Module 4 | Hypothesis Testing

Module 4

TESTING
HYPOTHESIS
 01 Identify and apply the steps in hypothesis testing.

02 Test the hypothesis on the population mean of a single

population

03 Test the hypothesis on the population proportion of a

single population.
At the end of this
04 Test the hypothesis on the population mean of a two

chapter, the students population.

05 Utilize and interpret Excel/SPSS output given a test of

are expected to:
Module 4| Hypothesis Testing

parameter with single population or two populations.

06 Test the hypothesis on the population mean with more

than two population commonly known as Analysis of
Variance (ANOVA).

07 Utilize and interpret Excel/SPSS output for ANOVA.

 OVERVIEW
Hypothesis testing or significance testing is a part of inferential statistics. It is a method for
testing a claim about a parameter of interest in a population using data measured in a sample. In this
approach, we test some hypothesis by determining the probability that a sample statistic could have
been selected, if the hypothesis regarding the population parameter were true. Calculations can be
performed on selected samples to be able to make choices quickly about the information or
MODULE 4
Hypothesis Testing characteristics of the population. A systematic way to test claims or ideas about the entire dataset is
possible.
 
For example, a teacher reports that students in his classroom score an average of 6 out of 10 in
exams. To test the “hypothesis”, he records marks of 20 students which is the sample of the entire
population of 45 students in the classroom. Calculate the mean of that sample. We can then compare
the (calculated) sample mean to the (reported) population mean and attempt to confirm the
hypothesis.
4.1 BASIC CONCEPT OF HYPOTHESIS TESTING
Do you even wonder how batches of cellphone were tested? Will you need to test all cellphones in that batch in order to
say that the entire batch is in good condition? Possible, but it usually takes a lot of time before you can come up with the
result. To simplify it, we usually have first a hypothesis that the batches of cellphone is in good condition and then we
check its validity by taking enough sample that will support or will not support the claim. Thus, a hypothesis is a statement
or a tentative theory that may or may not be true but is initially assumed to be true until new evidence suggests otherwise. It
may be proposed from a preliminary observation, a guess or based from previous experiences. Below are some examples of
hypothesis:

Example 1
a. The average grade of senior high school students in General Math subject is 85.
b.Ninety-five percent of the senior high school students have Facebook account.
c.Male students have a higher average grade as compared to their female classmates.
 Now, the hypothesis that the batches of cellphone is in good condition is an example of null hypothesis. The NULL HYPOTHESIS (Ho) is the
hypothesis of “no difference” and usually formulated for the purpose of being rejected. Meanwhile, the hypothesis that the batches of cellphone is not
in good condition is the ALTERNATIVE HYPOTHESIS (Ha). This is the hypothesis that contradicts the null hypothesis and is also the operational
statement of the experimenter’s research hypothesis. For us to easily differentiate null from alternative hypothesis, we first write the problem “claim”
and “counterclaim” and whichever consider equality will be the null hypothesis. Take a look at the following examples to show the difference
between the two.

Example 2. State the null and alternative hypothesis of the following problems:

1. A senior high school teacher of a certain university claimed that the average grade of their senior high school students in General Math subject
is at least 85. He randomly selects 40 students and found out an average grade of 84 with a standard deviation of 3.

Solution:

Claim: The average grade of senior high school students in General Math subject is at least 85. (
Counterclaim: The average grade of senior high school students in General Math subject is less than 85.
 
Since the claim includes equality, then the null hypothesis will be the stated claim and in symbols, the null and alternative hypotheses are
and , respectively.
 
 2. A marketing agency claims that a typical person use his facebook account for more than 40 minutes per day, on the average. To test this
claim a sample of 35 persons where asked.

Solution:

Claim: A typical person use his facebook account more than 40 minutes per day, on the average.
Counterclaim: A typical person use his facebook account at most 40 minutes per day, on the average.
 
Since the claim includes equality, then the null hypothesis will be the stated claim and in symbols, the null and alternative hypotheses are and
, respectively.
 

3. In order to keep an adult female healthy and hydrated she has to drink an average of 11 cups of water daily as advised by a nutritionist. Is
the advised of the nutritionist true?

Solution:

Claim: To keep an adult female healthy and hydrated she has to drink an average of 11 cups of water daily (
Counterclaim: To keep an adult female healthy and hydrated she doesn’t have to drink an average of 11 cups of water daily

 
Since the claim includes equality, then the null hypothesis will be the stated claim and in symbols, the null and alternative
hypotheses are
and , respectively.
 
