11

STATISTICS AND PROBABILITY

QUARTER 4 – MODULE 1

TEST OF HYPOTHESIS
 What I know
PRE-ASSESSMENT
Before you start studying this module, take this simple test first to find out
how much you already know about the topics in this module.

Multiple Choice. Read each item below and choose the correct answer.
1. It is a proposed explanation, assertion, or assumption about a population
parameter or about the distribution of a random variable.
A. Decision C. Probability
B. Statistics D. Hypothesis
2. What is the statistical method used in making decisions using experimental data?
A. Simple analysis C. Hypothesis testing
B. Analytical testing D. Experimental testing
3. It is also the probability of committing an incorrect decision about the null
hypothesis.
A. Level of error C. Level of acceptance
B. Level of hypothesis D. Level of significance
4. Which of the following describes an alternative hypothesis using two-tailed test?
A. 𝐻𝑎=100 C. 𝐻𝑎>100
B. 𝐻𝑎≠100 D. 𝐻𝑎<100
5. In a one-tailed test, in which critical value listed below will the computed z of 2.313
fall in the acceptance region?
A. 1.383 C. 2.228
B. 1.533 D. 2.365
6. Which of the following would be an appropriate null hypothesis?
A. The mean of a sample is equal to 75.
B. The mean of a population is equal to 75.
C. The mean of a sample is not equal to 75.
D. The mean of a population is greater than 75.
7. When is a Type I error committed?
A. We reject a null hypothesis that is false.
B. We reject a null hypothesis that is true.
C. We fail to reject a null hypothesis that is true.
D. We fail to reject a null hypothesis that is false.
8. When is a Type II error committed?
A. We reject a null hypothesis that is true.
B. We reject a null hypothesis that is false.
C. We fail to reject a null hypothesis that is true.
D. We fail to reject a null hypothesis that is false.
9. Which of the following is a Type I error?
A. 𝐻0 is true; reject 𝐻0 . C. 𝐻0 is true; fail to reject 𝐻0 .
B. 𝐻0 is false; reject 𝐻0 . D. 𝐻0 is false; fail to reject 𝐻0 .
10. Which of the following describes an alternative hypothesis in a left-tailed test?
A. 𝐻𝑎 > 100 B. 𝐻𝑎 < 100 C. 𝐻𝑎 = 100 D. 𝐻𝑎 ≠ 100

11. Which of the following must be used as the level of significance if we want a
higher possibility of correct decision?
A. 1% B. 5% C. 10% D. 25%

12. Which of the following would be an appropriate alternative hypothesis for one-
tailed test?
A. 𝐻𝑎 < 100 B. 𝐻𝑎 = 100 C. 𝐻𝑎 ≥ 100 D. 𝐻𝑎 ≤ 100

13. Using a left-tailed test, which of the following value of z falls in the rejection
region where the critical value is – 1.725?
A. – 1.700 B. – 1.715 C. – 1.724 D. – 1.728
14. If the computed z-value is 2.015 and the critical value is 1.833, which of the
following statements could be true?
A. It lies in the rejection region, 𝐻𝑜 must be rejected.
B. It lies in the rejection region, we failed to reject 𝐻𝑜.
C. It lies in the non-rejection region, 𝐻𝑜 must be rejected.
D. It lies in the non-rejection region, we failed to reject 𝐻𝑜.

15. If the computed z-value is – 1.290 and the critical value is – 2.571, which of the
following statements could be true?
A. It lies in the rejection region, 𝐻𝑜 must be rejected.
B. It lies in the rejection region, we failed to reject 𝐻𝑜.
C. It lies in the non-rejection region, 𝐻𝑜 must be rejected.
D. It lies in the non-rejection region, we failed to reject 𝐻𝑜.

LESSON 1.1
THE ELEMENTS OF HYPOTHESIS TESTING
What is it
DISCUSSION

Hypothesis testing is a statistical method applied in making decisions using

experimental data. Hypothesis testing is basically testing an assumption that we make
about a population.

A hypothesis is a proposed explanation, assertion, or assumption about a population

parameter or about the distribution of a random variable.
Here are the examples of questions you can answer with a hypothesis test:
• Does the mean height of Grade 12 students differ from 66 inches?
• Do male and female Grade 7 and Grade 12 students differ in height on
average?
 • Is the proportion of senior male students’ height significantly
higher than that of senior female students?

