CO QAH + MELC LW

Course Outline & Quality Assured HANDOUT No. 1

Handouts paired with MELC-
Based Learner’s Worksheet
in Statistics & Probability

MELC: The learner…

 illustrates: (a) null hypothesis; (b) alternative hypothesis; (c) level of significance; (d) rejection
region; and (e) types of errors in hypothesis testing. (M11/12SP-IVa-1)
 identifies the parameter to be tested given a real-life problem. (M11/12SP-IVa-3)
 formulates the appropriate null and alternative hypotheses on a population mean.
(M11/12SP-IVb-1)
 identifies 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)
Semester: 2nd Quarter: 4th Week No. 1 Day: 1 – 4
LESSON: Tests of Hypothesis
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 uses 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.

TOPIC 1.1: Illustrating a Null Hypothesis H o

Definition of terms
 Null was 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 H o , 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

In symbol, it is written using the format below

H o : μ=100
Null Hypothesis Value of the
Papulation Parameter
Population Parameter Equity Symbol

the sample. The true value of the population parameter is specified in writing the null hypothesis.

Situation 1: 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 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.

Null Hypothesis: There is no significant difference between the average hourly rate for construction
workers and the average hourly rate for manufacturing workers.

Situation 2: 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.

Null Hypothesis: The average lifespan extension of rechargeable battery is 48 months.

Writing mathematical symbol from null hypothesis:

1. The average number of years to finish basic education is 14 years.
1
 Solution: H o : μ=14

2. At least 40% of private school students transferred to public school during the COVID 19
pandemic.
Solution: H o : μ=40

3. The mean weekly expenses of a family during the COVID 19 pandemic increased at most by 15%.
Solution: H o : μ=15

4. Thirty-five percent of senior high school students enrolled to a track/ strand because of peer
pressure.
Solution: H o : μ=35

5. During the COVID 19 pandemic, 8% of COVID 19 cases in the country were confirmed death
cases.
Solution: H o : μ=8

TOPIC 1.2: Illustrating an Alternative Hypothesis H 1

Alternative hypothesis is a statement denoted by H 1, is a statement that states that there is a
difference, an effect, change, 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.

The alternative hypothesis will also determine the

type of hypothesis testing will be conducted.

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

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

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

Situation 1: 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%.

Alternative Hypothesis: The current percentage of unmarried couples is different from 34%.
2
Situation 2: 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.

Alternative Hypothesis: The average lifespan extension of rechargeable battery is not 48 months.

Writing mathematical symbol from alternative hypothesis:

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

Solution: H 1 : μ ≠ 14

2. At least 40% of private school students transferred to public school during the COVID 19
pandemic.
Solution: H 1 : μ >40

3. The mean weekly expenses of a family during the COVID 19 pandemic increased at most by 15%.
Solution: H 1 : μ <15

4. Thirty-five percent of senior high school students enrolled to a track/ strand because of peer
pressure.
Solution: H 1 : μ ≠ 35

5. During the COVID 19 pandemic, 8% of COVID 19 cases in the country were confirmed death
cases.
Solution: H 1 : μ ≠ 8

TOPIC 1.3: Illustrating a LEVEL OF SIGNIFICANCE α

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%,
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 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.

Read and understand the given statements below.

α
Observe the value of α or based on the
2
alternative hypothesis in decimal form.

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

Observation of hypothesis:

It was recorded that around 34% of the population in 2015 were not married – alternative hypothesis

Therefore:

α 5%
Level of significance (α ) = = = 0.025
2 2

3
 2. 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.

Observation of hypothesis:

The average lifespan extension of rechargeable battery is not 48 months. - Null Hypothesis

Therefore:

Level of significance (α ) = 0.01

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 out that they had an average of Php 50 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.

Observation of hypothesis:

There is no significant difference between the average hourly rate for construction workers and the
average hourly rate for manufacturing workers. - Null Hypothesis

Therefore:

Level of significance (α ) = 100% – confidence level = 100% - 90 % = 10% = 0.10

TOPIC 1.4: Illustrating a Rejection Region H 0 (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.

illustration of the different critical region.