Furthermore, the process on how will you check the validity of your hypothesis is through hypothesis testing. This is a
procedure, based on sample evidence and probability theory, used to determine whether the hypothesis is a reasonable
statement and should not be rejected, or is unreasonable and should be rejected. In hypothesis testing, the following are the
series of steps to follow:
 STEPS
  IN HYPOTHESIS TESTING

1. State the null hypothesis (Ho) and alternative hypothesis (Ha), decide what data to collect and
under what conditions
2. Specify the level of significance  and the sample size n
MODULE 4
Hypothesis Testing 3. Find the sampling distribution of the test statistics under the assumption that Ho is true
4. Establish the critical region for the test statistics
5. Computation of the test statistics, for a sample size n
6. Make a decision.
7. Create a conclusion.
 In a situation where we give an answer too quickly without using facts or significant information, then
we are prone to committing error. In the case of batches of cellphone, it is a very dangerous process of
instantly claiming and assuming without using any data because it may lead to loss or bankruptcy of the
company. However, even if we have data it does not often guarantee the correctness of our decision and
conclusion. Why is this so? Different situations may lead to different types of error committed. Examples
of this are the selection of wrong batch of cellphones and very few sample of cellphones is tested. Also,
human error in collecting and handling the data may occur, like encoding of data and wrong interpretation
of results. In hypothesis testing, we call these errors as the TYPE I and TYPE II errors. TYPE I
ERROR is the error committed when the null hypothesis is rejected when it is true (#Kasi akala mo
lang WALA pero MERON. ) and TYPE II ERROR is the error committed when the null hypothesis
is accepted when it is false (#Kasi akala mo OK pero HINDI. ). When we claim that the batches of
cellphone is not in good condition, when in fact they are not, then TYPE I error is committed. If we
claim that the batches of cellphone is not in good condition, when in fact they are, then TYPE II error is
committed.
 Important information in doing hypothesis testing is the probability of committing Type I error called
the LEVEL OF SIGNIFICANCE or the MARGIN OF ERROR of the test, denoted by α (alpha) and
its complement as CONFIDENCE LEVEL (1 - α). The probability of committing Type II error is
denoted by  (beta) while its complement is the POWER OF TEST (1 - ). The two most commonly
used level of significance are 0.05 and 0.01. At 0.05 level, the researcher is willing to accept a 5% chance
of being wrong decision when Ho is rejected. If Ho is rejected at 0.05 level, then it is usually labeled as
"Significant”. At 0.01 level, the researcher is willing to accept a 1% chance of being wrong when Ho is
rejected. If Ho is rejected at 0.01 level, then the result is labeled “Highly significant”. In addition, for a
fixed sample size n, decreasing one type of error would mean increasing the other type of error and the
only way to decrease both type of errors simultaneously is by increasing the sample size.
 DIRECTIONAL TEST or ONE-TAILED TEST
In a DIRECTIONAL TEST or ONE-TAILED TEST the alternative hypothesis
specifies that the unknown population mean is entirely above or entirely below the
MODULE 4 specified value of the null hypothesis.
Hypothesis Testing
Example 5. The following are classified as directional or one-tailed test
 
a. Ho : µ = 100 Ha : µ < 100
 
b. Ho : µ = 50 Ha : µ > 50
 
c. Ho : µ = 710 Ha : µ > 710
 NON-DIRECTIONAL TEST or TWO-TAILED TEST
In a NON-DIRECTIONAL TEST or TWO-TAILED TEST the alternative
hypothesis specifies that the unknown population mean can lie on either side of the

MODULE 4
value specified by null hypothesis.
Hypothesis Testing
Example 6. The following are classified as non-directional or two-tailed test
 
a. Ho : µ = 100 Ha : µ ≠ 100
 
b. Ho : µ = 50 Ha : µ ≠ 50
 
c. Ho : µ = 710 Ha : µ ≠ 710
 
 Example 7
State whether the given alternative hypothesis is a directional or a non-directional test.
a. A senior high school teacher of a certain university claimed that the average grade of their senior high school students in
General Math subject is at least 85. He randomly selects 40 students and found out an average grade of 84 with a standard
deviation of 3.

