Hypothesis Testing

Lesson 1: Tests about a Population Mean

Table below gives a summary of the formulas used to perform the test. When the population standard
deviation is known, which seldom happens, case 1 will be used. For situations where population standard
deviation is unknown, case 2 or 3 may be used depending upon whether the sample size is large (𝑛 ≥ 30) or
small (𝑛 < 30).

FORMULAS FOR TESTING A POPULATION MEAN

Test Statistic 𝑯𝟎 𝑯𝒂 Rejection Region
𝜇 ≤ 𝜇0 𝜇 > 𝜇0 𝑍𝑐 > 𝑍𝛼
Case 1: 𝜎 𝑖𝑠 𝑘𝑛𝑜𝑤𝑛 𝜇 ≥ 𝜇0 𝜇 < 𝜇0 𝑍𝑐 < −𝑍𝛼
𝑥̅ − 𝜇0
𝑍𝑐 = 𝜎 𝑍𝑐 > 𝑍𝛼 or
2
√𝑛 𝜇 = 𝜇0 𝜇 ≠ 𝜇0 𝑍 < −𝑍𝛼 𝑐
2
𝜇 ≤ 𝜇0 𝜇 > 𝜇0 𝑍𝑐 > 𝑍𝛼
Case 2: 𝜎 𝑖𝑠 𝑢𝑛𝑘𝑛𝑜𝑤𝑛; 𝑛 ≥ 30 𝜇 ≥ 𝜇0 𝜇 < 𝜇0 𝑍𝑐 < −𝑍𝛼
𝑥̅ − 𝜇0
𝑍𝑐 = 𝑠 𝑍𝑐 > 𝑍𝛼 or
2
√𝑛 𝜇 = 𝜇0 𝜇 ≠ 𝜇0 𝑍𝑐 < −𝑍𝛼
2
𝜇 ≤ 𝜇0 𝜇 > 𝜇0 𝑡𝑐 > 𝑡(𝛼,𝑛−1)
Case 3: 𝜎 𝑖𝑠 𝑢𝑛𝑘𝑛𝑜𝑤𝑛; 𝑛 < 30 𝜇 ≥ 𝜇0 𝜇 < 𝜇0 𝑡𝑐 < −𝑡(𝛼,𝑛−1)
𝑥̅ − 𝜇0
𝑡𝑐 = 𝑠 𝑡𝑐 > 𝑡(𝛼,𝑛−1) or
2
√𝑛 𝜇 = 𝜇0 𝜇 ≠ 𝜇0 𝑡𝑐 < −𝑡(𝛼,,𝑛−1)
2

Example 1. A frozen food company wishes to know the mean length of corn received in a large shipment. A
random sample of 20 corns were collected and measured and found to have a mean length of 8.8 inches. It is
known that the standard deviation of all corn shipments is 1.5 inches. Is there reason to believe that the mean
length of the corn is not 9.0 inches, at 𝛼 = 0.05?

Given: 𝑛 = 20,
𝑥̅ = 8.8,
𝜎 = 1.5,
𝜇0 = 9.0, and
𝛼 = 0.05
Solution: The steps in hypothesis testing are outlined below.
Steps:
1. Hypotheses:
𝐻0 : The mean length of the corn is equal to 9.0 inches, that is, 𝝁 = 𝟗. 𝟎.
𝐻𝑎 : The mean length of the corn is not 9.0 inches, that is, 𝝁 ≠ 𝟗. 𝟎.
2. Significance Level: 𝛼 = 0.05
3. Test Statistic: Since this is a test concerning a population mean where population standard deviation
(𝜎) is known, we apply case 1. Hence the appropriate test statistic is
̅ − 𝝁𝟎
𝒙
𝒁𝒄 = 𝝈
√𝒏
4. Critical Regions: Since this is a non-directional test, we apply a two tailed test whose critical regions
are provided in case 1, that is, 𝑍𝑐 < −𝑍𝛼 or 𝑍𝑐 > 𝑍𝛼 , which is
2 2
𝑍𝑐 < −𝑍0.05 or 𝑍𝑐 > 𝑍0.05
2 2
𝑍𝑐 < −𝑍0.025 or 𝑍𝑐 > 𝑍0.025.
 To solve 𝑍0.025,

𝑍0.025 = 1 − 0.025 = 0.975 Find the z-value of this area/probability by referring it to the z-table as
shown below.

The z-value of 𝑍0.025 is 1.96.

Thus, we reject 𝑯𝟎 if 𝒁𝒄 < −𝟏. 𝟗𝟔 or 𝒁𝒄 > 𝟏. 𝟗𝟔.

5. Computation: Using the formula in step 3, the actual value of the test statistic is:
̅ − 𝝁𝟎
𝒙 𝟖. 𝟖 − 𝟗. 𝟎
𝒁𝒄 = 𝝈 = = −𝟎. 𝟓𝟗𝟔
𝟏. 𝟓
√𝒏 √𝟐𝟎
6. Statistical Decision: Since 𝒁𝒄 = −𝟎. 𝟓𝟗𝟔 is NOT less than −𝟏. 𝟗𝟔 nor greater than 𝟏. 𝟗𝟔 (meaning, it is
NOT in the critical region), the null hypothesis 𝑯𝟎 is NOT rejected.

