Quarter 2 - Week 5

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 Let’s Learn

This module was designed and written to help you understand the basic
concepts of hypothesis testing. Each step for hypothesis testing was given emphasis
by providing a separate lesson for each. Only one set of examples was used all
throughout the lessons to clearly show the process of hypothesis testing.

The module contains:

• Lesson 1 – Hypothesis Testing (Population Proportion)

After going through this module, you are expected to:

1. formulates the appropriate null and alternative hypotheses on a
population proportion.
2. identifies the appropriate form of the test-statistic when the Central Limit
Theorem is to be used.
3. identifies the appropriate rejection region for a given level of significance
when the Central Limit Theorem is to be used

Let’s Try

Directions: Read each question carefully. Encircle the letter of the correct answer.

1. Of the 250 surveyed, 98 students owned a laptop. What is the sample proportion
of the students who owned laptop?
A. 0.39 C. 0.98
B. 0.61 D. 2.50

2. If the value of population proportion is 3/5, what is the value of 𝑞?

A. 0.30 C. 0.50
B. 0.40 D. 0.60

3. Is z-test applicable for the following given? Hypothesis test on population

proportion; 𝑛 = 121, 𝑝 = 0.11

A. Yes B. No C. Maybe D. Cannot be determined

4. Is z-test applicable in the following given? Hypothesis test on population

proportion; 𝑛 = 17, 𝑞 = 0.85

A. Yes B. No C. Maybe D. Cannot be determined

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For no. 5-10

Ships arriving in Port of Manila are inspected by Customs officials for

contaminated cargo. Eighteen percent of the ships arriving last year contained
cargo that was contaminated. A random selection of 40 ships in the current year
included 4 that had contaminated cargo. Does the data suggest that the proportion
of ships arriving in the port with contaminated cargoes has decreased this year?
Use α=.01.

5. Which of the following is a correct null hypothesis?

A. H0: 𝑝 = 0.18 C. H0: 𝑝 > 0.18

B. H0: 𝑝 ≠ 0.18 D. H0: 𝑝 < 0.18

6. Which of the following is a correct alternative hypothesis?

A. H1: 𝑝 = 0.18 C. H1: 𝑝 > 18

B. H1: 𝑝 ≠ 0.18 D. H1: 𝑝 < 18
7. What is the sample proportion (𝑝̂ )?

A. 0.40 C. 0.10

B. 0.04 D. 0.01
8. What is the value of 𝑞?

A. 0.60 C. 0.82

B. 0.90 D. 0.99

9. Is z-test applicable in this problem?

A. yes, because 𝑛𝑝 is greater than 5

B. yes, because 𝑛𝑞 is greater than 5

C. yes, because 𝑛𝑝 and 𝑛𝑞 are both greater than 5

D. yes, because 𝑛𝑝 and 𝑛𝑞 are both less than 5

10. Which of the following rejection region is applicable to the problem?

A. 𝑧 > 2.33 C. 𝑧 > −2.33

B.𝑧 < 2.33 D. 𝑧 < −2.33

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 Lesson Hypothesis Testing
1 (Population Proportion I)

Let’s Recall

Write the five essential steps in testing hypothesis

1.
2.

3.

4.
5.

Let’s Explore

Activity 1

There are 358 Senior High School students at Signal Village National High
School. Fifty-four are STEM students, 100 are GAS students, and 78 are ABM
students. The remaining are Caregiving and Tech Voc students. Find the
population proportion of the following:

a. STEM students

b. GAS students

c. ABM students

d. Caregiving and Tech-Voc students

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 Let’s Elaborate

A population proportion is a fraction of the population that has a certain

characteristic. For example, if there are 2,000 people in the population and 235 of
those people have curly hair. The fraction of people who have blonde hair is 235 out
of 2,000. The letter p is used for the population proportion, so we may write this fact
as:

p = 235/2000.
In the previous modules, we discussed how to perform hypothesis testing for
population mean. In this module, we will perform hypothesis testing for population
proportion using the same steps as we used in hypothesis testing for population
mean.