Solution:

MODULE 4 Formulated hypotheses: and

Hypothesis Testing Since the alternative hypothesis indicates a specific direction, that is less than.
Therefore, it is considered as a directional test.
 
b. A marketing agency claims that a typical person use his facebook account for more than 40 minutes per day, on the
average. To test this claim a sample of 35 persons were asked.

Solution:

Formulated hypotheses: and

Since the alternative hypothesis indicates a specific direction, that is greater than.
Therefore, it is considered as a directional test.
 
 Example 7

c. In order to keep an adult female healthy and hydrated she has to drink an average of 11

cups of water daily as advised by a nutritionist. is the advised of the nutritionist true?

Solution:
MODULE 4
Hypothesis Testing
Formulated hypotheses: and

Since the alternative hypothesis indicates no specific direction, that is not equal to.
Therefore, it is considered as a non-directional test.
 TEST STATISTIC
TEST STATISTIC is a value determined from sample information and is used to
determine whether or not the null hypothesis will be rejected. Some examples are

MODULE 4  
Hypothesis Testing
When testing a claim about the value of a population mean, the test statistic will depend
on whether the population standard deviation is known or unknown. This situation is
identical to finding a confidence interval for a mean, and is resolved in exactly the same way.
M O D U L E 4 H y p o t h e s i s Te s t i n g

PRACTICE EXERCISE
Practice Exercise 4.1.1
Direction: Identify whether the given statement is TRUE or FALSE.

1. Type I error can occur when the null hypothesis is incorrect.

2. The label in a can of sardines indicated that it can last up to two years, but the consumer group suspects that it cannot last that long and
plans to conduct a test. A Type I error in this situation would mean the consumer group concludes the brand of sardines have less than 2
years before expiring when actually it is 2 years.

3. Selecting the level of significance level  will determine the Type II error.

4. Type II error is the probability of failing to reject a false null hypothesis.

5. Type I error is the incorrect acceptance of the false hypothesis.

6. The null hypothesis is intended for the sample you are testing.

7. If the research statement is “Female adults eat more vegetable that male adults.”, the alternative hypothesis would indicate a one-sided
type of test.
8. “The weight of the children from Barangay LUPA does not differ from the weight of children for Barangay ULAP.” is an example of a
null hypothesis.
9. The sample size affects how a null and alternative hypothesis should be written.
10.A 5% level of significance is the probability of accepting the true null hypothesis.
Practice Exercise 4.1.2
Direction: State the null hypothesis and alternative hypothesis of the following.

1. Test the hypothesis that the average daily allowance of senior high students is more than Php200.

2. The average height of Filipino male is 165.6cm with a standard deviation of 15cm, would you consider this sample as an unusual one
considering 50 random samples of male students?

3. Test the hypothesis that the average age of senior high moms is 40 years old.

4. Using the random samples with at most 2 siblings is this in line with the claim that the average food expenditure of senior high students
is at most Php100?

5. Test the hypothesis that the mean content of bottles of perfume is at least 100ml.

6. The average speed of cars passing along TPLEX is 80kph. Test the hypothesis that if a sample of cars will be selected the average speed
will be less than 80kph.
7. On the average, it takes 120 seconds for an order to be served. To ensure the quality of service of Jollibee- a fast food restaurant, the store
supervisor recorded the time it takes for an order to be served. The result of 60 randomly selected orders showed a mean service time of
150 seconds and standard deviation of 30 seconds. Test the hypothesis that the mean service time for an order to be served slow down.
8. The mean weight content of a certain brand of baby powder indicate on the label that the bottle contains a mean weight of 25 grams with
a standard deviation of 0.5 gram. A sample of 45 bottles from last hour’s production revealed a mean weight of 26.90 grams per bottle.
At the 0.05 significance level is the process out of control? That is, can we conclude that the mean amount per container is different
from 25 grams?
9. The Edison Electric Institute has published figures on the annual number of kilowatt-hours expended by various home appliances. It is
claimed that a vacuum cleaner spends an average of 46 killowatt-hour per year. If a random sample of 12 homes included in a planned
study indicates that vacuum cleaner expend an average of 42 kilowatt-hour per year with a standard deviation of 11.9 killowatt-hour,
does this suggest at 0.05 level of significance the vacuum cleaner spends, on the average, less than 46 kilowatt-hour annually? Assume
the population of kilowatt- hour to be normal.