Elements in Hypothesis Testing

The Null and Alternative Hypothesis
✓ The null hypothesis is a statement that there is no difference between
a parameter and a specific value, or that there is no difference
between two parameters. It is denoted by 𝑯𝟎 .

✓ The alternative hypothesis is a statement that there is a difference

between a parameter and a specific value, or that there is a difference
between two parameters. It is denoted by 𝐻𝑎.

Note: You can think of the null hypothesis as the current value of the population
parameter, which you hope to disprove in favor of your alternative hypothesis.

Example:
The school record claims that the mean score in Math of the incoming Grade
11 students is 81. The teacher wishes to find out if the claim is true. She tests if there
is a significant difference between the batch mean score and the mean score of
students in her class.
Solution:
Let 𝜇 be the population mean score and 𝑥̅ be the mean score of students in her
class.
You may select any of the following statements as your null and alternative
hypothesis as shown in Option 1 and Option 2.
Option 1:

𝐻𝑜: The mean score of the incoming Grade 11 students is 81 or 𝜇 = 81.

𝐻𝑎: The mean score of the incoming Grade 11 students is not 81 or 𝜇 ≠ 81.

Option 2:
𝐻𝑜: The mean score of the incoming Grade 11 students has no significant
difference with the mean score of her students or 𝜇 = 𝑥.
𝐻𝑎: The mean score of the incoming Grade 11 students has a significant
difference with the mean score of her students or 𝜇 ≠ 𝑥.

Here is another element

Level of Significance
✓ The level of significance denoted by alpha or 𝛂 refers to the degree of
significance in which we accept or reject the null hypothesis.
✓ 100% accuracy is not possible in accepting or rejecting a hypothesis.
✓ The significance level α is also the probability of making the wrong
decision when the null hypothesis is true.
 Do you know that the most common levels of significance used are 1%, 5%, or 10%?
Some statistics books can provide us table of values for these levels of significance.

Example:
Jhona uses 5% level of significance in proving that there is no significant
change in the average number of enrollees in the 10 sections for the last two years. It
means that the chance that the null hypothesis (𝐻𝑜) would be rejected when it is true
is 5%.

𝛼 = 0.05

𝛼 = 0.05 is actually the area under the

normal curve within the rejection region.

Two-Tailed Test vs One-Tailed Test

✓ When the alternative hypothesis is to-sided like 𝐻𝑎 : 𝜇 ≠ 𝜇0 , it is called two-
tailed test.
✓ When the given statistic hypothesis assumes a less than or greater than
value, it is called one-tailed test.

Illustration of the Rejection Region

✓ The rejection region (or critical region) is the set of all values of the test
statistic that causes us to reject the null hypothesis.
✓ The non-rejection region (or acceptance region) is the set of all values of the
test statistic that causes us to fail to reject the null hypothesis.
✓ The critical value is a point (boundary) on the test distribution that is
compared to the test statistic to determine if the null hypothesis would
be rejected.
 Non-Rejection
Region
Rejection Region

Illustrative Example 1:
Critical Value

Now, let’s take a look at Laarni’s first claim. She assumed that the average online
usage of her friends is the same as the global usage (𝐻𝑜).

𝑥̅ −𝜇
She computed for the t-value using the formula 𝑡 = 𝑠 where 𝜇 = 142, 𝜇 = 152,
√𝑛

𝑠 = 19.855, 𝑎𝑛𝑑 𝑛 = 10.

𝑥̅ −𝜇
𝑡= 𝑠
√𝑛
152−142
𝑡= 19.855
√10
10
𝑡=
6.2787
𝑡 = 1.593

From the table of t-values, determine the critical value. Use df = n-1 = 9, one-tailed test at
5% level of significance.

The critical t-value is 1.833.

How did we get that value?
Look at this illustration!
Now, you can sketch a t distribution curve and label showing the rejection area
(shaded part), the non-rejection region, the critical value, and the computed t-value.
This is how your t distribution curve should look like!

Rejection
Non-Rejection Region
Region

1.593 1.833
(Computed Value) (Critical Value)

The computed value is less than the critical value.

