11 SENIOR HIGH SCHOOL

STATISTICS
and PROBABILITY
Quarter 4 – Module 3
Identifying Rejection Region and
Hypothesis Testing on the Population
Mean
Statistics and Probability – Grade 11
Alternative Delivery Mode
Quarter 4 – Module 3: Identifying Rejection Region and Hypothesis Testing on
the Population Mean
First Edition, 2020

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 11

Statistics and
Probability
Quarter 4 – Module 3
Identifying Rejection Region
and Hypothesis Testing on the
Population Mean
 I

LEARNING COMPETENCIES:
• Identifies the appropriate rejection region for a given level of
significance when: (a) the population variance is assumed to be
known; (b) the population variance is assumed to be unknown;
and (c) the Central Limit Theorem is to be used
(M11/12SP-IVc-1)
• Computes for the test-statistic value (population mean)
(M11/12SP-IVd-1)
• Draws conclusion about the population mean based on the test-
statistic value and the rejection region (M11/12SP-IVd-2)
• Solves problems involving test of hypothesis on the population
mean (M11/12SP-IVe-1)

OBJECTIVES:
K: Identifies the appropriate rejection region for a given level of
significance;
S: Computes test-statistic and draw conclusion about population
mean; and
A: Values the significance of testing hypothesis in real-life
situations.

2
 I

Before studying this module, take this test to determine what you already know
about the topic covered.

PRE-ASSESSMENT

Select the best choice.

Consider the given situation.
The father of a senior high school student is listing down the expenses he will
incur when he sends his daughter to the university. At the university where he wants
his daughter to study, he hears that the average tuition fee is at least Php20,000 per
semester. He wants to do a test of hypothesis. Suppose from a simple random sample
of 16 students, a sample mean of Php19,750 was obtained. Further, the variable of
interest, which is the tuition fee in the university, is said to be normally distributed with
an assumed population variance equal to Php160,000 and level of significance
𝛼 = 5% 0𝑟 0.05.
1. What is the appropriate null hypothesis?
A. The average tuition fee in the targeted university is at most Php20,000.
B. The average tuition fee in the targeted university is at least Php20,000.
C. The average tuition fee in the targeted university is less than Php20,000.
D. The average tuition fee in the targeted university more than Php20,000.
2. What will be the appropriate alternative hypothesis?
A. The average tuition fee in the targeted university is less than Php20,000.
B. The average tuition fee in the targeted university is more than Php20,000.
A. The average tuition fee in the targeted university is at most Php20,000.
B. The average tuition fee in the targeted university is at least Php20,000
3. Identify the level of significance.
A. 5% B. 0.5% C. 0.10 D. 0.5
4. What kind of test will be used?
A. One-tailed test. B. Two-tailed test C. Three-tailed test D. No-tailed test
5. What test statistic to be used?
𝑥−𝜇 𝑥−𝜇 𝜇−𝑥 𝑥−𝜇
A. zc = 𝑠 B. tc = 𝑠 C. tc = 𝜎 D. zc = 𝜎
√𝑛 √𝑛 √𝑛 √𝑛
6. Find the value of the population standard deviation.
A. 𝜎 = 300 B. 𝜎 = 400 C. 𝜎 = 500 D. 𝜎 = 450
7. What is the tabular value of the level of significance or alpha?
A. -1.645 B. -1.546 C. -1.654 D. -1.456

3
 8. What is the appropriate decision rule?
A. Reject Ho if the ZC < -1.645. Otherwise, fail to reject the null hypothesis.
B. Reject Ho if the ZC < -1.546. Otherwise, fail to reject the null hypothesis.
C. Reject Ho if the ZC < -1.456. Otherwise, fail to reject the null hypothesis.
D. Reject both null and alternative hypothesis.
9. Find the value of the computed test statistic.
A. -5.2 B. 2.0 C. -2.5 D. -2.0
10. Based on the decision, what is the appropriate conclusion?
A. Therefore, the father can say that the average tuition fee in the university
where he wants his daughter to study is at least Php20,000.
B. Therefore, the father can say that the average tuition fee in the university
where he wants his daughter to study is less than Php20,000.
C. Therefore, the father can say that the average tuition fee in the university
where he wants his daughter to study is at most Php20,000.
D. Therefore, the father can say that the average tuition fee in the university
where he wants his daughter to study is greater than Php20,000.

