Hypothesis Testing for a single population mean (µ) by using t-test

T-Test: Hypothesis Testing When Population Variance\S.D (σ 2 / σ ¿ is unknown

and sample Size is less than 30.

Procedure:

Step 1: Formulation of Hypothesis

Hypothesis

(i) Ho: µ = 50 (ii) Ho: µ ≤ 50 (iii) Ho: µ ≥ 50

H1: µ ≠ 50 H1: µ > 50 H1: µ < 50

Two Tailed One tailed

Step 2: Level of Significance

α = 10%= 0.10 or α = 5% =0.05 or α = 1% =0.01

Step 3: Test Statistic to be used

n ≥ 30 n < 30
σ Known (i) Z-test (ii) Z-test
σ unknown (iii) Z-test
(iv) t-test

(iv) σ unknown and n < 30

X−µ
tcal = s
√n

√ ∑ ( x−x) is a unbiased estimator of σ

2

s=
n−1

Step 4: Computation

tcal =??????
Step 5: Critical region
−t
(i) If tcal < (1− α2 ) (n−1) or tcal > t(1−α ¿¿2)(n−1)¿ we will reject Ho.
(ii) If tcal > t(1−α)(n−1) we will reject Ho.
(iii) If tcal < −t (1−α)(n−1) we will reject Ho.

Step 6: Conclusion

Ho is accepted or do not accepted.

9.7
Step 1: Formulation of Hypothesis

Hypothesis

(i) Ho: µ ≥ 23

H1: µ < 23

Step 2: Level of Significance

α = 2.5% =0.025

Step 3: Test Statistic to be used

σ unknown and n < 30

X−µ
tcal = s
√n
Step 4: Computation
20−23
tcal = 8 = -1.875
√ 25

Step 5: Critical Region

If tcal < −t (1−α ) (n−1) we will reject Ho.

If tcal < −t (1−0.025) (25−1) we will reject Ho.

If tcal < −t (0.975) (24 ) we will reject Ho.

If tcal < −2.0639 we will reject Ho.

Conclusion:

We don’t Reject Ho.

Solution:

Step 1: Formulation of Hypothesis

Hypothesis

(i) Ho: µ ≥ 55

H1: µ < 55

Step 2: Level of Significance

α = 1% =0.01

Step 3: Test Statistic to be used

σ unknown and n < 30

X−µ
tcal = s
√n
Computation:

X x−x ( x−x )2
=40-
52.39=-
40 12.3929 153.583
55 2.60714 6.797179
78 25.60714 655.7256
27 -25.3929 644.7973
55 2.60714 6.797179
33 -19.3929 376.083
51 -1.39286 1.940059
76 23.60714 557.2971
54 1.60714 2.582899
67 14.60714 213.3685
40 -12.3929 153.583
31 -21.3929 457.6545
60 7.60714 57.86858
61 8.60714 74.08286
50 -2.39286 5.725779
42 -10.3929 108.0115
78 25.60714 655.7256
80 27.60714 762.1542
25 -27.3929 750.3688
38 -14.3929 207.1544
74 21.60714 466.8685
46 -6.39286 40.86866
48 -4.39286 19.29722
57 4.60714 21.22574
30 -22.3929 501.4402
65 12.60714 158.94
80 27.60714 762.1542
26 -26.3929 696.5831

∑ X=¿146 ∑ ( x −x ) =¿
2

7 8518.679

X=
∑ X = 1467 =¿52.39
n 28

√ ∑ ( x−x) =
√
2
8518 .679
s= =√ 315.5066=¿17.7625
n−1 28−1
 X−µ
tcal = s
√n
52.39−55
tcal = 17.7625/ √28 =-0.7766

Step 5: Critical Region

If tcal < −t (α )(n−1 ) we will reject Ho.

If tcal < −t (0.01 )(28−1) we will reject Ho.

If tcal < −t (0.01 )(27) we will reject Ho.

If tcal < −2.473 we will reject Ho.

Conclusion:

We don’t Reject Ho.

Step 1: Formulation of Hypothesis

Hypothesis

(i) Ho: µ ≥ 3600

H1: µ < 3600

Step 2: Level of Significance

α = 5% =0.05

Step 3: Test Statistic to be used

σ unknown and n < 30

X−µ
tcal = s
√n
Computation:

X ( x−x )2
3655 54102.76

4204 610898.6

1946 2179757

2789 401195.6

3555 17582.76

3734 97094.56

3208 45967.36

3311 12409.96

3920 247605.8

3902 230016.2

∑ X=¿3422 ∑ ( x −x ) =¿
2

4 3896630

X=
∑ X = 34224 =¿3422.4
n 10

√ ∑ ( x−x) =
√
2
3896630
s= = √ 432959=¿658
n−1 10−1

X−µ
tcal = s
√n
3422.4−3600
tcal = 658 / √ 10 =- 0.853

Step 5: Critical Region

If tcal < −t (α )(n−1 ) we will reject Ho.

If tcal < −t (0.05 )(10−1) we will reject Ho.

If tcal < −t (0.05 )(9) we will reject Ho.

If tcal < −1.833 we will reject Ho.

Conclusion:

We don’t Reject Ho.