𝐻0 : The average online

usage of her friends is the
same as the global usage.
The computed We fail to reject the
𝐻𝑎 : The average online t-value is at the non- null hypothesis, 𝐻𝑜.
usage of her friends is rejection region.
higher than the global
usage.
Type I and Type II Errors

✓ Rejecting the null hypothesis when it is true is called a Type I error with
probability denoted by alpha (𝛼). In hypothesis testing, the normal curve that
shows the critical region is called the alpha region.
✓ Accepting the null hypothesis when it is false is called a Type II error with
probability denoted by 𝑏𝑒𝑡𝑎 (𝛽). In hypothesis testing, the normal curve that
shows the acceptance region is called beta region.
✓ The larger the value of alpha, the smaller is the value of beta.

To summarize the difference between the Type I and Type II errors, take a look at the
table below.

Null Hypothesis 𝑯𝟎 Fail to Reject 𝑯𝟎 Reject 𝑯𝟎

Correct Decision Type I Error

True -Failed to reject 𝐻0 -Rejected 𝐻0 when it is true
when it is true
Type II Error Correct Decision
False -Failed to reject 𝐻0 -Rejected 𝐻0 when it is
when it is false false

WHAT’S MORE
ACTIVITY 1.2.

Directions: Complete the following statements. Write the answers in your notebook.
1. _________________________is a statistical method that is used in making
decisions using experimental data.

2. A ________________________ is a proposed explanation, assertion, or

assumption about a population parameter or about the distribution of a random
variable.

3. The null hypothesis is an initial claim which the researcher tries to

______________________________________.

4. The alternative hypothesis is contrary to the

______________________________________.

5. The level of significance is denoted by_______________________.

6. The significance level α is also the probability of making the wrong decision when
____________________________________.
7. When the alternative hypothesis is two-sided, it is called
_____________________________.

8. When the given statistics hypothesis assumes a less than or greater than value, it
is called ______________________________.

9. The rejection region (or critical region) is the set of all values of the test statistic
that cause us to ________________________________ .

10. Rejecting the null hypothesis when it is true results to what type of error?
________________________________.

LESSON 1.2
Parameters to be Tested in Real-Life Problem

What is in
REVIEW
In Lesson 1.1, you have learned the basic concepts, as well as the elements of
hypothesis testing.

➢ Null Hypothesis is a claim about the population which state no difference, no

changes, or no relationship between or among variables.
➢ Alternative hypothesis is a claim about the population which state differences,
changes, relationship between or among variables.
➢ Level of significance is the probability of committing Type I error.
➢ Critical region also known as rejection region, is a range of values that
corresponds to the rejection of the null hypothesis.
➢ Type I error is an error committed when rejecting a true null hypothesis.
➢ Type II error is an error committed when accepting a false null hypothesis

What’s new
ACTIVITY 1.3
Directions: Group the following symbols into two. Place the first group inside Box A
and the second group in Box B.

𝑋̅ 𝑝 𝑠 𝑠2 𝑝̂ 𝜇 𝜎 𝜎2

A B
Guide Questions:
1. What are the symbols that you placed in Box A? Box B?
2. How did you categorize each symbol or notation?
3. What mathematical principle did you consider in answering the activity?
4. Which symbols seemed to be familiar to you and which are not?

What is it
DISCUSSION

Parameters in statistics are important component of any statistical

analysis. In simple words, a parameter is any numerical quantity that characterizes a
given population or some of its aspects. This means the parameter tells us something
about the whole population.
However, the numerical measure that is calculated from the sample is called statistic.
Statistic is a known number and a variable that depends on the portion of the
population.
A parameter denotes the true value that would be obtained if a census rather than a
sample was undertaken.
Examples of parameters are the measures of central tendency. These tell us how
the data behave on an average basis. For example, mean, median, and mode are
measures of central tendency that give us an idea about where the data concentrate.
Meanwhile, standard deviation tells us how the data are spread from the central
tendency, i.e. whether the distribution is wide or narrow. Such parameters are often
very useful in analysis.
In the normal distribution, there are two parameters that can characterize a distribution
- the mean and standard deviation. By varying these two parameters, you can get
different kinds of normal distribution.