Identifying Rejection Region and

Lesson 1 Hypothesis Testing on Population Mean

’s In

Activity 1
Recall the steps of hypothesis testing procedure in the previous lesson.
List the steps of hypothesis testing.

’s New

Activity 2
Given the real-life problem, formulate the appropriate null and alternative
hypotheses.

The father of a senior high school student is listing down the expenses he will incur
when he sends his daughter to the university. At the university where he wants his daughter to

4
study, he hears that the average tuition fee is at least Php20,000 per semester. He wants to do
a test of hypothesis.

is It

In this lesson, you will continue to learn about hypothesis testing. You will learn the
remaining steps in hypothesis testing. These steps are identifying the appropriate rejection
region for a given level of significance when the population variance is assumed to be known,
the population variance is assumed to be unknown and the Central Limit Theorem is to be used,
computing test-statistic, and drawing conclusion.
Let us consider the situation in activity 2. Check your formulated hypotheses and compare
whether they are the same or not.

𝐻𝑜 : The average tuition fee in the targeted university is at least Php20,000.

In symbols,
𝐻𝑜: µ ≥ 𝑃ℎ𝑝20,000.

𝐻𝑎 : The average tuition fee in the targeted university is less than Php20,000.
In symbols,
𝐻𝑎 : µ < 𝑃ℎ𝑝20,000.

Let’s add more information to the problem on activity 2 and complete the test of hypothesis.

Example 1. When population variance is known.

The father of a senior high school student is listing down the expenses he will incur
when he sends his daughter to the university. At the university where he wants his daughter to
study, he hears that the average tuition fee is at least Php20,000 per semester. He wants to do
a test of hypothesis. Suppose from a simple random sample of 16 students, a sample mean of
Php19,750 was obtained. Further, the variable of interest, which is the tuition fee in the
university, is said to be normally distributed with an assumed population variance equal to
Php160,000 and level of significance 𝛼 = 5% 0𝑟 0.05.

Step 1. We are done formulating the null and alternative hypotheses.

Step 2. Identify the test statistic to use. With the given level of significance and the
distribution of the test statistics, state the decision rule and specify the rejection region.

What will be the appropriate test statistic to be used?

Test Statistic

With the known population variance we can use z-test as our test statistic to be used
even though our number of samples is less than 30 or more than or equal to 30 samples and we

5
will be using the z-table as our critical or tabular value. If the population variance is unknown,
and the number of samples is less than 30, then we will be using t-test or the test statistic follows
the Student’s t-distribution with n-1 degrees of freedom which means the tabular value in the
Student’s t-table will be used as a critical or tabular value.

In the given problem the appropriate test statistic to be used is z-test since the population
variance is known.
𝑥̅ − 𝜇𝑜
𝑍𝐶 = 𝜎
√𝑛
Decision rule
The decision rule can be one of the following possibilities:

1. Reject the null hypothesis (𝐻𝑜) if 𝑍𝐶 < −𝑍𝛼 . Otherwise, we fail to reject 𝐻𝑜.
2. Reject the null hypothesis (𝐻𝑜) if 𝑍𝐶 > 𝑍𝛼 . Otherwise, we fail to reject 𝐻𝑜.
3. Reject the null hypothesis (𝐻𝑜) if |𝑍𝐶 | > 𝑍𝛼 . Otherwise, we fail to reject 𝐻𝑜.
2

For the given problem, the first is the appropriate decision rule because our 𝐻𝑜 used
≥ as equality symbol. The decision rule must not overlap with the null hypothesis.

Since the level of significance 𝛼 = 0.05 its tabular value from the z-table is 1.645, the
decision rule for the problem could be stated as “Reject Ho if 𝑍𝐶 < −𝑍0.05 = −1.645.
Otherwise, we fail to reject Ho.”