1. Formulate the null and alternative hypotheses.

2. Select an appropriate test statistic and procedure.

3. Choose the level of significance (𝛼) and establish the rejection region.

4. Compute the value of the test statistic from the sample data.

5. Make a decision and draw the appropriate conclusion.

In this module, we will focus on the first three steps.

Example 1

In Metro Manila, 300 housewives were randomly selected and asked whether
they prefer purchasing clothes from department stores or boutiques. If 150 of the
housewives preferred malls, is there sufficient evidence at the 5% level of significance
to suggest that the proportion of housewives throughout Metro Manila who prefer
department stores exceeds 40%?
Solution

a. Formulate the null and alternative hypotheses.

H0: The proportion of housewives throughout metro manila who prefer Department
Stores is equal to 40%. In symbol, 𝑝 = 0.40

H1: The proportion of housewives throughout metro manila who prefer Department
Stores is greater than 40%. In symbol, 𝑝 > 0.40

Note: We use the symbol 𝑝 to denote proportion.

b. Select an appropriate test statistic and procedure.

In the case of population proportion, z-test will be applicable only if
𝑛𝑝 > 5 𝑎𝑛𝑑 𝑛𝑞 > 5, where 𝑛 is the number of samples, 𝑝 is the population proportion,
and 𝑞 is 1- 𝑝. These conditions are important so that the binomial distribution of
sample proportion can be approximated by a normal distribution 𝜇 = 𝑛𝑝
and 𝜎 = √𝑛𝑝𝑞.

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Let us see if 𝑧-test is applicable for the sample problem.

We need to test the conditions: 𝑛𝑝 > 5 𝑎𝑛𝑑 𝑛𝑞 > 5.

𝑛 = 300
𝑝 = 0.4
𝑞 = 1 − 0.4 → 0.6
𝑛𝑝 = (300)(0.4) → 120
𝑛𝑞 = (300)(0.6) → 180

Since both conditions were satisfied, then we could use z-test for population
proportion which is:
𝑝̂ − 𝑝
𝑧=
𝑝𝑞
√
𝑛
𝑥
where: 𝑝̂ = 𝑜𝑟 𝑠𝑎𝑚𝑝𝑙𝑒 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛
𝑛
𝑝 = 𝑝𝑜𝑝𝑢𝑙𝑎𝑡𝑖𝑜𝑛 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛
𝑞 =1−𝑝
𝑛 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑎𝑚𝑝𝑙𝑒𝑠

Note
z-test formula for population proportion is quite different from the z-test
statistic formula for population mean.

c. Choose the level of significance (𝛼) and establish the rejection region.

(i) Based on the sample problem the level of significance is 5% (𝛼 = 0.05).

(ii) Remember that to identify the rejection region, we need to know first if the
problem is a case of a one-tailed test or a two-tailed test. Since the alternative
hypothesis is 𝑝 > .40, it is a one-tailed test. Referring on the table below, we can
identify that the rejection region is 𝑧 > 1.645.

One-tailed Two-tailed
𝛼 = 0.05 𝑧 > 1.645 (𝑜𝑟 𝑧 < −1.645) 𝑧 < −1.96 𝑜𝑟 𝑧 > 1.96
𝛼 = 0.01 𝑧 > 2.33 (𝑜𝑟 𝑧 < −2.33) 𝑧 < −2.575 𝑜𝑟 𝑧 > 2.575

Example 2
A manufacturer of detergent powder claims that 25% of the customers prefer
brand Y. To test the claim, a random of 28 customers are selected and asked what
brand they prefer. If 8 out of 28 customers prefer brand Y, what conclusion can we
draw? Use 𝛼 = 0.01 level of significance.

Solution
a. Formulate the null and alternative hypotheses.

