Statistics and

Probability
Quarter 4 – Module 3:
Test Statistic on Population Mean
Week 3 to Week 4
 What I Need to Know

This module was designed and written to help you understand the concept of
the test statistic. The scope of this module helps you to appreciate and understand
learning situations that can be used in a day-to-day basis experience. The language
used in this learning kit recognized the diverse vocabulary level of students for a
higher understanding of the lesson. The lessons were arranged to follow the standard
sequence of the course. However, the manner in which you read them can be possibly
changed to correspond with the textbook that you might be using now.

After going through this module, you are expected to:

1. compute for the test-statistic value (population mean) (M11/12SP-IVd-1);
2. draw conclusion about the population mean based on the test-statistic value
and the rejection region (M11/12SP-IVd-2); and
3. solve problems involving test of hypothesis on the population mean
(M11/12SP-IVe-1).

What I Know

Directions: Choose the best answer. Write the chosen letter on a separate
sheet of paper.

1. It refers to the a value used to determine the probability needed in decision-

making.
A. t - test
B. z – test
C. test statistic
D. population mean

2. What test statistic can be used when the population standard deviation is
unknown?
A. population mean
B. sample mean
C. t - test
D. z - test

3. What is the value of the degree of freedom when the sample size is 19?
A. 17
B. 18
C. 19
D. 20

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4. What is the equivalent critical z- value if the alpha is 0.01?
A. 1.645
B. 1.96
C. 2.576
D. 2.807

5. What is the formula used for z – test?

𝜇𝑜 − 𝑋
A. 𝑧 = 𝜎
√𝑛
𝑋− 𝜇𝑜
B. 𝑧 = 𝜎
√𝑛
𝑋− 𝜎
C. 𝑧 = 𝜇𝑜
√𝑛
𝑛− 𝜇𝑜
D. 𝑧 = 𝜎
√𝑋

6. What is the critical value when the given sample size is 28 at 95% level of
significance with unknown population standard deviation and it is a one-tailed
test?
A. 1.701
B. 1.703
C. 2.048
D. 2.052

For numbers 7 – 9, refer to the given problem below.

A coffee shop claimed that their bottled cold brew has the capacity of
less than an average of 350 ml. To test the claim, a group of coffee lovers gets
a sample of 25 bottles and came up with an average mean of 285 ml. The
standard deviation is 10 ml and uses a 95% level of confidence.
7. How will you state the null hypothesis?
A. Ho: μo = 350
B. Ho: μo ≠ 350
C. Ho: μo < 350
D. Ho: μo ≤ 350

8. What is the alternative hypothesis?

A. Ha: μo = 350
B. Ha: μo ≠ 350
C. Ha: μo > 350
D. Ha: μo ≥ 350

9. What test statistic should be used?

A. t - test
B. z - test
C. sample mean
D. population mean

10. The critical z – value is -1.645 and the computed z – value is -1.614. What is
the most appropriate decision can you make based on the given values?
A. either accept or reject
B. neither accept nor reject
C. reject the null hypothesis
D. fail to reject the null hypothesis

2
 Lesson
Test Statistic on
1 Population Mean
As discussed in the previous modules, hypothesis testing is the key element
to help us make decisions about the null hypothesis. But hypothesis testing involves
processes that will determine which one to decide, and one of them is called the test
statistic. This module will give way to a deeper understanding of the test procedures
about the population mean, particularly the test statistic.

Just like in real-life situations, there are instances that we need to make
decisions, and for us to do that, we must consider a lot of things like weighing the
pros and cons. The same thing with the hypothesis testing, the decision depends on
the computed test statistic.

What’s In

Directions: Write FAIL TO REJECT if the statement is true and REJECT if

the statement is false. Answer on a separate sheet of paper.

1. An intelligent guess about the characteristic of a population is called a

hypothesis.
2. The Central Limit Theorem applies when n > 30.
3. Ha represents the null hypothesis.
4. Rejecting a true null hypothesis leads to type I error.
5. In a two-tailed test, a 90% confidence level has an α= 0.05.
6. Left-tailed test is denoted by this notation Ha: µo > µ.
7. The critical value is just the same as the computed value.
8. The degree of freedom is computed by n – 1.
9. The most commonly used level of significance is 95%.
10. In hypothesis testing, the null hypothesis is rejected when the test value is
in the critical region.

Notes to the Teacher

This contains helpful tips and strategies that will
help you in guiding the learners.

4
 What’s New

Read the comic strips below to give you an idea of the topic that you are about to
learn.

