Fourth Quarter

STATISTICS & PROBABILITY

 This course is designed to emphasize the study of Statistics & Proability. This is designed for self-study. Each
lesson features a topic for you to learn by watching videos and engaging in a learning activity, such as taking
a quiz and posting a short reflection in a discussion forum.

At the end of the second quarter, you should be able to demonstrate an understanding of the key
concepts of business mathematics & logical propositions.

11

WHAT ARE THE SKILLS THAT I CAN DEVELOP?

S TAT I S T I C S & P R O B A B I L I T Y D E S C R I P T I O N : A t t h e e n d o f t h e c o u r s e , t h e s t u d e n t s m u s t
k n o w h o w t o f i n d t h e me a n a n d va r i a n c e o f a ra n d o m va r i a b l e , t o a p p ly s a m p l i n g
t e c h n i q u e s a n d d i s t r i b u t i o n s , t o e s t i m a t e p o p u l a ti o n m e a n a n d p ro p o r t i o n , t o p e r f o r m
hy p o t h e s i s t e s t i n g o n p o p u la t i o n m e a n a n d p ro p o r t i o n , a n d t o p e r fo r m c o rre l a ti o n a nd
re gre ss io n a nalyse s o n re al -life p ro ble ms

C O N T E N T S TA N DA R D : T h e l e a r n e r d e m o n s t r a t e s u n d e r s t a n d i n g o f :

1 . ke y c o n c e p t s o f ra n d o m va r i a b l e s a n d p ro b a bi l i ty d i stri buti o n s .
2 . ke y c o n c e p t s o f n o r ma l p ro b a b i li t y d i s tri buti o n, p o pu la ti o n pro p o rti o n.

P E R F O R M A N C E S TA N DA R D : T h e l e a r n e r i s a b l e t o :
1. ap ply a n app ro pr ia te rand o m va ri a ble fo r a give n re a l-li fe p ro ble m (suc h a s i n
d e c i s i o n m a k i n g a n d ga m e s o f c h a n c e ) .
2 . ac c urat e ly fo rmu late a nd so lve re a l- li fe p ro ble ms i n d i f fe re nt d i sc i p li ne s i n fe re n ce s
i n re al-l ife p ro ble ms in d ifferent discipline s.

DURATI MOST ESSENTIAL COMPETENCIES LESSON TITLE OUTPUTS AND ACTIVITIES

ON (MELCs) TO BE COMPLETED

il lu stra te s : (a) n ull hypothesi s; Learning Task 1.1: Null Vs

(b) alternative hypothesis; (c) Lesson 1: Hypothesis Alternative
WEEK 1 level of significance; (d) rejection Testing Learning Task 1.2: Type I or Type II
regio n; and (e) types of errors in Learning Task 1.3: Are You In or
hy p o t h e s i s t e s t i n g. Out?
 id e n tif ie s the p ara me ter to be Learning Task 1.4: Knowing My
t e s te d give n a re al-life problem. Parameter

fo r m u l a t e s t h e a p p ro pri ate n ull

a n d a lt e r n a t ive hy p o t h e s e s o n a
population mean
Learning Task 2.1: One-tailed or
Two-tailed Test!
Lesson 2: Formulating Learning Task 2.2: Which is Which?
id e n tif ie s the a pp ro priate form Learning Task 2.3: Fill Me!
WEEK 2 the Appropriate
o f the t e s t-statistic whe n: (a) the Hypothesis Learning Task 2.4: What I Have
p o p u l a t i o n va r i a n c e i s a s s u m e d Learned
to be know n; (b) the populati on
va r i a n c e i s a s s u me d t o b e
u n k n o w n ; a n d ( c ) t h e C e n t ra l
L i m i t T h e o re m i s to be use d .

