Statistics and Probability Module 5

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Statistics and Probability Module 5
Accontancy (Tarlac State University)
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General Mathematics – Grade 11

Alternative Delivery Mode
Quarter 4 – Module 5: Test of Hypothesis
First Edition, 2019
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Development Team of the Module:
Authors: Alfred G. Barrientos

Mae Flor P. Cardeño
Reviewers: Evangeline M. Pailmao
Emily A. Tabamo
Rufe A. Felicilda
Illustrator: Jay Michael A. Calipusan
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Chairperson: Dr. Arturo B. Bayocot, CESO III

Regional Director
Co-Chairpersons: Dr. Victor G. De Gracia Jr., CESO V
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CES, CLMD
Members: Dr. Bienvenido U. Tagolimot, Jr.
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EPS, Math
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11
Statistics and
Probability
Module 5
Test of Hypothesis
This instructional material was collaboratively developed and reviewed

by educators from public and private schools, colleges, and/or universities. We
encourage teachers and other education stakeholders to email their feedback,
comments, and recommendations to the Department of Education at
action@deped.gov.ph.
We value your feedback and recommendations.
Department of Education • Republic of the Philippines
iii

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Table of Contents
Overview ……………………………………..……..…… 1
Module Content ………………………………………………… 1
What I Need to Know ………………………………………………… 2
General Instructions ………………………………………………… 3
What I Know ………………………………………………… 4
Lessons/Concept
Lesson 1 – Basic Concepts in Hypothesis Testing……………… 6
Activity 1 ………………………………………………… 6
Activity 2 …………….………………………………..… 7
Activity 3 ……………………………………………..…. 11
Activity 4 ………………………………………………… 15
Lesson 2 – Rejection Region and Level of Significance ……… 16
Activity 1 …………….………………………………… 21
Lesson 3 – Test on Population Mean…………………………….. 23
Activity 1 ………………………………………………… 23
Activity 2 ………………………………………………… 29
Lesson 4 – Test on Population Proportion .……………………… 30
Activity 1 ………………………………………………… 32
Activity 2 ………………………………………………… 35
Assessment ………………………………………………… 36
References ………………………………………………… 47

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Module 5
Test of Hypothesis
Overview
Hypothesis testing is a statistical method that is used in making

statistical decisions using experimental data. Basically, it is a process of gathering
evidences to either accept or reject a claim, a guess, or an assumption, known as
hypothesis.
In real life, we are doing hypothesis testing every time we need to make
decisions on something that affect our lives. As students you need to make decisions
by looking both the positive and negative sides of the problem that confronted you
before making any decision. Unknowingly, your decision to enroll in the Open Senior
High School went to a series of hypothesis testing. You were confronted with a lot of
“what ifs” until finally you decided to be here, one of the pioneers of the Open Senior
High School Program.
In the previous module, you learned that statistical inference is concerned with
either estimation or evaluation of a statement or claim about a parameter or a
distribution. The focus of this module is on evaluation of a claim about a parameter or
a distribution which is done through a statistical test of hypothesis.
This module will equip you with the basic knowledge in testing hypothesis
concerning population mean and population proportion which in turn will prepare you
to your future journey to the world of practical research. The lessons are arranged and
presented in an easier way and are supplemented with activities and exercises that
would concretize your learning. So, sit back, relax and enjoy doing the module.
Module Contents
The lessons that we will be dealing with are the following:
 Lesson 1 – Basic Concepts in Hypothesis Testing
 Lesson 2 – Rejection Region and Level of Significance
 Lesson 3 – Test on Population Mean
 Lesson 4 – Test on Population Proportion

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What I need to know?
Once you are done with this module, you should be able to:
1. illustrate (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).
2. calculates the probabilities of committing a Type I and Type II error (M11/12SP-
IVa-2).
3. identifies the parameter to be tested given a real-life problem (M11/12SP-IVa-3)
4. formulate the appropriate null and alternative hypothesis on a population mean
(M11/12SP-IVb-1)
5. 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)
6. 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
(c) the Central Limit Theorem is to be used (M11/12SP-IVc-1)
7. compute for the test-statistic value of population mean (M11/12SP-IVd-1).
8. draw conclusion about the population mean based on the test-statistic value and
the rejection region (M11/12SP-IVd-2).
9. solve problems involving test of hypothesis on the population mean (M11/12SP-
IVe-1).
10. formulate appropriate null and alternative hypotheses on a population proportion
(M11/12SP-IVe-2),
11. identify the appropriate form of test statistic when the Central Limit Theorem is to
be used (M11/12SP-IVe-3),
12. identify the appropriate rejection region for a given level of significance when the
Central Limit Theorem is to be used (M11/12SP-IVe-4),
13. compute for the test statistic value of population proportion (M11/12SP-IVf-1),
14. draw conclusion about the population proportion based on the test-statistic value
and the rejection region (M11/12SP-IVf-2), and
15. Solve problems involving test of hypothesis on the population proportion
(M11/12SP-IVf-2).

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General Instructions
In order to get the most from this module and achieve its
objectives, here are some TIPS for you:
 Read the texts and follow instructions carefully in each lesson

 Take note and record points for clarification.
 Do the activities to fully understand each lesson.
 Answer the self-check to monitor what you already learned in each lesson
 Answer the posttest
 Check your answer in the posttest (against the key to correction)
 Be aware of the following terms.
A claim, guess, assumption, or conjecture about a population.

Hypothesis
It is the starting point of an investigation.
A claim that denotes “absence” such as absence of difference,

Null
absence of relationship, or equality to a certain value. It is denoted
Hypothesis
by Ho.
A claim that denotes “presence” such as presence of difference,

Alternative
presence of relationship, or inequality to a certain value. It is
Hypothesis
denoted by Ha.
When we reject the null hypothesis, although that hypothesis was

true. Type I error is denoted by alpha (𝛼𝛼). In hypothesis testing,
Type I error
the normal curve that shows the critical region is called the alpha
(𝛼𝛼)region
When we accept the null hypothesis but it is false. Type II errors

Type II
are denoted by beta (𝛽𝛽). In Hypothesis testing, the normal curve
error
that shows the acceptance region is called the beta (𝛽𝛽) region
Usually known as the probability of correctly accepting the null

Power
hypothesis. 1 – beta is called power of the analysis.
Level of Refers to the degree of significance in which we accept or reject

Significance the null-hypothesis.
One-tailed When the given statistical hypothesis is one value like H0: μ1 = μ2,
test it is called the one-tailed test.
Two-tailed When the given statistical hypothesis assumes a less than or

test greater than value, it is called the two-tailed test.

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What I Know
Directions: Select the letter of the option that correctly answers the
questions or completes the statement.
1. This refers to an intelligent guess, an assumption, or a claim about a population

parameter which may either be true or false.
A. Hypothesis C. Decision
B. Test statistic D. Interpretation
2. It is a rule or method that leads to decision to accept or reject the hypothesis
when sample values are gathered from the population under study.
A. Estimation C. Hypothesis Testing
B. Hypothesis D. Test Statistic
3. What is the purpose of hypothesis testing?
A. To collect sample data and use them to formulate hypotheses about a
population.
B. To draw conclusions about population and then collect sample data to
support the conclusions.
C. To draw conclusions about populations from sample data.
D. To draw conclusions about the known value of population parameter
4. What mathematical model is appropriate for decision-making about population
proportion?
A. Graphical representation C. z – statistic
B. Normal curve D. None of these
5. The probability of rejecting the null hypothesis when it is true is called,
A. Level of Confidence C. Power of the test
B. Level of Significance D. Estimate interval
6. Which of the following statements is true when the null hypothesis is rejected?
A. There is significant difference between parameters being compared.
B. There is no significant difference between parameters being compared.
C. The conclusion is guaranteed.
D. The conclusion is not guaranteed.
7. What is the value of α for the 95% confidence level of a two-tailed test?
A. 0.01 C. 0.10
B. 0.05 D. 0.025
8. If in the z-test of proportions, the computed z is found on the rejection region
then this means that:
A. The sample proportion is equal to the hypothesized proportion.
B. The sample proportion is equal to the population proportion.
C. The sample proportion is not equal to the hypothesized proportion.
D. The sample proportion is not equal to the population proportion

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9. If p = 0.3, p^ = 0.4, n = 50 what is the value of z?