10.A company is planning a large telephone survey and is interested in assessing how long will it take. In a short pilot study, 40 people are
contacted by telephone and are asked the specified set of questions. The times of these 40 telephone surveys have a sample mean of 9.39
minutes, with a sample standard deviation of 1.041 minutes. Can the company safely conclude that the telephone surveys will last
exactly 10 minutes each?
Practice Exercise 4.1.3
Direction: Identify the given alternative hypothesis further as a directional or a non-directional test.

1. Test the hypothesis that the average daily allowance of senior high students is more than Php200.

2. The average height of Filipino male is 165.6cm with a standard deviation of 15cm, would you consider this sample as an unusual one
considering 50 random samples of male students?

3. Test the hypothesis that the average age of senior high moms is 40 years old.

4. Using the random samples with at most 2 siblings is this in line with the claim that the average food expenditure of senior high students
is at most Php100?

5. Test the hypothesis that the mean content of bottles of perfume is at least 100ml.

6. The average speed of cars passing along TPLEX is 80kph. Test the hypothesis that if a sample of cars will be selected the average speed
will be less than 80kph.

7. On the average, it takes 120 seconds for an order to be served. To ensure the quality of service of Jollibee- a fast food restaurant, the store
supervisor recorded the time it takes for an order to be served. The result of 60 randomly selected orders showed a mean service time of
150 seconds and standard deviation of 30 seconds. Test the hypothesis that the mean service time for an order to be served slow down.
8. The mean weight content of a certain brand of baby powder indicate on the label that the bottle contains a mean weight of 25 grams with

a standard deviation of 0.5 gram. A sample of 45 bottles from last hour’s production revealed a mean weight of 26.90 grams per bottle.

At the 0.05 significance level is the process out of control? That is, can we conclude that the mean amount per container is different
from 25 grams?
9. The Edison Electric Institute has published figures on the annual number of kilowatt-hours expended by various home appliances. It is
claimed that a vacuum cleaner spends an average of 46 kilowatt-hour per year. If a random sample of 12 homes included in a planned
study indicates that vacuum cleaner expend an average of 42 kilowatt-hour per year with a standard deviation of 11.9 kilowatt-hour,
does this suggest at 0.05 level of significance the vacuum cleaner spends, on the average, less than 46 kilowatt-hour annually? Assume
the population of kilowatt- hour to be normal.

10. A company is planning a large telephone survey and is interested in assessing how long will it take. In a short pilot study, 40 people are
contacted by telephone and are asked the specified set of questions. The times of these 40 telephone surveys have a sample mean of 9.39
minutes, with a sample standard deviation of 1.041 minutes. Can the company safely conclude that the telephone surveys will last
exactly 10 minutes each?
4.2 H Y P O T H E S I S TESTING FOR A POPULATION MEAN
4.2.1 Test of Hypothesis for the Mean µ with known variance σ2

Suppose that X1, X2, . . . Xn are sample observations from a normal populations with known mean, and known variance, , the
appropriate test statistics in comparing the sample mean, and the population is

which is normally distributed with mean zero and variance one.

4.2.2 Test of Hypothesis for the Mean µ using Central Limit Theorem

Suppose that X1, X2, . . . Xn are sample observations from a normal populations with known mean, , unknown variance, , and the sample
size is large, the sample variance s2 can be used to replace the σ2 in calculating test statistics through the concept of Central Limit Theorem.
Central Limit Theorem states that as the sample size n increases or becomes large the sampling distribution of the mean approaches
normal distribution. We can assume that s2 = σ2 holds true when the sample size is large enough (n>30). Because of this assumption, the
appropriate test statistics in comparing the sample mean, and the population is given by

 
4.2 H Y P O T H E S I S TESTING FOR A POPULATION MEAN
4.2.3 Test of Hypothesis for the Mean µ with unknown variance σ2 and small sample size n (n≤30)

The population variance is generally unknown and is estimated by the variance of the random samples. The sampling
variability of the sample variance may be affected if the sample size is small (n less than or equal to 30).
 
If the given observations X1, X2, . . . Xn is a random sample from a normal distribution, but the population standard deviation
is unknown, then the test statistics
has a t-distribution with (n-1) degrees of freedom.
 
 
Note: A t-distribution is symmetric probability distribution centered at zero and looks similar but more variable (spread out)
than the normal distribution. The t-distribution becomes more and more similar with the normal distribution as the number of
degree of freedom increases.
EXAMPLE 1
Example 1: Do the following for each problems given.
a. Identify the appropriate test statistic.
b. Compute the value of the test statistic.

