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SENIOR HIGH SCHOOL

Statistics and
Probability
Quarter 4 – Module 1

Tests of Hypotheses
Statistics & Probability – Grade 11
Alternative Delivery Mode
Quarter 4 – Module 1: Tests of Hypotheses
Second Edition, 2021

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Statistics and
Probability
Quarter 4 – Module 1
Tests of Hypotheses
WHAT’S NEW
LESSON 1
Some Key Concepts of Tests of Hypothesis

This part of the module discusses about some key concepts of tests of
hypothesis. It includes the null and alternative hypotheses, level of significance,
rejection region, and the types of errors in hypothesis testing. There are activities
following every discussion which were designed to test your understanding about the
discussion.
Hypothesis testing is a decision-making process of evaluating claims about a
population based on the characteristic of a sample from that population. It decides
whether to reject or accept the null hypothesis. Some use the following decisions: the
null hypothesis is rejected or failed to reject the null hypothesis. Acceptance implies
that the null hypothesis is true. Failure to reject implies that the data are not sufficient
enough to reject the null hypothesis. In this module, your decision during hypothesis
testing is either reject the null hypothesis or the data are not sufficient enough to reject
the null hypothesis. Testing hypothesis follows the following steps below.

1. Formulate the null and alternative hypotheses


2. Select the level of significance and the test type
3. Determine test statistic to be used
4. Compute the test statistic and critical values
5. Construct acceptance/rejection regions
6. Make a decision/draw a conclusion based on steps 4 and 5
7. Interpret

What I Need to Know


By the end of this lesson, you are expected to:
1. Illustrate the following:
(a) null hypothesis (M11/12SP-IVa-1.1);
(b) alternative hypothesis (M11/12SP-IVa-1.2);
(c) level of significance (M11/12SP-IVa-1.3);
(d) rejection region (M11/12SP-IVa-1.4); and
(e) types of errors in hypothesis testing (M11/12SP-IVa-1.5)

To achieve the objectives of this module, do the following tasks:


➢ Take your time reading the lessons
1 carefully.
➢ Follow the directions and/or instructions in the activities and exercises
diligently.
➢ Answer all the given tests and exercises.

DO NOT WRITE ANYTHING ON ANY PART OF THIS MODULE. Write your answers
to the activities in a separate notebook.

1
WHAT’S NEW
LESSON 1.1

NULL HYPOTHESIS

➢ Null is defined as having no value or amounting to nothing


➢ In statistics, a hypothesis is an assumption or conjecture about a population
parameter which may or may not be true.
➢ In the scientific method, the hypothesis is constructed before any applicable
research has been done.
➢ Null hypothesis is a statement denoted by 𝑯𝟎 , that states that there is no
difference, no changes, nothing happened, no relationship between a parameter
and a specific value, or the independent variable has no effect on the dependent
variable.
➢ It makes a statement about the population not the sample. The true value of
the population parameter is specified in writing the null hypothesis.

In symbol, it is written using the format below


𝐻0 : 𝜇 = 100.
Null hypothesis Value of the population
Population Parameter Equality Symbol parameter

WHAT IS IT
ACTIVITY 1

A. Read and understand the given statements below and find out whether it is
a null hypothesis. In your notebook, write 𝑯𝟎 if the given is a null hypothesis.
Otherwise, just leave it blank.

In 2015, it was recorded that around 34% of the population in 2015 were not
married. A researcher surveyed a random sample of 500 couples. He found out that
18% of them were living together but unmarried. Test at 5% significance level if the
current percentage of unmarried couples is different from 34%.

1. The current percentage of unmarried couples is different from 34%.


2. The current percentage of unmarried couples is 34%.
3
An average construction worker hourly rate pay in the Philippines is Php 62.50
with a standard deviation of Php 6.01. A random sample of 20 manufacturing workers
were asked on their hourly rate and found that they had an average of Php 50.00
hourly rate pay with a standard deviation of Php 5.00. Construct a 90% confidence
interval for the difference between the average hourly rate for construction workers
and the average hourly rate for manufacturing workers.

3. There is a significant difference between the average hourly rate for construction
workers and the average hourly rate for manufacturing workers.
4. There is no significant difference between the average hourly rate for construction
workers and the average hourly rate for manufacturing workers.

A chemist invented an additive to increase the lifespan of rechargeable battery.


The said additive will extend on average the battery’s lifespan to 48 months.

5. The average lifespan extension of rechargeable battery is 48 months.


6. The average lifespan extension of rechargeable battery is not 48 months

B. Comprehension Check Questions: Write the letter of the best answer among
the choices below in your notebook.

1. They worked in producing goods.


A. Construction B. Manufacturing C. Chemist D. Investors
2.They worked with the composition, structure, and properties of substances and
with the transformations that they undergo
A. Construction B. Manufacturing C. Chemist D. Investors
3. It is the square root of variance.
A. Confidence Interval B. Standard Deviation C. Range D. Mean
4. It is the sum of values divided by the number of values being summed.
A. Confidence Interval B. Standard Deviation C. Range D. Mean
5. It is a range of numbers containing possible values for the population parameter.
A. Confidence Interval B. Standard Deviation C. Range D. Mean

C. Read and understand the statements below. In your notebook, write the
mathematical symbol of the null hypothesis of the following statements.

1. The average number of years to finish basic education is 14 years.


2. At least 40% of private school students transferred to public school during the
COVID 19 pandemic.
3. The mean weekly expenses of a family during the COVID 19 pandemic increased
at most by 15%.
4. Thirty-five percent of senior high school students enrolled to a track/strand because
of peer pressure.
5. During the COVID 19 pandemic, 8% of COVID 19 cases in the country were
confirmed death cases.

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6. The mean number of new normal learning facilities a school has is not more than
five.
7. During the COVID 19 pandemic, more than half of the residents in cities decided to
stay in their remote provinces.
8. Forty-five percent of the students chose the online learning delivery mode.
9. At most, 55% of the public-school teachers were advised to stay at home during the
opening of classes.
10. At least 70% of the public schools used blended learning delivery mode.

WHAT’S NEW
LESSON 1.2

ALTERNATIVE HYPOTHESIS

➢ Alternative hypothesis, a statement denoted by 𝑯𝟏 , is a statement that states


that there is a difference, an effect, change, or a relationship between a parameter
and a specific value; the independent variable has an effect on the dependent
variable, or something happened.

➢ An alternative hypothesis is a statement that directly contradicts a null


hypothesis by stating that that the actual value of a population parameter is less
than, greater than, or not equal to the value stated in the null hypothesis.

In symbol, it is written as:


𝐻1 : 𝜇 ≠ 100

𝐻1 : 𝜇 < 100 or

𝐻1 : 𝜇 > 100

The alternative hypothesis will also determine the type of hypothesis test that will be
conducted.

One-tailed test will be used when using > or <.


Two-tailed test will be used when ≠is used.

5
Below are the common phrases used in hypothesis testing that will guide you in
choosing the correct symbol to be used in formulating alternative hypothesis.

> < ≠ =
greater than less than
not equal equal to

above below

different from the same as


higher than lower than

longer than smaller than not changed


changed from
from
bigger than shorter than
not the same
decreased or is
increased ase as
reduced from

WHAT IS IT?
ACTIVITY 2

A. Read and understand the given statements below. In your notebook, write 𝑯𝟏
if the given statement in every number is an alternative hypothesis. Otherwise,
just leave it blank.

In 2015, it was recorded that around 34% of the population in 2015 were not
married. A researcher surveyed a random sample of 500 couples. He found that 18%
of them were living together but unmarried. Test at 5% significance level if the current
percentage of unmarried couples is different from 34%.

1. The current percentage of unmarried couples is different from 34%.


2. The current percentage of unmarried couples is 34%.

6
An average construction worker hourly rate pay in the Philippines is Php 62.50
with a standard deviation of Php 6.01. A random sample of 20 manufacturing workers
were asked on their hourly rate and found that they had an average of Php 50.00
hourly rate pay with a standard deviation of Php 5.00. Construct a 90% confidence
interval for the difference between the average hourly rate for construction workers
and the average hourly rate for manufacturing workers.

3. There is a significant difference between the average hourly rate for construction
workers and the average hourly rate for manufacturing workers.
4. There is no significant difference between the average hourly rate for construction
workers and the average hourly rate for manufacturing workers.

A chemist invented an additive to increase the lifespan of rechargeable battery.


The said additive will extend on average the battery’s lifespan to 48 months.

5. The average lifespan extension of rechargeable battery is not 48 months.


6. The average lifespan extension of rechargeable battery is 48 months.

B. Read and understand the statements below. In your notebook, write the
mathematical symbol of the alternative hypothesis of the given statement.