A. 0.45 C. 1.54
B. 0.63 D. 0.55
10. Under the normal curve, the middle part represents
A. Confidence level C. Acceptance region
B. Confidence interval D. All of these

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Lesson BASIC CONCEPTS IN

1 HYPOTHESIS TESTING
In this lesson, you will learn how to write appropriate null and alternative
hypotheses on some real life situations. At the end of the lesson you, as a learner,
should be able to show mastery on the following learning competencies:
 Illustrate a statistical hypothesis

 Differentiate a null hypothesis from alternative hypothesis
 Differentiate Type I from Type II error
 Illustrate consequences of committing errors
As you go on, please be guided by this Lesson Outline
a. Definition of statistical hypothesis

b. The difference of null hypothesis from alternative hypothesis
c. Consequences of making a decision
d. Two possible errors that could be committed in a test of hypothesis
Are you ready?
Let’s start by answering the activity below.
What can I do
Activity 1:
Directions: State your reactions on the government pronouncement about El
Niño phenomenon. On a piece of paper, write at least 3 statements.
“The country will experience El Niño phenomenon in the next few months.”
Congratulations for writing at least 3 reactions on the government

pronoucement above!

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Learning concepts 1.1
What you have written is your guess, opinion, claim, conclusion

or conjecture about El Niño phenomenon. Those statement are
examples of hypothesis.
Hypothesis is considered an educated guess which provides proposed

outcomes based on experience and theoretical knowledge which is likely to be correct.
According to Cambridge Dictionary, it is an idea or explanation for something that is
based on known facts but has not yet been proven.
Let us now have some examples of hypothesis:
1. Drinking milk before going to bed will make you sleep better.
2. Sanitizer Y is better than Sanitizer X in terms of germ-killing effects.
3. The average weight of senior high school students in Magalang NHS is 48
kilograms.
4. Private employees have higher savings than government employees after
retirement.
5. There is no significant relationship between the intellectual quotient and
emotional quotient of STEM students.
Each of the following statements is not considered as hypothesis, but rather fact.
A fact is an observation about the world around us.
1. Asia is the largest continent in the world in terms of area.

2. The boiling point of water is 100 degrees Celsius.
3. The sum of the angles of a triangle is always 180 degrees.
4. Davao is nearer to Cebu than to Manila in terms of nautical miles.
What can I do
Activity 2:
A. Tell whether the following statement as a hypothesis or a fact. On the space

provided before each item, write H if the statement is a hypothesis and F if it is
a fact
_____1. Drug A is less efficient than Drug B as treatment of a certain disease.
_____2. An hour is equal to sixty minutes.

_____3. The mean percentage score of a group of HUMSS students in a
general mathematics midterm exam is above 80.
_____4. Blood is thicker in consistency than water.

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_____5. The new teaching strategy has no significant change in the statistics
pre-test and post-test results.
_____6. Sleeping at least 6 hours will make you do better on tests than if you
get less sleep.
_____7. Planets travel in ellipses with one focus being the Sun.
_____8. The number of pets in a household is unrelated to the number of
people living in it.
_____9. Rodrigo Roa Duterte is the 16th President of the Philippines.
_____10. All daisies have the same number of petals.
Learning concepts 1.2
A statistical hypothesis is a claim or a conjecture that may either

be true or false. The claim is usually expressed in terms of the value of a parameter
or the distribution of the population values.
There are two kinds of statistical hypothesis: the null and the alternative
hypothesis. The definition is written inside the box below to remind you that these are
very important concepts and should be remembered as you go on with the module.
A null hypothesis denoted by the symbol Ho (read as “H sub O”) is a

claim that denotes “absence” such as absence of difference, absence of
relationship, or equality to a certain value. It usually comes with “ = ”, “ ≤ ”, or
“ ≥ ” when written in symbol (Banigon, et al. , 2016).
An altenative hypothesis denoted by the symbol Ha (read as “H sub

A”) is a claim that denotes “presence” such as presence of difference,
presence of relationship, or inequality to a certain value. It usually comes with
“ ≠ ”, “ < ”, or “ > ” when written in symbol (Banigon, et al. , 2016).
In formulating the hypotheses (plural form of hypothesis), we can use the

following guidelines.
1. First, identify the claim. Does it denote “absence” or it states equality to a

certain value?

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2. Identify the parameter used in the claim. Does it talk about population
average or a proportion of the population?
3. Represent the parameter by a symbol. For population mean (average), we
use µ and for population proportion we use p.
4. Always remember that the null and alternative hypotheses are
complementary and must not overlap. The usual pairs are as follow:
(a) Ho: Parameter = Value versus Ha: Parameter ≠ Value

(b) Ho: Parameter = Value versus Ha: Parameter < Value
(c) Ho: Parameter = Value versus Ha: Parameter > Value
(d) Ho: Parameter ≤ Value versus Ha: Parameter > Value
(e) Ho: Parameter ≥ Value versus Ha: Parameter < Value
Source: Statistics and Probability: Teaching guide for Senior High School
Now, let’s apply the guidelines above by formulating the null and alternative hypothesis
using the following situations.
Situation 1: A manufacturer of IT gadgets recently announced they had developed a

new battery for a tablet and claimed that it has an average life of at least
24 hours. Would you buy this battery?
Step by step solution:
Step 1: Identifying the claim
Claim: The average life of a newly developed battery for tablet is at least 24
hours.
Step 2: Identifying the parameter
Parameter: The parameter is the average life of a newly developed battery for
tablet.
Step 3: Representation
Symbol: The symbol to be used for parameter is µ
Step 4: Null and alternative hypotheses complementary pair
The claim states “at least 24 hours”. This claim means that the battery
life will not go lower than 24 hours, but rather equal to 24 hours or more than
24 hours. Thus, we will be using the complementary pair ;
Ho: Parameter ≥ Value versus Ha: Parameter < Value
Answer: The null and alternative hypotheses stated in;
(a) Words: Ho : The average life of a newly developed battery for

tablet is at least 24 hours.
Ha : The average life of9a newly developed battery for
tablet is less than 24 hours.

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(b) Symbols Ho : µ ≥ 24
Ha : µ < 24
Situation 2: A student researcher wants to test his assumption that 75% of the senior
high school students who enrolled in the academic track wanted to
become a teacher. He collected samples randomly and found out that 25
out of 130 students are planning to become a teacher. State the null and
alternative hypotheses.
Step by step solution:
Step 1: Identifying the claim
Claim: 75% of the senior high school students who enrolled in the academic
track wanted to become a teacher.
Step 2: Identifying the parameter
Parameter: The parameter is 75% of the senior high school students who
enrolled in the academic track. The value 75% stands for a
proportion of the population.
Step 3: Representation
Symbol: The symbol to be used for parameter is p
Step 4: Null and alternative hypotheses complementary pair
The claim that 75% of the senior high school students enrolled in the
academic track wanted to become a teacher is our null hypothesis, the
alternative hypothesis would be not equal to 75%. Thus, we will be using
complementary pair (a);
Ho: Parameter = Value versus Ha: Parameter ≠ Value
Answer: The null and alternative hypotheses stated in;
(a) Words Ho: The proportion of senior high school students enrolled in the
academic track who wanted to become a teacher is equal to 75%.
Ha: The proportion of senior high school students enrolled in the
academic track who wanted to become a teacher is not equal to
(b) Symbols Ho : p = 0.75 Note: we use decimal instead of percent because

