Statistics and Probability

SHS009
Hypothesis Testing (Area of Rejection)

Area of Rejection

Recalling the area of rejection or critical region we have discussed in the previous meeting;
it is the area under the normal curve where in the null hypothesis is rejected based on the set
condition or Decision Rule.

Critical Value (cv) or Tabular Value separates the area of rejection and the area in which
null hypothesis is not rejected under the normal curve. Usually, the critical values or tabular values
can be found at the back pages of any statistics books.

Testing Means I: Large Sample Size or Known Variance

Z table:

Recalling also the above table we discussed from the previous meetings, this is the Critical
Value or the Tabular Value for Z – test. We used this table to determine the critical region.

Z test of One Population Mean

Example
Suppose it is known from experience that the standard deviation of the weight of 9-ounce
packages of cookies is 0.20 ounces. To check whether the true average is, on a given day, 9
ounces, employees select a random sample of 43 packages and found that their mean weight is
𝑥̅ = 9.33 ounces with 0.01 level of significance. Determine its area of rejection.

Solution:
Given an example of Z test of One Population Mean: Suppose it is known from experience
that the standard deviation of the weight of 9-ounce packages of cookies is 0.20 ounces. To check
whether the true average is, on a given day, 9 ounces, employees select a random sample of 43
packages and found that their mean weight is 𝑥̅ = 9.33 ounces with 0.01 level of significance.
Determine its area of rejection.
 Statistics and Probability

SHS009
Hypothesis Testing (Area of Rejection)

So in determining the area of rejection, we need to identify first if it’s one tailed or two
tailed test. Based on the above problem, that the claim of the employees about their package is
9-ounce, then it is a two-tailed test, that is Ha: µ ≠ 9. Then the level of significance as stated on
the problem is 0.01. Therefore, δ = 0.01.

Then looking to the Z table from the previous slide, the Critical Values are ± 2.576.

Area of Rejection

For Two Tailed Test (Non-Directional Test)

DECISION RULE:
Reject Ho and if the computed value is < -2.576 or > +2.576, otherwise do not reject
Ho.

And based on the Area or Rejection discussed in the previous meeting, the above shaded
region would be the rejection area, hence it will also follow the above decision rule for two tailed
test.

Z test of Two Population Means

Example
A Math Professor claims that there is no significant difference between the mean scores
obtained by students in afternoon and morning session in an examination in Math 101. Data are
shown below:
 Statistics and Probability

SHS009
Hypothesis Testing (Area of Rejection)

The professor is 95% confident with his claim.

Solution:
Given an example of Z test of Two Population Means: A Math Professor claims that there
is no significant difference between the mean scores obtained by students in afternoon and
morning session in an examination in Math 101. Data are shown below:

Morning Afternoon
µ 87 90
σ 7 8
n 50 50

The professor is 95% confident with his claim.

So in determining the area of rejection, we need to identify first if it’s one tailed or two
tailed test. Based on the above problem that the claim of the professor is that there is no significant
difference between the mean scores obtained by students in afternoon and morning session in
an examination in Math101, then it is a two-tailed test, that is Ha: µ1 ≠ µ2. Since the professor is
95% confident, then the level of significance is 5% or 0.05. Therefore, δ = 0.05.

Then looking to the Z table from the previous slide, the Critical Values are ± 1.960.

Area of Rejection
For Two Tailed Test (Non-Directional Test)
DECISION RULE:
Reject Ho and if the computed value is < -1.960 or > +1.960, otherwise do not reject
Ho.

And based on the Area or Rejection discussed in the previous meeting, the above shaded
region would be the rejection area, hence it will also follow the above decision rule for two tailed
test.

Test Statistic

Testing Means II: Small Sample Size or Unknown Variance

 Statistics and Probability

SHS009
Hypothesis Testing (Area of Rejection)

T table:

The above table is the Critical Value or the Tabular Value for t – test. This table needs
degrees of freedom where a One Sample Mean is df = n – 1, while Two Independent Means has
formula df = n1 + n2 – 2.

t test of One Sample Mean

Example
A brochure inviting subscriptions for a new diet program states that the participants are
expected to lose over 22 pounds in five weeks. Suppose that, from the data of the five-week
weight losses of 19 participants, the sample mean and sample standard deviation are found to be
23.5 and 10.2, respectively. Could the statement in the brochure be substantiated on the basis of
these findings? Test at the α = .05 level.

Solution:
 Statistics and Probability

SHS009
Hypothesis Testing (Area of Rejection)

Given an example of t test of One Sample Mean: A brochure inviting subscriptions for a
new diet program states that the participants are expected to lose over 22 pounds in five weeks.
Suppose that, from the data of the five-week weight losses of 56 participants, the sample mean
and sample standard deviation are found to be 23.5 and 10.2, respectively. Could the statement
in the brochure be substantiated on the basis of these findings? Test at the α = .05 level.

So in determining the area of rejection, we need to identify first if it’s one tailed or two
tailed test. Based on the above problem, that participants are expected to lose over 22 pounds in
five weeks, that is Ha: µ > 22. So it’s a One-Tailed test. Then the level of significance as stated
on the problem is 0.05. Therefore, δ = 0.05. Since n = 19, therefore df = 19 – 1 = 18.

Then looking to the t table from the previous slide, the Critical Values are ± 1.734. And
since it is a right tailed test, therefore, we consider the critical value of 1.734.

Area of Rejection

For One Tailed Test (Directional Test)

For Right Tail Test (Ha uses the inequality >)

DECISION RULE:
Reject Ho if Computed Value is > 1.734, Otherwise, do not reject Ho.

And based on the Area or Rejection discussed in the previous meeting, the above shaded
region would be the rejection area, hence it will also follow the above decision rule for one tailed
test.

t test of Two Independent Means

Example
A study of the number of business dinner that executives in the insurance and banking
industries claim as deductible expenses per month was based on random samples and yielded
the following results:
𝑥̅ 14 15

s 5.5 4.35
 Statistics and Probability

SHS009
Hypothesis Testing (Area of Rejection)

n 24 23

Test the null hypothesis µ1 = µ2 against the alternative hypothesis µ1 ≠ µ2 at the α = .05
significance level.

Solution:
Given an example of t test of Two Independent Means: A study of the number of business
dinner that executives in the insurance and banking industries claim as deductible expenses per
month was based on random samples and yielded the following results:

So we have ̅𝑥 14 15
s 5.5 4.35
n 24 23

Test the null hypothesis µ1 = µ2 against the alternative hypothesis µ 1 ≠ µ2 at the α = .05
significance level.

So in determining the area of rejection, we need to identify first if it’s one tailed or two
tailed test. Based on the above problem, the alternative hypothesis is µ1 ≠ µ2. So it’s a Two-Tailed
test. Then the level of significance as stated on the problem is 0.05. Therefore, δ = 0.05. Since n1
= 14 and n2 = 15, therefore df = 14 + 15 – 2 = 27.

Then looking to the t table from the previous slide, the Critical Values are ± 2.052.

Area of Rejection
For Two Tailed Test (Non-Directional Test)

DECISION RULE:
Reject Ho and if the computed value is < -2.052 or > +2.052, otherwise do not reject
Ho.

And based on the Area or Rejection discussed in the previous meeting, the above shaded
region would be the rejection area, hence it will also follow the above decision rule for two tailed
test.