1. The average number of years to finish basic education is not 14 years.


2. At least 40% of private students transferred to public schools during the COVID 19
pandemic.
3. The mean expenses of a family during the COVID 19 pandemic increased at most
by 15%.
4. Thirty-five percent of senior high school students enrolled to a track/strand because
of peer pressure.
5. During the COVID 19 pandemic, 8% of COVID 19 cases in the country were
confirmed death cases. 7
6. The mean number of new normal learning facilities a school has is not more than
five.
7. During the COVID 19 pandemic, more than half of the residents in cities decided to
stay in their remote provinces.
8. Forty-five percent of the students chose the online learning delivery mode.
9. At most, 55% of the public-school teachers were advised to stay at home during the
opening of classes.
10. At least 70% of the public schools used blended learning delivery mode.

7
WHAT’S NEW
LESSON 1.3

LEVEL OF SIGNIFICANCE

➢ Significance is defined as the quality of being statistically significant

➢ Level of significance, or significance level, refers to a criterion of judgment


upon which a decision is made regarding the value stated in a null hypothesis.
Its value is between 0 to 1 or between 0% to 100%.

➢ The level of significance, denoted by the Greek letter alpha 𝜶, is a probability


of rejecting a true null hypothesis. In public health research, alpha is usually 0.01
or 1%. In social science, alpha 𝜶 is usually 0.05 or 5% and 0.10 or 10% in other
studies. This implies that there is a 1%, 5%, or 10% probability of rejecting a true
null hypothesis. Further, it implies that the result has 99%, 95%, or 90% chance
of being true, respectively.

In symbol, it is written as:


𝜶 = 𝟎. 𝟎𝟏
𝜶 = 𝟎. 𝟎𝟓 or
𝜶 = 𝟎. 𝟏𝟎

Furthermore, if the alternative hypothesis used ≠,


then alpha will be divided by 2, i.e.,
𝜶⁄ = 𝟎. 𝟎𝟎𝟓
𝟐
𝜶⁄ = 𝟎. 𝟎𝟐𝟓 or
𝟐
𝜶⁄ = 𝟎. 𝟎𝟓
𝟐

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WHAT IS IT?
ACTIVITY 3

A. Read and understand the given statements below. Determine the value of 𝜶
or 𝜶⁄𝟐 based on the alternative hypothesis in decimal form. Write your answer
in mathematical symbol in your notebook.

1. In 2015, it was recorded that around 34% of the population were not married. A
researcher surveyed a random sample of 500 couples. He found out that 18% of them
were living together but unmarried. Test at 5% significance level that the current
percentage of unmarried couples is different from 34%.

2. An average construction worker hourly rate pay in the Philippines is Php 62.50 with
a standard deviation of Php 6.01. A random sample of 20 manufacturing workers were
asked on their hourly rate and found out that they had an average of Php 50.00 hourly
rate pay with a standard deviation of Php 5.00. Construct a 90% confidence interval
that the average hourly rate for construction workers is higher than the average hourly
rate for manufacturing workers.

3. A chemist invented an additive to increase the lifespan of rechargeable battery. The


said additive will extend on average the battery’s lifespan to 48 months. Test the
hypothesis at 0.01 level of significance that the average lifespan is higher than 48
months.

4. The average number of years to finish basic education is 14. A sample of 30 senior
high school students were asked and found out that the mean number of years to finish
their basic education is 12 with a standard deviation of 2 years. Test the hypothesis at
93% confidence interval that the average number of years to finish basic education is
less than 14 years.

5. A sample of 100 private school students were surveyed whether they plan to
transfer to public school in the incoming school year. Results showed that 40% of
these students will transfer to public school. Test the average number of private school
students that will transfer to public school is not 40% at 5% level of significance.

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WHAT’S NEW
LESSON 1.4

CRITICAL REGION

➢ Critical region, also known as rejection region, is a range of values that


corresponds to the rejection of the null hypothesis. If the value of the test statistic
is within the critical region, then the null hypothesis is rejected. Otherwise, the
null hypothesis is not rejected. This will be based on the alternative hypothesis.

➢ Critical values of the tests of hypotheses are the number or numbers that
determine the rejection region. Thus, critical region might be a single number or
an interval.

For one-tailed test or directional test <, the critical region is at the left side of the
acceptance region.
For one-tailed test or directional test >, the critical region is at the right side of the
acceptance region.
For two-tailed test or non-directional test ≠, the critical region is at the left and
right sides of the acceptance region.

Below is the illustration of the different critical region.

Source: https://towardsdatascience.com/a-complete-guide-to-hypothesis-testing-2e0279fa9149

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For example, suppose that a normally distributed population has a standard
deviation 𝜎 = 0.12. Given a sample size 𝑛 = 10, 𝐻0 : 𝜇 = 10 and 𝐻1 : 𝜇 > 10. Construct
the rejection region if 𝛼 = 0.05.

Solution:
𝜎 0.12
𝜇𝑋̅ = 𝜇 = 10 and 𝜎𝑋̅ = = = 0.03794733192202 …
√𝑛 √10
Notice that 𝐻1 : 𝜇 > 10, this is one directional test. Using the standard normal table,
𝑧𝛼 = 𝑧0.05 = 1.645.
Hence, the
𝒄𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝒗𝒂𝒍𝒖𝒆 = 𝜇 + (𝑧𝛼 )(𝜎𝑋̅ )
= 10 + (1.645)(0.038 … )
= 10 + 0.0624
= 10.0624

The critical region is illustrated below. It is the darkened area right side of 10.0624.

Another example, suppose that a normally distributed population has a


standard deviation 𝜎 = 0.12. Given a sample size 𝑛 = 10, 𝐻0 : 𝜇 = 7 and 𝐻1 : 𝜇 ≠ 7.
Construct the rejection region if 𝛼 = 0.10.
Solution:
𝜎 0.12
𝜇𝑋̅ = 𝜇 = 7 and 𝜎𝑋̅ = = = 0.03794733192202 …
𝑛
√ √10
Notice that 𝐻1 : 𝜇 ≠ 7,this is a two-tailed test. Using the standard normal table,
𝑧𝛼 = 𝑧0.10 = 𝑧0.05 = 1.645.
2 2
Hence, the critical value is computed in this way
critical value = 𝜇 − (𝑧𝛼⁄2 ) (𝜎𝑋̅ ) and critical value = 𝜇 + (𝑧𝛼⁄2 ) (𝜎𝑋̅ )
= 7 − (1.645)(0.038 … ) = 7 + (1.645)(0.038 … )
= 7 − 0.0624 = 7 + 0.0624
= 6.9376 = 7.0624

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The critical value is illustrated below.

WHAT IS IT?
ACTIVITY 4

A. Complete the sentence below by providing the correct word/s on the blank.
Write your answers in your notebook.

1. In a non-directional test, the acceptance region lies ___________ the two critical
regions.
2. The acceptance region for the right-tailed test (one-tailed test) is in the __________
side of the critical region.
3. There are at most ___________ possible critical regions in a hypothesis testing.
4. When the test statistic is located within the critical region, then 𝐻0 is __________.
5. There are at most ___________ possible critical value/s in a hypothesis testing.

B. Read and understand the given statements below. Determine the position of
the rejection region either left side, right side, or between the acceptance region.
Write your answer on the blank after the given.

1. In 2015, it was recorded that around 34% of the population were not married. A
researcher surveyed a random sample of 500 couples. He found out that 18% of them
were living together but unmarried. Test at 5% significance level that the current
percentage of unmarried couples is different from 34%.

12
2. An average construction worker hourly rate pay in the Philippines is Php 62.50 with
a standard deviation of Php 6.01. A random sample of 20 manufacturing workers were
asked on their hourly rate and found out that they had an average of Php 50.00 hourly
rate pay with a standard deviation of Php 5.00. Construct a 90% confidence interval
that the average hourly rate for construction workers is higher than the average hourly
rate for manufacturing workers.

3. A chemist invented an additive to increase the lifespan of rechargeable battery. The


said additive will extend on average the battery’s lifespan to 48 months. Test the
hypothesis at 0.01% level of significance that the average lifespan is higher than 48
months.

4. The average number of years to finish basic education is 14. A sample of 30 senior
high school students were asked and found out that the mean number of years to finish
their basic education is 12 with a standard deviation of 2 years. Test the hypothesis at
93% confidence interval that the average number of years to finish basic education is
less than 14 years.

5. A sample of 100 private school students were surveyed whether they plan to
transfer to public schools in the incoming school year. Results showed that 40% of
these students will transfer to public schools. Test the average number of private
school students that will transfer to public schools is not 40% at 5% level of
significance.

WHAT’S NEW
LESSON 1.5

TYPES OF ERRORS IN HYPOTHESIS TESTING

➢ Type I error is committed when rejecting a true null hypothesis. The


probability of committing it is denoted by 𝜶 or the level of significance.
➢ Type II error is committed when accepting a false null hypothesis.
The probability of committing it is denoted by 𝜷.