1. A certain brand of baby powder indicates on the label that the bottle contains a mean weight of 25 grams with a
standard deviation of 0.5 gram. A sample of 45 bottles from last hour’s production revealed a mean weight of 26.90
grams per bottle. At the .05 significance level is the process out of control? That is, can we conclude that the mean
amount per container is different from 25 grams?
Solution:
We have to identify first what are the given.
Given:

a. Since there are 45 sample observations with known mean equal to 25 grams and a known standard deviation of 0.5
gram, the appropriate test statistic is Z-test.
b.
EXAMPLE 1
2. The Edison Electric Institute has published figures on the annual number of kilowatt-hours expended by various
home appliances. It is claimed that a vacuum cleaner expends an average of 46 kilowatt-hours per year. If a random
sample of 12 homes included in a planned study indicates that vacuum cleaner expend an average of 42 kilowatt-
hours per year with a standard deviation of 11.9 kilowatt-hours, does this suggest at 0.05 level of significance the
vacuum cleaner expends, on the average, less than 46 kilowatt-hours annually? Assume the population of kilowatt-
hours to be normal.
Solution:
We have to identify first what are the given.
Given:

a. Since there are 12 sample observations with known mean and unknown standard deviation, the appropriate test
statistic is t-test.
b.
EXAMPLE 1
3. A company is planning a large telephone survey and is interested in assessing how long will it take. In a short pilot
study, 40 people are contacted by telephone and are asked the specified set of questions. The times of these 40
telephone surveys have a sample mean of 9.39 minutes, with a sample standard deviation of 1.041 minutes. Can the
company safely conclude that the telephone surveys will last on average more than 10 minutes each?
 
Solution:
We have to identify first what are the given.
Given:

a. Since there are 40 sample observations with known mean and unknown standard deviation, the appropriate test
statistic is Z-test.
b.
 CRITICAL VALUE
CRITICAL VALUE is the dividing point between the region where the null hypothesis is
rejected and the region where it is not rejected.

MODULE 4  
Hypothesis Testing
Note: The size of the critical region is being determined by α. In general, the location of the
critical region is determined by the nature of the alternative hypothesis. The difference in the
location of the critical region differentiates the statistical hypothesis into one-tailed or two-
tailed test.
 Illustration When to reject null hypothesis
   

Note:
   
For simplicity,
the Ho will
only be
 
rejected if the
computed test
statistic falls
within the    
shaded region.

 
EXAMPLE 2
Example 2.
Decide whether the null
Hypothesis will be rejected
or will not be rejected.
 
EXAMPLE 2
4. Given:  
Solution:
The alternative hypothesis indicates a one-tailed test. The sample size suggests that we have to deal with z-test. Thus, we have
to use the decision rule to come up with a decision.

Using the z-table one can see that the z value corresponding to 0.05 probability is -1.645. Comparing the computed test statistic
with the tabulated value of , we can conclude that Ho should be rejected.

5. Given:
Solution:
The alternative hypothesis indicates a one-tailed test. The sample size suggests that we have to deal with t-test. Thus, we have to
use the decision rule to come up with a decision.

Using the t-table one can see that the t value corresponding to 0.05 probability is 1.833. Comparing the computed test statistic
with the tabulated value of , we can conclude that Ho should not be rejected.
EXAMPLE 3
Example 3. Perform a complete hypothesis testing.
1. A senior high school teacher of a certain university claimed that the average grade of their senior high school students in General Math
subject is at least 85. He randomly selects 40 students and found out an average grade of 84 with a standard deviation of 3. Test the
significance at 0.05 level.
Solution:
Given:
 
a. Ho: The average grade of senior high school students in General Math subject is at least 85. (
Ha: The average grade of senior high school students in General Math subject is less than 85.

b.  = 0.05 n = 40
c. Test Statistic: Z - test
d. Critical Region:

Reject Ho if Zc < -1.645, otherwise failed to reject Ho.

 
e. Computation:
 

 
f. Decision: Reject Ho. Since the computed value lies in the shaded/rejection region, that is -2.11 < -1.645.

g. Conclusion: the average grade of senior high school students in General Math subject is less than 85.

2. A marketing agency claims that a typical person uses his Facebook account on the average of more than 40 minutes per day with a standard deviation
of 5 minutes. To test this, claim a sample of 35 persons were asked and it was found out that they use their Facebooks account on the average of 70
minutes per day. Use 0.01 level of significance.