Help Me Decide

5
 What is It

A test statistic is a value used to determine the probability needed in decision-

making. It can be computed using the traditional method and the P-value method.
Our discussion will focus on the traditional method of hypothesis testing.

Computing the test statistic depends on different factors. That is whether to

use the z-test or the t-test. Let us get a closer look at them according to the given
cases below.

Torn between t and z

Case Given Description Test Statistic

Case 1 With a population µo = 70 1. The z-test
mean equals to population
= 24
70, the sample standard
mean is 24 and n = 15 deviation is
the sample size is =6 known.
15. The
2. The sample
population
size is small.
follows a normal
distribution with
a standard
deviation of 6.
Case 2 With a population µo = 200 1. The z-test
mean equals to population
= 83
200, the sample standard
mean is 83, the n = 39 deviation is
sample size is 39 =5 known.
and the standard
2. The sample
deviation is 5.
size is large.
Case 3 The population µo = 56.2 1. The t-test
mean is 56.2, population
= 15.3
sample mean standard
equals to 15.3, n = 12 deviation is
the sample s = 2.5 not known but
standard the sample
deviation is 2.5, standard
and the sample deviation is
size is 12. known.
The table sums up the cases and the appropriate test statistic to be used. Now
to further understand each case, the discussion is as follows:

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Case 1: Test Concerning the Mean of a Normal Population with Known Variance
or Standard Deviation

• z-test is conducted about the mean of a normally distributed population and

when you have an idea about the value of the population standard or variance.
To perform the z-test, the formula below is used to compute for the z-value,
which also refers to the z-score.
𝑋 − 𝜇𝑜
𝑧= 𝜎
√𝑛
where µo = hypothesized value of the population

= sample mean

n = sample size

= population standard deviation

Consider the following examples and be guided with the given steps:

1. Given: µo = 70 = 24 n = 15 =6
Solution:

𝑋 − 𝜇𝑜
𝑧= Step 1: Use the appropriate formula.
𝜎
√𝑛

24 − 70
𝑧= Step 2: Substitute the given values to the formula.
6
√15

− 46
𝑧= Step 3: Simplify by performing the operations.
1.55

𝑧 = −29.68 Step 4: Write the final answer.

2. Given: µo = 35 = 16 n = 25 =8
Solution:

𝑋 − 𝜇𝑜
𝑧= Step 1: Use the appropriate formula.
𝜎
√𝑛

16 − 35
𝑧= Step 2: Substitute the given values to the formula.
8
√25

7
 − 19 Step 3: Simplify by performing the operations.
𝑧=
1.6

𝑧 = −11.88 Step 4: Write the final answer.

Case 2: A Large-Sample Test Concerning the Mean of a Population (Using the

Central Limit Theorem)
𝑋 − 𝜇𝑜
𝑧= 𝜎
√𝑛
where µo = hypothesized value of the population

= sample mean

n = sample size

= population standard deviation

Consider the following examples and be guided with the given steps:

1. Given: µo = 200 = 83 n = 39 =5
Solution:

𝑋 − 𝜇𝑜
𝑧= Step 1: Use the appropriate formula.
𝜎
√𝑛

83 − 200
𝑧= Step 2: Substitute the given values to the formula.
5
√39

− 117
𝑧= Step 3: Simplify by performing the operations.
0.8

𝑧 = −146.25 Step 4: Write the final answer.

2. Given: µo = 26 = 15.5 n = 58 = 7.2

Solution:

𝑋 − 𝜇𝑜
𝑧= Step 1: Use the appropriate formula.
𝜎
√𝑛

15.5 − 26
𝑧= Step 2: Substitute the given values to the formula.
7.2
√58

8
 − 10.5
𝑧= Step 3: Simplify by performing the operations.
0.95

𝑧 = −11.05 Step 4: Write the final answer.

Case 3: A Small Sample Test Concerning the Mean of a Population with

Unknown Variance or Standard Deviation

• t-test is conducted about the mean of a population when the population

variance or standard deviation is unknown, but the sample variance or
sample standard deviation is known. Thus, the formula below is used
to conduct the t-test.
𝑋 − 𝜇𝑜
𝑡= 𝑠
√𝑛
where µo = hypothesized value of the population

= sample mean

n = sample size

s = sample standard deviation

Consider the following examples and be guided with the given steps:

1. Given: µo = 56.2 = 15.3 n = 12 s = 2.5

Solution:

𝑋 − 𝜇𝑜
𝑡= Step 1: Use the appropriate formula.
𝑠
√𝑛

15.3 − 56.2
𝑡= Step 2: Substitute the given values to the formula.
2.5
√12

− 40.9
𝑡= Step 3: Simplify by performing the operations.
0.72

𝑡 = − 56.81 Step 4: Write the final answer.

