Module 1

Module No.
& Title Module 1: Hypothesis Testing
Module Overview In this module, you will learn about Hypothesis Testing, what it is,
how it is expressed, represented, and used in our everyday lives. Just
stay focus and prepare yourselves. You are now entering to the new
world of mathematics.
Module At the end of this module, students will be able to:

Objectives/Outcomes  Understand the terms used in hypothesis testing.
 Differentiate methods of the hypothesis testing traditional
method, p -value and confidence interval.
 State the Null (Ho) and alternative (Ha) hypotheses.
 Compare and contrast one – tailed test and two – tailed test.
 Find the critical values for the z and t test.
 State the steps used in hypothesis testing
 Test means for large samples, by means of z test.
 Test means for small sample, by means of t test.
 Test proportions, using z test.
 Test hypothesis, using p – value
 Test hypothesis, using confidence interval.
Lessons in the module CHAPTER 1: Polynomial functions
Lesson 1: Introduction
Lesson 2: Procedure in Testing Hypothesis
Lesson 3: Hypothesis testing using p – value
Lesson 4: Confidence Interval and Hypothesis Testing
Lesson 5: One sample z Test
Lesson 6: One sample t Test
Lesson 7: z Test for Proportion
Module No. Module 1: Hypothesis Testing

and Title
Lesson No.  Lesson 1 – 7:
and Title  Introduction
 Procedure in Testing Hypothesis
 Hypothesis testing using p – value
 Confidence Interval and Hypothesis Testing
 One sample z Test
 One sample t Test
 z Test for Proportion
Learning At the end of the lesson, students will be able to:
Project WRITE XI: An Easy Guide for Course Pack making and Module Development
1
Outcomes  Understand the terms used in hypothesis testing.
 Differentiate methods of the hypothesis testing traditional method, p
-value and confidence interval.
 State the Null (Ho) and alternative (Ha) hypotheses.
 Compare and contrast one – tailed test and two – tailed test.
 Find the critical values for the z and t test.
 State the steps used in hypothesis testing
 Test means for large samples, by means of z test.
 Test means for small sample, by means of t test.
 Test proportions, using z test.
 Test hypothesis, using p – value
 Test hypothesis, using confidence interval.
Time Frame
Introduction This section you will be introduced to the concepts Hypothesis Testing.
Also, perform the methods that will be learned in the discussion given and
apply it into real life scenario/situations.
Tell the students that we make important decisions almost every day on our
Activity lives. It is possible for us to make incorrect decisions. Ask the students how
to avoid incorrect decisions?
Analysis  Based on the activity given, what is your understanding about it?
 How did you come up with that answer?
Introduction
Abstraction
Hypothesis Testing was introduced by Sir Ronald Fisher, Jerzy Newman,
Karl Pearson and Egon Pearson (Karl Pearson’s son).
Hypothesis Testing
- Is a statistical method that is used in making statistical decisions using
experimental data.
- Is basically an assumption that we make about the population
parameter.
- There are three methods used to test hypotheses:
a. Traditional Method
b. P – value Method
c. Confidence Interval Method
Procedure in Hypothesis Testing
All hypothesis testing situations starts with stating the statistical hypothesis.
A statistical hypothesis is a conjecture about the population parameter. This
conjecture may or may not be true.
A. Two types of Statistical Hypotheses:
1. Null Hypotheses
 Symbolized by “Ho”
 It assumes that the observation is due to a chance factor.
 It is denoted by; Ho: μ 1=μ 2, which shows that there is no
2
difference between the two population means (or
parameters).
2. Alternative Hypothesis
 Symbolized by “Ha”
 Shows that observations are the result of a real effect.
 It states that there is a difference between two population
means (or parameters).
B. Level of Significance
- Refers to the degree of significance in which we accept or reject the null
hypothesis.
- In hypothesis testing, 100% accuracy is not possible for accepting or
rejecting null hypothesis. So, we therefore select a level of significance
that is usually 1% and 5%.
After the significance level of chosen, a critical value is selected from the
table for the appropriate test statistic. The critical value determines the
critical and noncritical regions.
Critical value – is a value that separates the critical region from the
noncritical region.
Critical or Rejection region – is the range of the values of the test value that
indicates that there is a significant difference and that the null hypothesis
should be rejected,
Noncritical or Nonrejection region – is the range of the values of the test
value that indicates that the difference was probably due to chance and the
null hypothesis should be not rejected.
C. One – tailed versus Two – tailed test