Solution:
 
Given:
a. Ho: A typical person uses his Facebook account at most 40 minutes per day, on the average.
Ha: A typical person uses his Facebook account more than 40 minutes per day, on the average.

b.  = 0.01 n = 35
 
c. Test Statistic: Z - test
d. Critical Region:

Reject Ho if Zc > 2.33, otherwise failed to reject Ho.

 
e. Computation:
 

 
 
f. Decision: Reject Ho. Since the computed value lies in the shaded/rejection region, that is 35.50 > 2.33.
 
g. Conclusion: The marketing agency claims is correct. A typical person uses his Facebook account on the average of more than 40
minutes per day.
3. A random sample of 10 adult females were asked about their average daily water intake. From the survey it was found out that they can drink an
average of 9 cups of water with a standard deviation of 3 cups of water. As advised by nutritionist an adult female to be healthy and hydrated has to
drink an average of 11 cups of water daily. Is the advised of the nutritionist true? Test the hypothesis at 0.05 level of significance.
Solution:
Given:

a. Ho: To keep an adult female healthy and hydrated she has to drink an average of 11 cups of water daily (
Ha: To keep an adult female healthy and hydrated she doesn’t have to drink an average of 11 cups of water daily
b.  = 0.05 n = 10
c. Test Statistic: t - test
d. Critical Region:

Reject Ho if tc < -2.262 or tc > 2.262, otherwise failed to reject Ho.

e. Computation:
 

 
f. Decision: Failed to reject Ho. Since the computed value lies outside the shaded/rejection region.
g. Conclusion: The advised of the nutritionist is true, that is to keep an adult female healthy and hydrated she needs to drink an average of 11 cups of water daily.
M O D U L E 4 H y p o t h e s i s Te s t i n g

PRACTICE EXERCISE
Practice Exercise 4.2.1
Direction: Decide whether the null hypothesis will be rejected or will not be rejected.
Practice Exercise 4.2.1

6. Given:
 
7. Given:
 
8. Given:
 
9. Given:
 
10. Given:
Practice Exercise 4.2.2
Direction: Perform a complete hypothesis test of the following problems
1. A study shows that the average daily allowance of senior high students was P200 with a standard deviation of P70. At 0.01 level of significance test the
hypothesis that the average daily allowance amounting to Php210 of 50 senior high students is more than Php200.
2. The average height of Filipino male is 165.6cm. Using the random samples of 20 males with the following heights 170, 158, 158, 158, 171, 167, 177,
168, 171, 172, 170, 160, 174, 173, 168, 173, 175, 154, 165, and 173, would you consider this sample as an unusual one? Test this claim at 0.05 level of
significance.
3. An adviser of a certain class would like to check if it is valid to say that the average age of senior high moms is 40 years old. A sample of 100 students’
revealed mom’s average age as 47 years old with a standard deviation of 6 years old. Test the claim of the adviser at 0.05 level of significance.
4. A random sample of 36 senior high students were asked about their food expenditure in a day. From the survey it was found out that their average food
expenditure was P95 with a standard deviation of P40. Is this in line with the claim that the average food expenditure of senior high students is at most
Php100? Use 0.05 level of significance.
5. A consumer group wants to test the hypothesis that the average price of mango per kilogram is at most 90 pesos. They randomly selected markets in
Cavite and the average price per kilogram of mangoes in pesos were recorded as follows: 65, 75, 68, 70, 70, 60, 80, 65, 67 and 72. Is the hypothesis of
the consumer group correct? Use 0.01 level of significance.
6. The mean content of bottle of perfume is claimed to be 100ml with a standard deviation of 3ml. A random sample of 50 bottles of perfume were
checked and found a mean content of 90ml. Is there a reason to believe that the mean content of bottle of perfume is 100ml? Use 0.01 level of
significance.
7. On the average, it takes 120 seconds for an order to be served. To ensure the quality of service of Jollibee- a fast food restaurant, the store supervisor
recorded the time it takes for an order to be served. The result of 60 randomly selected orders showed a mean service time of 150 seconds and standard
deviation of 30 seconds. Test the hypothesis that the mean service time for an order to be served slow down. Use 0.01 level of significance
4 . 3 H Y P O T H E S I S T E S T I N G F O R A P O P U L AT I O N P R O P O RT I O N
4.3.1 Proportion
 
PROPORTION is the fraction or percentage that indicates the part of the population or sample having a particular trait of
interest.
 