Commonly Used Levels of Significance and Its Corresponding Critical Values

Level of Significance Test Types


𝜶 One-tailed Two-tailed

0.05 +1.645 or −1.645 ±1.96

0.01 +2.33 or −2.33 ±2.58

0.001 +3.09 or −3.09 ±3.30

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An example on how to state these types of errors in a sentence is given below.
Given: The mean number of years a teacher works before retiring is 30.

Type I error: We conclude that the mean number of years a teacher works before
retiring is not 30 years, when it really is 30 years.
Type II error: We conclude that the mean number of years a teacher works before
retiring is 30 years, when in fact it really is not 30 years.

WHAT IS IT
ACTIVITY 5

A. Read and understand the statements below carefully. Write the letter of the
best answer among the given choices below in your notebook.

1. How many types of errors can be made when testing a hypothesis?


A. one B. two C. three D. four
2. A criminal was sentenced guilty of a crime he was framed up. What sort of an error
did the judge make, and why?
A. Type II, because their sets of evidence are true when it's actually false.
B. Type II, because their sets of evidence are false when it's actually true.
C. Type I, because their sets of evidence are false when it's actually true.
D. Type I, because their sets of evidence are true when it's actually false.
3. When is a type II error made?
A. When your findings show that the null hypothesis is false when it is false.
B. When your findings show that the null hypothesis is true when it is true.
C. When your findings show that the null hypothesis is true when it actually is false.
D. When your findings show that the null hypothesis is false when it actually is true.
4. What is the probability of making a type I error?
A. 0.05 B. 0.01 C. 𝛼 D. 𝛽
5. It is the probability of making a type II error.
A. 0.05 B. 0.01 C. 𝛼 D. 𝛽
B. Given a hypothesis. Formulate type I and II errors in a complete sentence of
the given statements below. Write your answers in your notebook.
1. The average number of years to finish basic education is 14.
2. At least 40% of private school students transferred to public schools during the
COVID 19 pandemic.
3. The mean expenses of a family during the COVID 19 pandemic increased at most
by 15%.
4. Thirty-five percent of senior high school students enrolled to a track/strand because
of peer pressure.
5. During the COVID 19 pandemic, 8% of COVID 19 cases in the country were
confirmed death cases.

14
WHAT I HAVE LEARNED

➢ Hypothesis testing is a process in making decisions in evaluating a claim


about the population based on the characteristics of a sample from the same
population.
➢ Null Hypothesis is a claim about the population which states no difference, no
changes, or no relationship between or among variables.
➢ Alternative hypothesis is a claim about the population which states
differences, changes, relationships between or among variables.
➢ Level of significance is the probability of committing a Type I error.
➢ Critical region also known as rejection region, is a range of values that
corresponds to the rejection of the null hypothesis.
➢ Type I error is an error committed when rejecting a true null hypothesis.
➢ Type II error is an error committed when accepting a false null hypothesis.

ASSESSMENT
You are now done with the first lesson of this module. To find out if you have
learned from this lesson, answer the questions below. Identify what is described
in every number. Write your answers in your notebook.

1. It is the inequality in the alternative hypothesis when the keyword at most is used.
2. It is the inequality in the alternative hypothesis when the keyword at least is used.
3. It is done to the level of significance when not equal is used in the alternative
hypothesis.
4. It is an intelligent guess about the characteristics of a population.
5. It is a numerical value computed from the all the data of the population.
6. It is the center of the normal curve.
7. It is the value of 𝛼 when the confidence level is 92%.
8. The decision made to the null hypothesis when the critical value lies in the critical
region.
9. The decision made to the null hypothesis when the critical value lies in the
confidence region.
10. The probability of committing type II error is 𝛽 and 𝛼 is the probability of committing
type I error. Write 𝛽 in terms of 𝛼.

15
WHAT’S NEW
LESSON 2
EXPLORING TESTING HYPOTHESIS

After learning some basic concepts involved in hypothesis testing, you


are now ready to learn the parameters involved in the process. This is very
important because this will guide you on selecting the appropriate steps and
formula to be used during the test. Real-life problems will be given and used to
determine the parameter to be tested.
Parameter is a number that summarizes some aspect of the population
as a whole. Examples are population mean and the population variance. On the
other hand, statistics is a value computed from the samples. Examples are
sample mean and sample variance. Hypothesis is a claim about the parameter
like the population mean 𝜇 or the population proportion 𝑝. The examples in this
lesson will use claims about the population mean 𝜇.

What I Need to Know

By the end of this lesson, you are expected to:

1. Identify the parameter to be tested given a real-life problem. (M11/12SP-IVa-3)


2. Formulate the appropriate null and alternative hypotheses on a population mean
(M11/12SP-IVb-1).

What I know

A. Read and understand the statements below and identify the term described.
Write your answers in your activity notebooks.
1. It is a claim in a research that states no differences among the variables is involved.
2. It is a set of values that could reject a claim of a research.
3. It is the probability of rejecting a true null hypothesis.
4. It is also known as non-directional test.
5. It is a value computed from the data of the entire population which is done by adding
all the data and divided by the number of data.
6. It is the square of a population standard deviation.
7. It is committed when accepting a false null hypothesis.
8. It is committed when rejecting a true null hypothesis.
9. It is done to the level of significance for non-directional test.
10. It is the confidence level when the level of significance is 10%.
17
WHAT’S NEW
LESSON 2.1

z-Test on the Comparison Between the Population Mean and Sample


Mean
Decision making is part of our daily lives. We are given different options. This
situation is the same as in testing hypothesis. Options can be treated as hypotheses.
It is like the process of selecting which of these options is the best solution to our
problem. There are steps to follow to come up with the solution. Now, we will learn
these steps. The first step in hypothesis testing is the formulation of the null and
alternative hypotheses.
z-test on the comparison between the population mean 𝝁 and sample mean 𝒙 ̅
is used when the population mean 𝝁 and the population standard deviation 𝝈 are
known, and 𝝁 is compared to a sample mean 𝒙 ̅.
It is also important to identify the parameters or statistics involve in the problem
to determine the appropriate formula.
Example 2.1. Read and understand the problems below. Determine the values
of the parameters, statistics and sample size involved and formulate the null
and alternative hypotheses.

Example 2.1.1

A manufacturer of ethyl alcohol has developed a new packaging design. He


claims that the new packaging design has an average reduction of production
expenses of Php 5.00 per bottle with a standard deviation of Php 2.00. A manager of
one of their satellite production branch claims that the 200 samples of this new
packaging design has an average reduction of production expenses of Php 3.00. Test
the difference of the population and sample means at 0.05 level of significance.
Solution:
Given: sample size 𝑛 = 200
Parameter: population mean 𝜇0 = 5 population standard deviation 𝜎 = 2
Statistic: sample mean 𝑥̅ = 3
Formulation of null and alternative hypotheses.
𝐻0 : The average reduction of production expenses of the new packaging design
of ethyl alcohol is Php 5.00.
In symbol, 𝐻0 : 𝜇 = 5
𝐻1 : The average reduction of production expenses of the new packaging design
of ethyl alcohol is less than Php 5.00.
In symbol, 𝐻1 : 𝜇 < 5
(We used less than in 𝐻1 because the sample average is Php3.00 which is less than
the population average Php5.00)
18
Example 2.1.2

A manufacturer of face mask has developed a new face mask design. He


claims that the new design has an average profit increase of 10% with a standard
deviation of 3%. Test the hypothesis that the new face mask design average profit
increase is not 10% if a random sample of 50 face masks is tested with an average
profit increase of 4%. Use 10% level of significance.
Solution:
Given: sample size 𝑛 = 50
Parameter: population mean 𝜇0 = 10 population standard deviation 𝜎 = 3
Statistic: sample mean 𝑥̅ = 4
Step 1. Formulation of null and alternative hypotheses.
𝐻0 : The average profit increase of the new face mask design is 10%.
In symbol, 𝐻0 : 𝜇 = 10%
𝐻1 : The average profit increase of the new face mask design is not 10%.
In symbol, 𝐻1 : 𝜇 ≠ 10%
(We used not equal because it was indicated in the problem.)
Example 2.1.3

A teacher conducted a study to know if blended learning affects the students’


performances. A class of 30 Grade 11 students was surveyed and found out that their
mean score was 83 with a standard deviation of 4. A study from other country revealed
that 𝜇 = 80 with a standard deviation of 3. Test the hypothesis at 0.10 level of
significance.
Solution:
Given: sample size 𝑛 = 30
Parameter: population mean 𝜇0 = 80 population standard deviation 𝜎 = 3
Statistic: sample mean 𝑥̅ = 83
Step 1. Formulation of null and alternative hypotheses.
𝐻0 : The mean score of students’ performances in blended learning is 80.
In symbol, 𝐻0 : 𝜇 = 80
𝐻1 : The mean score of students’ performances in blended learning is greater
than 80
In symbol, 𝐻1 : 𝜇 > 80
(We used greater than because sample mean 83 is greater than population mean 80.)

