Department of Education

National Capital Region

Schools Division of Parañaque City
Self-Learning Modules

Statistics and Probability: Quarter 2 Week 3

Test of Hypothesis

ENTRY BEHAVIOUR
Brief Introduction
This module will help you, the learner, familiarize the meaning and use of null
hypothesis, alternative hypothesis, level of significance, and rejection region. This will also
guide you to determine the parameter to be tested using illustrative example.

Learning Competencies

At the end of this module, the learner should be able to;

1. Illustrates: (a) null hypothesis; (b) alternative hypothesis; (c) level of
significance; (d) rejection region; and (e) types of errors in hypothesis
testing;
2. Identifies the parameter to be tested given a real-life problem; and
3. Formulates the null and alternative hypotheses on the population mean.

Objectives

The objectives of this module are for the students to define and elaborate the
following terms: (a) null hypothesis; (b) alternative hypothesis; (c) level of significance; (d)
rejection region; and (e) types of errors in hypothesis testing; determine the parameter to
be tested given a real-life problem; and state the null and alternative hypotheses on the
population mean.

Let’s Recall

Let us review the concept of normal curve distribution:

1. What is normal curve distribution? It is a bell-shape curved wherein two tails can
be extended indefinitely without touching the horizontal line.
2. What is confidence level? Confidence level refers to the probability that the
confidence interval contains the true population parameter, while α is the probability
that the confidence interval does not contain the true population parameter.

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 Statistics and Probability: Quarter 2 Week 3

3. What do you to a line that divides the acceptance region and rejection region?
Critical value is the value that indicates the point beyond which lies the rejection
region.
4. Analyze the illustration below.

Rejection region Confidence Rejection region

level

Critical value −𝑧𝛼 𝑧𝛼 Critical value

2 2

Let’s Understand

In doing a research, one of the important things to consider by a researcher is to

make assumptions about the population. These assumptions that may or may not be true
are called statistical hypotheses.

These statistical hypotheses are considered to be the null hypothesis, denoted by

H0, and alternative hypothesis, denoted by Ha.

Null Hypothesis is a statement stating that there is NO significant difference

between population parameter and the value that is being claimed. It is also the hypothesis
to be tested.

Alternative Hypothesis is a statement stating that there is a significant difference

between the population parameter and the value that is being claimed. It is also the
hypothesis considered to be true once the null hypothesis is rejected.

Consider the illustration below to differentiate the rejection region, level of

significance and critical value from one another.

Rejection Rejection Rejection

region Acceptance region Acceptance region
region region
(1-α) (1-α)

Critical value Critical value Critical value

Critical value refers to the z-value.

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 Statistics and Probability: Quarter 2 Week 3
After identifying the hypothesis to be tested, the next step is to convert the sample
mean to a value called test statistic or t computed. This value will guide the researcher in
making decision and draw conclusion. The level of significance is the probability that the
test statistic will fall in the rejection region when in fact the null hypothesis is actually true.
The level of significance α corresponds to the rejection region, and (1 – α)
corresponds to the acceptance region. The most used values for α are 0.01, 0.05, and
0.10.
Types of Errors
1. Type I error – a Type I error is committed when the researcher rejects the null
hypothesis when in fact it is true. The probability of committing Type I error is also
called the level of significance.

2. Type II error – a Type II error is committed when the researcher fails to reject the
null hypothesis that is false. But if the researcher fails to reject a true hypothesis,
then, there is no error committed.

Analyze the table below.

True State of Nature
Decision H0 is true. H0 is false.
Reject the null hypothesis: H0 Type I error Correct decision.
Accept the null hypothesis: H0 Correct decision. Type II error

One-tailed and Two-tailed Tests:

1. One-tailed test – the rejection region is on one side of the distribution. It is either
on the left or on the right tail of the curve depending on how the alternative
hypothesis is stated. This is considered as directional, the total area of α which
corresponds to the rejection region is placed on one tail only. The alternative
hypothesis uses the > or < inequality symbol.

Critical value
Critical value

Rejection Acceptance Acceptance Rejection

region region region region
(1-α) (1-α)

One-tailed test: Ha with < symbol One-tailed test: Ha with > symbol

2. Two-tailed test – the rejection region is on both sides of the curve. This is a non-
directional, the value of α which corresponds to the rejection region is divided
equally between the two tails. The alternative hypothesis contains the ≠ symbol.

Critical value Critical value

Rejection Rejection
region Acceptance region
region
(1-α)

Two-tailed test: Ha with ≠ symbol

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 Statistics and Probability: Quarter 2 Week 3
Example 1: The subject group coordinator of P.E Department of Paranaque National High
School-Main Senior High School Program claims that the height of Grade II students is 162
cm. The mean height of 50 randomly selected STEM students is 160 cm. Use 0.05
significance level.
a. State the null and alternative hypothesis.
b. What type of test is applicable, is it one-tailed test or two-tailed test?
c. Compute the critical value.
d. Illustrate using the normal curve.