H0: The proportion of customers who prefer brand Y is 25%. In symbol, 𝑝 = 0.25

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H1: The proportion of customers who prefer brand Y is less than 25%. In symbol 𝑝 ≠
0.25
b. Select an appropriate test statistic and procedure.
We need to test the conditions: 𝑛𝑝 > 5 𝑎𝑛𝑑 𝑛𝑞 > 5.

𝑛 = 28
𝑝 = 0.25
𝑞 = 1 − 0.25 = 0.75
𝑛𝑝 = (28)(0.25) = 7
𝑛𝑞 = (28)(0.75) = 21
𝑧 −test is applicable in this problem.

c. Choose the level of significance (𝛼) and establish the interval of the rejection.
(i) 𝛼 = 0.01

(ii) Since the alternative hypothesis for the situation is 𝑝 ≠ 0.25, it is a two-tailed
test. Referring on the table, the rejection region is 𝑧 > 2.575 𝑜𝑟 𝑧 < −2.575.

Example 3
Mrs. Cruz asserts that fewer than 6% of the bulbs that she sells are defective.
Supposed 250 bulbs are randomly selected, each is tested, and 12 defective bulbs
are found. Does this provide sufficient evidence for Mrs. Cruz to conclude that the
fraction of defective bulbs is less than 0.06? Use 𝛼 = 0.01.

Solution

a. Formulate the null and alternative hypotheses.

H0: The fraction of defective bulbs is equal to 6%. In symbol, 𝑝 = 0.06

H1: The fraction of defective bulbs less than 6%. In symbol, 𝑝 < 0.06

b. Select an appropriate test statistic and procedure.

We need to test the conditions: 𝑛𝑝 > 5 𝑎𝑛𝑑 𝑛𝑞 > 5.

𝑛 = 250
𝑝 = 0.06
𝑞 = 1 − 0.06 = 0.94
𝑛𝑝 = (250)(0.06) = 15
𝑛𝑞 = (250)(0.94) = 235
𝑧-test is applicable in this problem.

c. Choose the level of significance (𝛼) and establish the interval of the rejection.

(i) The level of significance is 0.01

(ii) Since the alternative hypothesis for the situation is 𝑝 < 0.06, it is a one-tailed
test. Referring on the table, the rejection region is 𝑧 < −2.33.

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 Let’s Dig In

A. Directions: Which of the following statements is/are true about the use of z-test
for population proportion.
1. 𝑛𝑝 and 𝑛𝑞 are both greater than 5.

2. 𝑛𝑝 must be greater than 5.

3. 𝑛𝑞 must be less than 5.

4. Either 𝑛𝑝 or 𝑛𝑞 must be less than 5.

5. z-test can be used regardless of the value of 𝑛𝑝 and 𝑛𝑞.

B. Directions: Identify if z-test is applicable for each the following sets of

information. Write A if applicable and N if not applicable.

1. Hypothesis test on population proportion; 𝑛 = 10, 𝑝 = 0.20

2. Hypothesis test on population proportion; 𝑛 = 150, 𝑞 = 0.75

3. Hypothesis test on population proportion; 𝑛 = 32, 𝑝 = 0.15

4. Hypothesis test on population proportion; 𝑛 = 100, 𝑞 = 0.33

5. Hypothesis test on population proportion; 𝑛 = 12, 𝑞 = 0.71

Let’s Remember

1. For population proportion, z-test will be applicable only if 𝑛𝑝 > 5 𝑎𝑛𝑑 𝑛𝑞 > 5, where:
𝑛 is the number of samples, 𝑝 is the population proportion, and 𝑞 is 1- 𝑝.

2. z-test formula for population proportion is:

𝑝̂ − 𝑝
𝑧=
𝑝𝑞
√
𝑛

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 Let’s Apply

Directions: Read each problem. Write the null and alternative hypotheses and
identify the rejection region.
1. A telephone company claims that 80% of young adults in Manila are using their
cellphones to connect to the internet. In a random sample of 130 young adults, 110
say that they use their phones to access the internet. Is there enough evidence to
support the said claim? Use α = 0.01.