Commonly Used Levels of Significance and Its Corresponding Critical Values

4
 Test Types
Level of Significance 𝜶
One-tailed Two-tailed
0.5 +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

Example 1: Suppose that a normally distributed population. Construct the rejection region if 𝛼=0.05.

standard deviation (𝜎) 0.12 Notice that 𝐻1: 𝜇 > 10, this is one-tailed test / directional test.
sample size (𝑛) 10 t-Distribution Critical Value
Null hypothesis 𝐻0: 𝜇 = 10 Z α Z 0.10
= =Z 0.05 =1.645
Alternative hypothesis 𝐻1: 𝜇 > 10 2 2
Significant level 𝛼 0.05 σ 0.12
𝒄𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝒗𝒂𝒍𝒖𝒆 10.0624 μ x =μ=10 and σ x= = =0.379473319220 ...
√ n √ 10

Critical value = μ+ ( z ∝ )( σ x ) =10+ ( 1.645 ) ¿ )

Illustration:

The rejection region is greater than

10.0624.

5
Example 2: Suppose that a normally distributed population has a standard deviation𝜎=0.12. Given a
sample size 𝑛=10, 𝐻0: 𝜇=7 and 𝐻1: 𝜇≠7. Construct the rejection region if 𝛼=0.10.

Notice that 𝐻1: 𝜇≠7, this is a two-tailed test.

Solution:
Zα Zα
Critical value = μ−( )(σ x ) and μ+( )(σ x )
2 2

σ 0.12
μ x =μ=7 and σ x= = =0.03794733192202 …
√ n √10
Notice that 𝐻1: 𝜇≠7, this is a two-tailed test. Using the t-Distribution Critical Value

Z α Z 0.10
= =Z 0.05 =1.645
2 2

Zα Zα
Critical value = μ−( )(σ x ) and μ+( )(σ x )
2 2
¿ 7−( 1.645 ) ( 0.38 ) and ¿ 7−( 1.645 ) ( 0.38 )
¿ 7−0.624 ¿ 7+0.624
¿ 6.9376 ¿ 7.0624

TOPIC 1.5: Illustrating 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.

Table: Four possible outcomes in Decision-Making

Decisions about the H 0
Do not Reject H 0
Reject
(or accept H 0)

6
 H 0 is true Type I error Correct error
Reality
H 0 is false Correct decision Type II error

An example on how to state these types of errors in a sentence is given below.

Example 1: The mean number of years a teacher work before retiring is 30.

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

Example 2: Maria’s Age

Maria insist that she is 30 years old when, in fact, she is 32 years old. What error is maria
committing?
Solution:
Mary is rejecting the truth. She is committing a type I error.

Example 3: Stephen ‘s hairline

Stephen says that he is not bald. His hairline is just receding. Is he committing an error?
Solution:
Yes. A receding hairline indicates balding. This is a type I error. Stephen action may be to find
remedial measures to stop falling hair.

TOPIC 2: Identifying the Parameter to Be Tested Given A Real-Life Problem

What is Parameter?
A parameter is a useful component of statistical analysis. It refers to the characteristics that are
used to define a given population. It is used to describe a specific characteristic of the entire population.
When making an inference about the population, the parameter is unknown because it would be
impossible to collect information from every member of the population. Rather, we use a statistic of a
sample picked from the population to derive a conclusion about the parameter.

For example, a parameter can be used to describe the mean amount of loans that are awarded
to the students of NwSSU. Assuming that the population of the university is 8,000, the researcher can
start by calculating the financial aid of a few select samples of the population, or about 10 students. With
three samples of 10 students each, the researcher may obtain a mean of Php 2,000, Php 1,200, and Php
800. The researcher can use this sample mean to make an inference about the population parameter.

Most Common Parameters

The most commonly used parameters are the measures of central tendency. These measures
include mean, median, and mode, and they are used to describe how data behaves in a distribution.