This test procedure is referred to as “one-tail Z-test for the population mean when the
population variance is known” and the rejection region is illustrated as follows:

Step 3. Compute the value of the test statistic.

From the given problem, these are the observations/data gathered:

Sample random 𝑛 = 16
Population mean 𝜇 = 20,000
Sample mean 𝑥̅ = 19,750
Population variance 𝜎 2 = 160,000
Population standard deviation 𝜎 = √𝜎 2 = √160,000 = 400

6
Hence, the computed test statistic is

𝑥̅ −𝜇𝑜 19,750−20,000 −250

𝑍𝐶 = 𝜎 = 400 = = −𝟐. 𝟓
100
√𝑛 √16

Step 4. Make a decision rule.

With the computed value of the test-statistic equal to -2.5, the next step is to use the decision
rule.
Reject the null hypothesis (𝐻𝑜) if 𝑍𝐶 < −𝑍𝛼 . Otherwise, we fail to reject 𝐻𝑜
𝑍𝐶 < −𝑍𝛼
−2.5 = 𝑍𝐶 < −𝑍𝛼 = −1.645

Decision: Reject the null hypothesis Ho.

Step 5. State the conclusion.

Lastly, as a consequence of the decision, conclusions are made which are in relation to
the purpose of the test of hypothesis. With the rejection of the null hypothesis, we will accept
the alternative hypothesis.

Conclusion: Therefore, the father can say that the average tuition fee in the university where
he wants his daughter to study is less than Php20,000.

Example 2. When population variance is unknown

The father of a senior high school student lists down the expenses he will incur when
he sends his daughter to the university where he wants her to study. He hypothesizes that the
average tuition fee is at least Php20,000 per semester. He knows the variable of interest, which
is the tuition fee, is measured at least in the interval scale or specifically in the ratio scale. He
assumes that the variable of interest follows the normal distribution but both populations mean,
and variance are unknown. The father asks, at random, 25 students at the university about their
tuition fee per semester. He is able to get an average of Php20,050 with a standard deviation of
Php500. Suppose the level of significance 𝛼 is set at 0.05.

Step 1. Formulate the null and alternative hypotheses.

The appropriate null and alternative hypotheses remain the same as in the previous lesson and
are stated as:
𝐻𝑜 : The average tuition fee in the targeted university is at least Php20,000.
In symbols,
𝐻𝑜: µ ≥ 𝑃ℎ𝑝20,000.
𝐻𝑎 : The average tuition fee in the targeted university is less than Php20,000.
In symbols,
𝐻𝑎 : µ < 𝑃ℎ𝑝20,000.

7
Step 2. Identify the test statistic to use. With the given level of significance and the
distribution of the test statistics, state the decision rule and specify the rejection region.

Test Statistic

The population variance is unknown, and the number of samples is less than 30, then
we will be using t-test or the test statistic follows the Student’s t-distribution with n-1 degrees
of freedom which means the tabular value in the Student’s t-table will be used as a critical or
tabular value.

In the given problem the appropriate test statistic to be used is t-test since the
population variance is unknown.
𝑥̅ − 𝜇𝑜
𝑡𝐶 = 𝑠
√𝑛
Decision rule

The decision rule can be one of the following possibilities:

1. Reject the null hypothesis (𝐻𝑜) if 𝑡𝐶 < −𝑡𝛼, 𝑛−1 . Otherwise, we fail to reject 𝐻𝑜.
2. Reject the null hypothesis (𝐻𝑜) if 𝑡𝐶 > 𝑡𝛼, 𝑛−1 . Otherwise, we fail to reject 𝐻𝑜.
3. Reject the null hypothesis (𝐻𝑜) if |𝑡𝐶 | > 𝑡𝛼, 𝑛−1 . Otherwise, we fail to reject 𝐻𝑜.
2
For the given problem, the first is the appropriate decision rule because our 𝐻𝑜 used ≥ as
equality symbol. The decision rule must not overlap with the null hypothesis.

