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# HYPOTHESIS TESTING

STATISTICAL HYPOTHESES
The head of the PE dept claims that the
mean height of Grade 7 students is 163cm.
The mean height of 45 randomly selected
Grade7 students is 167cm. Using 0.01
significance level, can it be concluded that
the mean height of the randomly selected
students is different from what is claimed by
H0 : μ = 163cm
Ha : μ ≠ 163cm
STATISTICAL HYPOTHESES
The manager of a TV station claims that the
mean number of people watching their new
sitcom is 500,000 each day. A student
conducted a survey regarding this and came
up with a mean of 499,999. Using a 0.05
significance level, can it be concluded that
the mean number of people watching said
sitcom is less than what is claimed?
H0 : μ = 5000,000
Ha : μ < 500,000
STATISTICAL HYPOTHESES
The LB Company produces an average of 4%
defective bulbs each day. Lately, some of the
machines were upgraded and out of the
400 randomly selected bulbs, only 14 were
found defective. Does this suggest that
there is a decrease in the number of
defective bulbs being produced each day?
Use 0.05 significance level.
H0 : p = 0.04
Ha : p < 0.04
Test Statistic – value to which the
sample mean should be converted to
help in drawing a conclusion and
making a decision.
Critical Value – the point(s) separating
the non-rejection and rejection
regions.
Level of Significance (α)– corresponds
to the rejection region
Illustration:

## Critical Value Critical Value

Rejection Rejection
region region
Non-rejection region
TYPES OF ERRORS

## The Null The Null

Decision hypothesis hypothesis
is true is false
Reject the TYPE I Correct
Null Hypothesis Error Decision
Accept the Correct TYPE II
Null Hypothesis Decision Error
ONE-TAILED TEST
- directional; depends on how the Ha is stated
Critical Value

Rejection
region
Non-rejection region

## Ha with less than (<) symbol

ONE-TAILED TEST
- directional; depends on how the Ha is stated
Critical Value

Rejection
region
Non-rejection region

## Ha with greater than (>) symbol

TWO-TAILED TEST
- non-directional; α is divided equally between two tails

## Critical Value Critical Value

Rejection Rejection
region region
Non-rejection region

## Ha with no equal to (≠) symbol

HYPOTHESIS TESTING
is a procedure used by
statisticians to determine whether
or not to reject a statement about
a population.
HYPOTHESIS TESTING
t-statistic z-statistic

σ2 is unknown σ2 is known

n < 30 n > or = 30

t= x-μ z= x -μ
s σ
√n √n
HYPOTHESIS TESTING
The following are steps for a hypothesis test for a
population mean when the population is assumed to
Step1: State the null and the alternative
hypotheses
Step2: Choose the level of significance
Step3: Compute the test statistic
Step4: Determine the critical value or the p-value
(for t-test: find df and use the Table of t
Critical Values)
Step5: Draw a conclusion
HYPOTHESIS TESTING
Critical Value Method
test statistic z falls within the rejection region (goes
beyond the critical values), reject the H0 and accept
the Ha

p-Value Method
If p-value < or = α, reject H0
If p=value > or = α, do not reject H0
EXAMPLE
The leader of the association of jeepney drivers
claims that the average take home pay of all
drivers in Angeles City is P400.00. A random
sample of 100 jeepney drivers in Angeles City
was interviewed and the average daily take
home pay of these driers is found to be P425.
Use a 0.05 significance level to find out id the
average daily take homepay of all jeepney
drivers in Angeles City is different from P400.00
when the population variance is P8,464.00.
Critical Value Method
Step1: State the null and the alternative
hypotheses
H0 : μ = 400
Ha : μ ≠ 400

## Step2: Choose the level of significance

α = 0.05
Critical Value Method
Step3: Compute the test statistic
known variance, n>30, use z-test
z = 2.72

## Step4: Determine the critical value

non-directional = 2-tailed
Zα/2 = +/- 1.96
Critical Value Method
Because the computed test statistic,
z=2.72 falls within the rejection
region (beyond the critical values +/-
1.96), reject the null hypothesis and
accept the alternative hypothesis.
Therefore, the average daily take home pay
of jeepney drivers is not equal to P400.00.
This result is considered to be significant at 0.05 level.
p-Value Method
Step1: State the null and the alternative
hypotheses
H0 : μ = 400
Ha : μ ≠ 400

## Step2: Choose the level of significance

α = 0.05
p-Value Method
Step3: Compute the test statistic
known variance, n>30, use z-test
z = 2.72

## Step4: Determine the p-value

non-directional = 2-tailed
Az = 0.4967
α/2 = 0.5 - 0.4967 = 0.0033
Since 2-tailed, 0.0033x2 = 0.0066 = p-value
Critical Value Method
Since 0.0066 < 0.05, reject the null
hypothesis and accept the
alternative hypothesis.

## Therefore, the average daily take home pay

of jeepney drivers is not equal to P400.00.
This result is considered to be significant at 0.05 level.
EXERCISE1
According to a study done last year, the average
11 students in San Fernando was P350.00. A
Statistics student believes that this amount has
increased since January of this year. Is there a
reason to be believe that this amount has really
increased if a random sample of 60 students
has an average of monthly expenses for cell
phone loads of P380.00? Use a 0.05 level of
significance assuming that the population
standard deviation is P77.00.
EXERCISE2
The Head of the Math Department announced
that the mean score of Grade 11 students in the
3rd periodical exams in Calculus was 89 and the
standard deviation is 12. one student who
believed that the mean score was less than this,
randomly selected 34 students and computed
their mean score. She obtained a mean score of
85. At 0.01 level of significance, test the
student’s belief.