11 SENIOR HIGH SCHOOL

STATISTICS
AND PROBABILITY
Quarter 4 Module 1
Hypotheses Testing and Identifying
the Parameter of a Real-Life Problem

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NegOr_Q4_Stat_and_Prob11_Module1_v2
Statistics and Probability Grade 11
Alternative Delivery Mode
Quarter 4 Module 1: Hypotheses Testing and Identifying the Parameter of a Real-Life
Problem
Second Edition, 2021

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Published by the Department of Education

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Undersecretary: Diosdado M. San Antonio

Development Team of the Module

Writers: Evangeline K. Ije and Mae Sherida O. Magalso
Editor: Mercyditha D. Enolpe
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Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our
dear learners, can continue your studies and learn while at home.
Activities, questions, directions, exercises, and discussions are
carefully stated for you to understand each lesson.
Each SLM is composed of different parts. Each part shall
guide you step-by-step as you discover and understand the lesson
prepared for you.
Pre-tests are provided to measure your prior knowledge on
lessons in each SLM. This will tell you if you need to proceed on
completing this module or if you need to ask your facilitator or

At the end of each module, you need to answer the post-test to self-
check your learning. Answer keys are provided for each activity
and test. We trust that you will be honest in using these.
In addition to the material in the main text, Notes to the
Teacher are also provided to our facilitators and parents for
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home-based learning.
Please use this module with care. Do not put unnecessary
marks on any part of this SLM. Use a separate sheet of paper in
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carefully before performing each task.
If you have any questions in using this SLM or any difficulty
in answering the tasks in this module, do not hesitate to consult
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Thank you.

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 What I Need to Know

This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an
active learner.
The module is intended for you to illustrate the null hypothesis, alternative
hypothesis, level of significance, rejection region and types of error in hypothesis
testing and identify the parameter to be tested given a real-life problem.

PRE-ASSESSMENT
Matching Type
A. Direction: Match column A with column B. Write the letter of the correct answer.
COLUMN A COLUMN B
___1. The max/min probability of a. P (type II error) = ß
committing a type 1 error. b. Ho = parameter = specific value
___2. The probability of type II error Ha = parameter < specific value
___3. It is called the critical Region c. Ho = parameter = specific value
___4. This is a two-tailed test Ha = parameter > specific value
___5. This is a left-tailed test d. Ho = parameter = specific value
___6. This is a right-tailed test Ha specific value
e. P (type I error) =
f. Rejection region

B. Completion Test: Complete the table below.

Reject Ho __________ (1.)

Ho is true Type _____ error (2.) correct decision
Ho is _______ (3.) correct decision Type _____ error (4.)

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 Illustrating the Null and Alternative
Lesson 1 Hypothesis, Level of Significance,
Rejection Region and Types of Errors in
Hypothesis Testing

We make decisions every day. Some of these are important while others are not. In
decision-making, we usually follow certain processes: weigh alternatives, collect evidences,
and make a decision. After a decision is made, an appropriate interpretation is made (or an
action is undertaken). We follow these basic processes in testing hypothesis in Statistics.
Hypothesis is a decision-making process for evaluating claims about a population. In
this process, the researcher must define the population under study, state the particular
hypotheses to be investigated, give the significance level, select a sample from the population.
Collect a data, perform the required test, and reach a conclusion.
Every hypothesis begins with the statement of the hypothesis. The only sure way of
finding the truth or falsity of a hypothesis is by examining the entire population.

DEFINITION OF TERMS
The following terms are frequently used in hypothesis testing.
1. Null hypothesis is denoted by H0, is a statement that there is no difference between a
parameter and a specific value, or that there is no difference between two parameters.
2. Alternative hypothesis is denoted by , is a statement that there is a difference
between a parameter and a specific value, or that there is a difference between two
parameters.
3. Level of significance is a pre-determined error which the researcher is willing to risk
in rejecting the null hypothesis when it is true.
4. Rejection region or critical region is the range of values of the test value that indicates
that there is a significance difference and that the null hypothesis should be rejected.
5. Acceptance region is the range of values of the test value that indicates that there is no
significance difference and that the null hypothesis should be accepted.
6. Type I error. If the null hypothesis is true and accepted, or if it is false and rejected,
the decision is correct. If the null hypothesis is true and rejected, the decision is
incorrect.
7. Type II error. If the null hypothesis is false and accepted, the decision is incorrect.
8. One -tailed test indicates that the null hypothesis should be rejected when the test
values is in the critical region on one side of the parameter.
9. Two-tailed test is a test with two rejection regions. In this test, the null hypothesis
should be rejected when the test value is in either of the two critical regions.