2. Given: µo = 5.3 = 3.8 n = 12 s = 1.2

Solution:

𝑋 − 𝜇𝑜
𝑡= Step 1: Use the appropriate formula.
𝑠
√𝑛

9
 3.8 − 5.3
𝑡=
1.2 Step 2: Substitute the given values to the formula.
√12

− 1.5 Step 3: Simplify by performing the operations.

𝑡=
0.35

𝑡 = −4.29 Step 4: Write the final answer.

Note: In case the number of samples (n) exceeds 30, the formula to be used is
the z – test even though the standard deviation is unknown. To illustrate,
𝑋 − 𝜇𝑜
𝑧= 𝑠
√𝑛
To Reject or Fail to Reject
Now that you can recognize the use of z-test and t-test, let us apply them to
draw conclusion about the population mean based on the test-statistic value and
hypothesis testing. Consider the following examples.

1. Since the beginning of the school year 2020-2021, the students got engaged
in online classes. A research conducted says that most students spend an
average of 4 hours a day in online classes with a standard deviation of 30
minutes (0.5 hours). A random sample of 10 is taken from a normally
distributed population of students who attend an average of 3 hours in online
class. Using a 95% level of significance, can you conclude that the result of
the research is correct?

STEPS IN HYPOTHESIS TESTING

1. State the null and 𝐻𝑜 : 𝜇𝑜 = 4
alternative hypothesis.
𝐻𝑎 : 𝜇𝑜 ≠ 4

2. Identify if the test is one- Two-tailed

tailed or two-tailed.
• since the alternative hypothesis (𝐻𝑎 ) is not
equal, there is a chance that it may go
higher or lower than 4.

3. Set the alpha value (level 𝛼 = 0.05

of significance). 𝛼 0.05
= = 0.025
2 2

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4. Identify the critical values The critical z - value: ± 1.96
and establish the critical
regions.

5. Compute the test statistic. 𝑋 − 𝜇𝑜

𝑧= 𝜎
√𝑛

3 − 4
𝑧=
0.5
√10

−1
𝑧=
0.16

𝑧 = −6.25

• The computed z- value is -6.25.

6. Make the decision. The null hypothesis 𝐻𝑜 is rejected.

• The computed z- value = -6.25 falls within
the rejection region.

7. State the conclusion. There is sufficient evidence to support the claim

that students spend 3 hours in online class, at the
0.05 level of confidence.

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 2. One of the affected sectors of the covid-19 pandemic is the labor force. This
led the laborers to ask for a salary hike. The minimum wage earners of the
National Capital Region are believed to be receiving less than P500 per day.
But the contractors claim that they are already paying them a salary higher
than the minimum daily wage rate. To check on this claim, a labor union
leader took a random sample of 25 contractual employees from their factory.
The survey of their daily wage earnings resulted to an average wage of P520
per day with a sample standard deviation of P100 and it is assumed to follow
a normal distribution. With a 99% level of significance, decide whether which
claim is correct.

STEPS IN HYPOTHESIS TESTING

1. State the null and 𝐻𝑜 : 𝜇𝑜 ≤ 500
alternative hypothesis.
𝐻𝑎 : 𝜇𝑜 > 500

2. Identify if the test is One-tailed

one-tailed or two-
• Specifically, a right-tailed test since the alternative
tailed.
hypothesis 𝐻𝑎 is looking for a value greater than
500.

3. Set the alpha value 𝛼 = 0.01

(level of significance).
4. For t-test, identify To identify the t-value, the following steps are needed:
the t-value that
a. Identify the degree of freedom (df).
corresponds to the
critical t-value and df = n-1
establish the critical = 25 – 1
regions.
df = 24
b. Identify the alpha value (α)
α = 0.01
c. Using the t-table, locate the df = 24 and α = 0.01 and
find its intersection.
• The critical t-value is 2.492.

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5. Compute the test 𝑋 − 𝜇𝑜
𝑡= 𝑠
statistic.
√𝑛

520 − 500
𝑡=
100
√25

20
𝑡=
20

𝑡=1

• The computed t-value (tc) is 1.

6. Make the decision. Fail to reject the null hypothesis.

• The computed t-value falls outside the rejection
region.