Ha : p < 0.75 it is appropriate for computation.
I am sure you are now ready for the next part, are’nt you?
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What can I do
Activity 3:
Read each situation carefully and fill in the space provided with
appropriate information. Happy hypothesizing.
1. A student researcher claims that fewer than 8% of the Junior High School
completers will enroll in private Senior High Schools. To test this claim, he
collected sufficient samples randomly and found out that 85 out of 380 Junior
High School completers are planning to enrol in private Senior High Schools.
Claim: ________________________________________________________
Parameter : ____________________________________________________
Symbol for parameter:____________________________________________
Ho and Ha complementary pair:_____________________________________
Hypotheses in words:
Ho: __________________________________________________________
Ha: __________________________________________________________
Hypotheses in symbols:
Ho: ____________________
Ha: ____________________
2. A telecommunications company claims that senior high school students spend

an average of 20 Php a day for their cellphone loads. Do you agree with the
claim?
Claim: ________________________________________________________
Parameter : ____________________________________________________
Ho: __________________________________________________________
Ha: __________________________________________________________
Ho: ____________________
Ha: ____________________
3. The Senior High School researchers claim that more than 20% of Senior High
School male students have tried smoking cigarette. After collecting 150 random
samples, they found that 60 of them have tried smoking cigarette.
Claim: ________________________________________________________
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Parameter : ____________________________________________________
Ho: __________________________________________________________
Ha: __________________________________________________________
Ho: ____________________
Ha: ____________________
4. In a certain town, a school principal hypothesized that students enroll in schools
within 5 km from their homes. To check this claim you ask 38 students from
the said town. You found out that the average distance between the students’
home and their schools is 5.6 km.
Claim: ________________________________________________________
Parameter : ____________________________________________________
Ho: __________________________________________________________
Ha: __________________________________________________________
Ho: ____________________
Ha: ____________________
5. A teacher wants to test his assumption that less than 30% of the Senior High
School students liked research class. After randomly collecting 150 samples,
he found out that only 40 students like their research class.
Claim: ________________________________________________________
Parameter : ____________________________________________________
Ho: __________________________________________________________
Ha: __________________________________________________________
Ho: ____________________
Ha: ____________________
Congratulations! I’m sure you’ve got a perfect score.
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Learning Concepts 1.2
There are two possible actions that a person can do with a statement.
Either he accepts the statement or rejects it. The decision of
accepting or rejecting a statement depends on the person’s
assessment whether it is true of false. Consider a statement or a
claim about the average number of text messages that an Open Senior High School
student sends in a day. The following could be one way of stating the claim:
“The average number of text messages that an Open Senior High School
student sends daily is equal to 75.”
As stated earlier, this claim could either be true or false so it can be accepted
or rejected. The validity of the statement can be assessed through a series of steps
known as test of hypothesis. A test of hypothesis is a procedure based on a
random sample of observations with a given level of probability of committing
an error in making the decision, whether the hypothesis is true or false.
The decision of accepting or rejecting a statement or claim is coupled with

consequences. Consider again the government pronouncement on El Niño
phenomenon. The possible consequences of accepting the statement as true include:
 import more rice in anticipation of supply shortage;

 buy materials for water storage;
 use a rice variety that could resist drought;
 invest in programs to make Filipinos ready; and the like.
On the other hand, when the statement is rejected because we think it is false,
possible consequences are:
 people are not ready for rice and water shortage;

 farmers will experience losses on production, or
 we do not do anything.
Some of the consequences are acceptable while other consequences are

terrible. Experiencing a few days of water shortage is acceptable but having rice
shortage for a month or two is terrible.
The degree of the possible consequences is the basis in making decisions. If

the consequences of accepting the claim are acceptable then, we may not reject it.
However, if the consequences are terrible, then we reject the claim.
The action to reject or fail to reject the (accept) a hypothesis is summarized on

the table below.
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Action Hypothesis is TRUE Hypothesis is FALSE
Reject the null

Error committed (Type I) No error committed
hypothesis
Fail to reject (accept)
No Error Committed Error committed (Type II)
the null hypothesis
The four possible outcomes in decision-making based on the table are:
Outcome 1: If the null hypothesis is true and is not rejected (accepted),

the decision is correct. No error is committed.
Outcome 2:If the null hypothesis is true and rejected, the decision is
incorrect. A Type I error is committed.
Outcome 3: If the null hypothesis is false and rejected, the decision is
correct. No error is committed.
Outcome 4: If the null hypothesis is false and accepted, the decision is
incorrect and a Type II error is committed.
As mentioned earlier, every action that one takes is coupled with consequences.
When an error is committed in decision making, consequences happens too. These
consequences might be acceptable or too terrible, terrible enough to claim lives. In
statistics, the chance of committing an error is measured and this measurement
served as the basis in making a decision.
Now, let us examine some examples of errors in decision making.
1. A manufacturer of IT gadgets recently announced they had developed a new

battery for a tablet and claimed that it has an average life of at least 24 hours.
Would you buy this battery?
Explanation
A type I error is committed if you decide not to buy the battery and a
possible consequence is you lost the opportunity to have a battery that
could last for at least 24 hours.
Type II error is committed when you buy the battery and found out
that the battery’s life was less than 24 hours. A possible consequence is
that you wasted your money in buying the battery.
2. A teenager who wanted to lose weight is contemplating on a diet she read about
in social media. She wants to adopt it but, unfortunately, the following diet requires
buying nutritious, low calories yet expensive food. Help her decide.
Explanation
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A type I error is committed when the teenager did follow the diet
and a possible consequence is that she spent unnecessarily for a diet
that did not help her reduce weight.
Type II error is committed when the teenager did not follow the
diet. A possible consequence of this error is that the teenager lost the
opportunity to attain her goal of weight reduction.
Now let’s try what you have learned.
What can I do
Activity 4.
Directions: In each situation below state when the error will be committed and give
its possible consequences.
1. After studying open senior high school, Mary is thinking whether or not to
pursue a degree in in college. She was told that if she graduates with a degree
with a degree in college, a life of fulfilment and happiness awaits her. Assist
Mary in making her decision.
2. An airline company does regular quality control checks on airplanes. One of

them is tire inspection because tires are sensitive to the heat produced when
the airplane runs through the runway. Since its operation, the company uses a
particular type of tire which is guaranteed to perform even at a maximum
surface temperature of 107ºC. However, the tires cannot be used and need to
be replaced when surface temperature exceeds a mean of 107ºC. Help the
company decide whether or not to do a complete tire replacement.
3. Alden is exclusively dating Maine. He remembers that on their first date, Maine
told him that her birthday was this month. However, he forgot the exact date.
Ashamed to admit that he did not remember, he decides to use the hypothesis
testing to make an educated guess that today is Maine’s birthday. Help Alden
do it.
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Lesson REJECTION REGION AND

2 LEVEL OF SIGNIFICANCE
In this lesson, you are going to learn about test direction, rejection region, and
level of significance which are very important in making decisions about the claim or
hypothesis. In order to have a clear idea about these things, read thoroughly the texts
that follow:
Learning Concepts
Recall that the normal curve evolved from the probability distribution.
With the area under the curve being equal to 1, it has become a
mathematical model in hypothesis testing. The areas are probability values that we
need for decision – making. In hypothesis testing we determine the probability of
obtaining the sample results if the null hypothesis is true. Thus, the calculations can
be graphically represented using the normal curve. The greater than (>) the mean
direction can be shown at the right tail of the curve just as the less than (<) the mean
direction can be shown at the left tail (Belecina, et al.,2016)
Below, are the graphical representations of the non – directional and

directional tests.
Non – directional
(Two – tailed)
Directional
(One – tailed, right tail) 𝛼𝛼
Directional
1 − 𝛼𝛼
(One – tailed, left tail) 𝛼𝛼
μ
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To determine whether the test is directional or non-directional we simply

examine the alternative hypothesis. If it uses the “not equal to” symbol (≠), then the
test is non-directional but if it utilizes the “less than (˂)“ or “greater than (˃)” symbol,
the test is directional.
The following simple steps are suggested in order to determine the
direction of the test.
1. State the null and alternative hypotheses.
2. Examine the symbol used in the alternative hypothesis.
3. Make a decision. (Directional or Non-directional)
Here are some keywords that denote direction:
Going to the right (right – tailed) Going to the left (left – tailed)
Greater efficient lesser fewer

Increases improves decreases ineffective
Augment effective diminish
Advances more delayed
Now, let us examine an example of a directional and non – directional test.
Example 1: A baker claims that the cake he developed is fortified with vitamin A.
Step 1: The hypotheses are;
Ho : The developed bread is not different with other bread.
Ha : The developed bread is fortified with vitamin B.
Step 2: The alternative hypothesis utilizes the ˃ symbol because of the
word fortified which means “to strengthen” or “to add”
Step 3: The test is directional or one-tailed (right-tailed).
Example 2: A combination of fruits provides the minimum daily requirement for vitamin
C.
Step 1: The hypotheses are;
Ho : The amount of vitamin C is equal to the daily requirement.
Ha : The amount of vitamin C is not equal to the daily requirement.
Step 2: The alternative hypothesis utilizes the ≠ symbol.
Step 3: The test is non-directional or two-tailed.
In making decisions, conclusions are formed and these conclusions are the bases
of actions. But this is not always the case in Statistics because the decisions that are
made were based on sample information. The best thing to do is to control the
probability with which error occurs.
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The probability of committing a Type I error is denoted by the Greek letter α (alpha)
while the probability of committing a Type II error is denoted by β (beta). These
probabilities are shown on the table below.
Types of Errors and Their Probability
Error in decision Type Probability Correct decision Type Probability

Reject a true Ho I α Accept a true Ho A 1–α
Accept a false Ho II β Reject a false Ho B 1–β
Errors can be controlled by assigning small probability values to each of them.