19
WHAT IS IT
ACTIVITY 6
Determine the given of the problems below and formulate the null and
alternative hypothesis both in words and symbols. Write your answer in your
notebook. Please follow the format in the examples.

1. A jeepney driver claims that his average monthly income is Php 3000.00 with a
standard deviation of Php 300.00. A sample of 30 jeepney drivers were surveyed and
found that their average monthly income is Php 3500.00 with a standard deviation of
Php 350.00. Test the hypothesis at 1% level of significance.
2. A Mathematics teacher in senior high school developed a problem-solving test for
randomly selected 40 grade 11 students. These students had an average score of 85
and a standard deviation of 5. If the population had a mean score of 90 and a standard
deviation of 3, use 5% level of significance to test the hypothesis.
3. A kinder teacher developed a coloring worksheet for her pupils. Using this
worksheet, the pupils’ performance has a mean score of 90 and a standard deviation
of 10. Fifty kinder pupils from a certain barangay were asked to answer the said
worksheet and found that their mean score was 95 with a standard deviation of 5. Test
the hypothesis at 1% significance level.

WHAT’S NEW
LESSON 2.2

t-Test on the Comparison Between the Population


Mean and Sample Mean

This test will be used when the population standard deviation 𝜎 is unknown but
the sample standard deviation 𝑠 is known or can be computed. The t-test will replace
z-test. The degrees of freedom df is the number of pieces of independent information
available for computing variability. The required number of degrees of freedom varies
depending on the size of the distribution. Hence, for a single group of population 𝑑𝑓 =
𝑁 − 1 and for two groups 𝑑𝑓 = 𝑁1 + 𝑁2 − 1 for t-test where 𝑁, 𝑁1 , and 𝑁2 are the
population sizes.

Example 2.2. Read and understand the problems below. Determine the values
of the parameters, statistics and sample size involved and formulate the null
and alternative hypotheses.

20
Example 2.2.1

The mean number of hours a student consumes to finish answering the


Statistics Module is 5 hours. A random sample of 15 students was asked and found
that their mean number of hours to finish answering the Statistics module is 6 hours
with a standard deviation of 2 hours. Test the hypothesis at 5% level of significance.

Solution:
Given: sample size 𝑛 = 15
Parameter: population mean 𝜇0 = 5
Statistic: sample mean 𝑥̅ = 6 sample standard deviation 𝑠 = 2

Step 1. Formulation of null and alternative hypotheses.


𝐻0 : The mean number of hours a student consumes to finish answering the
Statistics Module is 5 hours.
In symbol, 𝐻0 : 𝜇 = 5

𝐻1 : The mean number of hours a student consumes to finish answering the


Statistics Module is greater than 5 hours
In symbol, 𝐻1 : 𝜇 > 5

(We used greater than in 𝐻1 because the sample mean 6 is greater than the population
mean 5.)

Example 2.2.2

In a study of television viewing, the mean number of television programs they


watched during daytime was 7. A survey was conducted on the random sample of 25
households and found that the mean number of television program they watched
during daytime was 5 with a standard deviation of 1.5. Test the hypothesis at 10%
level of significance.
Given: sample size 𝑛 = 25
Parameter: population mean 𝜇0 = 7
Statistic: sample mean 𝑥̅ = 5 sample standard deviation 𝑠 = 1.5
Step 1. Formulation of null and alternative hypotheses.
𝐻0 : The mean number of television program they watched during daytime was
7.
In symbol, 𝐻0 : 𝜇 = 7
𝐻1 : The mean number of television program they watched during daytime was
less than 7.
In symbol, 𝐻1 : 𝜇 < 7
(We used less than because the sample mean 5 is less than the population mean 7.)

21
Example 2.2.3

A rural health unit conducted a survey on the heights of the male aged 18 to 24
years old. It was found out that the mean height of male aged 18 to 24 years old was
70 inches. Test the hypothesis that the mean height of the male aged 18 to 24 years
old is not 70 inches if a random sample of 20 male aged 18 to 24 years old had a
mean height of 65 inches with a standard deviation of 3. Use 1% level of significance.

Given: sample size 𝑛 = 20


Parameter: population mean 𝜇0 = 70
Statistic: sample mean 𝑥̅ = 65 sample standard deviation 𝑠 = 3

Step 1. Formulation of null and alternative hypotheses.


𝐻0 : The mean height of male aged 18 to 24 years old was 70 inches.
In symbol, 𝐻0 : 𝜇 = 70

𝐻1 : The mean height of male aged 18 to 24 years old was not 70 inches
In symbol, 𝐻1 : 𝜇 ≠ 70
(We used not equal because it was indicated that the population mean was not 70
inches.)

WHAT IS IT
ACTIVITY 7
Determine the given of the problems below and formulate the null and
alternative hypotheses both in words and symbols. Write your answer in your
notebook. Please follow the format in the examples.

1. A health specialist wants to determine the average number of hours a person


exercises in a day during the quarantine period. She found out that the mean number
of hours a person exercises in a day during the quarantine period is 80 minutes. A
random sample of 29 persons were surveyed and found that their mean is 65 minutes
and a standard deviation of 10 minutes. Test the hypothesis at 2% level of significance
and assume that the population is normally distributed.

2. A study was conducted to determine the marrying age of teachers. It was found out
that the mean marrying age of teachers is 30 years old. Fifteen teachers were
surveyed randomly and found that their mean marrying age was 33 years old with a
standard deviation of 5 years. Use 10% level of significance to test the hypothesis and
assume that the population is normally distributed.

22
3. An association of City Mayors conducted a study to determine the average number
of times a family went to buy necessities in a week. They found that the mean is 4
times in a week. A random sample of 20 families were asked and found a mean of 5
times in a week and a standard deviation of 2. Use 5% significance level to test that
the population mean is not equal to 5. Assume that the population is normally
distributed.

WHAT I HAVE LEARNED

➢ The parameters present in a hypothesis testing problem will guide us in


choosing the appropriate type of test.
➢ Parameter is a value computed using the entire data of population while statistic
is a value computed from a sample.
➢ When both parameter and samples were given, the use of parameter will
prevail.
➢ In formulating alternative hypotheses be mindful of the keywords for inequality
or the keywords for not equal.
➢ A statistic value is usually mentioned together with the sample size of the
sample.

ASSESSMENT

A. You are now done with the first lesson of this module. To find out if you have
learned from this lesson, answer the questions below. Identify what is
described in every number. Write your answers in your notebook.

1. It is the square root of the sample variance.


2. It is the square of the population standard deviation.
3. It is the sum of all population data divided by the number of population data.
4. It depicts the number of pieces of independent information available for computing
variability.
5. It is the degrees of freedom of a single population.

B. Create two problems in testing hypothesis. Determine the given and formulate
the null and alternative hypotheses. Write your answer in your notebook.

23
WHAT’S NEW
LESSON 3

THE TEST STATISTICS AND REJECTION REGION IN HYPOTHESIS


TESTING

This lesson is a continuation on the steps in hypothesis testing. You will


learn when to use the different test statistics and the possible position of the
rejection region. It will be easy because you have learned some illustration and
description of these terms.

What I Need to Know


By the end of this lesson, you are expected to:

1. Identify the appropriate form of the test-statistic when: (a) the population variance
is assumed to be known; (b) the population variance is assumed to be unknown; and
(c) the Central Limit Theorem is to be used (M11/12SP-IVb-2)

2. Identify the appropriate rejection region for a given level of significance when: (a)
the population variance is assumed to be known; (b) the population variance is
assumed to be unknown; and (c) the Central Limit Theorem is to be used
(M11/12SP-IVc-1)
3. Compute for the test-statistic value (population mean) (M11/12SP-IVd-1)

What I know

Read and understand the statements below and identify the term described in
each number. Write your answers in your notebook.

1. It is a value selected from a table for the appropriate test.


2. It is a set of values that indicates that there is a significant difference.
3. This test indicates that the null hypothesis when the inequality in the alternative
hypothesis is greater than or less than.
4. It is also known as non-directional test.
5. It is a value used to determine the probability needed in decision making.
6. It is the test when the test statistic is z-score.
7. It is the test when the test statistic is t-score.
8. It is the test when the test statistic is Chi-square statistic.
9. It is the test when the test statistic is F-score
10. It is the graph of a standard normal distribution.

25
WHAT’S NEW
LESSON 3.1

TEST STATISTIC WHEN THE POPULATION VARIANCE IS ASSUMED TO


BE KNOWN

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.

