 1.96.

Computation

Given Data:

111



n = 50CollegeHeights x =142,000s 30,000

and

222


n = 35University Gardens x =168,000s 0,000

=4

22

1 22 21 21 2

142,000-168,000z = -3.2630,000 40,000+50 35

x -x=s s+n n

Decision/Conclusion

Since the computed z

-3.26

> the critical value

-1.96

reject Ho

There is a significant difference in the meanasking prices for homes in these two adjacent communities.
Since the computed z is (

3.26), there is sufficient evidencethat the mean asking price for homes in College Heights subdivision is
lower than that in the University Gardens.2. A study is made comparing wages paid to women and men
holding comparable jobs in a large company. A random sampleof 100 women are paid a mean hourly
wage of P315.25 with a standard deviation of P71.34 while a random sample of 75men are paid a mean
hou

rly wage of P350.61 with a standard deviation of P80.48. Do these data constitute “proof” that,

on the average, women are paid less than men at the 5% level of significance?
HypothesesHo:

There is no significant difference in the mean hourly wage paid to women and men who are holding
comparable jobs in a large company. In symbol,

owm

 

Ha:

On the average, women are paid less than men. In symbol,

awm



Level of Significance and sample sizes

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wm

α = 0.05,n =100 andn = 75

Choice of Statistic and Type of Test

Since both

12

n > 30 andn > 30,

we use Z

test mean difference and since

Ha

indicates that

wm



, the problementails a one

tail test.

Critical Value

Using

one

α=0.05,tailtest,Critical Value is -1.65.

Computation

Given Data:

www



n =100Women x = 315.25s 71.34

and

mmm



n = 75Men x = 350.61s = 80.48

22

1 22 21 21 2

315.25-350.61z = -3.0271.34 80.48+100 75

x -x=s s+n n

Decision/Conclusion

Since the computed z

-3.02

> the critical value

-1.65

reject Ho

. That is, women are seemingly paid lowerwages, on the average, than men in this organization at the
5% level of significance.
CASE 2: POOLED

VARIANCE T-TEST FOR THE DIFFERENCE BETWEEN TWO MEANS

Preferably used when

12

n < 30 andn < 30

though this can still be used for large samples as long as thepopulation variances are assumed equal

The t- value for this case is computed by the formula:

11

    

1 21 2

t=

x -x+n n

where



2 21 1 2 221 2

1 12

p
n s n s sn n

   

andwith degrees of freedom,

12

df n n



. The term,

arises because of the

assumption that the two populationshave equal variances.

To estimate, this common variance, it is necessary to combine or

pool

the information fromboth samples to get one single estimate of the unknown variance,

. We call this

pooled variance,

pool

s
EXAMPLES

1. A waitress at a yacht club restaurant conducts a study to compare the average amount of tips she
receives per person on a$20 dinner from sailboaters versus motorboaters. In a random sample of 28
sailboaters, she receives a mean of $3.80 with astandard deviation of $1.22. In a random sample of 24
motorboaters, she receives a mean of $4.22 with a standarddeviation of $1.04. Test if there is a
difference in the average tip at the 5% level of significance. (Assume that the populationvariances are
equal).

HypothesesHo:

There is no significant difference in the average amount of tip received by the waitress from sailboaters
andmotorboaters on a $20 dinner. In symbol,

osm



Ha:

There is a significant difference in the average amount of tip received by the waitress from sailboaters
andmotorboaters on a $20 dinner. In symbol,

asm



Level of Significance and sample sizes

sm

α = 0.05,n =28 andn =24

Choice of Statistic and Type of Test

Since both

12

n 30 andn 30,

<<

we use t

test mean difference for pooled variance and since

Ha

indicates that

sm



, the problem entails a two

tail test.

Critical Value

Using

28 24 2 50,

2.0086

two where df the critical values are




α = 0.05, tail test,

Computation

Given Data:

sss



n =28Sailboaters x = 3.80s 1.22

and

mmm



n = 24Motorboaters x = 4.22s =1.04

Computing for

first we have,

         

2 22 21 1 2 22p1

n -1 s + n -1 s 28-1 1.22 + 24-1 1.04s = = 1.32n +n -2 28+24-2

,
Thus the t

value,



11

       

1 21 2

3.80-4.22t = = -1.301 11.32 +28 24

x -x+n n

Decision/Conclusion

Since the computed t

-1.30

< the critical value

2.0086

accept Ho

.T
here is no significant difference in the averageamount of tip received by the waitress from sailboaters
and motorboaters on a $20 dinner at 5% level of significance.That is, on the average, sailboaters and
motorboaters gave comparably equal amounts of tip to the waitress.

CASE 3: SEPARATE VARIANCE T-TEST, WHEN

2 21 2



However, there are lots of real life situations, where

21

can not be assumed equal with

22

. In this case, t

he t- value iscomputed by the formula:

2 21 2

ss

1 21 2

t=

x -x+n n

with degrees of freedom,

22 21 21 22 22 21 21 21 2

11

df
s sn n s sn nn n

                

EXAMPLES

1. A waitress at a yacht club restaurant conducts a study to compare the average amount of tips she
receives per person on a$20 dinner from sailboaters versus motorboaters. In a random sample of 28
sailboaters, she receives a mean of $3.80 with astandard deviation of $1.22. In a random sample of 24
motorboaters, she receives a mean of $4.22 with a standarddeviation of $1.04. Test if there is a
difference in the average tip at the 5% level of significance.