The sample proportion is denoted by p and is found by:
 

 
When the sample size is large, the distribution of the sample proportion p is approximately normal distribution with mean p and
variance pq/n. Hence, the statistic

 
is normally distributed with mean 0 and variance 1. This is the appropriate test statistics used to compare the sample proportion
and the hypothesized population proportion.
 
Example 1 State the null and alternative hypothesis of the given problems.

a. The 2016 Annual Poverty Indicators Survey showed that about 10 percent of the Filipinos with age range six to twenty-four years old are
out-of-school.

Solution:

Note: since the given information is the proportion and not the average, use instead of
Claim: About 10% of the Filipinos with age range of six to twenty-four years old are out of school youth.
Counterclaim: more than 10% of the Filipinos with age range of six to twenty-four years old are out of school youth.
 
Since the claim includes equality, then the null hypothesis will be the stated claim, that is
and

b. A medical geneticist claims that on standard tests of musical aptitude, the heritability rate of musical talent is less than 50%.

Solution:

Note: since the given information is the proportion and not the average, use instead of
Claim: The heritability rate of musical talent is less than 50%.
Counterclaim: The heritability rate of musical talent is at least 50%.

Since the counterclaim includes equality, then the null hypothesis will be the stated counterclaim, that is
and
c. Twenty-five percent of high school teachers had passed the English proficiency. What conclusions would you draw if only 70 in
random sample of 250 teachers passed the recent English proficiency, use 0.01 level of significance.

Solution:

Note: since the given information is the proportion and not the average, use instead of
Claim: The proportion of high school teachers who had passed the English proficiency is 25%. (
Counterclaim: The proportion of high school teachers who had passed the English proficiency is not 25% (

Since the claim includes equality, then the null hypothesis will be the stated claim, that is
and
Example 2 Perform a complete hypothesis testing.

1. Twenty-five percent of high school teachers had passed the English proficiency. What conclusions would you draw if only 70
in random sample of 250 teachers passed the recent English proficiency, use 0.01 level of significance.
 
Solution:
a. Ho: The proportion of high school teachers who had passed the English proficiency is 25%. (
Ha: The proportion of high school teachers who had passed the English proficiency is not 25%. (
b. n = 250
c. Test statistics: z-test (proportion)
d. Critical region: Reject the Ho if or , otherwise we failed to reject the Ho.
e. Computation:
=
f. Decision: Since the computed Z 1.10 is less than the tabulated Z 2.575, therefore we failed to reject the null hypothesis.
 
g. Conclusion: The proportion of high school teachers who had passed the English proficiency is 25%.
2. A telecommunication company has surveyed 1500 college students in Metro Manila and found out that 780 subscribe to Globe
Telecom. Test the hypothesis that the proportion of Globe subscribers is at least 85%. Use 0.01 level of significance.

Solution:

a. Ho: The proportion of Globe subscribers is at least 85%. (

Ha: The proportion of Globe subscribers is less than 85%. (
b. n = 1500
c. Test statistics: z-test (proportion)
d. Critical region: Reject the Ho if otherwise we failed to reject the Ho.
e. Computation:
=
f. Decision: Since the computed Z -35.79 is less than the tabulated Z -2.33, therefore we reject the null hypothesis.
 
g. Conclusion: The proportion of Globe subscribers is less than 85%.
M O D U L E 4 H y p o t h e s i s Te s t i n g

PRACTICE EXERCISE
Practice Exercise 4.3
Direction: Perform a complete hypothesis test of the following problems.
1. A certain teacher noticed that at least 75 percent of the students in their school wear black colored shirt during free day. To test
her claim she conducts a survey from 50 of her handled students. The survey revealed that 20 of her handled students preferred
black color shirt. Use 0.01 level of significance.
2. A union spokesman claims that 75% of union members will support a strike if their basic demands are not met. A company
spokesman believes that the true percentage is lower and runs a hypothesis test at the 10% significance level. What is the
conclusion if 87 out of 125 union members say they will strike?
3. The proportion of students that own laptop computers is 50%. From a sample of 200 students, 78 own laptop computers. At
0.01 level of significance test the hypothesis that the proportion of students that own laptop computers is different from 50%.

4. Out of the 350 randomly selected households in Cavite, 164 are with internet connection at home. Test the hypothesis that
more than 60% of households are with internet connection. Use 0.05 level of significance.

