Z TEST

Definition: ‡ A Z-test is a statistical test for which the distribution of the test statistic under the null hypothesis can be approximated by a normal distribution. .

2. The sampling distribution of a sample stastic is approximately normal. Values given by the samples are sufficiently close to the population value and can be used in its place for the standard error of the estimate.Assumptions: Z test is based on the following assumptions: 1. .

Thus.. as one increases.Factors Influencing Power:  Alpha (a). . the other decreases (i. using an alpha of .01. Alpha and beta are inversely related.e.  Sample Size (N).05 will result in a more powerful test than using an alpha of . the more powerful the test.  Test Directionality. The bigger the sample. One-tailed tests have the potential to be more powerful than two-tailed tests. Metric tests compared to nonparametric tests are generally more powerful due to assumptions that are more restrictive. In other words. all other things being equal.  Type of Test. a ´ b = K).

. Population proportion & Sample proportion. 3. Two Sample Proportions. 4. There are four tests in Z test for testing the significant difference between. Population mean & Sample mean. 2.Applications: When a sample size is greater than or equal to 30. Two sample mean . 1.

Numerical Example Testing Hypothesis about Population mean:  The mean lifetime of a sample of 100 light tubes produced by a company is found to be 1.600 hours. Test the hypothesis that the mean lifetime of the tubes produced by the company is 1.580 hours with the standard deviation of 90 hours. . Solution: x = 1580 hrs µ = 1600 hrs n = 100 s = 90 hrs.

. i. H0: µ = µ0 Alternate Hypothesis: H1 : µ µ0 Test Statistics: .Title Null Hypothesis: There is no significant diference between the sample mean & Population mean.e.

Title where standard error. = s/ n = 2. Decision : Since the calculated value > table value.22 Level of significance at 5% for two tail test is 1.96. .reject H0.

.Title Conclusion: The Mean lifetime of the tubes produced by the company may not be 1.600 hours.

Limitations: .

Sign up to vote on this title
UsefulNot useful