Solution:
a. Ho : µ = 162
Ha : µ ≠ 162

b. Since the alternative hypothesis uses the ≠ symbol, therefore two-tailed test is
applicable.

c. To find the critical value:

i. find α. It is the significance level: 0.05
ii. divide α by 2, since two-tailed test will be employed.
𝛼 0.05
= = 0.025
2 2
iii. subtract 0.025 from 0.5.
0.5 – 0.025 = 0.4750
iv. locate 0.4750 to z-table and get the corresponding z-value.
𝑧𝛼 = 1.96
2
v. At 5% significance level, the critical value is ±1.96

d. Illustration.

Critical value Critical value

Rejection region Rejection region
Acceptance
region
95%

𝑧𝛼 = −1.96 𝑧𝛼 = 1.96
2 2

Example 2: The director of a teleserye “Ang Probinsyano” claims that the mean number
of people watching their show is 800 000 each day. A student researcher wants statistical
evidence on the claim that is why she conducted her own study. Her study resulted to a
mean of 500 000. Using a 0.10 significance level
a. State the null and alternative hypothesis.
b. What type of test is applicable, is it one-tailed test or two-tailed test?
c. Compute the critical value.
d. Illustrate using the normal curve.

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 Statistics and Probability: Quarter 2 Week 3
Solution:
a. Ho : µ = 800 000
Ha : µ < 800 000

b. Since the alternative hypothesis uses the < symbol, therefore one-tailed test is
applicable.

c. To find the critical value:

i. find α. It is the significance level: 0.10
ii. subtract 0.05 from 0.5.
0.5 – 0.1 = 0.4000
iii. locate 0.4000 to z-table, since there is no 0.4000 to z-table consider
the nearest value, it is 0.3997, and get the corresponding z-value.
𝑧 = 1.28
iv. At 10% significance level, the critical value is 1.28

d. Illustration.

Critical value
Rejection region Rejection region
Acceptance
region
90%

𝑧𝛼 = −1.28
2

Let’s Apply
Direction: State the null hypothesis and the alternative hypothesis in notation form
in the following scenarios.

1. The number of defective cellphones produced by the company is not equal to

15 units a day as claimed by the manager of the company.

2. A random sample of 50 working students was taken to determine whether the

average age of working students in Paranaque City is different from 19 years
old.

3. It is claimed that the percentage of viewers tuned to Channel 7’s new sitcom is
35%. Out of the 300 viewers randomly selected only 25% are tuned to Channel
7’s new sitcom. Can it be claimed that the percentage of viewers in Channel
7’s sitcom is less than 35%?

4. The mean annual income of teacher I faculty members in public school is

greater than P200 000.

5. The percentage of women who run for a national position in the government is
not 30% as claimed by a researcher.

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Let’s Analyze

A. Direction: Find the critical value, given the information below:

1. One-tailed test; variance is known, 1. 6. Two-tailed test; variance is known,
α = 0.05, n = 35 2. α = 0.01, n = 40
3. 2. Two-tailed test; variance is known, 5. 7. One-tailed test; variance is unknown,
4. α = 0.05, n = 40 6. α = 0.05, n = 25
7. 3. One-tailed test; variance is unknown, 8. Two-tailed test; variance is unknown,
8. α = 0.05, n = 15 α = 0.10, n = 18
9. 4. Two-tailed test; variance is unknown, 9. One-tailed test; variance is known,
10. α = 0.05, n = 20 α = 0.08, n = 55
5. One-tailed test; variance is known, 10. Two-tailed test; variance is unknown,
α = 0.01, n = 50 α = 0.09, n = 280

B. Direction: Solve the following problems below.

1. What is the critical value when the variance is known, the sample is 40, and with
10% level of significance if two-tailed test will be employed?
2. What is the critical value when the variance is unknown, the sample is 20, and with
5% level of significance if two-tailed test will be employed?
3. If the variance is known, the sample is 800, and the level of significance is 0.01.
What is the critical value if one-tailed test will be used?
4. If the variance is unknown and the sample is 15, what is the critical value if one-
tailed test will be used at 0.01 significance level?
5. If the variance is unknown, the sample is 27, at 0.10 significance level, what is the
critical value if two-tailed test will be used?

Let’s Evaluate
Direction: Solve the following problems.

a. State the null and alternative hypothesis.

b. What type of test is applicable, is it one-tailed test or two-tailed test?
c. Compute the critical value
d. Illustrate using the normal curve.

Problem 1. One of the manufacturing company produces an average of 8% defective

batteries each day. Due to the high demand in the market, their machines were upgraded.
Out of the 500 batteries randomly selected only 10 batteries were found defective. Using a
0.10 significance level, answer the following:
Problem 2. Last year the average number of students per section in grade 11 academic
strand in PNHS-Main SHS is 40. This year the guidance office claims that there is an
increase of enrollees. A student researcher wants statistical evidence on the claim that is
why he conducted her own study. His study resulted to a mean of 50. Using a 0.10
significance level
Problem 3. One of the activities conducted by the P.E faculty members of Paranaque
National High School-Main Senior High School Program is getting the Body Mass Index
(BMI) of the students. After collecting the weight of the students, they claim that the
average weight of Grade II students is 50 kgs. The mean weight of 25 randomly selected
STEM students is 45 kgs. Use 0.05 significance level.

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