Parameters and Statistics

A parameter is used to describe the entire population being studied. For example, we want to
know the average length of a butterfly. This is a parameter because it is states something about the entire
population of butterflies.

Parameters are difficult to obtain, but we use the corresponding statistic to estimate its value. A
statistic describes a sample of a population, while a parameter describes the entire population. Since it
will be impossible to catch and measure all the butterflies in the world, we can catch 100 butterflies and
measure their length. The mean length of the 100 butterflies is a statistic that we can use to make an
inference about the length of the entire butterfly population.

Typically, the value of a statistic can varies from one sample to another, while the parameter
remains fixed. For example, one sample of 100 butterflies may have an average length of 6.5 mm, while
another sample of 100 butterflies from another region may have an average length of 6.8 mm.

Also, a smaller sample of 50 butterflies may have an average length of 7.0 mm. The statistic

7
obtained from the sample of the population can then be used to estimate the parameter of the entire
population

Example 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 = 5

Example 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 of is not 10% if a random sample of 50 face mask 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

TOPIC 3: Formulating Null and Alternative Hypotheses

The actual test begins by considering two hypotheses. They are called the null hypothesis and the
alternative hypothesis. Null hypothesis denoted by H 0, 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.

Alternative hypothesis denoted by H 1, states that there is a difference, an effect, change,

relationship between a parameter and a specific value, the independent variable has an effect on the
dependent variable, or something happened. It contradicts directly a null hypothesis by stating that the
actual value of a population parameter is less than, greater than, or not equal to the value stated in the
null hypothesis.

Read and understand the problems below. Formulate the null and alternative hypotheses in words
and in symbol.

Example 1.
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 of is not 10% if a random sample of 50 face mask is tested with
an average profit increase of 4%. Use 10% level of significance.

Solution:

Given: Parameter: population mean μ0 = 10, population standard deviation 𝜎 = 3

8
 Statistic: sample mean x = 4 sample size 𝑛 = 50

Formulation of null and alternative hypotheses.

H 0: In words: The average profit increase of the new face mask design is 10%.
In symbol: H 0: 𝜇 = 10%

H 1: In words: The average profit increase of the new face mask design is not 10%.
In symbol: H 1: 𝜇 ≠ 10%

(We used not equal because it was indicated in the problem.)

Example 2.

A teacher conducted a study to know if blended learning affects the students’ performances. A class
of 30 students of Grade 11 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:
Parameter: population mean μ0 = 80, population standard deviation 𝜎 = 3

Statistic: sample mean x = 83, sample size 𝑛 = 30

Formulation of null and alternative hypotheses.

H 0: In words: The mean score of students’ performances in blended learning is 80.

In symbol: H 0: 𝜇 = 80

H 1: In words: The mean score of students’ performances in blended learning is greater than 80

In symbol: H 1: 𝜇 > 80

(We used greater than because sample mean 83 is greater than population mean 80.)

Example 3.

In a study of television viewing, the mean number of television program 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.

Solution:

Given:
Parameter: population mean μ0 = 7

Statistic: sample mean x = 5 sample standard deviation 𝑠 = 1.5, sample size 𝑛 = 25

Formulation of null and alternative hypotheses.

H 0: In words: The mean number of television program they watched during daytime was 7.

In symbol, H 0: 𝜇 = 7

9
 H 1: In words: The mean number of television program they watched during daytime was less
than 7.

In symbol, H 1: 𝜇 < 7

(We used less than because the sample mean 5 is less than the population mean 7.)

TOPIC 4: Test Statistic

As mentioned in previous discussion, the hypothesis or claim about population mean or population
proportion could be tested using the five-step hypothesis testing procedure. This topic only includes the
discussion of two basic test of hypothesis about the population mean using only single sample. These
are; 1. z-test (σ : known, or n ≥ 30), 2. t-test (σ : unknown, and n ¿ 30) considering the three conditions:

a. When the population variance is assumed to be known

In this condition, the z-score is used. The formula for z-score is below.

x−μ0
Test Statistic: z = ( )( √ n)
σ
Where:
z is the z-score, x is the sample mean, μ0 is the population mean, 𝜎 is the population standard
deviation, and n is the sample size.