Different symbols are used to denote parameters. Based on Activity 2, symbols

are grouped as indicated in the table below.
Measure Statistic Parameter
mean 𝑥̅ (𝑥 − 𝑏𝑎𝑟) 𝜇 (𝑚𝑦𝑢)
variance 𝑠2 𝜎 2 (𝑠𝑖𝑔𝑚𝑎 𝑠𝑞𝑢𝑎𝑟𝑒𝑑)
standard deviation 𝑠 𝜎 (𝑠𝑖𝑔𝑚𝑎)
proportion 𝑝̂ (𝑝 ℎ𝑎𝑡) 𝑝

Mean and standard deviation

are two common parameters
IDENTIFYING PARAMETER TO BE TESTED

Illustrative Examples:

1. The average height of adult Filipinos 20 years and older is 163 cm for males.
Parameter: the average height of adult Filipinos 20 years and older
In hypothesis testing, the parameter will be translated into symbols such as 𝛍=𝟏𝟔𝟑
where 𝛍 is the symbol for mean/average and 163 is the value that pertains to the
average height.

2. A Grade 11 researcher reported that the average allowance of Senior High School
students is ₱100. A sample of 40 students has mean allowance of ₱120. At 𝛼=0.01
test, it was the claimed that the students had allowance of ₱ 100. The standard
deviation of the population is ₱50.
Parameters: the average allowance of Senior High School students is ₱100 or
𝝁=₱𝟏𝟎𝟎

In this claim, there are different parameters used but the parameter to
be tested in this hypothesis would be the average allowance of Senior High
School students since it relates to the population,not in sample. Statistical
hypothesis is a conjecture about the population parameter that’s why you will
look for the population mean, population standard deviation,or population
proportion but not sample mean.

3. According to a survey, 63% of the parents are willing to spend extra money for
their children’s health and education matters.
Parameter: the percentage/proportion of parents willing to spend extra money
in their children’s health and education matter or 𝒑=𝟎.𝟔𝟑

To identify the parameters to be tested:

1.Just look for mean/average, standard deviation, variance, and proportion
of population.
2.Determine the value that pertains to the given parameter, then translate
them in symbols for hypothesis testing.
 WHAT’S MORE
ACTIVITY 1.4

A. Directions: Determine the notation of the given parameter, inequality symbol, or

value of the parameter.
Parameter Notation Symbols Value
(𝜇, 𝜎, 𝑝, 𝜎 2 ) (=, ≠, <,
>, ≤, ≥)

1. Average salary of Polytechnic University

of the Philippines (PUP) graduates is at most
₱324,000. _____ ≤ _____
2. The standard deviation of adults riding a
bus is 1.5
_____ = _____

3.Filipino employers offer a mean of 15 days

of paid vacation for sick leave.
_____ _____ 15
4. Survival rate of breast cancer in the
Philippines is below 50%.
_____ _____ 0.50
5. Mean number of vehicles in households
is at most 1.9 personal vehicles.
𝜇 _____ _____

B. Directions: Determine the parameter to be tested in each situation by writing

your answer on a separate sheet of paper. Translate it into symbols.

1. The television habits of children were observed and found out that the standard
deviation is 12.4 hours per week.
2. A newspaper article stated that students in the country take an average of 4 years
to finish their undergraduate degrees. Suppose that you believe the mean time is
longer, you conducted survey on 49 students. The result obtained a sample mean of
5 with a sample standard deviation of 1.2.
3. According to DOLE, registered nurses in government earned an average monthly
salary of ₱9,700. For that same year, a survey was conducted on 41 registered
nurses to determine if the mean salary is higher than the previous survey. The
sample average was ₱10,000 with a sample standard deviation of ₱2,500.
4. Records of the Department of Health (DOH) revealed that 14.7% of the country's
Filipino smokers have maintained their habit of smoking.

WHAT I CAN DO

Directions: Cite five (5) situations in your community where you can apply
hypothesis testing. Then, just choose one situation and:
1. create a problem statement;
2. formulate the null and alternative hypothesis;
3. select the level of significance and sketch the rejection region; and
4. state the possible Type I and Type II errors.

ADDITIONAL ACTIVITIES
ACTIVITY 1.5

Directions: Determine the parameter to be tested in the given problems below.

1. An electric lamps manufacturer is testing a new method of producing lamps that will
be considered acceptable in a normal population with an average life of 2,600 hours
and a standard deviation equal to 350. A sample of 80 lamps produced by this method
has an average life of 2,630 hours. Can the hypothesis of validity for the new
manufacturing process be accepted with a risk equal to or less than 5%?

