ACTIVITY 4.

2 PROBLEMS FOR Z-TEST AND T-TEST STATISTICS

Group Work
Solve the following problems by using Z-test or T-test. Follow the 7 steps in the testing of hypothesis.
Make a write-up on the participations of each of the group members in solving this activity.

Problem
1. The policy of a particular bank branch is that its ATMs must be stocked with enough cash to
satisfy customers over an entire weekend. Customer goodwill depends on such services meeting
customer’s needs. At this branch, the population mean amount of money withdrawn from ATMs
per customer transaction over the weekend is P768 with a standard deviation of P144. Suppose
that a random sample of 50 customer transactions is examined, and found to have a sample
mean withdrawal amount of P825.60. At 1% and 5% levels of significance, is there evidence to
believe that the populations mean withdrawal amount is greater than P768? What
recommendations can be drawn from the result of the study?

Answer:

Step 1: Ho: The sample mean withdrawal amount of P825.60 is not significantly different from the
population mean withdrawal amount of P768. (x=µ)
Step 2: Ha: The sample mean withdrawal amount of P825.60 is significantly different from the
population mean of P768. (x ≠ µ). Two-tailed test.
Step 3: α= 1% and 5%
Step 4: Use Z-test since standard deviation given is of the population.
Step 5: Absolute critical value of Z = 2.58% at 1% and Z = 1.96%
Step 6: Computation of Z-value.

x−µ
z=
O
√n
825.60−768
= 144 /√ 50

57.6
= 144
7.07106781

57.6
= 20.36467530

Z =2.83 Absolute Computed value

Step 7: Conclusion: The absolute computed Z-value of 2.83 is greater than the absolute critical
values of 2.58 and 1.96. The null hypothesis is rejected; therefore, the sample mean of
 withdrawal amount of P825.60 is not significantly different from the population mean withdrawal
amount of P768. There is no evidence to believe that the population means withdrawal amount is
greater than P768.

2. A taxi company is trying to decide whether the use of radial tires instead of regular belted tires
improved fuel economy. Twelve cars were equipped with radial tires and driven over a prescribed
test course. Without changing drivers, the same cars were then equipped with regular belted tires
and driven once again over the test course. The mean gasoline consumption, in kilometers per
liter (kpl) are as follows:
Radial Tires: X1 = 6.04 kpl, S1 = 1.39 kpl
Belted Tires: X2 = 5.35 kpl, S2 = 0.83 kpl
At a 5% level of significance, can we conclude that cars equipped with radial tires give a better fuel
economy than those equipped with belted tires?

Answer:
Step 1: Ho: The cars equipped with radial tires are not significantly different with those cars
equipped with belted tires. (x = µ)
Step 2: Ha: The cars equipped with radial tires are significantly different with those cars equipped
with belted tires. (x ≠ µ) One-tailed test.
Step 3: α = 5%
Step 4: Use t-test since standard deviation given is the sample.
Step 5: Absolute critical value of t = 1.717
Df = n1 + n2 -2
Df = 12 + 12 -2
Df = 22

Step 6: Computation of t-value

x 1−x 2
t=
2 2
( n 1−1 ) S 1 + ( n2−1 ) S 2
√ n1+ n2−2 √ 1 1
+
n1 n2

6.04−5.35
t=
( 12−1 ) (1.39) + ( 12−1 ) (0.83)2 1 1
2

√ 22
6.04−5.35
+
12 12 √
t=
( 11 ) (1.9321)+ ( 11 ) (0.6889) 1 1
√ 22
+
12 12 √
 6.04−5.35
t=
21.2531+7.5779 (
√ 22
√ 0.1667 )

6.04−5.35
t=
√ (1.3105 ) √(0.1667)
6.04−5.35
t=
( 1.1448 ) (0.4082)
0.69
t=
0.4673
t=1.4765675∨1.48 absolute computed value

Step 7: Conclusion: The computed t-value is 1.48 which is lower than the critical value of 1.71. The
null hypothesis is accepted. Therefore, the cars equipped with radial tires are not significantly
different with those cars equipped with belted tires. Therefore, cars equipped with radial tires and
belted tires give a better fuel economy.

3. Two different teaching methods (online teaching and modular approach) were evaluated to test
their effectiveness in teaching accounting subjects. Group A was taught usingonline modality,
while Group B was taught using modular approach. The following data represent their results in
the pre and post evaluation.

Group A Group B
Pre-test Post-test Pre-test Post-test
89 90 82 80
78 79 83 85
77 75 92 91
85 80 70 78
70 75 65 77
69 70 50 92
60 90 90 91
55 75 88 88
95 92 71 79

At 1% and 5% levels of significance, a) test whetherthere is a significant improvement in the post-

test result of each group? b) Is there a significant difference in the post test performances between
groups? c) What conclusions can be drawn from the results of (a) and (b).

Answer:

Step 1: Ho: There is no significant difference in the post-test results between the groups. (Group A
and Group B). (x1 = x2)
Step 2: Ha: There is a significant difference in the post-test results between the groups. (Group A
and Group B). (x1 ≠ x2) Two-tailed test.
Step 3: α = 1% and 5%
Step 4: Use t-test since the standard deviation can be obtained from the samples.
Step 5: Critical values of t = 2.921 at 1% and 2.120 at 5%
Df = n1 + n2 -2
Df = 9 + 9 -2
Df = 16

Step 6: Computation of t-value

x 1−x 2
t=
2 2
( n 1−1 ) S 1 + ( n2−1 ) S 2

t=
√ n1+ n2−2
1 1
+
n1 n2
80.67−84.56
√
( 9−1 ) (7.5719)2 + ( 9−1 ) (5.7948)2 1 1
√ 9+ 9−2
−3.89
+
9 9√
t=
( 8 ) (57.333)+ ( 8 ) (33.5802)
√ 16
−3.89
√(0.2222)
t=
458.664 +268.6416
√ 16
−3.89
(0.4714)

t=
√ ( 45.4566 ) (0.4714)
−3.89
t=
(6.7421509)(0.4714)
−3.89
t=
3.1782499

t=1.223944∨1.22 absolute computed value

Step 7: Conclusion: The absolute computed t-value is 1.22 which is lower than the critical value of
2.921 and 2.120. The null hypothesis is accepted. Therefore, there is no significant difference in the
post-test results between the groups. Data can be inferred that the online modality and modular
approach methods have the same effect on the learning of the students.

Write-up:
Ms. Amoroso answered problem 1 and Ms. Presentacion answered problems 2 and 3. After that,
both agreed to check each other’s work. Ms. Cereno is not responding on our group chat.