(Suppose we cannot assumethat the population variances are equal).

HypothesesHo:

There is no significant difference in the average amount of tip received by the waitress from sailboaters
andmotorboaters on a $20 dinner. In symbol,

osm



Ha:

There is a significant difference in the average amount of tip received by the waitress from sailboaters
andmotorboaters on a $20 dinner. In symbol,

asm




H

Level of Significance and sample sizes

sm

α = 0.05,n =28 andn =24

Choice of Statistic and Type of Test

Since both

12

n 30 andn 30,

<<

we use t

test mean difference for separate variance and since

Ha

indicates that

sm



, the problem entails a two

tail test.

Critical Value

Using

two
α=0.05,tailtest

2 22 2 2 21 21 22 2 2 22 22 21 21 21 2

1.22 1.0428 2449.997 501.22 1.0428 2427 231 1

df

s sn n s sn nn n

                                

Critical values are

2.0086

Computation:

Given Data:

sss



n =28Sailboaters x = 3.80s 1.22

and

mmm



n = 24Motorboaters x = 4.22s =1.04

so

2 2 2 21 2

ss


1 21 2

3.80-4.22t = = -1.341.22 1.04+28 24

x -x+n n

Decision/Conclusion

Since the computed t

-1.34

< the critical value

2.0086

accept Ho

.T

here is no significant difference in the averageamount of tip received by the waitress from sailboaters
and motorboaters on a $20 dinner at 5% level of significance.That is, on the average, sailboaters and
motorboaters gave comparably equal amounts of tip to the waitress.

ACTIVITY # 5KINDLY REFER TO ITEM NOS. 10.7 PAGE 355, 10.11 IN PAGE 356 AND 10.12 IN PAGE 356 OF
OUR TEXTBOOK. FORSPSS ACTIVITY, KINDLY REFER TO 10.14 AND 10.18 IN PAGE 357.

V.

THE PAIRED

DATA TEST


This test is applied when two samples are linked or paired, that is, if they are

dependent.

In this test, we would me concern about the differences d of the two linked samples, that is, d = x

y. This consequentlyreduces to considering the mean of all possible differences d = x

y for all members of the population to see whether themean is actually zero.

To formalize these ideas, we introduce the following notations:

is the mean of all the possible d’s in the population

and

, their standard deviation. The null hypothesis is then formulated as

:0

Ho


. The alternative hypothesisis then formulated in any of the following forms depending on the type of
test:

:0

ad



:0

ad



or

:0

ad



This can also be used to determine whether there is any difference between two sets of measurements
on the sameindividuals or items.

The test statistic to be used for this case is known as

paired

data test

or the

paired t

test.

It is based on the teststatistics

dd

d t sn



, where

is the mean of all differences and

  

22

n d d sn n

 

with degree of freedom, df =n

1.


Note: T- test paired can still be used when n > 30.

EXAMPLES

1. A study is conducted to compare the pricing at two competing food stores. Twelve common grocery
items are chosen atrandom and the price (in dollars) of each is noted at the two stores, as follows:Item 1
2 3 4 5 6 7 8 9 10 11 12Store A 0.89 0.59 1.29 1.50 2.49 0.65 0.99 1.99 2.25 0.50 1.99 1.79Store B 0.95
0.55 1.49 1.69 2.39 0.79 0.99 1.79 2.39 0.59 2.19 1.99Test whether there is a mean difference in the
prices at the two stores at the 2% level of significance.

HypothesesHo:

There is no significant mean difference in the prices at the two stores.

Ho: 0



Ha:

There is a significant mean difference in the prices at the two stores.

Ha : 0

Level of significance and sample size

0.02, 12



Choice of Statistic/Type of Test

Since we want to determine if there is any difference of the two sets of measurements (prices) for the
same items, we’ll

use t

test paired data test and two tail test.

Critical Value

df = n

1 = 11, the critical value are

±2.718

Computation

Item d = x

1 -0.06 0.00362 0.04 0.00163 -0.20 0.04004 -0.19 0.03615 0.10 0.01006 -0.14 0.01967 0 08 0.20
0.04009 -0.14 0.019610 -0.09 0.008111 -020 0.040012 -0.20 0.0400

0.88

 

0.880.07312

  
2

0.2586



From this table, the standard deviation

      

2 22

12 0.2586 0.880.1331 12 12 1

n d d sn n

      

and the t

value is

0.0731.900.13312

dd

d t sn

   


Decision/Conclusion

Since the computed t

1.90

< critical value

2.718

, we cannot reject the null hypothesis. There is insufficientevidence to indicate any difference between
the average prices at the two stores at the 2% significance level.

ACTIVITY # 6KINDLY REFER TO ITEM NOS. 10.24 PAGE 366, AND 10.27 IN PAGE 367 OF OUR TEXTBOOK.
FOR SPSS ACTIVITY,KINDLY REFER TO 10.24 AND 10.27 IN PAGE 366

367.

Prepared By:

Mrs. Jennefer Mirafuentes PiramideBA100A Teacher

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