WHAT’S NEW

LESSON 3

THE TEST STATISTIC

Test statistic is a value computed from the data. The test statistic is used to
assess the evidence in rejecting or accepting the null hypothesis. Each statistic test is
used for a different test. You can use the z-score, t-score, the F-statistic, or Chi-Square
statistic. These will be used for the following tests, z-test, t-test, ANOVA test, and Chi-
square test, respectively. All data must be assumed to be normally distributed. Here, we
will consider three conditions in choosing the appropriate test statistic. These three are
when the population variance is assumed to be known, when the population variance is
assumed to be unknown, and when using the Central Limit Theorem.

WHAT’S
32 NEW
LESSON 3.1

TEST STATISTIC WHEN THE POPULATION VARIANCE IS ASSUMED TO BE

KNOWN

In this condition, the z-score is used. The formula for z-score is given by the
formula below.

̅
Test Statistic: ( ) (√ )
where

z is the z-score, ̅ is the sample mean, is the population mean, is the population
standard deviation, and n is the sample size.
Examples 2.1.1, 2.1.2, and 2.1.3 will use the z-score.
From Example 2.1.1

Given: ̅ , , , and

̅
Test Statistic: ( ) (√ ) ( ) (√ )

From Example 2.1.2

Given: ̅ , , , and

̅
Test Statistic: ( ) (√ ) ( ) (√ )

From Example 2.1.3

Given: ̅ , , , and

̅
Test Statistic: ( ) (√ ) ( ) (√ )

33

WHAT’S NEW
LESSON 3.2

TEST STATISTIC WHEN THE POPULATION VARIANCE IS ASSUMED TO BE

UNKNOWN

In this condition, the z-score is inappropriate to use. A different test statistic will
be used then. The t-score will be used in this case. Another condition to observe when
using t-score is when the sample size n is less than 30, i.e., ( ) and the population
is normally or approximately normally distributed. The formula for t-score is given by the
formula below.

̅
Test Statistic: ( ) (√ ) and the degrees of freedom
where
t is the t-score, ̅ is the sample mean, is the population mean, is the sample
standard deviation, and n is the sample size.

Examples 2.2.1, 2.2.2, and 2.2.3 will use the t-score.

From Example 2.2.1

Given: ̅ , , , , and

̅
Test Statistic: ( ) (√ ) ( ) (√ )

From Example 2.2.2

Given: ̅ , , , , and

̅
Test Statistic: ( ) (√ ) ( ) (√ )

34
From Example 2.2.3

Given: ̅ , , , , and

̅
Test Statistic: ( ) (√ ) ( ) (√ )

WHAT’S NEW
LESSON 3.3

TEST STATISTIC USING CENTRAL LIMIT THEOREM

The Central Limit Theorem states that if a random samples of size n are drawn
from a large or infinite population with finite mean and variance , then the sampling
distribution of the sample mean is approximately normally distributed with mean ̅
√ (̅ )
and a standard deviation of ̅ . Hence, or equivalently, ̅ ( ).
√

In other words, the sampling distribution of the sample means approaches

a normal distribution as the sample size gets larger — no matter what the shape of the

44
population distribution. This fact holds especially true for sample sizes over 30. All this
is saying is that as you take more samples, especially large ones, your graph of
the sample means will look more like a normal distribution.

The average of your sample means will be the population mean. Compute the
sum of all means from all samples divided by the number of means added. The result is
the actual population mean. Similarly, the average of all of the standard deviations of
all samples is the actual standard deviation for your population.
43

Example 3.3.1.
35
San Miguel Corporation gives a monthly benefit to their employees during the COVID19
pandemic. They claimed that the average monthly benefit of their employees is at least Php 5,
000.00. A random sample of 35 employees were taken as samples to verify the said claim and
found that their average monthly benefit is Php 6, 000.00 with a standard deviation of Php
600.00. Is the company’s claim correct at 0.05 level of significance? Assume that the
population is approximately normally distributed.

Given: , ,̅ ,

Solution:

According to Central Limit Theorem, ̅

√ √ √
Hence,
̅
Test Statistic: ( ) (√ ) ( ) (√ ) .
̅

Example 3.3.2.

GMA-ABS claimed that their employees had a mean monthly salary of Php12,500.00. A
reporter wants to verify this claim by asking 30 employees. The result showed that
these employees had an average monthly salary of Php10,000.00 with a standard
deviation of Php 2,000.00. Test the claim at 10% level of significance assume that the
population is approximately normally distributed.
.

