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 At this branch, the population mean amount of money withdrawn from ATMs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 population mean withdrawal amount is greater than P768? What
recommendations can be drawn from the result of the study?

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?

3. Two different teaching methods (online teaching and modular approach) were evaluated to test
their effectiveness in teaching accounting subjects. Group A was taught using online 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 whether there 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).