THE Z-TEST

The z-test is a parametric test which requires the normality of the distribution. It utilizes the two population
parameters µ and σ. It is used to compare two means, the sample mean, and the perceived population mean. It is
also used to compare the two sample means taken from the same population. It is used when the samples are
equal or greater than 30. The z-test can be applied in two ways: the One-Sample Mean Test and the Two-Sample
Mean Test.
The tabular value of z-test at .01 and .05 level of significance.
Test Level of Significance
.01 .05
One - tailed ±2.33 ±1.65
Two – tailed ±2.575 ±1.96

THE ONE – SAMPLE MEAN TEST

The one-sample mean test is used when the sample mean is being compared to the perceived population
mean. However, if the population standard deviation is not known, the sample standard deviation can be used
as a substitute. The formula is
(x - µ )√n
Z = --------------------

Where:
x = sample mean
µ = hypothesized value of the population mean
σ = population standard deviation
n = sample size

Example 1. The average score in the entrance examination in Mathematics at CBN High School is 80 with a
standard deviation of 10. A random sample of 40 students was taken from this year’s examinees and it was
found to have a mean score of 84.
a. Is there a significant difference between the known mean and the sample mean? Test at α= 0.05.
b. Does this indicate that this year’s batch is better in mathematics than the previous batches?

a.
1 Hypotheses:
Ho: There is no significant difference between the hypothesized mean and sample means. (Ho: µ= 80)
Ha: There is a significant difference between the hypothesized mean and sample means.(Ha: : µ≠ 80)
II – Level of Significance`
α = 0.05; two-tailed test; Ztab is +-1.96
III- Test Statistic:
(x - µ )√n (84-80) √40
Z = -------------------- = ------------------ = 2.53
 10
Criterion or Decision Rule: Reject H 0 if z computed value is greater than or beyond the z tabular value.
IV- Decision: Reject Ho since Zcomputed is 2.53 and it is greater than Ztabular value 1.96.
V – Conclusion: There is a significant difference between the hypothesized mean and the sample mean.

b.
 I- Hypotheses
Ho: This year’s batch is as good as the previous batches in mathematics. (Ho: µ= 80)
Ha: This year’s batch is better in mathematics than the previous batches. (Ha: µ> 80)
II – Level of Significance
α = 0.05; one-tailed test; Ztab is +-1.65

III- Test Statistic:

(x - µ )√n (84-80) √40 4 (6.32) 25.28
Z = -------------------- = ------------------ = ------------- = ----------- = 2.528 = 2.53
 10 10 10
Criterion or Decision Rule: Reject H 0 if z computed value is greater than or beyond the z tabular value.

IV- Decision: Reject Ho and accept Ha since Zcomputed is 2.53 and it is greater than Ztabular value 1.65.
V – Conclusion: This year’s batch is better in mathematics than the previous batches

Example 2. ABC company claims that the average lifetime of a certain tire is at least 28, 000 km. to check
the claim, a taxi company puts 40 of these tires on its taxis and gets a mean lifetime of 25,
560 km. with a standard deviation of 1, 350 km, is the claim true? Use z-test at .05

Problem: Is the claim true that the average lifetime of a certain tire is at least 28, 000 km.
Hypotheses:
H 0: The average lifetime of a certain tire is 28, 000 km.
Ha: The average lifetime of a certain tire is atleast 28, 000 km.
Level of Significance:
α = .05
z = ±1.645
Test Statistic:
z-test for one-tailed test
Computation:
( x−μ ) √ n
z=
σ
( 25 ,560−28 , 000 ) √ 40 −15 , 420.8
= =
1 , 350 1 ,350
(−2,440 ) ( 6.32 )
= z = -11.42
1 ,350
Decision Rule: If the z computed value is greater than or beyond the z tabular value, reject H 0 .
Decision & Conclusion: Since the z computed value of -11.42 is beyond the critical value of -1.65 at .05 level
of
significance the research hypothesis is accepted which means that the average lifetime of a certain tire is at least
28,000 km.
 Example 3. It is claimed that the average weight of a bag of biscuit is 250 grams with a standard deviation of 20.5
grams. Would you agree to this random sample of 50 bags of biscuits showed an average weight of 240 grams,
using a 0.05 level of significance?