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 10. Parameter is a numerical value that states something about the entire population being
studied. For example, we may want to know the mean wingspan of the American bald
eagle. This is parameter because it is describing all of the population.(Taylor, 2019)

We make decisions every day. Some of these are important while others are not.

In decision making, we usually follow certain processes: way alternatives, collect

evidence, and make a decision. After a decision is made, an appropriate interpretation is made
(or an action is undertaken). We follow the basic processes in testing hypothesis in Statistics.
Every hypothesis testing begins with the statement of a hypothesis. A statistical
hypothesis is an inference about a population parameter. This inference may or may not be
true. Anyone who has watched commercial TV cannot fail to be aware of the constant barrage
of claims. Brand X detergent will wash while clothes sparkling white. With a certain gasoline,
your car will get more kilometers to the liter than before. And so on and so on.
The only sure way of finding the truth or falsity of a hypothesis is by examining the
entire population. Because this is always not feasible, a sample is instead examined for the
purpose of drawing conclusions.
TASK 1.
What mistakes do people make?
Read the following statements and identify the errors. (Answer may vary).
1. Bryan thinks that he is a six-footer. His actual height is 156 cm.
2. On a moonlit night, a young man declares that there are two moons.
3. Mark says,
4. Thousands of years ago, Ptolemy declared that the earth is flat.
5.

picnic lovers.

Is It

Null & Alternative Hypothesis

The null hypothesis, symbolized as Ho states that there is no difference
between a parameter and a specific value. The alternative hypothesis symbolized
as Ha states a specific difference between a parameter and a specific value.

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 To state the hypothesis correctly, the researcher must translate correctly the
claim into mathematical symbols. There are three possible sets of statistical
hypotheses.
1. Ho : parameter = specific value This is a two-tailed test.
Ha :
2. Ho : parameter = specific value This is a left-tailed test.
Ha : parameter < specific value
3. Ho : parameter = specific value This is a right-tailed test.
Ha : parameter > specific value

Example # 1: Bottled Fruit Juice Content

The owner of a factory that sells a particular bottled fruit juice claims that
the average capacity of a bottle of their product is 250mL.
Answer:
statement. The claim is that the capacity of all their bottled products is 250mL per
bottle. A consumer group may generalize that the bottled product is short of the
claim. If this can be proven, then the factory owner is lying. The evidence must
be established. So, the consumer group gets interested to know if, in reality, each
bottle contains 250 ml.
Thus, the two hypotheses would be:
H0 : The bottled drinks contain 250 mL per bottle. (This is the claim.)
Ha : The bottled drinks do not contain 250 mL per bottle. (This is the
opposite of the claim.)
But these statements should be written in symbols. For now, let us
drop the unit measure and simply write:
and Ha:
Example # 2: Working Students
A university claims that working students earn an average of Php 20 per hour.
H0: The working students earn an average of Php 20 per hour. (This is the
claim.)
H1: The working students do not earn an average of Php 20 per hour. (This
is the opposite of the claim.)
Answer: Ho: and Ha:
In the hypothesis testing, there are four possible outcomes as shown in the table
below. The null hypothesis may or may not be true. The decision to reject or not
to reject is based on the data obtained from the sample of the population.

Table 1.
Reject Ho Do not reject Ho

Ho is true Type I error correct decision

Ho is false correct decision Type II error

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A type I error occurs if one rejects the null hypothesis when it is true. A type II
error occurs if one does not reject the null hypothesis when it is false.

The Level of Significance

The level of significance is the maximum probability of committing a type
I error. This probability is symbolized by (greek letter alpha). That is, P(type I
error ) = . The probability of type II error is symbolized by ß (greek letter beta).
That is, P (type II error) = ß. Although, in most hypothesis testing situations, ß
cannot be computed.