The most commonly used probability values for α and β are 0.05 and 0.01. The
probability assigned to each depends on its seriousness. The more serious the errors,
the less willing we are to have it occur. So, a smaller probability will be assigned. As
seen from the table above, 1 – α is the probability of a correct decision when the null
hypothesis is true, and 1 – β is the probability of a correct decision when the null
hypothesis is false. 1 – β is called the power of the statistical test since it is the measure
of the ability of a hypothesis test to reject a false null hypothesis which is very
important. (McClave & Sincich, 2003)
Below is the graphical representation of the decision errors under the normal curve.
α
Reject Ho Reject Ho Reject Ho
Notice that the rejection region of a directional test is in one tail while the
non – directional test the rejection region is distributed to the two tails of the
curve.
A Rejection region refers to the region under the normal curve where the
value of the test statistic lies for which the null hypothesis will be rejected. This
region is sometimes called critical region.
Therefore, if the computed statistic lies on the rejection region, then we
reject the null hypothesis. But, if it is found outside the rejection region, we
do not reject (accept) the null hypothesis.
Notice also that there is a line that separates the rejection region from the
non-rejection region denoted by 1 – α. This line passes through the
confidence coefficients, which are also called critical values.
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The table below shows the critical values for the z – statistic.
Significance Level ( α ) 0.10 0.05 0.03 0.02 0.01

Confidence Level ( 1 – α ) 90% 95% 97% 98% 99%
One – tailed (Directional) 1.28 1.64 1.88 2.05 2.33
Two – tailed (Non-directional) 1.64 1.96 2.17 2.33 2.58
The table of critical values of z shows that for a 95% confidence level, the critical
values for a non–directional test are –1.96 and +1.96. The negative ( - ) and positive
(+) signs tell that the rejection region is found on both tails of the distribution.
Moreover, for a directional test the critical value at 95% confidence level is +1.64 for
right–tailed and –1.64 for left – tailed.
To understand better the table, study the succeeding examples.
Example 1. Is the computed z = 2.0 at 90% confidence level, two-tailed found in the
rejection region or acceptance region.
Steps Solution
Step 1: Determine the critical From the table, the critical value of z is ±1.64
value of z at 90% the ± sign is added because the direction is
confidence level, two- two-tailed.
tailed. Significance Level (α) 0.10 0.05 0.03 0.02 0.01
Confidence Level (1 –
90% 95% 97% 98% 99%
α)
One – tailed 1.28 1.64 1.88 2.05 2.33
Two – tailed 1.64 1.96 2.17 2.33 2.58
Step 2: Compare the given z computed z critical

computed value of z 2.0 ˃ 1.64
with the critical value.
The computed value of z is greater than
the critical value from the table.
Step 3: Location in the normal Location
curve of z=2.0
Accept Ho
Reject Ho Reject Ho
─1.64 +1.64
The computed z lies in the rejection

region because under the normal curve
z=2.0 is at the right of 1.64.
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Example 2. At what region is the computed z = 1.33 at 1% significance level, one-

tailed located?
Steps Solution
Step 1: Determine the critical From the table, the critical value of z is 2.33
value of z at 1% (0.01 the ± sign is omitted because the direction is
in decimal form) one-tailed.
significance level, one- Significance Level (α) 0.10 0.05 0.03 0.02 0.01
tailed. Confidence Level (1 –
90% 95% 97% 98% 99%
α)
One – tailed 1.28 1.64 1.88 2.05 2.33
Two – tailed 1.64 1.96 2.17 2.33 2.58
Step 2: Compare the given z computed z critical

computed value of z 1.33 ˂ 2.33
with the critical value.
The computed value of z is less than the
critical value from the table.
Step 3: Location in the normal Location
curve of z=1.33
Accept Ho α
Reject Ho
2.33
The computed z lies in the acceptance

region because under the normal curve
z=1.33 is at the left of 2.33
Key Concepts:
A non – directional test is also called a two–tailed test.

A directional test may either be right–tailed or left–tailed.
1 – α is the probability of a correct decision when the null hypothesis is true.
1 – β is the probability of a correct decision when the null hypothesis is false. It is
the power of the statistical test.
Rejection region refers to the region under the normal curve where the value
of the test statistic lies for which the null hypothesis will be rejected.
Acceptance region refers to the region under the normal curve where the
value of the test statistic lies for which the null hypothesis will not be
rejected.
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What can I do
Activity 1.
A. Tell whether each situation calls for a two – tailed or one – tailed
test. On the appropriate space draw a happy face if it is two-tailed and sad face
if it is one-tailed.
________ 1. A school nurse believe that 5% of the Grade 7 students have below
normal Body Mass Index (BMI) and should undergo a feeding program.
After making a survey, she found that 18 of 210 randomly selected
students have have below normal BMI.
________ 2. The Senior High School researchers claim that more than 20% of Senior
High School male students have tried smoking cigarette. After collecting
150 random samples, they found that 30 of them have tried smoking
cigarette.
________ 3. After launching the Water and Hygiene in School program, the principal
believes that 95 % of the students applied tha proper handwashing
techniques in school as well as at home. A random survey was
conducted to 500 students and only 410 of them said they practiced
correct handwashing technique both in school and at home
________ 4. A researcher claims that 50% of the rats in the locality are male. After
randomly collecting sufficient amount of samples, he found that the
proportion of male rats in the population of rats is 35%. Test the claim at
95% confidence level.
________ 5. A teacher wants to test his assumption that less than 30% of the Senior
High School students like research class. After randomly collecting 150
samples, he found out that only 40 students like their research class.
B. Using the table, supply the critical values of z given the confidence level and the
test direction.
C.
Confidence level Test Direction Z critical
90% One-tailed
99% Two-tailed
95% One-tailed
98% Two-tailed
95% Two-tailed
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D. For each situation, compare the computed value with the critical value by writing
the appropriate comparison symbol on the box and tell the location of z whether it
is in the rejection or acceptance region.
Z computed Comparison Z critical Location of the statistic

Symbol
1. 1.47 1.64 ______________
2. 2.18 1.88 ______________
3. 0.58 1.28 ______________
4. 1.85 1.96 ______________
5. 3.16 2.33 ______________
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Lesson
TEST ON POPULATION MEAN
3
In this lesson you will be testing hypothesis concerning population mean. You
will be able to learn the steps in testing hypothesis, apply the knowledge that you
acquired in the preceding lessons.
Hypothesis testing is composed of a series of steps that begins with the

formulation of the null and alternative hypothesis and ends with the conclusion. Every
step has components to be considered. The process of testing the hypothesis can be
compared with court proceedings.
What can I do
Activity 1: Choose a partner and visit the nearest court of law in your
place if there’s any. Interview one or two court employees on how the
court proceedings are being carried out. You may record your interview or write it on
a paper. If your place is far from a judicial court, you may visit a lawyer and ask him/her
about court proceedings.
A lot of situations exist wherein we test hypotheses concerning

means. An example is a claim that the mean of a population is equal
to µ and a random sample of size n has been chosen with a mean of x̅ . We want to
find out whether a significant difference exist between the population and the sample
mean. What we mean when we say significant difference is that the difference
between them is statistically significant.
Three Basic Approaches to Hypothesis Testing
Basically, there are three approaches to hypothesis testing. These approaches

involve different subject criteria and objective statistics. However, all three approaches
give the same conclusion.
1. The test statistic approach

In this approach, we obtain the critical value from the table and compute
the test statistic. We reject or accept the null hypothesis depending upon the
comparison between the tabulated value (critical value) and the computed
value.
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2. The probability value approach

Here, we compute the test statistic and the probability value (p-value).
We reject the null hypothesis if the p-value is less than or equal to the
significance level α. If the p-value is greater than α, then the null hypothesis is
not rejected.
3. The confidence interval approach

In this approach, we determine the hypothesized value and construct
the confidence interval. We reject the null hypothesis if the hypothesized value
is not within the range of the confidence interval.
In testing hypothesis, you can use whichever approach you feel comfortable.
As long as you follow each step properly and employ the test statistic appropriately,
you are on the right track. But, for this module we will be dealing only with the test
statistic approach.
Steps in testing the hypothesis
When we test hypotheses, we follow these steps.
Step 1: Formulate the null and alternative hypotheses.