Since the level of significance 𝛼 = 0.05 its tabular value from the t-table is 2.064, the decision
rule for the problem could be stated as “Reject Ho if 𝑍𝐶 < −𝑡0.05,24 = −2.064. Otherwise,
we fail to reject Ho.”

This test procedure is referred to as “one-tailed t-test for the population mean when the
population variance is unknown” and the rejection region is illustrated as follows:

8
Step 3. Compute the value of the test statistic.

From the given problem, these are the observations/data gathered:

Sample random 𝑛 = 25
Degrees of freedom 𝑛 − 1 = 24
Population mean 𝜇 = 20,000
Sample mean 𝑥̅ = 20,050
Population standard deviation 𝑠 = 500
Hence, the computed test statistic is

𝑥̅ −𝜇𝑜 20,050−20,000 50
𝑡𝐶 = 𝑠 = 500 = 100 = 𝟎. 𝟓
√𝑛 √25

−𝑡𝐶 = −0.5

Step 4. Make a decision rule.

With the computed value of the test-statistic equal to −0.5, the next step is to use the decision
rule.
Reject the null hypothesis (𝐻𝑜) if 𝑡𝐶 < −𝑡𝛼 . Otherwise, we fail to reject 𝐻𝑜
𝑡𝐶 < −𝑡𝛼
−0.5 = 𝑡𝐶 < −𝑡𝛼 = −1.645

𝑡𝐶 greater than −𝑡𝛼

Decision: The rule dictates that our decision is not to reject or fail to reject the null
hypothesis.

Step 5. State the conclusion.

Lastly, as a consequence of the decision, conclusions are made which are in relation to the
purpose of the test of hypothesis. We will acceptance the null hypothesis.

Conclusion: Therefore, the father can say that the average tuition fee in the university where
he wants his daughter to study is at least Php20,000.

Example 3. When Central Limit Theorem is used.

The father of a senior high school student lists down the expenses he will incur when
he sends his daughter to the university, where he wanted her to study. He hypothesizes that the
average tuition fee is at least Php20,000 per semester. He knows the variable of interest,
which is the tuition fee, is measured at least in the interval scale or specifically in the ratio
scale. He assumes that the variable of interest follows a distribution with unknown population
mean and variance. The father asks, at random, 36 students at the university about their tuition
fee per semester. He is able to get an average of PhP20,200 with a standard deviation of 400
pesos. Suppose the level of significance 𝛼 is set at 0.05.

9
Step 1. Formulate the null and alternative hypotheses.

The appropriate null and alternative hypotheses remain the same as in the previous lesson and
are stated as:
𝐻𝑜 : The average tuition fee in the targeted university is at least Php20,000.
In symbols,
𝐻𝑜: µ ≥ 𝑃ℎ𝑝20,000.

𝐻𝑎 : The average tuition fee in the targeted university is less than Php20,000.
In symbols,
𝐻𝑎 : µ < 𝑃ℎ𝑝20,000.

Step 2. Identify the test statistic to use. With the given level of significance and the
distribution of the test statistics, state the decision rule and specify the rejection region.

Test Statistic

There is unknown distribution of the variable of interest as well as its population

variance (σ2) but the sample size is large enough to invoke the Central Limit Theorem, the test
statistic, denoted as 𝑡𝐶 which was used earlier, is still appropriate to use. This test statistic is
𝑥̅ −𝜇𝑜
computed as 𝑡𝐶 = 𝑠 where 𝑥̅ and 𝑠, are the sample mean and sample standard deviation,
√𝑛
respectively, computed from a simple random sample of 𝑛 observations; and µ𝑜 is the
hypothesized value of the parameter. However, this time with the Central Limit Theorem, we
can assume that the test statistic follows the standard normal distribution which means the
tabular value in Z-table will be used as critical or tabular value. With this, the decision rule can
be one of the following possibilities:

Decision rule
1. Reject the null hypothesis (𝐻𝑜) if 𝑡𝐶 < −𝑍𝛼 . Otherwise, we fail to reject 𝐻𝑜.
2. Reject the null hypothesis (𝐻𝑜) if 𝑡𝐶 > 𝑍𝛼 . Otherwise, we fail to reject 𝐻𝑜.
3. Reject the null hypothesis (𝐻𝑜) if |𝑡𝐶 | > 𝑍𝛼, . Otherwise, we fail to reject 𝐻𝑜.
2

For the given problem, the first is the appropriate decision rule because our 𝐻𝑜 used
≥ as equality symbol. The decision rule must not overlap with the null hypothesis.