7. State the There is no sufficient evidence to support the contractor’s

conclusion. claim that the minimum wage earners is already receiving
a salary of more than P500.00 a day, at the 0.01 level of
significance.

Note: Refer to the t – table found on pages 16 to 17 for the critical values.

3. When the covid-19 pandemic occurred, the demand for the use of alcohol has
climbed way high than before. A company manufacturer produces bottled
alcohol with an average content of 1000 ml. A distributor believes that the
value is to be less. Using a sample of 16, the distributor measured the average
of 995ml with a sample standard deviation of 10 ml. At 95% level of
significance, is there enough evidence to reject the null hypothesis?

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 STEPS IN HYPOTHESIS TESTING
1. State the null and 𝐻𝑜 : 𝜇𝑜 = 1000
alternative hypothesis.
𝐻𝑎 : 𝜇𝑜 < 1000

2. Identify if the test is One-tailed

one-tailed or two-
• Specifically, a left-tailed test since the alternative
tailed.
hypothesis 𝐻𝑎 is looking for a value less than 1000.

3. Set the alpha value 𝛼 = 0.05

(level of significance).
4. For t-test, identify To identify the t-value, the following steps are needed:
the t-value that
a. Identify the degree of freedom (df).
corresponds to the
critical t-value and df = 16-1
establish the critical = 16 – 1
regions.
df = 15
b. Identify the alpha value (α)
α = 0.05
c. Using the t-table, locate the df = 15 and α = 0.05 and
find its intersection.
• The critical t-value is 1.753.
• Since it is left-tailed, the critical value becomes
-1.753.

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5. Compute the test 𝑋 − 𝜇𝑜
𝑡= 𝑠
statistic.
√𝑛

995 − 1000
𝑡=
10
√16

−5
𝑡=
2.5

𝑡 = −2

• The computed t-value (tc) is -2.

6. Make the decision. The null hypothesis is rejected.

• The computed t-value falls within the rejection
region.

7. State the There is no sufficient evidence to support the claim that

conclusion. the bottled alcohol content is 1000ml, at the 0.05 level of
significance.

Note: Refer to the t – table found on pages 16 to 17 for the critical values.

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 t - Distribution : Critical Values of t

Significance Level
Degree of Two - tailed test: 10% 5% 2% 1% 0.2% 0.1%
Freedom One - tailed test: 5% 2.5% 1% 0.5% 0.1% 0.05%
1 6.314 12.706 31.821 63.657 318.309 636.619
2 2.920 4.303 6.965 9.925 22.327 31.599
3 2.353 3.182 4.541 5.841 10.215 12.924
4 2.132 2.776 3.747 4.604 7.173 8.610
5 2.015 2.571 3.365 4.032 5.893 6.869
6 1.943 2.447 3.143 3.707 5.208 5.959
7 1.894 2.365 2.998 3.499 4.785 5.408
8 1.860 2.306 2.896 3.355 4.501 5.041
9 1.833 2.262 2.821 3.250 4.297 4.781
10 1.812 2.228 2.764 3.169 4.144 4.587
11 1.796 2.201 2.718 3.106 4.025 4.437
12 1.782 2.179 2.681 3.055 3.930 4.318
13 1.771 2.160 2.650 3.012 3.852 4.221
14 1.761 2.145 2.624 2.977 3.787 4.140
15 1.753 2.131 2.602 2.947 3.733 4.073
16 1.746 2.120 2.583 2.921 3.686 4.015
17 1.740 2.110 2.567 2.898 3.646 3.965
18 1.734 2.101 2.552 2.878 3.610 3.922
19 1.729 2.093 2.539 2.861 3.579 3.883
20 1.725 2.086 2.528 2.845 3.552 3.850
21 1.721 2.080 2.518 2.831 3.527 3.819
22 1.717 2.074 2.508 2.819 3.505 3.792
23 1.714 2.069 2.500 2.807 3.485 3.768
24 1.711 2.064 2.492 2.797 3.467 3.745
25 1.708 2.060 2.485 2.787 3.450 3.725
26 1.706 2.056 2.479 2.779 3.435 3.707
27 1.703 2.052 2.473 2.771 3.421 3.690
28 1.701 2.048 2.467 2.763 3.408 3.674
29 1.699 2.045 2.462 2.756 3.396 3.659
30 1.697 2.042 2.457 2.750 3.385 3.646
32 1.694 2.037 2.449 2.738 3.365 3.622
34 1.691 2.032 2.441 2.728 3.348 3.601
36 1.688 2.028 2.434 2.719 3.333 3.582
38 1.686 2.024 2.429 2.712 3.319 3.566
40 1.684 2.021 2.423 2.704 3.307 3.551
42 1.682 2.018 2.418 2.698 3.296 3.538
44 1.680 2.015 2.414 2.692 3.286 3.526
46 1.679 2.013 2.410 2.687 3.277 3.515