After a significance level is chosen, a critical value is selected from a table

for the appropriate test. The critical value determines the critical and the non-
critical regions. The critical region or the rejection region is the range values of
the test value that indicates that there is a significant difference and that the null
hypothesis should be rejected. The non-critical region or the non-rejection
region is the range values of the test value that indicates that difference was
probably due to the chance and that the null hypothesis should not be rejected.

In decision that we make, we form conclusions, and these conclusions are

the bases of our actions. But this is not always the case in Statistics because we
make decisions based on sample information. The best that we can do is to control
the probability with which an error occurs.
The following table shows the probability with which decisions occur

Table 2. Types of Errors

Error in Type Probability Correct Type Probability
Decision Decision
Reject a I Accept a A 1-
true Ho true Ho
Accept a II Reject a B 1-
false Ho false Ho

Under the normal curve, the rejection region refers to the region where the
value of the test statistic lies for which we will reject the null hypothesis. This
region is also called critical region.
So, if your computed statistic is found in the rejection region, then you reject Ho.
If it is found outside the rejection region, you accept Ho .

Example # 3. For each of the given, do the following:

First, draw the normal curve. Second, locate the z-value. Third, indicate if the z-
value is in the rejection region or in the acceptance region.
1. z=2, 95% confidence, two-tailed
2. z=-2.68, 95% confidence, two-tailed

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Answer.

1. reject Ho

2. reject Ho

Example of testing hypothesis using the z-test

A manufacturer claims that the average lifetime of his lightbulbs is 3 years
or 36 months. The standard deviation is 8 months. Fifty bulbs are selected, and
the average lifetime is found to be 32 months. Shou
statement be rejected at = 0.1?
Solution:
Step 1: State the hypothesis.
Ho : µ = 36 months
Ha
Step 2: Identify the test statistic to use. With the given level of significance and
the distribution of the test statistics, state the decision rule and specify the rejection
region.
Zc =

that the test is in two-tailed with two rejection regions, one in each tail of the
normal distribution curve of . Because the total area of both rejection regions is
0.01 (level of significance), the area of rejection region in each tail is
Area in each tail = = 0.1/2 = 0.05. In the z-table, the z-value of 0.05 is
equal to 1.645.

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Decision Rule: Reject the null hypothesis if the ZC > 1.645 or ZC <
=-1.645
Step 3: Compute the value of the test statistic.
The computed statistic is Zc = -3.54
Zc = = = - 3.54

Step 4: State the decision rule.

Reject the null hypothesis.
Step 5: Make a decision.
The test statistic Zc = -3.54 is less than the critical value Zc = -1.645 and it
falls in the rejection region in the left tail. Therefore, H0 and conclude that the
average lifetime of lightbulbs is not equal to 36 months.

Note: This lesson will be elaborated in the next modules.

Understanding Errors
Study and answer the following carefully and the notes that follow.
1.
Maria insists that she is 30 years old when, in fact, she is 32 years old. What
error is Mary committing?
Solution: Mary is rejecting the truth. She is committing a Type I error.
2. :
Stephen says that he is not bald. His hairline is just receding. Is he
committing an error? If so, what type of error?
Solution: Yes. A receding hairline indicates balding. This is a Type I error.

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TASK 2.
Enumerate the steps in hypothesis testing in symbols and in words.
1. ________________________
2. ________________________
3. ________________________
4. ________________________
5. ________________________

Identifying the Parameter to be Tested

Lesson 2 Given a Real-Life Problem

Typically, in a hypothesis test, the claim being made is about a population

parameter (one number that characterizes the entire population). Because
parameters tend to be unknown quantities, everyone wants to make claims about
what their values may be. For example, the claim that 25% (or 0.25) of all women
in our community have varicose veins is a claim about the proportion (that is the

having or not having varicose veins).

What we are typically after in a study is the parameter.

