What is z-test?

Ø It is used to compare two means, the sample

mean and the perceived population mean.

Ø It is also used to compare two sample means

taken from the same population.

Ø It can be applied in two ways: the One-

Sample Mean Test and the Two-Sample
Mean Test
 Test 𝜶 0.01 0.05

One-tailed ±2.33 ±1.645

Two-tailed ±2.575 ±1.96

Example:
When a robot welder is in adjustment, its
mean time to perform its task is 1.3250
minutes. Experience has found the standard
deviation of the cycle time to be 0.0396
minutes. An incorrect mean operating time
can disrupt the efficiency of other activities
along the production line. For a recent
random sample of 80 jobs, the mean cycle
lifetime for the welder was 1.3229 minutes.
Does the machine appear to need
adjustments?
Solution:
Null and Alternative Hypotheses:

𝐻- : 𝜇 = 1.3250 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 The machine is in adjustment

𝐻9 : 𝜇 ≠ 1.3250 𝑚𝑖𝑛𝑢𝑡𝑒𝑠 The machine is out of adjustment

Significance Level: 𝛼 = 0.05

Critical Values: 𝑧 = ±1.96

Reject 𝐻- if calculated 𝑧 < −1.96 or 𝑧 > 1.96

Test Statistic:

𝑥̅ − 𝜇 1.3229 − 1.3250
𝑧= = = −0.47
𝜎/ 𝑛 0.0396/ 80

The calculated value 𝑧 = −0.47 , falls within the

nonrejection region at the 0.05 level of significance.
The null hypothesis is NOT rejected.

Therefore, the robot welder is NOT in need of

adjustment.
 Example:
The light bulbs in an industrial warehouse have been found
to have a mean lifetime of 1030 hours, with a standard
deviation of 90 hours. The warehouse manager has been
approached by a representative of Extendabulb, a
company that makes a device intended to increase bulb
life. The manager is concerned that the average lifetime of
Extendabulb-equipped bulbs might not be greater than the
1030 hours historically experienced. In a subsequent test, the
manager tests 40 bulbs equipped with the device and finds
a mean life to be 1061.6 hours. Does Extendabulb really
works?
 Solution:
Null and Alternative Hypotheses:
𝑯𝟎 : 𝝁 ≤ 𝟏𝟎𝟑𝟎 𝒉𝒓𝒔 Extendabulb is no better
than the present system
𝑯𝑨: 𝝁 > 𝟏𝟎𝟑𝟎 𝒉𝒓𝒔 Extendabulb does
increase bulb life.

Significance Level: 𝛼 = 0.05

Critical Value: 𝑧 > 1.65
Test Statistic:

𝑥̅ − 𝜇 1061.6 − 1030
𝑧= = = 2.22
𝜎/ 𝑛 90/ 40

The calculated value 𝑧 = +2.22 falls within the

rejection region. At the 0.05 level of confidence, the
null hypothesis is rejected.

Therefore, the Extendabulb does increase the mean

lifetime of the bulbs.
TRY THIS!

The 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
a z-test at 0.05.
 Solution:
Null and Alternative Hypotheses:

𝑯𝟎 : 𝝁 ≥ 𝟐𝟖, 𝟎𝟎𝟎 𝒌𝒎

𝑯𝑨: 𝝁 < 𝟐𝟖, 𝟎𝟎𝟎 𝒌𝒎

Significance Level: 𝛼 = 0.05

Critical Value: 𝑧 < −1.65

Test Statistic:

𝑥̅ − 𝜇 25,560 − 28,000
𝑧= = = −11.42
𝜎/ 𝑛 1,350/ 40

The calculated value 𝑧 = −11.42 falls within the

rejection region. At the 0.05 level of confidence, the
null hypothesis is rejected.

Therefore, the average lifetime of a certain tire is less

than 28,000 km.
The z-test for two sample mean is used
when we compare the means of samples
of independent groups taken from a normal
population.
 𝒙𝟏 − 𝒙𝟐
𝒛=
𝒔𝟏 𝟐 𝒔𝟐 𝟐
+
𝒏𝟏 𝒏𝟐

Where:
𝑥Y the mean of sample 1
𝑥Z the mean of sample 2
𝑠YZ the variance of sample 1
𝑠ZZ the variance of sample 2
𝑛Y size of sample 1
𝑛Z size of sample 2
Example:
An admission test was administered to incoming
freshmen in the College of Nursing and Veterinary
Medicine with 100 students each college randomly
selected. The mean scores of the given samples
were 𝑥Y = 90 and 𝑥Z = 85 and the variances of the
test scores were 40 and 35 respectively. Is there a
significant difference between the two groups? Use
0.01 level of significance.
Solution:
Null and Alternative Hypotheses:

𝐻-: 𝑥Y = 𝑥Z There is no significant difference

𝐻-: 𝑥Y ≠ 𝑥Z There is a significant difference

Level of Significance: 𝛼 = 0.01

Critical Value: 𝑧 = ±2.575

Test Statistic:

𝒙𝟏 − 𝒙𝟐 𝟗𝟎 − 𝟖𝟓
𝒛= = = 𝟓. 𝟕𝟕𝟒
𝟒𝟎 𝟑𝟓
𝒔𝟏 𝟐 𝒔𝟐 𝟐 +
+ 𝟏𝟎𝟎 𝟏𝟎𝟎
𝒏𝟏 𝒏𝟐

The calculated value 𝑧 = 5.774 is greater than the

accepted value of 𝑧 = 2.575 at a 0.01 level of
significance which leads to the rejection of the null
hypothesis.
Conclusion:
There is a significant difference between
the two groups. It implies that the incoming
freshmen of the College of Nursing are
better than the incoming freshmen of the
College of Veterinary.
TRY THIS!
A university’s placement cent has collected data
comparing the starting salaries of graduating students
with surnames beginning with letters A through M with
those surnames begin with N through Z. For a sample
of 30 students in A-M category, the average starting
salary was $37,233.33, with a standard deviation of
$3,475.54. For a sample of 36 students with surnames
beginning with N-Z, the average starting salary was
$35,855.81 with a standard deviation of $2,580.02. Is
there a significant difference on their salaries?