I - Hypotheses
Ho: µ= 250 grams
Ha: µ≠ 250 grams

II – Level of Significance
α = 0.05; two-tailed test; Ztab is +-1.96
III- Test Statistic:
(x - µ )√n (240-250) √50
Z = -------------------- = ------------------ = -3.45
 20.5
Criterion or Decision Rule: Reject H 0 if z computed value is greater than or beyond the z tabular value.
IV- Decision: Reject Ho and Accept Ha since Z computed is /-3.45/ is greater than Z tabular value /-1.96/at 0.05 level of
significance.
V – Conclusion: Therefore the claim of the manufacturer that the average weight per bag of biscuit is 250 grams
is not true.

Example 4. In a study made on time and motion. It was found that a certain manual work can be finished at an
average of 40 minutes with a standard deviation of 8 minutes. A group of 16 workers is given a special training
and then found to average only 35 minutes. Can we conclude that the special training can speed up the work
using a 0.01 level?

I - Hypotheses
Ho: µ= 40 minutes
Ha: µ< 40 minutes

II – Level of Significance
α = 0.01; one-tailed test; Ztab is +-2.33
III- Test Statistic:
(x - µ )√n (35-40) √16
Z = -------------------- = ------------------ = -2.5
 8
Criterion or Decision Rule: Reject H 0 if z computed value is greater than or beyond the z tabular value.
IV- Decision: Reject Ho and Accept Ha since Zcomputed is /-2.5/ is greater than Ztabular value /-2.33/at 0.01 level of
significance.
V – Conclusion: Therefore the special training can really speed up the work.

Activity #5. Use the stepwise method to answer problem #5 below.

5. Past record showed that the average final examination grade in Math III is 70 with a standard deviation of 8.0.
A random sample of 100 students was taken and found to have a mean final exam grade of 71.8. Is this
indication that the sample is better than the rest of the students? Test at 0.05 level of significance.
 THE TWO-SAMPLE MEAN TEST
The two-sample mean test is used when comparing two separate samples drawn at random taken from a
normal population. To test whether the difference between the two values of x 1 and x 2 is significant or can be
attributed to chance, the formula is used:
˙
X 1−X 2

√
z= 2 2
S S2
1
+
n1 n2
where:
X 1 = the mean of sample 1 2
S2 = the variance of sample 2
X 2 = the mean of sample 2 n1 = size of sample 1
2
S1 = the variance of sample 1 n2 = size of sample 2

Example 1. An admission test was administered to incoming freshmen in the Colleges of Nursing and
Veterinary Medicine with 100 students. Each was randomly selected. The mean scores of the given
samples were x 1 = 90 and x 2 = 85 and the variances of the test scores were 40 and 35, respectively. Is
there a significant difference between the two groups? Use .01 level of significance.
Problem: Is there significant difference between the two groups?
Hypotheses:
H 0: x 1 = x 2
Ha: x 1 ≠ x 2
Level of Significance:
α = .01
z = ± 2.575
Test Statistic:
z-test for two-tailed test
x −x2
5

√
2 2
z= s1 s2 =
+ √.75
n1 n 2
90−85
5

√
= 40 35 =
+ .866
100 100
5
=
√ 75
100
z = 5.774

Decision Rule: If the z-computed value is greater than or beyond the tabular value, reject H 0.

Decision & Conclusion: Since the z computed value of 5.774 is greater than the z tabular value of
2.575 at .01 level of significance, the research hypothesis is accepted which means that there is a significant
difference between the two groups.
Activity #6. Use the stepwise method to answer problems #3 & 4 below.

Example 2. Fifteen pupils from school B have mean IQ of 110 and a variance of 64, while 20 pupils from school C
show a mean of 114 and a variance of 78. Is there a significant difference between their IQs using a 0.01 level of
significance?

3. Fifty senior students in Statistics got an average grade of 85 with a standard deviations of 10.2, while a
group of 60 senior students have an average grade of 80 with the standard deviation of 8.9. Can the
difference in the mean grade be attributed to chance, using 0.05 level of significance?

4. The principal of SMA wants to know which batch of students performed better in English. He took a
random sample of 40 students in the last year’s batch and found it to have a mean final grade of 83 with a
standard deviation of 7. Fifty students from this year’s batch were randomly taken and it was found that
they have a mean final grade of 86 with a standard deviation of 10. Does this indicate that last year’s batch is
poorer in English than this year’s batch? Test at α = 0.01

5. A random sample of 25 brand A cigarettes had an average nicotine content of 5 milligrams, while a
sample of 40 brand d cigarettes showed an average nicotine content of 4.8 milligrams. If the standard
deviation of nicotine content is 1.6 milligrams, would you say that brand D has a lesser nicotine content?
Assume the distribution of nicotine content to be normal and use a 0.01 level of significance.