One -tailed Test –shows that the null hypothesis be rejected when test value
is in the critical region on one side of the mean. It may be either a right –
tailed test or left – tailed test, depending on the direction of the inequality of
the alternative hypothesis.
Two – tailed Test – shows that the null hypothesis should be rejected when
the test value is in either of the two critical regions.
Two – Left – tailed test Right – tailed test

tailed test
Sign in the Ho: μ=k Ho: μ=k or μ ≥ k Ho: μ=k or μ ≤ k
Ho
Sign in the Ha: μ ≠ k Ha: μ<k Ha: μ>k
Ha
Rejection In both tails In the left tail In the right tail
Region
Where k represent a specified number.
3
Common Phrases in Hypothesis Testing
The table represents some common phrases that are used in hypothesis,
conjectures, and its corresponding symbols. This translates verbal
conjectures into mathematical symbols or representations.
= ≠
Is equal to Is not equal to
Is the same as Is not the same
Is exactly the same as Is different from
¿ ¿
Is increased Is decreased
Is greater than Is less than
Is higher than Is lower than
≥ ≤
Is at least Is at most
Is not less than Is not more than
Is greater than or equal to Is less than or equal to
D. The Critical Value Approach to Hypothesis Testing

The observed value of the statistic (sample observation) is compared to
critical values (population observation). These critical values are expressed
as standard z values. For instance, if we use a level of significance of 0.05 ,
the size of the rejection region is 0.05 . If the test is two – tailed; the
rejection region is divided into two equal parts (i.e., we divided 0.05 into
two equal parts of 0.025 each).
Possible Outcome of a Hypothesis Test

Statistical Decision Ho True Ho False
Do not reject Ho Correct decision Type II error
Confidence ¿ 1−α P(Type II error) ¿ β
Reject Ho Type I error Correct decision
P (Type I error) ¿ α Power ¿ 1−β
Type I error – occurs if one rejects the null hypothesis when it is true. It is
denoted by alpha (α ). In hypothesis testing, the normal curve that shows the
critical region is called the alpha region.
Type II error – occurs if one does not reject the null hypothesis when it is
4
false. It is denoted by beta ( β ) . In hypothesis testing, the normal curve that
shows the acceptance region is called the beta region.
The following are the steps in conducting hypothesis testing:

1. State the Ho and Ha.
2. Choose the level of significance, α , and the sample size.
3. Determine the test statistic and sampling distribution.
4. Determine the critical values that divide the rejection and
nonrejection regions.
5. Collect data and compute the value of the test statistic.
6. Make statistical decision.
7. State the conclusion.
Hypothesis Testing using the p – value
Usually, statistician test hypotheses at α level of 0.05 and 0.01 and

occasionally at 0.10 .
p- value (probability value)

- Is the probability of getting a simple statistic or a mean extreme sample
statistic in the direction of the Ha when the Ho is true.
- It is the actual area under the standard normal distribution curve
representing the probability of a particular sample statistic or a more
extreme sample statistic occurring if the Ho is true.
Steps for p – value method:

2. Choose the level of significance, α, and the sample size.
4. Compute the test value.
5. Determine the p – value.
There is a different approach in the decision rule when using a p – value
method:
 If p – value ≤ α , reject the Ho, and if p – value ¿ α , do not reject the Ho.
There are also some important guidelines for p – values:
 If p – value ≤ 0.01 , reject the Ho, thus the difference is highly
significant
 If p – value ¿ 0.01, and p – value ≤ 0.05, reject the Ho, thus the
difference is significant.
 If p – value ¿ 0.05 and p – value ≤ 0.10 , consider a consequence of type
I error before rejecting the Ho, thus difference is significant.
 If p – value ¿ 0.10, do not reject the Ho, thus difference is not
significant.
Confidence Intervals and Hypothesis Testing
5
 When the confidence interval contains the hypothesized mean, do
not reject Ho.
 When the confidence interval does not contain the hypothesized
mean, reject Ho.
One Sample z – Test

- Is a statistical test for the mean of a population. It is used when n ≥ 30 ,
or when the population is normally distributed and population standard
deviation is known. The formula for the z – test is:
observed value−expected value

Test value =
standard error
Observed value = computed mean

Expected value = population mean
In symbols:
x −μ x−μ
z=
σ /√ n
or z= s /
√n
z=¿ one sample z test

x=¿ sample mean
μ=¿ population mean
σ =¿ population standard deviation
s=¿ sample standard deviation
n=¿ number of observations in the sample.
Assumption in One Sample z – test:

1. Subjects are randomly selected.
2. Population distribution is normal.
3. The population should be known.
4. Cases of the sample should be independent.
5. Sample size should be greater than or equal to 30.
Procedure for One Sample z – test:

1. Set up the hypotheses:
Ho: μ=¿ specified value
Ha: μ ≠ ,<,>¿ specified value
2. Set the level of significance and determine the critical value z.
3. Calculate the sample mean for one sample z test by using the
formula:
x=
∑X
n
x=¿ mean
n=¿ number of observations in the sample
6
Note : calculate the sample standard deviation if σ is unknown.
4. Calculate the value of the one sample z test
5. Statistical decision for hypothesis testing:
If z computed < z critical, do not reject Ho.
If z computed ≥ z critical, reject Ho.
Example:
The average baptismal cost includes 50 guests. A random sample of 32
baptismal during the past year in the National Capital Region had a
mean of 53 guests and a standard deviation of 10. Is there sufficient
evidence at the 0.05 level of significance that the average number of
guests differs from the national average?
Solution:
Given: x=53 , μ=50 , s=10 , n=32
Step 1:
Ho: μ=50
Ha: μ ≠50
Step 2:
The level of significance is α =0.05
Step 3: Decision Rule: Reject Ho if the -Z-computed is less than the -Z-
Tabulated or if Z-computed is greater than the +z-tabulated.
The z critical value is ± 1.960 (it is a two-tailed test, since it does not
mention about the direction of the distribution)
Step 4: Test Statistic: One Sample Z-test
Step 5: Computation:
Compute the one sample z test value
x−μ 53−50
z= = =1.697
s / √ n 10/ √32
Step 6:
Conclusion:
Do not reject the null hypothesis at α =0.05 , since1.697<1.960
7
1.697
Step 7:
Interpretation:
Since we do not reject the Ho, we can conclude that there is no enough
evidence to support the claim that the average guest in a baptismal is not
equal to 50.
One sample t Test

- Is a statistical procedure that is used to know the mean difference
between the sample and the known value of the population mean.
- We draw a random sample from the population and then compare the
sample mean with the population mean and make a statistical decision
as to whether or not the sample mean is different from the population.
- The sample size should be less than 30.
Assumption in One Sample t – test:

1. The population must be approximately normally distributed.
2. Samples drawn from the population should be random
3. The population mean should be known.
4. Cases of the sample should be independent.
5. Sample size should be less than to 30.
Procedure for One Sample t – test:

2. Set the level of significance, calculate the degrees of freedom (
df =n−1¿ and determine the critical value t.
3. Calculate the sample mean for one sample z test by using the
formula:
x=
∑X
n
x=¿sample mean
n=¿ number of observations in the sample
Note : calculate the sample standard deviation if σ is unknown.
4. Calculate the value of the one sample t test
x−μ
t=
s/√n
t=¿one sample t test
x=¿ sample mean
μ=¿population mean
s=¿sample standard deviation
8
n=¿number of observations in the sample.
If t computed < t critical , do not reject Ho.
If t computed ≥ t critical, reject Ho.
Example:
A student researcher wants to determine whether the mean score in
mathematics of the 25 students in Grade 8 Section Z is significantly
different from the average of the school which is 89. The mean and standard
deviation of the scores of the students in Section Z are 95 and 15,
respectively. Assume 95% confidence level.
1:
Ho: μ=89
Ha: μ ≠ 89
2: Level of Significance: The level of significance is α =0.05
3: Decision Rule: Reject Ho if the (-)t-computed is less than (-) t-tabulated

of -2.064 or (+) t-computed is greater than (+) t-tabulated of 2.064.
The t critical value is ± 2.064 (it is a two-tailed test)
4: Test Statistics: One sample t-test

5 . Computation:
Compute the one sample t test value
x−μ 95−89
t= = =2
s / √ n 15 / √25
df=n-1
= 25 – 1
= 24
6: Conclusion:
Decision rule:
Do not reject the null hypothesis at α =0.05 , since 2<2.064
9
2 2.064
Step 7:
Interpretation:
Since we fail to reject the Ho, we can conclude that the mean score of Grade
8 Section Z in Mathematics is the same with the mean score of all the
students taking up Grade8 Mathematics.
z Test for Proportion

- It is considered as a binomial experiment when there are only two
outcomes and the probability of success does not change from trial to
trial (the outcomes for each trial are independent).
- Given that a normal distribution can be used to approximate the
binomial distribution when np ≥ 5 and nq ≥ 5, the standard deviation can
be used to test the hypotheses for proportions.
- The formula:
^p − p
z=
√ pq /n
z = z test for a proportion
p̂ = sample proportion ( Xn )
p= population proportion
n = number of observations in the sample
q = 1− p
Assumptions in z test for proportion

1. Subjects are randomly selected
2. Population distribution is normal
3. Observations are dichotomous
Procedure for z test for proportion

10
2. Set the level of significance and determine the critical value z.
3. Calculate the sample proportion
4. Calculate the value of the one sample z test for proportion
If z computed < z critical, do not reject Ho.
If z computed ≥ z critical, reject Ho.
Example:
A recent survey done by Philippine Housing Authority found that 35% of
the population owns their homes. In a random sample of 240 heads of
households, 78 responded that they owned their homes. At the 0.01 level of
significance, does that indicate a difference from the national proportion?
Solution:
1:
Ho: p=0.35
Ha: p ≠ 0.35
2: Level of Significance:
The level of significance is α =0.01
3: Decision Rule: Reject Ho if the (-) z-computed is less than (-) z-tabulated
or (+)z-computed is greater than (+) z- tabulated.
The z critical value is ± 2.575 (it is a two-tailed test)
4.Test Statistic: Z- test for proportion:
5.Computation:
Compute the test value:
X 78
= ^p=
=0.325
n 240
And p=0.35 and q=1− p=1−0.35=0.65
Substitute;
p^ − p 0.325−0.35
z= = =−0.812
√ pq /n √(0.35)(0.65)/240
6.Conclusion:
Decision rule:
Do not reject the null hypothesis, since the test value falls outside the critical
region.
7:Interpretation:
Since we fail to reject the null hypothesis, we can conclude that there is not
11
enough evidence to reject the claim that 35% of the Filipinos owned their
homes.
Answer the following problems:

Application 1. A researcher reports that the average salary of College Deans is
more than $63,000. A sample of 35 College Deans has a mean salary
of $65,700. At α =0.01 ,test the claim that the College Deans earn
more than $63,000 a month. The standard deviation of the
population is $5250.
2. One of the undersecretary of the Department of Labor and
Employment (DOLE) claims that the average salary of civil engineer
is $18,000. A sample of 19 civil engineer’s salary has a mean of
$17,350 and a standard deviation of $1,230. Is there enough
evidence to reject the undersecretary’s claim at α =0.01 ?
3. The professional organization for private colleges and universities
professors reported that more than 17% of professors attended a
national convention in the past year. To test this claim, a researcher
surveyed 200 professors and found that 45 has attended a national
convention in the past year. At α =0.05 , test the claim that this
figure is correct using p -value method.
Closure Job well done everyone! You are now ready for the next lesson.
12
MODULE ASSESSMENT
I. Indicate whether the statement is true or false.
___________1. Alpha is the probability of a type I error.
___________2. Use z test when the same size is 25 or more.
___________3. The level of significance of a hypothesis is Beta.
___________4. A type I error is accepting a false null hypothesis.
___________5. In a one – tailed test the rejection region is in one of the tails.
___________6. Rejection of null hypothesis that is false is a correct decision.
___________7. Rejecting the null hypothesis when it is true is called type 1 error.
___________8. The degrees of freedom for one sample t test are n−1.
___________9. The alternative hypothesis is accepted if the null hypothesis is rejected.
___________10. To test the hypothesis Ho: μ ≤30 , one would use a right – tailed test.
II. Solve the following problems.
1. A report in LTO stated that the average age of taxis in the Philippines is 9 years. An
operations manager of a large taxi company selects of 40 taxis and finds the average age
of the taxis is 8.2 years. The σ of the population is 2.3 years. At α =0.05 , can it be
concluded that the average age of the taxis in his company is less than the national
average?
2. A survey of Davao Region finds the average commute time of employees on one way is
30 minutes. The Digos Chamber of Commerce feels that in their city is greater and want
to publicize this. They randomly select 28 commuters and find the average is 35 minutes
with a standard deviation of 6 minutes. At α =0.05 , are they correct?
3. The school registrar estimates that the dropout rate of freshmen high schools in Mindanao
is 20%. Last year, 45 freshmen from a random sample of 250 Mindanao freshmen high
school withdrew. At α =0.01 , is there enough evidence to reject the registrar’s claim?
13
MODULE SUMMARY
Hypothesis Testing was introduced by Sir Ronald Fisher, Jerzy Newman, Karl Pearson and
Egon Pearson (Karl Pearson’s son).
Hypothesis Testing
- Is a statistical method that is used in making statistical decisions using experimental data.
- Is basically an assumption that we make about the population parameter.
- There are three methods used to test hypotheses:
d. Traditional Method
e. P – value Method
f. Confidence Interval Method
E. Level of Significance
- Refers to the degree of significance in which we accept or reject the null hypothesis.
- In hypothesis testing, 100% accuracy is not possible for accepting or rejecting null
hypothesis. So, we therefore select a level of significance that is usually 1% and 5%.
After the significance level of chosen, a critical value is selected from the table for the
appropriate test statistic. The critical value determines the critical and noncritical regions.
Critical value – is a value that separates the critical region from the noncritical region.
Critical or Rejection region – is the range of the values of the test value that indicates that there
is a significant difference and that the null hypothesis should be rejected,
Noncritical or Nonrejection region – is the range of the values of the test value that indicates
that the difference was probably due to chance and the null hypothesis should be not rejected.
F. One – tailed versus Two – tailed test

One -tailed Test –shows that the null hypothesis be rejected when test value is in the critical
region on one side of the mean. It may be either a right – tailed test or left – tailed test,
depending on the direction of the inequality of the alternative hypothesis.
Two – tailed Test – shows that the null hypothesis should be rejected when the test value is in
either of the two critical regions.
G. The Critical Value Approach to Hypothesis Testing
The observed value of the statistic (sample observation) is compared to critical values
(population observation). These critical values are expressed as standard z values. For instance, if
14
we use a level of significance of 0.05 , the size of the rejection region is 0.05 . If the test is two –
tailed; the rejection region is divided into two equal parts (i.e., we divided 0.05 into two equal
parts of 0.025 each).
Type I error – occurs if one rejects the null hypothesis when it is true. It is denoted by alpha (α )
. In hypothesis testing, the normal curve that shows the critical region is called the alpha region.
Type II error – occurs if one does not reject the null hypothesis when it is false. It is denoted by
beta ( β ) . In hypothesis testing, the normal curve that shows the acceptance region is called the
beta region.
The following are the steps in conducting hypothesis testing:

9. Choose the level of significance, α , and the sample size.
11. Determine the critical values that divide the rejection and nonrejection regions.
12. Collect data and compute the value of the test statistic.
p- value (probability value)
- Is the probability of getting a simple statistic or a mean extreme sample statistic in the
direction of the Ha when the Ho is true.
- It is the actual area under the standard normal distribution curve representing the probability
of a particular sample statistic or a more extreme sample statistic occurring if the Ho is true.
Confidence Intervals and Hypothesis Testing
 When the confidence interval contains the hypothesized mean, do not reject Ho.
 When the confidence interval does not contain the hypothesized mean, reject Ho.
One Sample z – Test
- Is a statistical test for the mean of a population. It is used when n ≥ 30 , or when the
population is normally distributed and population standard deviation is known. The formula
for the z – test is:
x −μ x−μ
z=
σ /√ n
or z=
s/√n
 z=¿ one sample z test

 x=¿ sample mean
 μ=¿ population mean
15
 σ =¿ population standard deviation
 s=¿ sample standard deviation
 n=¿ number of observations in the sample.
One sample t Test

- Is a statistical procedure that is used to know the mean difference between the sample and
the known value of the population mean.
- We draw a random sample from the population and then compare the sample mean with the
population mean and make a statistical decision as to whether or not the sample mean is
different from the population.
- The sample size should be less than 30.
x−μ
t=
s/√n
 t=¿one sample t test
 x=¿ sample mean
 μ=¿population mean
 s=¿sample standard deviation
 n=¿number of observations in the sample.
z Test for Proportion

- It is considered as a binomial experiment when there are only two outcomes and the
probability of success does not change from trial to trial (the outcomes for each trial are
independent).
- Given that a normal distribution can be used to approximate the binomial distribution when
np ≥ 5 and nq ≥ 5, the standard deviation can be used to test the hypotheses for proportions.
- The formula:
^p − p
z=
√ pq /n
 z = z test for a proportion
 p ̂ = sample proportion ( )
X
n
 p= population proportion
 n = number of observations in the sample
 q = 1− p
16
17

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Module No.

& Title Module 1: Hypothesis Testing

Module At the end of this module, students will be able to:

Module No. Module 1: Hypothesis Testing

Procedure in Hypothesis Testing

C. One – tailed versus Two – tailed test

Two – Left – tailed test Right – tailed test

Where k represent a specified number.

D. The Critical Value Approach to Hypothesis Testing

Possible Outcome of a Hypothesis Test

The following are the steps in conducting hypothesis testing:

Hypothesis Testing using the p – value

Usually, statistician test hypotheses at α level of 0.05 and 0.01 and

p- value (probability value)

Steps for p – value method:

One Sample z – Test

observed value−expected value

Observed value = computed mean

z=¿ one sample z test

Assumption in One Sample z – test:

Procedure for One Sample z – test:

One sample t Test

Assumption in One Sample t – test:

Procedure for One Sample t – test:

2: Level of Significance: The level of significance is α =0.05

3: Decision Rule: Reject Ho if the (-)t-computed is less than (-) t-tabulated

4: Test Statistics: One sample t-test

z Test for Proportion

Assumptions in z test for proportion

Procedure for z test for proportion

1. Set up the hypotheses:

4.Test Statistic: Z- test for proportion:

Answer the following problems:

II. Solve the following problems.

F. One – tailed versus Two – tailed test

The following are the steps in conducting hypothesis testing:

 z=¿ one sample z test

One sample t Test

z Test for Proportion

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