Step 2: Identify the test statistic to use, level of significance, state the decision
rule and specify the rejection region.
Step 3: Using a simple random sample of observation, compute the value of
the test statistic.
Step 4: Make a decision whether to reject or not to reject (accept) the null
hypothesis.
Step 5: State the conclusion.
Accepting or Rejecting the Null Hypothesis
In accepting or rejecting the null hypothesis, the following steps should be

considered.
1. Determine the critical value using the appropriate statistical table.

2. Compare the computed statistic with the critical value
3. If the computed value falls on the rejection region, then reject the null
hypothesis. If it does not fall on the rejection region, accept the null hypothesis.
DECISION RULE:
If Computed statistic ≥ Critical value REJECT Ho Positive

If Computed statistic ˂ Critical value Do not Reject Ho Values
If Computed statistic ≤ Critical value REJECT Ho Negative

Do not Reject Ho Values
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If Computed statistic ˃ Critical value
Comparing the Sample Mean and the Population Mean for Large Sample Size
To determine if a significant difference exists between the population mean and

the sample mean, the z-test for one sample mean will be used.
The z-test is used when the following conditions are met.
1. The population standard deviation is known.

2. The population standard deviation is unknown but the sample size is sufficiently
large (it is greater than or equal to 30, n ≥ 30). In this case, the sample standard
deviation (s) is used in place of the population standard deviation (σ).
Are you ready to apply these steps? Here we go.
Example1. A pharmaceutical company claimed that a new drug introduced in

the market could help women reduce weight by 4.5 kg per month with a standard
deviation of 0.8 kg. A sample of 12 women were randomly chosen and found to have
reduced their weight at an average of 4.12 kg in a span of one month. Does this data
make the claim of the manufacturer valid at 0.05 level of significance?
Steps Solution
1. Formulate the hypotheses: (Ho): The average weight loss per month of
the null hypothesis and the women using the new drug is equal to
alternative hypothesis.. 4.5 kg.
(Ha): The average weight loss per month of
women using the new drug is not
equal to 4.5 kg.
In symbols:
Ho : µ = 4.5 kg
Ha : µ ≠ 4.5 kg
2. Set the significance level for α.

α = 0.05,
Type of test two-tailed or non-directional test
Critical values of z Z critical = +1.96, -1.96
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3. Compute the z-statistic. Given: Solution:

x̅ = 4.12
̅ -μ)√n
(X
µ = 4.5 z=
n = 12 σ
σ = 0.8 (4.12-4.5)√12
=
0.8
z= -1.65
4. Decision: Compare the The computed value (-1.65 ) is greater
computed value of z with the than the critical value (-1.96) , so the statistic
critical value. lies on the acceptance region, the null
hypothesis is not rejected (accepted).
There is no significant difference between

5. Conclusion the sample mean and the population mean.
Thus the company is correct in its claim that
the new drug introduced in the market can
reduce women’s weight by 4.5 kg per month.
Example 2. A senior high school researcher believes that it costs more than
Php 60 000 a year to send a child to college. To test this claim, a random sample of
50 families having college students were selected. It was found that the average
expenses for these families reveal a mean of Php 62 000 with a standard deviation of
Php 3 400. Test whether the senior high school researcher’s claim is valid using a 0.05
level of significance.
Solution
Steps Solution
1. Formulate the hypotheses: (Ho): The average cost per year in sending a
the null hypothesis and the child to college is equal to Php 90 000.
alternative hypothesis. (Ha): The average cost per year in sending a
child to college is more than Php 90
000.
In symbols:
Ho : µ = 90 000
Ha : µ > 90 000

α = 0.05,
Type of test one-tailed or directional test (right-tailed)
Z critical = +1.65, -1.65
Critical values of z
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3. Compute the z-statistic. Given: Solution:

X = 62 000
(𝑥𝑥̅ − 𝜇𝜇)√𝑛𝑛
µ = 60 000 𝑧𝑧 =
n = 50 𝜎𝜎
σ = 3 400
(62000 − 60000)√50
=
3400
𝑧𝑧 = 4.16
4. Decision: Compare the The computed value(4.16) is greater than
computed value of z with the the critical value (1.65) , so the statistic lies
critical value. on the rejection region, the null hypothesis is
rejected.
There is a significant difference between
Thus the researcher is correct in his claim
that it cost more than Php 60 000 per year to
send a child to college.
In the preceding examples, the z-test was used because an

assumption was made that the population standard deviation is known
or given. However, if σ is not known, we can still use the z-test by replacing σ by the
sample standard deviation s provided that the sample size is large (n≥30).
Comparing the Sample Mean and the Population Mean for Small Sample Size
What if the condition is change? What if σ is not given and the sample size is
small (n<30)? In this case, the t-test for one sample mean shall be used instead of
the z-test. Please recall that the t-distribution and how to get the critical values of t
from the table had already been discussed in the preceding module.
To compare the sample mean and the population mean when the sample
size is less than 30 and the population standard deviation is not known, we use
the following formula.
( x - μ)√n ( x - μ)√n
z= or t =
s s
where:
x̅ = mean of the sample s = standard deviation of the population

µ = mean of the population df = n – 1
n = sample size
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The critical value of t is found in the t-distribution table at a given level of

significance, type of test, and degrees of freedom.
Example 3.
A printer manufacturing company claims that their new printer in the market is
ink efficient. It can print an average of 1400 pages of text documents. To check this
claim, a random sample of 28 printers has been tested and revealed a mean of 1450
pages with a standard deviation of 50. Does this result support the company’s claim?
Test the validity of the claim at 5% significance level.
Solution
Steps Solution
(Ho): The number of pages that the new

1. Formulate the hypotheses: printer can print is equal to 1400.
the null hypothesis and the (Ha): The number of pages that the new
alternative hypothesis.. printer can print is not equal to 1400.
In symbols:
Ho : µ = 1400
Ha : µ ≠ 1 400
2. Set the significance level for α. α = 5% = 0.05
Type of test two-tailed or non directional test
Degrees of freedom df = 28 – 1 = 27
Critical values of t t critical = 1.703
3. Compute the t-statistic. Given:

x̅ = 1450 ( x̅ - μ )√n
µ = 1400 t=
s
n = 28
s = 50 (1450 -1400)√28
=
50
t = 5.29
The computed value(5.29) is greater than
4. Decision: Compare the
the critical value (1.703) , so the statistic lies
computed value of t with the
in the rejection region, the null hypothesis is
critical value.
rejected.
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Thus the company’s claim that their new
printer can print an average of 1400 pages is
not supported.
Now, we will apply what you have learned.
Activity 2:
A. Rearrange the following steps in hypothesis testing in

chronological order by writing the letters from a (for the first step) to e
(for the last step) on the space provided before each item.
_____1. Compute the test statistic.
_____2. Compare the computed statistic with the critical value for the test
statistic and make a decision.
_____3. Draw a conclusion or interpretation of the result.
_____4. Select the appropriate test statistic, set the significance level α,
determine the critical value and what specific tailed test.
_____5. State the null and alternative hypotheses clearly.
B. Read each statement carefully. Write T if the statement is correct; write
F if it is wrong on the space provided before each item.
_____6. The first step in a hypothesis testing is to formulate the null and
alternative hypotheses.
_____7. The alternative hypothesis is the hypothesis of “no difference”.
_____8. Sample data are collected to serve as evidence of proof.
_____9. It is important to set 𝛼𝛼 before the conduct of the research or the
experiment because the Type I error is the more critical error to
make.
_____10. For test statistics concerning means, we make use of either z-
statistic or t-statistic depending on the conditions provided.
C. Apply the steps in hypothesis testing to test the validity of the claim in each
situation below.
1. The average IQ of a certain population is 100 with a standard deviation
of 15. A team of scientists wants to test a new medication to see if it has
either a positive or negative effect on intelligence, or no effect at all. A
random sample of 30 participants who have taking the medication has a
mean of 140. Did the medication affect intelligence, test the claim using
alpha = 0.05?
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2. A simple random sample of 15 people from a certain population has a

mean age of 35 with a standard deviation of 20. Can we conclude that
the mean age of the population is younger than 35? Let alpha = .05.
Lesson TEST ON POPULATION