7. Conclusion: The test result does not provide sufficient evidence that the true mean length of corn
is not 9.0 inches.
Example 2. The average weight of 100 randomly selected sacks of rice is 48.54 kilos with a standard deviation
of 20 kilos. Test the hypothesis at a 0.01 level of significance that the true mean weight is greater than 50 kilos.
Given: 𝑛 = 100,
𝑥̅ = 48.54,
𝑠 = 20,
𝜇0 = 50, and
𝛼 = 0.01
Solution: The steps in hypothesis testing are outlined below.
Steps:
1. Hypotheses:
𝐻0 : The true mean weight is less than or equal to 50 kilos, that is, 𝝁 ≤ 𝟓𝟎.
𝐻𝑎 : The true mean weight is greater than 50 kilos, that is, 𝝁 > 𝟓𝟎.
2. Significance Level: 𝛼 = 0.01
3. Test Statistic: Since this is a test concerning a population mean where population standard deviation
(𝜎) is unknown and the sample size is large, that is, 𝑛 > 30 we use case 2. Hence the appropriate test
statistic is
̅ − 𝝁𝟎
𝒙
𝒁𝒄 = 𝒔
√𝒏
4. Critical Region: Since this is a one-tailed test and the symbol is greater than, we apply a right-tailed
test whose critical region is provided in case 2, that is, 𝑍𝑐 > 𝑍𝛼 .

To solve 𝑍𝛼 ,

𝑍𝛼 = 𝑍0.01 = 1 − 0.01 = 0.99 Find the z-value of this area/probability by referring it to the z-table as
shown below.

Notice that there is no exact 0.99 in the

table so we have to get the
corresponding average z-values of
0.9898 and 0.9901, which is 2.32 and
2.33, respectively. The average z-value
2.32+2.33
is 2.325, that is, 2
= 2.325.

The z-value of 𝑍0.01 is 2.325.

Thus, we reject 𝑯𝟎 if 𝒁𝒄 > 𝟐. 𝟑𝟐𝟓.
 5. Computation: Using the formula in step 3, the actual value of the test statistic is:
̅ − 𝝁𝟎
𝒙 𝟒𝟖. 𝟓𝟒 − 𝟓𝟎
𝒁𝒄 = 𝒔 = = −𝟎. 𝟕𝟑
𝟐𝟎
√𝒏 √𝟏𝟎𝟎
6. Statistical Decision: Since 𝒁𝒄 = −𝟎. 𝟕𝟑 is NOT greater than 𝟐. 𝟑𝟐𝟓 (meaning, it is NOT in the critical
region) the null hypothesis 𝑯𝟎 is NOT rejected.

7. Conclusion: The test result does not provide sufficient evidence to indicate that the true mean
weight of a sack of rice is greater than 50 kilos.

Example 3. The average length of time for students to have their subjects controlled is 30 minutes. A new
controlling procedure using modern computing machines is being tried. If a random sample of 12 students has an
average controlling time of 22 minutes with a standard deviation of 11.9 minutes under the new system, test the
hypothesis that the average length of time to control student’s subjects is less than 30 minutes. Use a level of
significance of 0.05 and assume the population of controlling times to be normally distributed.
Given: 𝑛 = 12,
𝑥̅ = 22,
𝑠 = 11.9,
𝜇0 = 30, and
𝛼 = 0.05
Solution: The steps in hypothesis testing are outlined below.
Steps:
1. Hypotheses:
𝐻0 : The average length of time to control student’s subjects is greater than or equal to 30 minutes,
that is, 𝝁 ≥ 𝟑𝟎.
𝐻𝑎 : The average length of time to control student’s subjects is less than 30 minutes, that is, 𝝁 < 𝟑𝟎.
2. Significance Level: 𝜶 = 𝟎. 𝟎𝟓
3. Test Statistic: Since this is a test concerning a population mean where population standard deviation
(𝜎) is unknown and the sample size is small, that is, 𝑛 < 30 we use case 3. Hence the appropriate test
statistic is
̅ − 𝝁𝟎
𝒙
𝒕𝒄 = 𝒔
√𝒏
4. Critical Region: Since this is a one-tailed test and the symbol is less than, we apply a left-tailed test
whose critical region is provided in case 3, that is, 𝑡𝑐 < −𝑡(𝛼,𝑛−1) which is 𝑡𝑐 < −𝑡(0.05,12−1) .

To find 𝑡(0.05,12−1) ,
𝑡(0.05,12−1) = 𝑡(0.05,11) Find the value of t by referring it to the t-table as shown below.

The t-value of −𝑡(0.05,11) is −1.796.

Thus, we reject 𝑯𝟎 if 𝒕𝒄 < −𝟏. 𝟕𝟗𝟔.

 5. Computation: Using the formula in step 3, the actual value of the test statistic is:
̅ − 𝝁𝟎
𝒙 𝟐𝟐 − 𝟑𝟎
𝒕𝒄 = 𝒔 = = −𝟐. 𝟑𝟐𝟗
𝟏𝟏. 𝟗
√𝒏 √𝟏𝟐

6. Statistical Decision: Since 𝒕𝒄 = −𝟐. 𝟑𝟐𝟗 is less than −𝟏. 𝟕𝟗𝟔 (meaning, it is in the critical region) the
null hypothesis 𝑯𝟎 is rejected.

7. Conclusion: The test result provides enough evidence that the average length of controlling time
using the new system is less than 30 minutes. In other words, the new controlling procedure is
more efficient.

Reference: Supe, A., et. al., (2013). Elementary Statistics. Central Book Supply Inc.

Prepared by:

JOBELLE S. SIMBLANTE
Stat 26 Instructor