5. In the city of Dasmariñas, 45% of the households own a car. Test the hypothesis that households are less likely to own a car. If
the 1200 randomly selected households, 450 own a car. Use 0.01 level of significance.
SUMMARY OF FORMULAS
Test of Hypothesis for the Mean µ with
known variance σ2

Test of Hypothesis for the Mean µ using

Central Limit Theorem

Test of Hypothesis for the Mean µ with

unknown variance σ2 and small sample size n
(n≤30)

Test of Hypothesis for the Proportion

SUPPLEMENTAL MATERIALS
https://statistics.laerd.com/statistical-guides/hypothesis-testing-3.php
https://stats.libretexts.org/Bookshelves/Applied_Statistics/Book%3A_Biological_Statistics_(
McDonald)/01%3A_Basics/1.04%3A_Basic_Concepts_of_Hypothesis_Testing
 
ANSWERS TO
PRACTICE EXERCISE
Practice Exercise 4.1.1
1. False 2. True 3. False 4. True 5. False
6. False 7. True 8. True 9. False 10. False

Practice Exercise 4.1.2

No. Null Hypothesis (Ho) Alternative Hypothesis (Ha)
1.
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 
 Practice Exercise 4.1.3
1. Directional 2. Non-directional 3. Non-directional 4. Directional 5. Directional
6. Directional 7. Directional 8. Non-directional 9. Directional 10. Non-directional

Practice Exercise 4.2.1

No. The null hypothesis (Ho) will
1. not be rejected.
2.  not be rejected
3.  not be rejected
4.  be rejected
5.  be rejected
6.  be rejected
7 . not be rejected
8.  be rejected
9.  not be rejected
10.  be rejected
 Practice Exercise
4.2.2.
No. Given Hypothesis Test Critical Computed Decision
Statistic Value Value
1.   n=50 Ho: Z-test 2.33 1.01 Fail to reject Ho.
𝞂 = 70 α = 0.01 Ha:
2.  n=20 Ho: t-test 2.093 1.44 Fail to reject Ho.
s = 6.70 α = 0.05 Ha:
3.  n=100 Ho: Z-test 1.96 11.67 Reject Ho.
s = 6 α = 0.05 Ha:
4.  n=36 Ho: Z-test 1.645 -0.75 Fail to reject Ho.
s = 40 α = 0.05 Ha:
5.  n=10 Ho: t-test 2.821 -11.68 Fail to reject Ho.
s = 5.63 α = 0.01 Ha:
6.  n=50 Ho: Z-test 2.575 23.57 Reject Ho.
𝞂 = 3 α = 0.01 Ha:
7.  n=60 Ho: Z-test 2.33 7.75 Reject Ho.
s = 30 α = 0.01 Ha:
Practice Exercise 4.3
No. Given Hypothesis Test Critica Compute Decision
  Statistic l Value d Value

1.   n=50 p = 40% α = Ho: p­o ≥ 75% Z-test -2.33 -5.71 Reject Ho.
0.01 Ha: p­o < 75% (proportion)
2.  n=125 p = 69.6% α = Ho: p­o = 75% Z-test 1.645 1.39 Fail to reject Ho.
0.10 Ha: p­o ≠ 75% (proportion)
3.  n=200 p = 39% α = Ho: p­o = 50% Z-test 2.575 3.11 Reject Ho.
0.01 Ha: p­o ≠ 50% (proportion)
4.  n=350 p = 47% α = Ho: p­o = 60% Z-test 1.645 -4.95 Fail to reject Ho.
0.05 Ha: p­o > 60% (proportion)
5.  n=1200 p = 37.5% α Ho: p­o = 45% Z-test -2.33 -5.22 Reject Ho.
= 0.01 Ha: p­o < 45% (proportion)
 

References:
Anderson DR, Sweeney DJ. 2018. Statistics for Business and Economics. Boston: MA: Cengage Learning.
Anderson DR, Sweeney DJ. 2016. Essentials of Modern Business Statistics with Microsoft Excel. Boston:
MA: Cengage Learning.
Anderson DR, Stamford CT, Sweeney DJ, Williams TA. 2015. Modern Business Statistics with Microsoft
Office Excel. Cengage Learning.
Reyes, C. and Saren, L. ELEMENTARY STATISTICS TEXT/WORKBOOK. National Bookstore,
Mandaluyong City
Walpole, R. PROBABILITY AND STATISTICS. NY: Macmillan Publishing Co. Inc