4 PROPORTION
In the previous lesson, you have learned that for large sample size the
appropriate test statistic is the z – test. Since, in population proportion
we deal with large samples then z – test is the appropriate test statistic to be used. In
this lesson, you are expected learn how to calculate the value of the z-statistic for
population proportion. To understand more about z – test for population proportion
read the succeeding text.
Inferences involving proportions are made in the context of probability, p, of

“success” for a binomial distribution.
Belicina, et al. (2016) states that when testing about a proportion, a percentage,
or a probability, 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 of sample proportions can be approximated by a normal
distribution with µ = np and σ= √𝑛𝑛𝑛𝑛𝑛𝑛 .
If all the above conditions are met, the test statistic is the z–test for proportions.
The formula for computing the z–statistic for proportion is:

^
p-p
𝑛𝑛̂ = the observed or sample population proportion
z= pq
where:
√ (read as “p hat”)
n
P = the hypothesized population proportion

q = 1–p
n = sample size
^p
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The formula for computing is:

^ X
p= n
where: x = is the number of elements that possess the desired characteristics

n = is the sample size
Let us apply this formula to examples.
1. A researcher wants to test his assumption that 75% of the senior high school
students who enrolled in the academic track wanted to become a teacher. He
collected samples randomly and found out that 25 out of 130 are planning to
become a teacher. Compute for the value of z.
Explanation:
In the problem, the hypothesized proportion (p) is 75% or 0.75 in decimal form.
The sample proportion ( p^ out of 130, to convert this to decimal simply
) is 25
divide 25 by 130.
Solution:
a) First, we will solve for :
^ 𝑋𝑋 25
p = 𝑛𝑛
= 130 = 0.19
b) Next, we will sove for q :
q = 1 – p = 1 – 0.75 = 0.25
c) Finally, we will solve for z:

^p-p 0.19 - 0.75
z= = = - 14.75
pq (0.75)(0.25)
√n √
130
2. A local radio station claims that 54% of the population who listen to radio broadcast
are listening to their station. After collecting 250 samples randomly, they found out
that only 67 of them listen to the said radio station. Compute the value of z.
Explanation:
In the problem, the hypothesized proportion (p) is 54% or 0.54 in decimal form.
The sample proportion ( ) is 67 ^p out of 250, to convert this to decimal simply divide
67 by 250.
Solution:
^
a) First, we will solve for p :
p^ = X = 67 = 0.27
n 250
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b) Next, we will sove for q :
q = 1 – p = 1 – 0.54 = 0.46
c) Finally, we will solve for z:

p-p 0.27-0.54
z= = = - 8.57
pq (0.54)(0.46)
√n √
250
What can I do:
Activity 1:
A. For each item below, compute the value of q and then the value of z given the
P^
hypothesized proportion (p), the observed proportion( ) and the sample size (n).
^
1. p = 0.3 , p = 0.22 , n = 60
^
2. p = 0.8 , p = 0.72 , n = 140
3. p = 0.55 , ^p = 0.62 , n = 70
^p
4. p = 0.7 , = 0.54 , n = 110
^p
5. p = 0.47 , = 0.18 , n = 55
B. For each problem below, compute for the value of the hypothesized proportion
^
(p ), the value of q, and finally the value of z.
1. A student researcher claims that 8% of the Junior High School completers will
enroll in private Senior High Schools. To test this claim, he collected sufficienct
samples randomly and found out that 85 out of 380 Junior High School
completers are planning to enrol in private Senior High Schools.
2. The Senior High School researchers claim that 20% of Senior High School male
students have tried smoking cigarette. After collecting 150 random samples,
they found that 40 of them have tried smoking cigarette.
School students like research class. After randomly collecting 150 samples, he
found out that only 50 students like their research class.
4. A school nurse believe that 5% of the Grade 7 students have below normal
Body Mass Index (BMI) and should undergo a feeding program. After making
a survey, she found that 18 of 210 randomly selected students have have below
normal BMI.
5. After launching the Water and Hygiene in School program, the principal
believes that 95 % of the students applied tha proper handwashing techniques
in school as well as at home. A random survey was conducted to 500 students
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and only 410 of them said they practiced correct handwashing technique both
in school and at home.
After learning how to compute the z statistic for population

proportion, you are now ready to conduct a hypothesis test on it. The
steps in conducting hypothesis test involving means are the same steps that you will
used in testing population proportion. To start, we are going to recall the decision rule
in testing hypothesis.
Decision Rule: If z computed ≥ z critical , REJECT Ho Positive

If z computed ˂ z critical , DO NOT REJECT Ho Values
: If z computed ≤ z critical , REJECT Ho Negative

If z computed > z critical , DO NOT REJECT Ho Values
Now, let’s apply this to examples. For purposes of discussion, we will use the
same problems presented in the preceding lesson.
SampleProblem 1:
A researcher wants to test his assumption that 75% of the senior high school
students who enrolled in the academic track wanted to become a teacher. He
collected samples randomly and found out that 25 out of 130 are planning to
become a teacher. Test the validity of the assumption.
Steps Solution
(Ho): The proportion of senior high school

students who wanted to become a
teacher is 75%.
1. Formulate the hypotheses: the (Ha): The proportion of senior high school
null hypothesis and the students who wanted to become a
alternative hypothesis. teacher is not equal to 75%.
In symbols:
Ho : p = 0.75
Ha : p ≠ 0.75
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Since the significance is not stated, we will

set it to 95%
α = 0.05, two-tailed.
Z critical = +1.96, -1.96
^ :
First, we will solve for p
^ 𝑋𝑋 25
p = 𝑛𝑛
= 130 = 0.19
Next, we will sove for q :
3. Compute the z-statistic.
q = 1 – p = 1 – 0.75 = 0.25
Finally, we will solve for z:
^p-p 0.19-0.75
z= = = - 14.75
√
pq (0.75)(0.25)
√
n 130
4. Decision: Compare the The computed value (-14.75 ) is less than

computed value of z with the the critical value(-1.96) , so the statistic lies
critical value. on the rejection region. The null hypothesis is
rejected.
the sample proportion and the population
5. Conclusion. proportion. The proportion of senior high
school students who wanted to become a
teacher is not equal to 75%
Sample Problem 2:
A local radio station claims that 54% of the population who listen to radio
broadcast are listening to their station. After collecting 250 samples randomly,
they found out that only 67 of them listen to the said radio station. Test the
validity of the claim.
It’s your turn now, fill in the table with the necessary information.
Steps Solution
(Ho):
(Ha):
1. Formulate the hypotheses:
In symbols:
the null hypothesis and the
Ho : p =
alternative hypothesis..
Ha : p ≠
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α=
Z critical =
^
First, we will solve forp :
^ 𝑋𝑋
p = 𝑛𝑛
= =

3. Compute the z-statistic.
q = 1 – p = 1 – 0.75 = 0.25

^𝑝𝑝−𝑝𝑝 0.19−0.75
z= 𝑝𝑝𝑝𝑝
= (0.75)(0.25)
= - 14.75
√ √
𝑛𝑛 130

computed value of z with the
critical value.
5. Conclusion
What can I do
Activity 2.
Test the validity of the hypothesis stated in each problem using the steps
in hypothesis testing.
found out that only 65 students like research class. Is the teacher’s claim valid?
Test the hypothesis at 95% confidence level.
2. After launching the Water and Hygiene in School program, the principal
believes that more than 90 % of the students applied the proper handwashing
techniques in school as well as at home. A random survey was conducted to
500 students and only 410 of them said they practiced correct handwashing
technique both in school and at home. Test the validity of the principal’s belief
at 90% confidence level.
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Assessment
What have
Directions: Select the letter of the option that correctly answers the questions or
completes the statement.
1. It is a rule or method that leads to decision to accept or reject the hypothesis when
sample values are gathered from the population under study.
A. Estimation C. Hypothesis Testing
B. Hypothesis D. Test Statistic
2. What mathematical model is appropriate for decision-making about population
proportion?
A. Graphical representation C. z – statistic
B. Normal curve D. None of these
3. This refers to an intelligent guess, an assumption, or a claim about a population
parameter which may either be true or false.
A. Hypothesis C. Decision
B. Test statistic D. Interpretation
4. The probability of rejecting the null hypothesis when it is true is called,
A. Level of Confidence C. Power of the test
B. Level of Significance D. Estimate interval
5. What is the purpose of hypothesis testing?
A. To collect sample data and use them to formulate hypotheses about a
population.
B. To draw conclusions about population and then collect sample data to support
the conclusions.
C. To draw conclusions about populations from sample data.
D. To draw conclusions about the known value of population parameter
6. Which of the following statements is true when the null hypothesis is rejected?
A. There is significant difference between the parameters being compared.
B. There is no significant difference between the parameters being compared.
C. The conclusion is guaranteed.
D. The conclusion is not guaranteed.
7. If in the z-test of proportions, the computed z is found on the rejection region then
this means that:
A. The sample proportion is equal to the hypothesized proportion.
B. The sample proportion is equal to the population proportion.
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C. The sample proportion is not equal to the hypothesized proportion.