In this condition, the z-score is used. The formula for z-score is given by the
formula below.
̅−𝝁𝟎
𝒙
Test Statistic: 𝒛=( ) (√𝒏)
𝝈
where
z is the z-score, 𝑥̅ is the sample mean, 𝜇0 is the population mean,
𝜎 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: 𝑥̅ = 3 , 𝜇0 = 5, 𝜎 = 2, 𝑛 = 200 and

̅−𝜇0
𝒙 𝟑−𝟓
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟐𝟎𝟎) = −𝟏𝟒. 𝟏𝟒
𝝈 𝟐

From Example 2.1.2


Given: 𝑥̅ = 4 , 𝜇0 = 10, 𝜎 = 3, 𝑛 = 50 and

̅−𝜇0
𝒙 𝟒−𝟏𝟎
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟓𝟎) = −𝟏𝟒. 𝟏𝟒
𝝈 𝟑

From Example 2.1.3

Given: 𝑥̅ = 83 ,𝜇0 = 80, 𝜎 = 3, 𝑛 = 30 and

̅−𝜇0
𝒙 𝟖𝟑−𝟖𝟎
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟑𝟎) = 𝟓. 𝟒𝟖
𝝈 𝟑

26
WHAT IS IT
ACTIVITY 8

Determine the given and compute the z-score of the problems in Activity 6. Write
your answer in your notebook.

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., (𝑛 < 30) and the
population is normally or approximately normally distributed. The formula for t-score is
given below.

̅−𝜇0
𝒙
Test Statistic: 𝒕 = ( ) (√𝒏) and the degrees of freedom 𝒅𝒇 = 𝒏 − 𝟏
𝒔
where
t is the t-score, 𝑥̅ is the sample mean, 𝜇 is the population mean, 𝑠 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: 𝑥̅ = 6, 𝜇0 = 5, 𝑠 = 2, 𝑛 = 15, 𝑑𝑓 = 15 − 1 = 14 and

̅−𝜇0
𝒙 𝟔−𝟓
Test Statistic: 𝒕 = ( 𝒔
) (√𝒏) = ( 𝟐
) (√𝟏𝟓) = 𝟏. 𝟗𝟒

From Example 2.2.2


Given: 𝑥̅ = 5 , 𝜇0 = 7, 𝑠 = 1.5, 𝑛 = 25, 𝑑𝑓 = 25 − 1 = 24 and

̅−𝜇0
𝒙 𝟓−𝟕
Test Statistic: 𝒕 = ( ) (√𝒏) = ( 𝟏.𝟓 ) (√𝟐𝟓) = −𝟔. 𝟔𝟕
𝒔
From Example 2.2.3
Given: 𝑥̅ = 65 , 𝜇0 = 70, 𝑠 = 32, 𝑛 = 20, 𝑑𝑓 = 20 − 1 = 19 and
̅−𝜇0
𝒙 𝟔𝟓−𝟕𝟎
Test Statistic: 𝒕 = ( ) (√𝒏) = ( ) (√𝟐𝟎) = −𝟎. 𝟕𝟎
𝒔 𝟑𝟐

27
WHAT IS IT
ACTIVITY 9
Determine the given and compute the test statistic of the problems in Activity 7.
Write your answer in your notebook.

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 𝜇 and variance 𝜎 2 , then the sampling
distribution of the sample mean is approximately normally distributed with mean 𝝁𝒙̅ =
𝝈 √𝒏(𝒙
̅−𝝁)
𝝁 and a standard deviation of 𝝈𝒙̅ = . Hence, 𝒁 = or equivalently,
√𝒏 𝝈
̅~𝑵(𝝁, 𝝈𝟐 /𝒏).
𝒙

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
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 means44will 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.

San 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: 𝑛 = 35 , 𝝁𝟎 = 𝟓, 𝟎𝟎𝟎, 𝒙̅ = 𝟔, 𝟎𝟎𝟎 , 𝒔 = 𝟔𝟎𝟎 𝛼 = 0.05
Solution:
𝜎 𝑠 600
According to Central Limit Theorem, 𝜎𝑥̅ = ≈ = = 101.42
√𝑛 √𝑛 √35
̅−𝝁𝟎
𝒙 𝟔𝟎𝟎𝟎−𝟓𝟎𝟎𝟎
Hence, Test Statistic: 𝒛 = ( )=( ) = 𝟗. 𝟖𝟔.
𝝈𝒙̅ 𝟏𝟎𝟏.𝟒𝟐

28
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: 𝑛 = 30 , 𝝁𝟎 = 𝟏𝟐, 𝟓𝟎𝟎, 𝒙


̅ = 𝟏𝟎, 𝟎𝟎𝟎 , 𝒔 = 𝟐𝟎𝟎𝟎 𝛼 = 10% = 0.10

Solution:
𝜎 𝑠 2000
According to Central Limit Theorem, 𝜎𝑥̅ = ≈ = = 365.15
√𝑛 √𝑛 √30
Hence,
̅−𝝁𝟎
𝒙 𝟏𝟎𝟎𝟎𝟎−𝟏𝟐𝟓𝟎𝟎
Test Statistic: 𝒛 = ( )=( ) = −𝟔. 𝟖𝟓.
𝝈𝒙̅ 𝟑𝟔𝟓.𝟏𝟓

WHAT 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 500.00 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 Php 50.00. Test the claim at 1% level of significance is not Php 500.00
per week and assume that the population is approximately normally distributed.

29
. WHAT’S NEW
LESSON 4.1

REJECTION REGION WHEN THE POPULATION VARIANCE IS ASSUMED


TO BE KNOWN

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 these will have a
corresponding critical region.

Below is the summary of the possible alternative hypotheses and their


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

Alternative Hypothesis Critical Region/s


𝜇 < 𝜇0 𝑧 < −𝑧𝛼
𝜇 > 𝜇0 𝑧 > 𝑧𝛼
𝜇 ≠ 𝜇0 𝑧 < −𝑧𝛼⁄2 or 𝑧 > 𝑧𝛼⁄2

Where 𝜇 is the population mean, 𝜇0 is the possible value of the population mean,
𝑧 is the value of test statistic and −𝑧𝛼, 𝑧𝛼 , −𝑍𝛼⁄2 and 𝑍𝛼⁄2 are the critical values.

Let us determine the given, formulate the null and alternative hypotheses, 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: 𝑥̅ = 3, 𝜇0 = 5, 𝜎 = 2, 𝑛 = 200 𝛼 = 0.05

Null and alternative hypotheses


𝐻0 : The average reduction of production expenses of the new packaging design of
ethyl alcohol is Php 5.00.
𝐻0 : 𝜇 = 5
30
𝐻1 : The average reduction of production expenses of the new packaging design of
ethyl alcohol is less than Php 5.00.
𝐻1 : 𝜇 < 5
Note: we used less than because the sample mean 3 is less than 5 which is the possible value
of the population mean.
𝟑−𝟓
test statistic: 𝒛 = ( ) (√𝟐𝟎𝟎) = −𝟏𝟒. 𝟏𝟒
𝟐
Critical region

Since < is used in 𝐻1 , 𝑧 < −𝑧𝛼 will be used. Now using the z-table, the value of −𝑧𝛼
is

−𝑧𝛼 = −𝑧0.05 = −1.645


Now, we construct the critical and acceptance regions.

From Example 2.1.2

Given: 𝑥̅ = 4, 𝜇0 = 10, 𝜎 = 3, 𝑛 = 50 𝛼 = 10% = 0.10


Null and alternative hypotheses
𝐻0 : The average profit increase of the new face mask design is 10%
𝐻0 : 𝜇 = 10
𝐻1 : The average profit increase of the new face mask design is not 10%.
𝐻1 : 𝜇 ≠ 10
Note: we used not equal because it was indicated to test the hypothesis that the new face
mask design average profit increase is not 10%.
31
𝟒−𝟏𝟎 0.10
Test Statistic: 𝒛 = ( ) (√𝟓𝟎) = −𝟏𝟒. 𝟏𝟒 and 𝛼⁄2 = = 0.05
𝟑 2

Critical region

Since ≠ is used in 𝐻1 , 𝑧 < −𝑧𝛼⁄2 or 𝑧 > 𝑧𝛼⁄2 will be used. Now using the z-table, the
values of −𝑧𝛼⁄2 and 𝑧𝛼⁄2 are the following
−𝑧𝛼⁄2 = −𝑧0.05 = −1.645 or 𝑧𝛼⁄2 = 𝑧0.05 = 1.645
Now, we construct the critical and acceptance regions.