2. A Tutorial Center claims that more than 75% of their customers are very satisfied
with their services. One hundred were surveyed using random sampling and it was
found out that 83 are very satisfied. Based on these results, should we accept or
reject the company’s claim? Use a 0.05 level of significance.

Let’s Evaluate

Directions: Read each question carefully. Encircle the letter of the correct answer.

1. Of the 250 surveyed, 98 students owned a laptop. What is the sample proportion
of the students who do not owned laptop?
A. 0.39 C. 0.98
B. 0.61 D. 2.50

2. If the value of population proportion is 0.25, what is the value of 𝑞?

A. 1/4 C. 1/2
B. 1/3 D. ¾

3. Is z-test applicable in the following given? Hypothesis test on population

proportion; 𝑛 = 121, 𝑝 = 0.98

A. Yes B. No C. Maybe D. Cannot be determined

4. Is z-test applicable in the following given? Hypothesis test on population

proportion; 𝑛 = 17, 𝑞 = 0.50

A. Yes B. No C. Maybe D. Cannot be determined

For no. 5-10

Ships arriving in Port of Manila are inspected by Customs officials for

contaminated cargo. Eighteen percent of the ships arriving last year contained
cargo that was contaminated. A random selection of 40 ships in the current year
included 10 that had contaminated cargo. Does the data suggest that the

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proportion of ships arriving in the port with contaminated cargoes has increased
this year? Use α=.05.
5. Which of the following is a correct null hypothesis?

A. H0: 𝑝 = 0.18 C. H0: 𝑝 > 0.18

B. H0: 𝑝 ≠ 0.18 D. H0: 𝑝 < 0.18

6. Which of the following is a correct alternative hypothesis?

A. H1: 𝑝 = 0.18 C. H1: 𝑝 > 0.18

B. H1: 𝑝 ≠ 0.18 D. H1: 𝑝 < 0.18

7. What is the sample proportion (𝑝̂ )?

A. 0.40 C. 0.10
B. 0.25 D. 0.05

8. What is the value of 𝑞?

A. 0.60 C. 0.82

B. 0.90 D. 0.99
9. Is z-test applicable for this problem?

A. yes, because 𝑛𝑝 is greater than 5

B. yes, because 𝑛𝑞 is greater than 5

C. yes, because 𝑛𝑝 and 𝑛𝑞 are both greater than 5

D. yes, because 𝑛𝑝 and 𝑛𝑞 are both less than 5

10. Which of the following rejection region is applicable for this problem?

A. 𝑧 > 1.645 C. 𝑧 > −1.645

B. 𝑧 < 1.645 D. 𝑧 < −1.645

References

Mathematics for Engaged Learning Statistics and Probability by Yvette F. Lim,

Rizaldi C. Nocon, Ederlina G. Nocon, and Leonor A. Ruivivar
Introduction to Statistics by Ronald E. Walpole (Third Edition)
Basic Probability and Statistics by Winston S. Sirug
Statistics and Probability by Rene R. Belecina, Elisa S. Baccay, and Efren B. Mateo
Statistics and Probability by Lino C. Reynoso, Recto Y. Ponciano, and Belinda T.
Conde

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 Development Team of the Module

Writers: MARIA DINARR L. DIMAAPI

Editors:
Content: LAMBERT QUESADA
Language: AILEEN GENOSO

Reviewers: MRS. MIRASOL I. RONGAVILLA

MR. ARMANDO V. EROLIN

Illustrators:
Layout Artist:
Management Team: DR. MARGARITO B. MATERUM, SDS
DR. GEORGE P. TIZON, SGOD-Chief
DR. ELLERY G. QUINTIA, CID Chief
MRS. MIRASOL I. RONGAVILLA, EPS - MATH
DR. DAISY L. MATAAC, EPS – LRMS/ ALS

For inquiries, please write or call:

Schools Division of Taguig city and Pateros Upper Bicutan Taguig City

Telefax: 8384251

Email Address: sdo.tapat@deped.gov.ph

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