D. The sample proportion is not equal to the population proportion
8. What is the value of α for the 95% confidence level of a two-tailed test?
A. 0.01 C. 0.10
B. 0.05 D. 0.025
^
9. If p = 0.3, p = 0.4, n = 50 what is the value of z?
A. 0.45 C. 1.54
B. 0.63 D. 0.55
10. Under the normal curve, the middle part represents
A. Confidence level C. Acceptance region
B. Confidence interval D. All of these
End of Assessment
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Key to Answers
What I know ( pp. 4-5) Assessment ( pp.35-36)
1. A 1. C
2. C 2. C
3. C 3. A
4. C 4. B
5. B 5 C
6. A 6. A
7. B 7. C
8. C 8. B
9. C 9. C
10. D 10. D
Lesson 1: Activity 1. (p. 6)
Reactions may vary depending the ideas of the learners on the given situation.
Possible reactions would be:
 Plants will die due to too much heat.

 There would be shortage of water.
 The farm animals will become thinner.
 The prices of the commodities, especially rice, will go up.
 There would fire incidents due to extreme heat.
 The farmers will experience great loss on production.
 There would be less supply of rice.
Lesson 1: Activity 2. (p. 7 – 8)

1. H 6. H
2. F 7. F
3. H 8. H
4. F 9. F
5. H 10. H
Lesson 1: Activity 3. (p. 11 – 12)
1.
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a) Claim: Fewer than 8% of Junior High School completers will enroll in private
Senior High Schools.
b) Parameter : Population proportion
c) Symbol for parameter: p
d) Ho and Ha complementary pair: Ho: Parameter ≤ Value versus Ha:
Parameter > Value
Ho: The number of Junior high school completers who will enroll in private
Senior high school is less than or equal to 8%.
Ha: The number of Junior high school completers who will enroll in private
Senior high school is more than 8%.
Ho : p ≤ 0.75
Ha : p > 0.75
2.
a) Claim: Senior high school students spend an average of 20 Php a day for
their cellphone loads.
b) Parameter : Population mean
c) Symbol for parameter: µ
d) Ho and Ha complementary pair: Ho: Parameter = Value versus Ha:
Parameter ≠ Value
Ho: The average amount of money spend by senior high school student on
their cellphone load a day is equal to Php 20.
Ha: The average amount of money spend by senior high school student on
their cellphone load a day is not equal to Php 20.
Ho : µ = 20
Ha : µ ≠ 20
3.
a) Claim: More than 20% of Senior High School male students have tried
smoking cigarette.
d) Ho and Ha complementary pair: Ho: Parameter ≥ Value versus Ha:
Parameter < Value
Ho: The number of Senior high school male students who have tried smoking
cigarette is greater than or equal to 20%
Ha: The number of Senior high school male students who have tried smoking
cigarette is less than 20%
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Ho : p ≥ 0.20
Ha : p < 0.20
4.
a) Claim: Students enroll in schools within 5 km from their homes.
b) Parameter : Population mean
c) Symbol for parameter: µ
Parameter > Value
Ho: The average distance between the students home and their school is less
than or equal to 5 km.
Ha: The average distance between the students home and their school is
more than 5 km
Ho : µ ≤ 20
Ha : µ > 20
5.
a) Claim: Less than 30% of Senior High School students like research class.
Parameter > Value
Ho: The number of Senior high school students who like research class is
less than or equal to 30%.
Ha: The number of Senior high school students who like research class is
more than 30%.
Ho : p ≤ 0.30
Ha : p > 0.30
Lesson 1: Activity 3. (p. 15)
1. A type I error is committed if Mary decide not to pursue a degree in college and a
possible consequence is she lost the opportunity to have a happy and fulfilled life.
Type II error is committed when Mary pursue a degree in college and ended up
with an unhappy and less fulfilled life.
2. A type I error is committed when the company decide not to change tire brand and
the possible consequence is spending more if the surface temperature exceeds
107ºC.
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Type II error is committed when company decided to change tire brand and ended
and ended up spending more if the surface temperature of the runway does exceed
107ºC.
3. A type I error is committed when Alden’s guess of Maine’s birthday is not on this
day and a possible consequence is that he failed to greet or give Maine a birthday
gift.
Type II error is committed when Alden guess that today is Maine’s birthday and a
possible consequence is that he made a mistake of greeting Maine a happy
birthday on that day.
Lesson 2. Activity 1. (pp. 21 – 22)
A)Type of test B) Z critical C) Symbol D) Location
1. Two-tailed 1. 1.28 1. ˂ acceptance region

2. One-tailed 2. 2.58 2. ˃ rejection region
5. One-tailed 5. 1.96 5. ˃ rejection region
Lesson 3. Activity 1.(p. 23)
Answers may vary, the possible judicial proceedings are:
1. State the accusation against the suspect.

2. Choose judicial sala will handle the case.
3. Judge will hear the case and the accuser and the accused will present
evidences.
4. Judge will decide on the case based on evidences presented.
5. State the verdict based on the decision made.
Lesson 3. Activity 2.(p. 29)
A. 1. C 2. D 3. E 4. B 5. A
B. 6. T 7. F 8. T 9. T 10. T
C. Testing hypothesis
1. The average IQ of a certain population is 100 with a standard deviation of 15. A

team of scientists wants to test a new medication to see if it has either a positive
or negative effect on intelligence, or no effect at all. A random sample of 30
participants who have taking the medication has a mean of 140. Did the medication
affect intelligence, test the claim using alpha = 0.05?
Solution
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Steps Solution
(Ho): The average IQ is equal to 100

1. Formulate the hypotheses: (Ha): The average IQ is not equal to 100.
the null hypothesis and the In symbols:
alternative hypothesis.. Ho : µ = 100
Ha : µ ≠ 100
2. Set the significance level for α. α = 0.05,

two-tailed or non-directional test
Type of test
Z critical = +1.96, -1.96
Critical values of z
3. Compute the z-statistic. Given: X = 140

µ = 100
n = 30
σ = 15
(𝑥𝑥 − 𝜇𝜇)√𝑛𝑛
𝑧𝑧 =
𝜎𝜎
(140 − 100)√30
=
15
𝑧𝑧 = 4.86
4. Decision: Compare the The computed value (4.86 ) is greater
computed value of z with the than the critical value (1.96) , so the statistic
critical value. lies on the rejection region, the null
hypothesis is rejected.

Thus the medication affect the intelligence of
the sample.
2. A simple random sample of 15 people from a certain population has a mean age
of 38 with a standard deviation of 20. Can we conclude that the mean age of the
population is younger than 35? Let alpha = .05
Steps Solution
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(Ho): The average age of the people in a

1. Formulate the hypotheses: certain place is less than or equal to 35.
the null hypothesis and the (Ha): The average age of the people in a
alternative hypothesis.. certain place is greater than 35.
In symbols:
Ho : µ ≤ 35
Ha : µ > 35
2. Set the significance level for α. α = 5% = 0.05
Type of test one-tailed or directional test (left-tailed)
Degrees of freedom df = 15 – 1 = 14
Critical values of t t critical = 1.761
3. Compute the t-statistic. Given: X = 38

µ = 35
n = 15
s = 20
( x - μ ) √n
t=
s
(38 -35)√20
=
15
t = 0.89
The computed value(0.89) is lesser than
the critical value (1.761) , so the statistic lies
computed value of t with the
in the acceptance region, the null hypothesis
critical value.
is not rejected.
Thus the claim that the average age of people
living the place is younger than 35.
Lesson 4: Activity.1 (p. 32)
A) B)
^
q z p q z
1. 0.7 - 1.35 6. 0.22 0.92 10.32