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 t - Distribution : Critical Values of t

Significance Level
Two - tailed
10% 5% 2% 1% 0.2% 0.1%
Degree of test:
Freedom One - tailed
5% 2.5% 1% 0.5% 0.1% 0.05%
test:
48 1.677 2.011 2.407 2.682 3.269 3.505
50 1.676 2.009 2.403 2.678 3.261 3.496
60 1.671 2.000 2.390 2.660 3.232 3.460
70 1.667 1.994 2.381 2.648 3.211 3.435
80 1.664 1.990 2.374 2.639 3.195 3.416
90 1.662 1.987 2.368 2.632 3.183 3.402
100 1.660 1.984 2.364 2.626 3.174 3.390
120 1.658 1.980 2.358 2.617 3.160 3.373
150 1.655 1.976 2.351 2.609 3.145 3.357
200 1.653 1.972 2.345 2.601 3.131 3.340
300 1.650 1.968 2.339 2.592 3.118 3.323
400 1.649 1.966 2.336 2.588 3.111 3.315
500 1.648 1.965 2.334 2.586 3.107 3.310
600 1.647 1.964 2.333 2.584 3.104 3.307
∞ 1.645 1.960 2.326 2.576 3.090 3.291

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 What’s More

COMPLETE ME
Directions: On a separate sheet of paper, complete the table by solving for the
computed value and the critical value. Then, decide whether to reject or to accept
the null hypothesis.

Given Computed Critical Decision

Value Value

1. Two – tailed test, α = 0.01

µo = 15 = 12 n = 22 =3

2. Two – tailed test, α = 0.10

µo = 27 = 32.6 n = 43 =6

3. Two – tailed test, α = 0.05

µo = 78 = 76 n = 25 s=9

4. Left – tailed test, α = 0.01

µo = 69 = 67.2 n = 11 s = 7.1

5. Right – tailed test, α = 0.05

µo = 100 = 110 n = 18 s = 15

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 What I Have Learned

Now that you have learned the concept of test statistic, you may proceed to
the next activity.

Directions: After engaging with the lesson in this module, list the following
details on a separate sheet of paper.
3 – 2 – 1 ACTIVITY

1.
3 Things I learned
2.
from this lesson
3.

1.
2 Interesting facts
2.

1 Question I still have 1.

What I Can Do

Directions: Analyze the problem below by providing a comprehensive answer

from the given question. Write the complete solution on your answer sheets.

ACTIVE NOW

As the school year 2020-2021 geared off, the number of hours students spend
in online activity has reached an average of 6 hours a day. To test this claim, conduct
a survey among 20 classmates and ask for the number of hours they spend for online
activities. Solve for the sample mean given the sample standard deviation of 2 hours.
Using a 95% level of significance, decide on whether the claim is true or not.

19
 Assessment

Directions: Read the situations given and answer the questions that follow.
Use a separate sheet of paper for your answers.
Does Height Matter?
Most of us Filipinos are looking forward in watching Ms. Universe Pageant.
Not only that we see a lot of gorgeous women, but we are also fascinated by the
heights of the candidates. According to a research conducted, the average height of
the candidates is 69 inches. To test the claim, a group of handlers gets a sample of
12 Miss Universe candidates and came up with an average mean height of 72 inches.
The standard deviation is 2 inches and used a 95% level of confidence.
Questions:
1. What is the null hypothesis?
2. What is the alternative hypothesis?
3. What test statistic should be used?
4. What is the critical value?
5. What is the computed value?
6. How does the graph look like?
7. What is the most appropriate decision?

Drive Thru
After months of not being able to eat in food chains, most of the customers
patiently waited to be served on drive thru lane. According to a survey, the average
time spent while waiting for his turn is 10 minutes. But there are some customers
who claim that the waiting time is even more than 10 minutes. To test the claim, 20
customers in the drive thru lane resulted to 12 minute-waiting time. The sample
standard deviation is 3 minutes and used a 95% level of confidence.
Questions:
1. What is the null hypothesis?
2. What is the alternative hypothesis?
3. What test statistic should be used?
4. What is the critical value?
5. What is the computed value?
6. How does the graph look like?
7. What is the most appropriate decision?

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