Since the level of significance 𝛼 = 0.05 its tabular value from the Z-table is 1.645,
the decision rule for the problem could be stated as “Reject Ho if 𝑡𝐶 < −𝑍0.05 = −1.645.
Otherwise, we fail to reject Ho.”

10
 This test procedure is referred to as “one-tailed t-test for the population mean when
the population variance is unknown” and the rejection region is illustrated as follows:

Step 3. Compute the value of the test statistic.

From the given problem, these are the observations/data gathered:

Sample random 𝑛 = 36
Degrees of freedom 𝑛 − 1 = 35
Population mean 𝜇 = 20,000
Sample mean 𝑥̅ = 20,250
Population standard deviation 𝑠 = 400
Hence, the computed test statistic is

𝑥̅ −𝜇𝑜 20,250−20,000 250

𝑡𝐶 = 𝑠 = 400 = 400 = 𝟑. 𝟕𝟓
√𝑛 √36 6

−𝑡𝐶 = −3.75

Step 4. Make a decision rule.

With the computed value of the test-statistic equal to −3.75, the next step is to use the
decision rule.
Reject the null hypothesis (𝐻𝑜) if 𝑡𝐶 < −𝑡𝛼 . Otherwise, we fail to reject 𝐻𝑜
𝑡𝐶 < −𝑡𝛼
−3.75 = 𝑡𝐶 < −𝑡𝛼 = −1.645

Decision: Reject the null hypothesis Ho.

Step 5. State the conclusion.

Lastly, as a consequence of the decision, conclusions are made which are in relation to
the purpose of the test of hypothesis. With the rejection of the null hypothesis, we will accept
the alternative hypothesis.

11
Conclusion: Therefore, the father can say that the average tuition fee in the university where
he wanted his daughter to study is less than Php20,000.

Note: One-tailed and Two-tailed tests

Testing of hypothesis is an investigation on some prevailing belief against
what the researcher believes. If the researcher is investigating to check if what
he/she believes is better than the prevailing belief, then the test is known as one-
tailed test. On the other hand, if the researcher is not interested in comparing the
parameters, the tests is called a two-tailed test.
The test is one-tailed when the inequality symbol being used for alternative
hypothesis is < or >, while it is a two-tailed test when the inequality symbol used
is ≠.

’s More

Activity 3
Conduct the test of hypothesis using the appropriate components of the
test procedure of the given real-life problem.

The minimum wage earners of the National Capital Region are believed to
be receiving less than Php500 per day. The CEO of a large supermarket chain in
the region is claiming to be paying its contractual higher than the minimum daily
wage rate of Php500. To check on this claim, a labor union leader obtained a
random sample of 144 contractual employees from this supermarket chain. The
survey of their daily wage earnings resulted to an average wage of Php510 per
day with standard deviation of Php100. The daily wage of the region is assumed
to follow a distribution with an unknown population variance. Perform a test of
hypothesis at 5% level of significance to help the labor union leader make an
empirical based conclusion on the CEO’s claim.

12
 I Have Learned

Activity 4
A. Complete the sentence by filling in the blanks with the correct term/value.

1. __________________ is made as a consequence of decision.

2. One of the decision rules is “reject the null hypothesis (𝐻𝑜) if 𝑡𝐶 < −𝑡𝛼 .
Otherwise, we ____________to reject 𝐻𝑜.”
3. If we reject the null hypothesis, then we will ____________ the alternative
hypothesis.
4. Z-test will be used when the population variance is __________ and the number
of samples is ≥ 30.
5. T-test will be used when the population variance is ___________ and the number
of samples is < 30.
6. In computing the test statistic using t-test we use the tabular value from
_______________________ table.
7. In computing the test statistic using z-test we use the tabular value from
__________ table.