From Example 2.1.3

Given: 𝑥̅ = 83, 𝜇0 = 80, 𝜎 = 3, 𝑛 = 30 and 𝛼 = 0.10


Null and alternative hypotheses
𝐻0 : The mean score of Grade 11 students is 80.
𝐻0 : 𝜇 = 80
𝐻1 : The mean score of Grade 11 students is greater than 80.
𝐻1 : 𝜇 > 80
Note: we used greater than because the sample mean 83 is greater than 80 which is the
possible population mean.
𝟖𝟑−𝟖𝟎
Test Statistic: 𝒛 = ( ) (√𝟑𝟎) = 𝟓. 𝟒𝟖
𝟑

Critical region
Since > is used in 𝐻1 , 𝑧 > 𝑧𝛼 will be used. Now using the z-table, the value of 𝑧𝛼 is.
𝑧𝛼 = 𝑧0.10 = 1.96
32
Now, we construct the critical and acceptance regions.

WHAT IS IT
ACTIVITY 11

Determine the given and construct the acceptance and critical regions of the
problems in Activity 6. Write your answer in your notebook.

WHAT’S NEW
LESSON 4.2
THE REJECTION REGION WHEN THE POPULATION VARIANCE IS
ASSUMED TO BE UNKNOWN

In this case, the student t-distribution table will be used in determining the
critical value/s. This will be used when the sample size is less than 30. When the
sample size is greater than 30 and the variance is unknown, the Central Limit Theorem
will be used. This case will be discussed in the next lesson
Alternative Hypothesis Critical Region/s
𝜇 < 𝜇0 𝑡 < −𝑡𝛼,𝑣
𝜇 > 𝜇0 𝑡 > 𝑡𝛼,𝑣
𝜇 ≠ 𝜇0 𝑡 < −𝑡𝛼⁄2,𝑣 or 𝑡 > 𝑡𝛼⁄2,𝑣

33
Where 𝜇 is the population mean, 𝜇0 is the possible value of the population mean, t is
the value of test statistic, −𝑡𝛼,𝑣, 𝑡𝛼,𝑣 , −𝑡𝛼⁄ ,𝑣 and 𝑡𝛼⁄ ,𝑣 are the critical values
2 2
and 𝑣 is the degrees of freedom
Determine the given, formulate the null and alternative hypothesis, compute the test
statistic and construct the acceptance and critical regions for examples 2.2.1, 2.2.2,
and 2.2.3

From Example 2.2.1


Solution:
Given: 𝑥̅ = 6, 𝜇0 = 5, 𝑠 = 2, 𝑛 = 15, 𝑣 = 𝑑𝑓 = 15 − 1 = 14 and 𝛼 = 0.05
Null and alternative hypotheses
𝐻0 : The mean number of hours of students to finish answering the Statistics module
is 5 hours.
𝐻0 : 𝜇 = 5

𝐻1 : The mean number of hours of students to finish answering the Statistics module is
greater than 5 hours.
𝐻1 : 𝜇 > 5
̅−𝝁
𝒙 𝟔−𝟓
Test Statistic: 𝒕 = ( ) (√𝒏) = ( ) (√𝟏𝟓) = 𝟏. 𝟗𝟒
𝒔 𝟐
Critical region
Since > is used in 𝐻1 , 𝑡 > 𝑡𝛼,𝑣 will be used. Now using the student t-distribution table,
the value of 𝑡𝛼,𝑣 is 𝑡𝛼,𝑣 = 𝑡0.05,14 = 1.761
Now, we construct the critical and acceptance regions.

42

34
From Example 2.2.2
Solution:
Given: 𝑥̅ = 5, 𝜇0 = 7, 𝑠 = 1.5, 𝑛 = 25, 𝑣 = 𝑑𝑓 = 25 − 1 = 24 and 𝛼 = 0.10
Null and alternative hypotheses
𝐻0 : The mean number of hours of television programs they watched during daytime
was 7 hours.
𝐻0 : 𝜇 = 7

𝐻1 : The mean number of hours of television programs they watched during daytime
was less than 7 hours.
𝐻1 : 𝜇 < 75
̅−𝝁
𝒙 𝟓−𝟕
Test Statistic: 𝒕 = ( ) (√𝒏) = ( 𝟏.𝟓 ) (√𝟐𝟓) = −𝟔. 𝟔𝟕
𝒔
Critical region
Since > is used in 𝐻1 , 𝑡 < −𝑡𝛼,𝑣 will be used. Now using the student t-distribution table,
the value of −𝑡𝛼,𝑣 is −𝑡𝛼,𝑣 = −𝑡0.10, 24 = −1.318
Now, we construct the critical and acceptance regions.

𝟏𝟎%

From Example 2.2.3

Solution:
Given: 𝑥̅ = 65, 𝜇0 = 70, 𝑠 = 32, 𝑛 = 20, 𝑣 = 𝑑𝑓 = 20 − 1 = 19 and 𝛼 = 1% = 0.01
Null and alternative hypotheses
𝐻0 : The mean height of male aged 18 to 24 years old is 70 inches.
𝐻0 : 𝜇 = 70

𝐻1 : The mean height of male aged 18 to 24 years old is not 70 inches.


𝐻1 : 𝜇 ≠ 70

̅−𝝁
𝒙 𝟔𝟓−𝟕𝟎
Test Statistic: 𝒕 = ( ) (√𝒏) = ( ) (√𝟐𝟎) = −𝟎. 𝟕𝟎
𝒔 𝟑𝟐

35
Critical region
Since ≠ is used in 𝐻1 , 𝑡 < −𝑡𝛼⁄2,𝑣 or 𝑡 > 𝑡𝛼⁄2,𝑣 will be used. Now using the student t-
distribution table, the value of −𝑡𝛼⁄2,𝑣 is −𝑡𝛼⁄2,𝑣 = −𝑡0.005, 19 = −2.861 and
𝑡0.005, 19 = 2.861
Now, we construct the critical and acceptance regions.

WHAT IS IT
ACTIVITY 12
Determine the given and construct the acceptance and critical region of the
problems in Activity 7. Write your answer in your notebook.

WHAT’S NEW
LESSON 4.3

REJECTION REGION USING CENTRAL LIMIT THEOREM

This case happens when the population is not normally distributed or


approximately normally distributed and the sample size is 30 or more. Let us consider
examples 3.3.1 and 3.3.2. We will determine the given, formulate the null and
alternative hypotheses, compute the test statistic, and construct the acceptance and
critical region of these examples.

Example 3.3.1.

From lesson 3.3, we have the following


Given: 𝑛 = 35, 𝜇0 = 5,000, 𝑥̅ = 6,000, 𝑠 = 600 𝛼 = 0.05
Null and alternative hypotheses
𝐻0 : The average monthly benefit of San Miguel Corporation employees is Php
5.000.00.
𝐻0 : 𝜇 = 5000

36
𝐻1 : The average monthly benefit of San Miguel Corporation employees is greater than
Php 5,000.00.
𝐻1 : 𝜇 > 5000
𝜎 𝑠 600
According to Central Limit Theorem, 𝜎𝑥̅ = ≈ = = 101.42
√ 𝑛 √ 𝑛 √35
̅−𝝁𝟎
𝒙 𝟔𝟎𝟎𝟎−𝟓𝟎𝟎𝟎
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟑𝟓) = 𝟓𝟖. 𝟑𝟑.
𝝈𝒙̅ 𝟏𝟎𝟏.𝟒𝟐

Critical region/s: 𝑧 > 𝑧0.05


𝑧0.05 = 1.645

Example 3.3.2.
Given: 𝑛 = 30, 𝝁𝟎 = 𝟏𝟐, 𝟓𝟎𝟎, 𝒙 ̅ = 𝟏𝟎, 𝟎𝟎𝟎, 𝒔 = 𝟐𝟎𝟎𝟎 𝛼 = 10% = 0.10
Null and alternative hypotheses
𝐻0 : The mean monthly salary of GMA-ABS employees is Php 12,500.00.
𝐻0 : 𝜇 = 12,500

𝐻1 : The mean monthly salary of GMA-ABS employees is less than Php 12,500.00.
𝐻1 : 𝜇 < 12,500
𝜎 𝑠 2000
According to Central Limit Theorem, 𝜎𝑥̅ = ≈ = = 365.15
√𝑛 √𝑛 √30
̅−𝝁𝟎
𝒙 𝟏𝟎𝟎𝟎𝟎−𝟏𝟐𝟓𝟎𝟎
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟑𝟎) = −𝟑𝟕. 𝟓𝟎.
𝝈𝒙̅ 𝟑𝟔𝟓.𝟏𝟓

Critical region/s: 𝑧 < −𝑧0.10 −𝑧0.10 = −1.282

37
WHAT IS IT
ACTIVITY 13
Construct the critical region of the problems in Activity 10 using Central Limit
Theorem. Write the problems and answers in your activity notebook.