Example.
Given: x=83 , μ0=80 , σ=3 , n=30

x−μ0
Test Statistic: z = ( )( √ n)
σ

= ( 83−80
3 )
( √ 30 )

= 5.48

b. When the population variance is assumed to be unknown

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 by the formula below.

x−μ0
Test Statistic: t = ( )( √ n)
s
Where:
t is the t-score, x is the sample mean, μ0 is the population mean, s is the sample standard
deviation, and n is the sample size.

Example.
Given: x=6 , μ0 =5 , s=2 , n=15

10
 x−μ0
Test Statistic: t = ( )( √ n)
s

= ( 6−5
2 )
( √15 )

= 1.94

c. 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 μ x= 𝝁 and a standard deviation of σ x = σ √ n. Hence, 𝒁 =
x−μ0
( )¿
σ

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 means will 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.

Example1.

San Miguel 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 5, 000 pesos. A random
sample of 35 employees were taken as samples to verify the said claim and found that their average
monthly benefit is 6, 000 pesos with a standard deviation of 600.00 pesos. Is the company’s claim correct
at 0.05 level of significance? Assume that the population is approximately normally distributed.

Given: x=6,000 , μ0=5,000 , s=600 , n=35 , α =5 %=0.05

Solution:
σ s 600
According to Central Limit Theorem, σ x = ≈ =
√ n √ n √35
= 101.42
Hence:
x−μ0
Test Statistic: z = ( )( √ n)
σx

= ( 6,000−5,000
101.42 )
( √35 )

11
 = 58.83

Example 2.

GMA-ABS claimed that their employees had a mean monthly salary of 12,500 pesos. A reporter
wants to verify this claim by asking 30 employees. The result showed that these employees had an
average monthly salary of 10,000 pesos with a standard deviation of 2,000 pesos. Test the claim at 10%
level of significance assume that the population is approximately normally distributed.

Given: x=10,000 , μ0=12,500 , s=2,000 ,n=30 , α =10 %=0.10

Solution:
σ s 2,000
According to Central Limit Theorem, σ x = ≈ =
√ n √ n √30
= 365.15
Hence:
x−μ0
Test Statistic: z = ( )( √ n)
σx

= ( 10,000−12,000
365.15 )( √30 )
= -37.50

REFERENCES

Alferez, M.S. & Duro, M.A. (2006). MSA Statistics and Probability. MSA Publishing
House. Reprinted 2016.

Average Construction Worker Hourly Pay in Philippines. (2020). Retrieved May 27,
2020 from https://www.payscale.comresearch/Ph/Job=Construction_
Worker/Hourly_Rate

Basic Concepts and Methodology for the Health Sciences. Retrieved May 27, 2020
from https://www.pitt.edu/~super1/ResearchMethods/Arabic/Hypothesis
Testingpart1.pdf

Belecina, R. R.et.al. (2016). Statistics and Probability. First Edition. Rex Book Store,
Inc.

Introduction to Hypothesis Testing. Retrieved May 27, 2020 from

https://www.sagepub.com/sites/default/files/upm-binaries/40007_Chapter8.pdf

Minitab Express Support. (2019). Retrieved May 27, 2020 from https://support.
minitab.com/en-us/minitab-express/1/help-and-how-to/basic- statistics/
inference/supporting-topics/basics/what-is-a-critical-value/

12
Parreño, E. B. & Jimenez, R.O. (2014). Basic Statistics: A Worktext. Second Edition.
C & E Publishing, Inc.

Stephanie. (2020). Statistics How To. Retrieved May 27, 2020 from
https://www.statisticshowto.com/probability-and-statistics/hypothesis-testing/

Stephanie. (2020). Statistics How To. Retrieved May 27, 2020 from
https://www.statisticshowto.com/probability-and-statistics/normal-distribution/
central-limit-theorem-definition-examples

13