I Can Do

Activity 5
Do what is asked. Consider the situation below.

The body mass index is calculated by dividing a person’s weight by the square of his/her
height. That is, body mass index equals weight/(height) 2. This measure determines whether a
person is overweight or not. Suppose that a person is overweight if his/her body mass index is
above 24kg/m2 and a random sample of 20 individuals from a certain place have the following
body mass indices:
24.2 33.1 24.2 29.9 30.4

32.8 17.5 23.1 28.7 24.2

27.8 29.4 19.6 28.5 28.2

25.7 22.0 29.0 35.9 18.5

Would you say that the people in that place are overweight? Test at 5% level of significance.
Given a real-life situation above, find the following: (1 point each and additional 1 point for
every solution)

13
1. 𝑥̅ =
2. 𝑠 =
3. 𝐻𝑜=
4. 𝐻𝑎 =
5. 𝜇=
6. 𝛼=
7. 𝑍𝐶 𝑜𝑟 𝑡𝐶 =
8. 𝑍𝛼 𝑜𝑟 𝑡𝛼 =
9. 𝐷𝑒𝑐𝑖𝑠𝑖𝑜𝑛 𝑟𝑢𝑙𝑒:
10. Draw the rejection region
11. Decision:
12. Conclusion:

14
Select the best choice.
Consider the given situation.

A brand of powdered milk is advertised as having a net weight of 250 grams. A curious
consumer obtained the net weight of 10 randomly selected cans. The values obtained are: 245,
248, 242, 245, 246, 248, 250, 245, 243 and 249 grams. Is there reason to believe that the average
net weight of the powdered milk cans is less than 250 grams at 5% level of significance?
Assume the net weight is normally distributed with unknown population variance.
1. What is the appropriate null hypothesis?
A. The average net weight of the powdered milk cans is less than 250 grams.
B. The average net weight of the powdered milk cans is at most 250 grams.
C. The average net weight of the powdered milk cans is at least 250 grams.
D. The average net weight of the powdered milk cans is 250 grams
2. What is the symbol for null hypothesis?
A. Ho: 𝜇 < 250 g B. Ho: 𝜇 ≤ 250 g C. Ho: 𝜇 ≥ 250 g D. Ho: 𝜇 = 250 g
3. What will be the appropriate alternative hypothesis?
A. The average net weight of the powdered milk cans is less than 250 grams.
B. The average net weight of the powdered milk cans is at most 250 grams.
C. The average net weight of the powdered milk cans is at least 250 grams.
D. The average net weight of the powdered milk cans is greater than 250 grams.
4. What is the symbol for alternative hypothesis?
A. Ho: 𝜇 < 250 g B. Ho: 𝜇 ≤ 250 g C. Ho: 𝜇 ≥ 250 g D. Ho: 𝜇 ≠ 250 g
5. Identify the level of significance.
A. 5% B. 0.5% C. 0.10 D. 0.5
6. What kind of test will be used?
A. One-tailed test. B. Two-tailed test C. Three-tailed test D. No-tailed test
7. What test statistic to be used?
𝑥−𝜇 𝑥−𝜇 𝜇−𝑥 𝑥−𝜇
A. zc = 𝜎 B. tc = 𝑠 C. tc = 𝜎 D. zc = 𝑠
√𝑛 √𝑛 √𝑛 √𝑛