WHAT I HAVE LEARNED

➢ When the population variance is known or when the sample size is 30 or more,
the critical values are determined using the z-table.
➢ When the sample size is less than 30, the critical values are determined using
the student t-distribution table.
➢ Central Limit Theorem is considered when the sample size is 30 or more and
the population is not normally distributed or approximately normally distributed.

ASSESSMENT
A. You are now done with the second lesson of this module. To find out if you
have learned from this lesson, answer the questions below. Determine what is
described by each statement below. Write your answers in your activity
notebook.
1. It is a value that is the average distance of the values of data from a sample.
2. It is the square of the population standard deviation.
3. It is the sum of all population data divided by the number of population data.
4. It depicts the number of pieces of independent information available for computing
variability.
5. It is the degrees of freedom of a single population.

B. Determine the given, formulate the null and alternative hypotheses in words
and in symbols, and the appropriate test statistic. Write the given and your
answers in your activity notebook.

1. A seller claimed that her lip tint has a mean organic content of 90%. A rival seller
asked 60 users of that lip tint and found that it has a mean organic content of 85% with
a standard deviation of 5%. Test the claim at 1% level of significance and assume that
the population is approximately normally distributed.

2. A company produced ethyl alcohol and claimed to have a mean alcohol content of
70%. A random sample of 80 of ethyl alcohol bottles was taken as sample to verify
this claim. It was found out that the mean alcohol content is 65% with a standard
deviation of 2%. Test the claim at 5% level of significance and assume that the
population is normally distributed.
38
WHAT’S NEW
Lesson 5
TEST OF HYPOTHESIS ON THE POPULATION MEAN

Test of hypothesis is one of the most popular tools used in scientific


investigations. This process is a rule on deciding not to reject null hypothesis.
Two methods will be considered in this module.

What I Need to Know


By the end of this lesson, you are expected to:

1. Draw conclusion about the population mean based on the test-statistic value and
the rejection region M11/12SP-IVd-2
2. Solve problems involving test of hypothesis on the population mean
M11/12SP-IVe-1

. What I know

Read and understand the statements below and identify the term described in
each number. Write your answers in your notebook.

1. It is the decision when the value of the test statistic lies within the critical region.
2. It is the decision when the value of the test statistic lies outside the critical region.
3. It is the position of the value of test statistic when 𝐻0 is rejected in a right-tailed test.
4. It is the position of the value of test statistic when 𝐻0 is accepted in a right-tailed
test.
5. It is the position of the value of test statistic when 𝐻0 is rejected in a left-tailed test.
6. It is the position of the value of test statistic when 𝐻0 is accepted in a left-tailed test.
7. It is the conclusion when the value of test statistic lies within the critical region.
8. It is the conclusion when the value of test statistic lies outside the critical region.
9. It is the position of the value of test statistic when 𝐻0 is rejected in a two-tailed test.
10. It is the position of the value of test statistic when 𝐻0 is accepted in a two-tailed
test.

41
WHAT’S NEW
LESSON 5.1
PROBLEMS INVOLVING TEST OF HYPOTHESIS ON THE POPULATION
MEAN

In this lesson, several test of hypotheses problems will be given and


answered. This time most of the examples from previous lessons will be
completely answered.
From Example 2.1.1

Given: 𝑛 = 200, 𝜇 = 5, 𝜎 = 2, 𝑥̅ = 5, 𝛼 = 0.05


1. Formulate the null and alternative hypotheses:
𝐻0 : 𝜇 = 5
𝐻1 : 𝜇 < 5
2. Specify the level of significance to be used: 𝛼 = 0.05
3. Select the appropriate and compute test statistic
̅−𝝁
𝒙 𝟑−𝟓
𝒛=( ) (√𝒏) = ( ) (√𝟐𝟎𝟎) = −𝟏𝟒. 𝟏𝟒
𝝈 𝟐
4. Establish the critical region/s: Based on 𝐻1 , this is a one-tailed test (left-tailed
test) with critical regions 𝑧 < −𝑧𝛼 where −𝑧𝛼 = −𝑧0.05 = −1.645.
The critical region (shaded part) is illustrated below.

5. Make a statistical decision


Since −14.14 < −1.645 is TRUE, 𝐻0 is rejected. From the illustration
below, −14.14 lies within the critical region (shaded part).
6. Draw the appropriate conclusion: There is enough evidence to conclude that
the average reduction of production expenses per bottle is less than Php 5.00.

From Example 2.2.1

Given: 𝑥̅ = 6, 𝜇0 = 5, 𝑠 = 2, 𝑛 = 15, 𝑣 = 𝑑𝑓 = 15 − 1 = 14 and 𝛼 = 0.05

1. Hypotheses: 𝐻0 : 𝜇 = 5 and 𝐻1 : 𝜇 > 5

42
2. Significance level: 𝜶 = 0.05 and 𝑣 = 14
̅−𝝁
𝒙 𝟔−𝟓
3. Test Statistic: 𝒕 = ( ) (√𝒏) = ( ) (√𝟏𝟓) = 𝟏. 𝟗𝟒
𝒔 𝟐
4. Critical region:
Since > is used in 𝐻1 , 𝑡 > 𝑡𝛼,𝑣 will be used. Now using the student t-distribution
table, the value of 𝑡𝛼,𝑣 is 𝑡𝛼,𝑣 = 𝑡0.05,14 = 1.761
The critical region (shaded region) is constructed below.

5. Decision: Since 1.94 > 1.761 is TRUE, 𝐻0 is rejected. From the


illustration above, 1.94 lies within the critical region.

6. Conclusion: There is sufficient evidence to conclude that the mean number of


hours to finish answering the Statistics module is greater than 5 hours.

From Example 2.2.3


Given: 𝑥̅ = 65, 𝜇0 = 70, 𝑠 = 32, 𝑛 = 20, and 𝛼 = 1% = 0.01
1. Hypotheses: 𝐻0 : 𝜇 = 70 and 𝐻1 : 𝜇 ≠ 70
𝛼 0.01
2. Significance level: = = 0.005
2 2
̅−𝝁
𝒙 𝟔𝟓−𝟕𝟎
3. Test statistic: 𝒕 = ( ) (√𝒏) = ( ) (√𝟐𝟎) = −𝟎. 𝟕𝟎 and 𝑣 = 19
𝒔 𝟑𝟐
4. Critical region: Since ≠ is used in 𝐻1 , 𝑡 < −𝑡𝛼⁄2,𝑣 or 𝑡 > 𝑡𝛼⁄2,𝑣 will be used. Now
using the student t-distribution table, the value of −𝑡𝛼⁄2,𝑣 is
−𝑡𝛼⁄2,𝑣 = −𝑡0.005, 19 = −2.861 and 𝑡0.005, 19 = 2.861.The critical regions are
illustrated below.

−0.70
43
5. Decision: Since −0.70 < −2.861 is FALSE and −0.70 > 2.861 is also FALSE,
𝐻0 is rejected. From the illustration above, −0.70 lies between the two
critical regions.
6. Conclusion: There is no sufficient evidence to conclude that the mean height
of male aged 18 to 24 years old was 70 inches.

ASSESSMENT
Perform as indicated in the problems below. Write the given and your answers
in your activity notebook.

1. A seller claimed that her lip tint has a mean organic content of 90%. A rival seller
asked 60 users of that lip tint and found that it has a mean organic content of 85% with
a standard deviation of 5%. Test the claim at 1% level of significance and assume that
the population is approximately normally distributed.

2. An association of City Mayors conducted a study to determine the average number


of times a family went to buy necessities in a week. They found that the mean is 4
times in a week. A random sample of 20 families were asked and found a mean of 5
times in a week and a standard deviation of 2. Use 5% significance level to test that
the population mean is not equal to 5. Assume that the population is normally
distributed.

44
WHAT’S NEW
Lesson 6
TEST OF HYPOTHESIS ON THE POPULATION PROPORTION

In this lesson, hypothesis testing will be used on population proportion. There


are real-life situations where population mean is not used, instead it uses population
proportion. The procedure is in some way similar to that of population mean and might
differ in some aspects.

What I Need to Know


After going through this module, you are expected to:

1. formulate the appropriate null and alternative hypotheses on a population


proportion; (M11/12SP-IVe-2)
2. identify the appropriate form of the test-statistic when the Central Limit Theorem
is to be used; (M11/12SP-IVe-3)
3. identify the appropriate rejection region for a given level of significance when
the Central Limit Theorem is to be used; (M11/12SP-IVe-4)
4. compute for the test-statistic value (population proportion); (M11/12SP-IVf-1)
5. draw conclusion about the population proportion based on the test-statistic
value and rejection region; and (M11/12SP-IVf-2)
6. solve problems involving test hypothesis on the population proportion.
(M11/12SP-IVf-g-1)

What I know

Determine whether the statement is True or False. If false, modify the statement to
make it true.