Given: , ,̅ ,
Solution:

According to Central Limit Theorem, ̅

√ √ √
Hence,
̅
Test Statistic: ( ) (√ ) ( ) (√ ) .
̅

WHAT
36 IS IT
ACTIVITY 10
Determine the given and compute the test statistic of the problems below using
Central Limit Theorem. Write the problems and answers in your activity notebook.

1. A company claimed that their N95 face mask has a mean filtration efficiency rate of
95%. A group of student researcher wanted to verify this claim. They bought and tested
40 of their N95 face masks. They found out that the average filtration efficiency rate of
these face mask was 90% with a standard deviation of 4%. Test the claim at 5% level
of significance and assume that the population is approximately normally distributed.

2. A certain group of welfare recipients receives relief goods with a mean amount of Php
500 per week. A random sample of 75 recipients is surveyed and found that the mean
amount of relief goods they received in a week is Php 600 and a standard deviation of
Php50.00 . Test the claim at 1% level of significance is not Php 500 per week and
assume that the population is approximately normally distributed.
.
 WHAT’S NEW
LESSON 4

THE REJECTION REGION

After the test statistic is computed, the critical region is set. The set of all possible
values of the test statistic could range from negative infinity to positive infinity. This will
be divided into two regions. One region will be set as the acceptance region and the
other one is the rejection or critical region. The division of these two regions will be
based on the alternative hypothesis. Review lesson 1.4.

In constructing the rejection region, it is important to correctly formulate the

alternative hypothesis. Recall that there are three possible symbols to be used in the
formulation of the alternative hypothesis, namely, . Each of this will have a
corresponding critical region.

37
WHAT’S NEW
LESSON 4.1
REJECTION REGION WHEN THE POPULATION VARIANCE IS ASSUMED
TO BE KNOWN

Below is the summary of the possible alternative hypothesis and its

corresponding critical region for testing population mean when the population variance
is assumed to be known.

Alternative Hypothesis Critical Region/s

⁄ or ⁄

Where is the population mean, is the possible value of the population mean, is
the value of test statistic and , ⁄ and ⁄ are the critical values.
Let us determine the given, formulate the null and alternative hypothesis, compute the
test statistic and construct the acceptance and critical regions of examples 2.1.1, 2.1.2,
and 2.1.3.

From Example 2.1.1

Given: ̅ , , ,

Null and alternative hypotheses

: The average reduction of production expenses of the new packaging design of ethyl
alcohol is Php 5.00.
:

: The average reduction of production expenses of the new packaging design of ethyl
alcohol is less than Php 5.00.
:
Note: we use less than because the sample mean 3 is less than 5 which is the possible value of
the population mean.
test statistic: ( ) (√ )
Critical region 38

Since < is use in , will be used. Now using the z-table, the value of is

Now, we construct the critical and acceptance regions.

From Example 2.1.2

Given: ̅ , , ,

Null and alternative hypotheses

: The average profit increase of the new face mask design is 10%
:

: The average profit increase of the new face mask design is not 10%.
:
Note: we use not equal because it was indicated to test the hypothesis that the new face mask
design average profit increase is not 10%.

39
Test Statistic: ( ) (√ ) and ⁄

Critical region
Since is use in , ⁄ or ⁄ will be used. Now using the z-table, the
values of ⁄ and ⁄ are the following

⁄ or ⁄
Now, we construct the critical and acceptance regions.

From Example 2.1.3

Given: ̅ , , , and
Null and alternative hypotheses
: The mean score of Grade 11 students is 80.
:

: The mean score of Grade 11 students is greater than 80.

:
Note: we use greater than because sample mean 83 is greater than 80 which is the possible
population mean.
Test Statistic: ( ) (√ )

40
Critical region
Since is use in , will be used. Now using the z-table, the value of is.
Now, we construct the critical and acceptance regions.

̅
1. Test statistic: ( ) (√ ) ( ) (√ ) and
2. Critical region: Since is use in , ⁄ or ⁄ will be used. Now
using the student t-distribution table, the value of ⁄ is
⁄ and .The critical regions are
illustrated below.

3. Decision: Since is FALSE and is also FALSE,

is rejected. From the illustration above, lies between the two critical
regions.
4. Conclusion: There is no sufficient evidence to conclude that the mean height of
male aged 18 to 24 years old was 70 inches.