8. Find the value of the sample mean.

A. x = 248.2 B. x = 246.01 C. 284.2 D. 246.1

15
9. Find the value of the sample standard deviation.
A. s = 2.60 B. s = 4.164 C. s = 4.614 D. 2.06
10. Where is the side of the tail to be tested or the critical/rejection region?
A. left side B. right side C. both side D. no side
11. What is the tabular value of the alpha?
A. -4.383 B. -1.833 C. -2.262 D. -1.234
12. What is the appropriate decision rule?
A. Reject Ho if the tC < -1.833. Otherwise, fail to reject the null hypothesis.
B. Reject Ho if the tC < -1.383. Otherwise, fail to reject the null hypothesis.
C. Reject Ho if the tC < 1.383. Otherwise, fail to reject the null hypothesis.
D. Reject both null and alternative hypothesis.
13. Find the value of the computed test statistic.
A. -4.743 B. 1.24 C. -1.23 D. -4.347
14. What would be the decision based on the computed test statistic?
A. Reject the null hypothesis.
B. Fail to reject the null hypothesis.
C. Accept the null hypothesis.
D. Reject both null and alternative hypothesis.
15. Based on the decision, what is the appropriate conclusion?
A. Therefore, the average net weight of the powdered milk cans is less than 250 grams.
B. Therefore, the average net weight of the powdered milk cans is at most 250 grams.
C. Therefore, the average net weight of the powdered milk cans is at least 250 grams.
D. Therefore, the average net weight of the powdered milk cans is indeed true or 250
grams.

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PRETEST
1. B 6. B
2. A 7. B
3. A 8. C
4. A 9. C
5. D 10. A
Activity 1.
1. Formulate the null and alternative hypotheses.
2. Identify the test statistic to use. With the given level of significance and the distribution of the test statistics,
state the decision rule and specify the rejection region.
3. Using a simple random sample of observation, compute the value of the test statistic.
4. Make a decision whether to reject or fail to reject Ho.
5. State the conclusion
Activity 2.
𝐻𝑜 : The average tuition fee in the targeted university is at least Php20,000.
In symbols,
𝐻𝑜: µ ≥ 𝑃ℎ𝑝20,000.
𝐻𝑎 : The average tuition fee in the targeted university is less than Php20,000.
In symbols,
𝐻𝑎 : µ < 𝑃ℎ𝑝20,000.
Activity 3.
Step 1. Formulate the appropriate null and alternative hypotheses.
Ho: The CEO’s claim is not true or the average daily wage rate of the contractual employees at the supermarket is less
than or equal to Php500.
In symbols, Ho: µ ≤ 500
Ha: The CEO’s claim is true or the average daily wage rate of the contractual employees from at the supermarket is
higher than Php500.
In symbols, Ha: µ > 500.
Step 2. Decision: Identify the test statistic to use. With the given level of significance and the distribution of the test
statistics, state the decision rule and specify the rejection region.
𝑥−𝜇
The appropriate test statistic is tc = 𝑠 . With 5% level of significance, the decision rule is ‘Reject the null hypothesis
√𝑛
Ho if 𝑡𝐶 > 𝑍0.05 = 1.645. Otherwise, fail to reject Ho. The rejection region is found at the right tail of the standard
normal distribution.
Step 3. Compute test statistic.
𝑥−𝜇 510−500
tc = 𝑠 = 100 = 1.2
√𝑛 √144
Step 4. Make a decision.
With the computed test statistic equal to 1.20, the null hypothesis is not rejected.
Step 5. Conclusion.
We say the claim of the CEO is not true and that the daily minimum wage rate of the contractual workers at the
supermarket chain in the region is at most Php500.
Activity 4. Assessment.
a. Conclusion 1. D 6. B 11. B
b. Fail 2. D 7. B 12. A
c. Accept 3. A 8. A 13. C
d. Known 4. A 9. C 14. B
e. Unknown 5. C 10. A 15. D
f. Student’s distribution table
g. Z-table
References
Albert, Jose Ramon G. 2016. In Teaching Guide for Senior High School Statistics and
Probability , 221-242. Quezon CItyCommision on Higher Education.
Malate, Jose S. 2017. In Statistics and Probability for Senior High School. Sta. Ana, Manila:
Vicarish Publications and Trading, Inc.
Mamhot, Millard R., Alice A. Mamhot. 2016. In Statistics and Probability. Manila:
Unlimited Books Library Services and Publishing Inc.

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