Consider the following examples below

Example # 1:
Suppose we study the population of dogs in Mandaue City.
Answer. A parameter of this population would be the mean height of all
dogs in the city.
Example # 2:
We will consider a study of high school seniors in Carcar City.
Answer. A parameter of this population is the standard deviation of grade
point averages of all high school seniors.
Example # 3:
Identify the parameter in the given situation:

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 We consider all of the likely voters for an upcoming election. There will be
a ballot initiative to change the state constitution. We wish to determine the level
of support for this ballot initiative.
Answer: A parameter in this case is the proportion of the population of
likely voters that supports the ballot initiative.

is It

A parameter is a numerical value that states something about the entire

population being studied. For example, we may want to know the mean wingspan
of the American bald eagle. This is parameter because it is describing all of the
population.
Parameters are difficult if not impossible to obtain exactly. On the other
hand, each parameter has a corresponding statistic that can be measured exactly.
There is a simple and straightforward way to remember what a parameter
is measuring. All that we must do is look at the first letter of each word. A
parameter measures something in a population.
Important problem of statistical inference is the estimation of population
parameters or briefly parameters (such as population mean, variance, etc.) from
the corresponding sample statistics or briefly statistics (i.e. sample mean,
variance, etc.)

Identify the parameters to be tested in the given situations.

1. A university claims that working students earn an average of 20 pesos
per hour.
2. The manufacturer of new GVX Hybrid car claims that it gets an average
of 52 miles per gallon of gas.

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 I Have Learned

TASK 3
Directions: Reflect the learning insights that you gained after taking up this

significance, rejection region and types of errors in hypothesis testing by

completing the given statements below.
Do this on your activity notebook and do not write anything on this module.

1. What were your thoughts or ideas about the topic before taking up the
lesson? I thought that
___________________________________________________________
___________________________________________________________
___________________________________________________________
2. What are new ideas or challenges have you encountered after taking up
this lesson? Why?
The new ideas I learned from these lessons are
___________________________________________________________
___________________________________________________________
___________________________________________________________
The challenges I encountered in these lessons
___________________________________________________________
___________________________________________________________
___________________________________________________________

3. How are you going to apply your learning insights from lessons in real-life
situations?
___________________________________________________________
___________________________________________________________
___________________________________________________________

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 I Can Do
CHALLENGE

Problem # 1: Songs on an MP3 player

Suppose that is the average number of songs on an MP3 player
owned by a student. Write down the description of the null hypothesis Ho:

Problem # 2: Songs on an MP3 player

In example number 3, write down the description of the alternative
hypothesis H1:
Problem # 3: Monkey-Eating Eagle Hunt
A man plans to go hunting the Philippine monkey-eating eagle
believing that it is a proof of his mettle. What type of error is this? Explain
your answer.

A. Identify if the given hypothesis about the statement is the null or the
alternative hypothesis and write it in symbols.
1. An airline company claims that its flight arrived early 92% of the time.
H____ = All of the flights arrive early 92% of the time.
In symbols, __________________________________
2. An investment company claims that its clients make an average of 8%
return on investments every year.
H____ = Clients do not make an average of 8% return on investments
every year.
In symbols, __________________________________
3. The General Manager of an air conditioner tells an investigative reporter

overall purchase performance.

H____ = Customers who are completely satisfied with their overall
purchase performance is lesser than 85%.
In symbols, __________________________________
4. A student counselor claims that Grade 7 Math students spend an average 3
hours per week doing exercises in each subject.
H____ = The average number of hours per week spent by students in
doing exercises in each subject is 3 hours.
In symbols, __________________________________

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B. Answer the following questions.
5. Which of the following describes a Type I error?
a. Accepting the null hypothesis when it is true
b. Failing to accept the alternative hypothesis when it is true
c. Rejecting the null hypothesis when it is true
d. Failing to reject the alternative hypothesis when it is false
e. None of the above
C. Determine the parameters in the given situations:
1. A car manufacturer advertises that a new car averages 39 miles per
gallon of gasoline.
2. A company claims that only 1 out of every 200 computers it sells has a
mechanical malfunction.
3. A hospital claims that only 5% of its patients are unhappy with the care
provided.
4. A health study states that American adults consume an average of 3,300
calories per day.
5. A study claims that adults watch television an average of 1.8 hours per
day.

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