1. Percentages can be expressed as proportions.


2. A proportion is obtained when a frequency of desired events is multiplied by the
sum of events.
3. If n=25 the Central Limit Theorem applies.
𝜇
4. If the confidence level is 95% then 2 is 0.025.
𝑋
5. When X=124 and n=260 then 𝑛 = 0.48.
6. The p-value of z = 2 is 0.4772.
7. The p-value of 𝑧 ≤ −2 is 0.0228.
8. When 𝐻0 is rejected, it means that a significant difference does not exist.
9. When the evidence is not enough, do not reject the null hypothesis.
10. When the evidence is sufficient to reject the null hypothesis, a significant
difference exists.

47
What’s In

There are certain situations when the data to be analyzed involve population
proportions or percentages. For example, a politician may want to know the
percentage of his constituents who approve of his policy on educational reform. A
manufacturer may want to know the proportions of defective products in the assembly
line. This type of problems uses a different approach.

What is It
When testing about a proportion, the following assumptions must be made:

1. The conditions for a binomial experiment are met. That is, there is a fixed
number of independent trials with constant probabilities and each trial has two
outcomes that we usually classify as “success” and “failure”.
2. The condition 𝑛𝑝 ≥ 5 and 𝑛𝑞 ≥ 5 are both satisfied so that the binomial
distribution with 𝜇 = 𝑛𝑝 and 𝜎 = √𝑛𝑝𝑞.

If all the above conditions are met, the test statistic is the z-test statistic for
proportions. The formula for computing this value is:

𝑆𝑎𝑚𝑝𝑙𝑒 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛−𝑁𝑢𝑙𝑙 𝐻𝑦𝑝𝑜𝑡ℎ𝑒𝑠𝑖𝑧𝑒𝑑 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛


Test statistic: 𝑧 = 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑠𝑎𝑚𝑝𝑙𝑒 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛

𝑝̂ − 𝑝0
𝑧=
𝜎𝑝̂

𝑋
Where: 𝑝̂ = 𝑛 ,

𝑝0 = is the hypothesized population proportion p,

𝑝𝑞
𝜎𝑝̂ = √ 𝑛 is the standard deviation of the sampling distribution of 𝑝̂ .

𝑝0 𝑞0
However, we use 𝜎𝑝̂ = √ in computing the value of the test statistic
𝑛

z because we are going to use the hypothesized value 𝑝0 .

Note: 𝑞0 = 1 − 𝑝0 .

Test statistics z for proportions is:


𝑝̂ − 𝑝0
𝑧=
𝑝 𝑞
√ 0𝑛 0

48
What’s More
In general,

• For a one-tailed test:


𝐻0 : 𝑝 = 𝑝0
𝐻1 : 𝑝 > 𝑝0 and the rejection region is 𝑧 > +𝑧𝑎
Or (𝐻1 : 𝑝 < 𝑝0 ) and the rejection region is 𝑧 < −𝑧𝑎
• For a two-tailed test:
𝐻0 : 𝑝 = 𝑝0
𝐻1 : 𝑝 ≠ 𝑝0
The rejection region is 𝑧 < −𝑧𝑎 𝑜𝑟 𝑧 > 𝑧𝑎 .
2 2

What I Have learned

The following are the steps in solving problems involving testing


hypothesis on the population proportion:

1. Describe the population parameter of interest.


2. Formulate the hypothesis.
3. Check the assumptions.
4. Check a significance level size for 𝛼.
5. Select the appropriate test statistic.
6. State the decision rule for rejecting or not rejecting the null hypothesis.
7. Compare the computed values.
8. Interpret the result.

What I Can Do

We will now apply the formula and steps involving testing hypothesis on the
population proportion.

Example 1: Using the 0.5 level of significance run a z-test given the following:
5
n=74; 𝑝̂ = 74; 𝑝0 = 10%

Solution:

1. The parameter of interest is the population proportion p.

2. 𝐻0 : 𝑝 = 𝑝0
𝐻0 : 𝑝 = 0.10

𝐻1 : 𝑝 ≠ 0.10
49
3. With 𝒏 = 𝟕𝟒, the Central Limit Theorem applies.

4. 𝛼 = 0.5, Two-tailed (The problem does not suggest direction.


𝑝̂−𝑝0
5. 𝑧 = 𝑝 𝑞
√ 0𝑛 0
5
𝑝̂ = = 0.068
74
𝑝0 = 0.10
𝑞0 = 1 − 𝑝0 = 1-0.10 = 0.9

Note: In the p-value approach, we compute the probability value to the left of -
0.91. The area between 𝑧 = 0 and 𝑧 = 0.91 is given in z-table as 0.3186.
0.068−0.1
Therefore,𝑧the= observed probability value is 0.5000-0.3186 = 0.1814. Since the
(0.1)(0.9)

test is two-tailed, the74 p-value is multiplied by 2. So, p-value = 0.1814 x 2 = 0.3628.

𝒛 = −𝟎. 𝟗𝟏
6. Reject the 𝑯𝟎 if the computed probability value is ≤ 0.05. Do not reject (or
accept) 𝑯𝟎 if the computed probability value > 0.05.

7. We know that 0.3628 > 0.05

8. Thus, based on the evidence at hand we cannot reject the null hypothesis
𝑯𝟎 . There is no significant difference between the sample proportion and the
population proportion.

Example 2: Mr. Sy asserts that fewer than 5% of the bulbs that he sells are defective.
Suppose 300 bulbs are randomly selected and tested and 10 defective bulbs are
found. Does this provide sufficient evidence for Mr. Sy to conclude that the fraction of
defective bulbs is less than 0.05? use𝛼 = 0.01.

Solution:

1. The parameter of interest is the population proportion p.

2. 𝐻0 : 𝑝 = 𝑝0
𝐻0 : 𝑝 = 0.05

𝐻1 : 𝑝 ≠ 0.05

3. With 𝒏 = 𝟑𝟎𝟎, the Central Limit Theorem applies.

4. 𝛼 = 0.5, one-tailed (clue word: fewer than).


𝑝̂−𝑝0
5. 𝑧 = 𝑝 𝑞
√ 0𝑛 0
10
𝑝̂ = = 0.033
300
50
So, p-value = 𝑃(𝑧 ≤ −1.35)
The area between z=0 and z=-1.35 is .4115.
So, 𝑃(𝑧 ≤ −1.35) = .05 − .4115 = 0.885
That is, p-value = 0.885
𝑝0 = 0.05
𝑞0 = 1 − 𝑝0 = 1-0.05 = 0.95

0.033−0.5
𝑧= (0.5)(0.95)

300
𝒛 = −𝟏. 𝟑𝟓

6. Reject the 𝑯𝟎 if the computed probability value is ≤ 0.05. Do not reject (or
accept) 𝑯𝟎 if the computed probability value > 0.05.

7. We know that 0.885 > 0.01

8. Thus, based on the evidence at hand we cannot reject the null hypothesis
𝑯𝟎 . There is no significant difference between the sample proportion and the
population proportion.

Assessment
Instruction: Encircle the letter of the correct answer.

1. This refers to an intelligent guess about a population proportion.


A. Hypothesis B. Test statistic C. Decision D. Interpretation

2. What mathematical model is appropriate for decision-making?


A. Graphical representation C. z-statistic
B. Normal curve D. None of these
3. When the null hypothesis is rejected which of the following is true?
A. There is sufficient evidence to back up the decision.
B. There is no sufficient evidence to back up the decision.
C. The conclusion is guaranteed.
D. The conclusion is not guaranteed.
4. Equivalent for the 95% confidence level.
A. 𝛼 = .01 B. 𝛼 = .05 C. 𝛼 = .10 D. 𝛼 = .025
5. Which of the following is the standard deviation of sample proportions?

𝑝 𝑝 𝑝0 𝑞0
A. √𝑝𝑞 B. √𝑞 C. √𝑞0*n D. √
0 𝑛
6. For a z-test of proportions which of the following is the rejection region for a two-
tailed test?
A. 𝑧 > 𝑧𝑎 B. 𝑧 > 𝑧𝑎/2 C. 𝑧 < 𝑧𝑎 D. 𝑧 < 𝑧𝑎/2

7. For a z-test of proportions which of the following is the rejection region for a one-
tailed test?
A. 𝑧 > 𝑧𝑎 𝑜𝑟 𝑧 > −𝑧𝑎 C. 𝑧 < 𝑧𝑎 𝑜𝑟 𝑧 > −𝑧𝑎
B. 𝑧 > −𝑧 𝑜𝑟 𝑧 > 𝑧𝑎/2
𝑎 D. 𝑧 < −𝑧𝑎 𝑜𝑟 𝑧 > 𝑧𝑎/2
2 2
51
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