2. 0.2 - 2.37 7. 0.27 0.8 2.04
3. 0.45 1.18 8. 0.33 0.7 0.89
4. 0.3 - 3.66 9. 0.09 0.95 2.37
5. 0.53 - 4.31 10. 1.0 0.05 4.65
Lesson 4: Activity 2 (P.35)
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found out that only 65 students like research class. Is the teacher’s claim valid?
Test the hypothesis at 95% confidence level.
Solution:
Steps Solution
(Ho): The proportion of senior high school

students who like research class is
less than or equal to 30%.
1. Formulate the hypotheses: (Ha): The proportion of senior high school
the null hypothesis and the students who like research class is
alternative hypothesis. greater than 30%.
In symbols:
Ho : p ≤ 0.30
Ha : p > 0.30
Since the confidence level is 95%, so the

significance level is 5%
α = 0.05, one-tailed.
Z critical = +1.64, -1.64
First, we will solve for :

^ 𝑋𝑋 65
p = 𝑛𝑛
= 150 = 0.43

3. Compute the z-statistic. q = 1 – p = 1 – 0.30 = 0.70

^
p-p 0.43-0.30
z= = = 3.47
pq (0.30)(0.70)
√n √
150
4. Decision: Compare the The computed value 3.47 ) is greater than

computed value of z with the the critical value(1.64) , so the statistic lies on
critical value. the rejection region. The null hypothesis is
rejected.
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5. Conclusion. proportion. The proportion of senior high
school students who like research class is
greater than 30%
2. After launching the Water and Hygiene in School program, the principal believes
that more than 90 % of the students applied the proper handwashing techniques
in school as well as at home. A random survey was conducted to 500 students and
only 410 of them said they practiced correct handwashing technique both in school
and at home. Test the validity of the principal’s belief at 90% confidence level.
Solution:
Steps Solution
(Ho): The proportion students who practiced
correct handwashing is greater than or
equal to 90%.
1. Formulate the hypotheses: (Ha): The proportion students who practiced
the null hypothesis and the correct handwashing less than 90%.
alternative hypothesis. In symbols:
Ho : p ≥ 0.30
Ha : p < 0.30
Since the confidence level is 90%, so the
significance level is 10%
α = 0.10, one-tailed.
Z critical = +1.28, -1.28
First, we will solve for:

^ 𝑋𝑋 410
p = 𝑛𝑛
= 500 = 0.82

3. Compute the z-statistic. q = 1 – p = 1 – 0.90 = 0.10

^
p-p 0.82- 0.90
z= = = 5.96
pq (0.90)(0.10)
√n √
500
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4. Decision: Compare the The computed value (5.96 ) is greater

computed value of z with the than the critical value(1.28) , so the statistic
critical value. lies on the rejection region. The null
hypothesis is rejected.

5. Conclusion. proportion. The proportion of students who
practiced correct handwashing is less than
90%
REFERENCES
Andy Schmitz. “Two-Sample Problems,” in Introductory Statistics, Saylor Academy,

2012. Retrieved from https://saylordotorg.github.io/text_introductory-
statistics/s13-two-sample-problems.html.
Amitav Banerjee, et al. “Hypothesis testing, type I and type II errors”. Industrial
Psychiatry Journal. 2009. Retrieved from
https://www.ncbi.nlm.nih.gov/pmc/articles/PMC2996198/.
Banigon, et al., 2016. Statistics and Probability for Senior High Schools. Quezon City,
Philippines: Educational Resources Corporation.
Belicina, et al., 2016. Statistics and Probability.1 st ed. Manila, Philippines: Rex Book
Store, Inc.
“Chapter 6.1 The Elements of a Test of Hypothesis” in Lecture 6: Tests of Hypothesis.

University of California, Davis Department of Statistics Summer Session II,
2012. Retrieved from
http://www.stat.ucdavis.edu/~ntyang/teaching/12SSII/lecture06.pdf.
Datasciencecentral. (2017). Importance of Hypothesis Testing in Quality

Management.Retrieved from
https://www.datasciencecentral.com/profiles/blogs/importance-of-hypothesis-
testing-in-quality-management.
Diego M. Amid, Fundamentals of Statistics, Lorimar Publishing Company, Inc., 2005.
Efren B. Mateo, Elisa S. Baccay, & Rene R. Belecina, Statistics and Probability, Rrex
Book Store, 2016.
Jose Ramon G. Albert, et.al., Statistics and Probability Teaching Guide for Senior High
School, Department of Education, 2016.
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Lisa Sullivan, “Hypothesis Testing: Upper-, Lower, and Two Tailed Tests,” in
Hypothesis Testing for Means & Proportions, Boston University School of
Public Health, 2017. Retrieved from http://sphweb.bumc.bu.edu/otlt/MPH-
Modules/BS/BS704_HypothesisTest-Means-
Proportions/BS704_HypothesisTest-Means-Proportions3.html
Neil J. Salkind, “Directional Hypothesis,” in Encyclopedia of Research Design, SAGE

Publications, 2010. Retrieved from
http://methods.sagepub.com/reference/encyc-of-research-design/n114.xml
Neil J. Salkind, “T-Test Definition,” in Encyclopedia of Research Design, SAGE

Publications, 2010. Retrieved from https://www.investopedia.com/terms/t/t-
test.asp
“One-and Two-tailed Test”. Cliffsnote. Houghton Mifflin Harcourt. 2016. Retrieved

from https://www.cliffsnotes.com/study-guides/statistics/principles-of-
testing/one-and-twotailed-tests
Rosie Shier. “Statistics: 1.1 Paired t-tests”, Mathematics learning Center, 2004.
Retrieved from http://www.statstutor.ac.uk/resources/uploaded/paired-t-
test.pdf
Statistics Solutions. (2013). Hypothesis Testing [WWW Document]. Retrieved

from http://www.statisticssolutions.com/academic-
solutions/resources/directory-of-statistical-analyses/hypothesis-testing/
“Steps in Hypothesis Testing,” University of Florida Health , 2018. Retrieved from

https://bolt.mph.ufl.edu/6050-6052/unit-4/module-12/steps-in-hypothesis-
testing
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https://www.investopedia.com/terms/n/null_hypothesis.asp
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https://support.minitab.com/en-us/minitab-express/1/help-and-how-to/basic-
“Z-test” in explorable.com, 2018. Retrieved from https://explorable.com/z-test
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Statistics and Probability Module 5

Accontancy (Tarlac State University)

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General Mathematics – Grade 11

Development Team of the Module:

Authors: Alfred G. Barrientos

Chairperson: Dr. Arturo B. Bayocot, CESO III

Printed in the Philippines by: Department of Education – Regional Office 10

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This instructional material was collaboratively developed and reviewed

We value your feedback and recommendations.

Department of Education • Republic of the Philippines

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Hypothesis testing is a statistical method that is used in making

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What I need to know?

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 Read the texts and follow instructions carefully in each lesson

A claim, guess, assumption, or conjecture about a population.

A claim that denotes “absence” such as absence of difference,

A claim that denotes “presence” such as presence of difference,

When we reject the null hypothesis, although that hypothesis was

When we accept the null hypothesis but it is false. Type II errors

Usually known as the probability of correctly accepting the null

Level of Refers to the degree of significance in which we accept or reject

Two-tailed When the given statistical hypothesis assumes a less than or

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1. This refers to an intelligent guess, an assumption, or a claim about a population

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9. If p = 0.3, p^ = 0.4, n = 50 what is the value of z?

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Lesson BASIC CONCEPTS IN

 Illustrate a statistical hypothesis

As you go on, please be guided by this Lesson Outline

a. Definition of statistical hypothesis

Are you ready?

Let’s start by answering the activity below.

Congratulations for writing at least 3 reactions on the government

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Learning concepts 1.1

What you have written is your guess, opinion, claim, conclusion

Hypothesis is considered an educated guess which provides proposed

Let us now have some examples of hypothesis:

1. Asia is the largest continent in the world in terms of area.

A. Tell whether the following statement as a hypothesis or a fact. On the space

_____2. An hour is equal to sixty minutes.

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Learning concepts 1.2

A statistical hypothesis is a claim or a conjecture that may either

A null hypothesis denoted by the symbol Ho (read as “H sub O”) is a

An altenative hypothesis denoted by the symbol Ha (read as “H sub

In formulating the hypotheses (plural form of hypothesis), we can use the

1. First, identify the claim. Does it denote “absence” or it states equality to a

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(a) Ho: Parameter = Value versus Ha: Parameter ≠ Value

Situation 1: A manufacturer of IT gadgets recently announced they had developed a

Step by step solution:

Step 1: Identifying the claim

Step 2: Identifying the parameter