2. A car dealer claims that the average price of Honda Vios is at least ₱662,000.00. A
client suspected that the claim is incorrect and found that random sample of 15 similar
vehicles has the mean price of ₱640,000.00 and standard deviation of ₱ 24,000.00. Is
there enough evidence to reject the dealer’s claim at 𝛼=0.05?

POST - ASSESSMENT

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

1. The numerical measure that describes the certain characteristics of a population

is called ______________.
A. sample B. statistics C. parameter D. population
2. What are the two common parameters of normal distribution?
A. 𝜇 and 𝜎 B. 𝜎 and 𝑝 C. 𝑝 and 𝜇 D. 𝑝̂ and 𝑝
3. Anna wants to estimate the average shower time of teenagers. From the sample
of 50 teenagers, she found out that it takes 5 minutes for teenagers to shower. What
is the parameter?
A. sample of 50 teenagers C. average shower time of teenagers
B. 50 teenagers in 5 minutes D. took 5 minutes for teenagers to shower
4. What term is being used to describe a proposed explanation, assertion, or
assumption about a population parameter or about the distribution of a random
variable?
A. statistic B. decision C. hypothesis D. probability

5. It is also referred to as a probability of committing an incorrect decision about the

null hypothesis.
A. level of error C. level of acceptance
B. level of hypothesis D. level of significance

6. Which of the following describes a null hypothesis using two-tailed test?

A. 𝐻0: 𝜇=𝜇0 C. 𝐻0: 𝜇≥𝜇0
B. 𝐻0: 𝜇≠𝜇0 D. 𝐻0: 𝜇≤𝜇0

7. Which of the following describes an alternative hypothesis using two-tailed test?

A. 𝐻𝑎: 𝜇<50 𝑦𝑒𝑎𝑟𝑠 𝑜𝑙𝑑 C. 𝐻𝑎:𝜇≠50 𝑦𝑒𝑎𝑟𝑠 𝑜𝑙𝑑
𝐵. 𝐻𝑎:𝜇>50 𝑦𝑒𝑎𝑟𝑠 𝑜𝑙𝑑 D. 𝐻𝑎:𝜇=50 𝑦𝑒𝑎𝑟𝑠 𝑜𝑙𝑑
8. Which of the following must be used as the significance level if we want a lower
possibility of correct decision?
A. 1% B. 2% C. 5% D. 10%
9. In a one-tailed test, in which critical values below will the computed z of 2.312 falls
in the non-rejection region?
A. 1.383 B. 1.533 C. 2.228 D. 2.354

10. When is a Type I error committed?

A. We reject a null hypothesis that is true.
B. We reject a null hypothesis that is false.
C. We fail to reject a null hypothesis that is true.
D. We fail to reject a null hypothesis that is false.

11. When is a Type II error committed?

A. We reject a null hypothesis that is true.
B. We reject a null hypothesis that is false.
C. We fail to reject a null hypothesis that is true.
D. We fail to reject a null hypothesis that is false.

12. Which of the following is a Type I error?

A. 𝐻0 is true; reject 𝐻0 . C. 𝐻0 is true; fail to reject 𝐻0 .
B. 𝐻0 is false; reject 𝐻0 . D. 𝐻0 is false; fail to reject 𝐻0 .
13. If the computed z-value is 1.286 and the critical value is 1.383, which of the
following statements could be true?
A. It lies in the rejection region, 𝐻𝑜 must be rejected.
B. It lies in the rejection region, hence we fail to reject 𝐻𝑜.
C. It lies in the non-rejection region, 𝐻𝑜 must be rejected.
D. It lies in the non-rejection region, hence we fail to reject 𝐻𝑜.

14. Using a left-tailed test, which of the following value of z will not fall in the rejection
region where the critical value is – 1.638?
A. – 1.637 B. – 1.639 C. – 1.641 D. – 1.706

15. If the computed z-value is 1.915 and the critical value is 1.812, which of the
following statements could be true?
A. It lies in the rejection region, 𝐻𝑜 must be rejected.
B. It lies in the rejection region, hence we fail to reject 𝐻𝑜.
C. It lies in the non-rejection region, 𝐻𝑜 must be rejected.
D. It lies in the non-rejection region, hence we fail to reject 𝐻𝑜.