id e n tif ie s the a pp ropriate

reje ction region for a given level Learning Task 3.1: What is My
of significance when: (a) the Value?
Lesson 3: Rejection
p o p u l a t i o n va r i a n c e i s a s s u m e d Region Learning Task 3.2: Think Critically!
WEEK 3 to b e kn own ; (b) the population Learning Task 3.3: Deepen Your
Understanding
va r i a n c e i s a s s u me d t o b e
u n kn ow n ; a n d ( c) t h e C e n t ra l Learning Task 3.4:
L i m i t Th e o re m i s to be use d

c o m p u t e s fo r t he te s t-sta tis ti c
valu e ( po p ula tio n me an )
Learning Task 4.1: Am I z-test ort-
test?
draws conclusion about the Learning Task 4.2: The Corona!
population mean based on the Lesson 4: Learning Task 4.3: Reject or Accept
WEEK 4 t e s t -s t a t i s t i c va l u e a nd th e Ho?
reje ction region
Learning Task 4.4: What I Have
Learned
solves problems involving test of
hypothesis on the population mean

formulates the appropriate null and

alternative hypotheses on a population
proportion. Learning Task 5.1: Notice me!
Lesson 5: Population Learning Task 5.2: I can
WEEK 5 Proportion
Learning Task 5.3: Fast Break
identifies the appropriate form of the Learning Task 5.4: On My Own
test-statistic when the Central Limit
Theorem is to be used.
identifies the appropriate rejection
region for a given level of significance
when the Central Limit Theorem is to be
used.
WEEK 6 computes for the test-statistic value Lesson 6: Hypothesis Learning Task 6.1: Borderline
(population proportion). Testing involving Learning Task 6.2: Finding Zcom
Population Proportion Learning Task 6.3: Acceptor Reject
draws conclusion about the population Learning Task 6.4: Make Your Own
proportion based on the test-statistic
value and the rejection region
solves problems involving test of
hypothesis on the population
proportion.
 illustrates the nature of bivariate data

constructs a scatter plot.

describes shape (form), trend

(direction),and variation (strength)
WEEK 7 based on a scatter plot. Learning Task 7.1: Construct,
Lesson 7: Pearson’s Describe, Compute, and Interpret
calculates the Pearson’s sample Product Moment Learning Task 7.3: “Fill it Out”
correlation coefficient. Correlation Coefficient Learning Task 7.4: Looking Back

calculates the Pearson’s sample

correlation coefficient.
solves problems involving correlation
analysis.

identifies the independent and

dependent variables.
calculates the slope andy-intercept of
the regression line
Learning Task 8.1:
interprets the calculated slope andy- Learning Task 8.2:
WEEK 8 intercept of the regression line. Lesson 8:
Learning Task 8.3:
Learning Task 8.4
predicts the value of the dependent
variable given the value of the
independent variable
solves problems involving regression
analysis

FITHIRD QUARTER EXAMINATION

The following are the parts of the lesson that guides us in meeting our target expectations.

T h e l e s s o n c o n t e n t a n d l e a r n i n g o b j e c t i ve s i s p re s e nt e d h e re . Thi s p a r t a ls o
p ro v i d e s p re l i mi n a ry a ctiv ity tha t i ntro d uc e s i n i ti a l c o n ce pts o n the le a r ni n g t a rg e ts .

The actual lesson presentation is done in this part. This part also includes self-check activity on
learner’s background knowledge about the target concept.
Th i s p a r t e n a b le s t h e l e a r n e r s t o b e e n ga g e d i n va r i o u s t a s k s a n d o p p o r t u n i t i e s w hi c h a ls o
exp o se s t he m to ad d iti o na l re al-li fe ta s ks tha t sh a ll i gn i te the i r i n te re st which will a llow
t h e m t o m e e t t h e l e a r n i n g e x p e c t a t i o n s a n d f u l ly u n d e r s ta n d t h e s k i l l s a n d c o n c e p t s .

This part will bring the learners to a process where they shall demonstrate ideas, interpretation,
mindset or values and create pieces of information that will form part of their knowledge in reflecting,
relating or using it effectively in any situation.

WHAT ARE THESE ICONS IN MOODLE?

Presented here are the icons that you will see as we go along our lessons. Scroll down to view these
icons along with their functions.
 LESSON
1

Learning Resource 1.1: What I Need to know?

H y p o t h e s i s t e s t i n g i s o n e o f t h e mo s t i m p o r ta n t c o n c e p t s i n sta ti s ti c s. It h a s m a ny re a l- life
a p p l i c a t i o n s f r o m b u s i n e s s t o m e d i c i n e . I t a ll o ws u s t o m a ke a s s u m p t i o n s a n d
m a ke d e c i s i o n s i f we c a n e i t h e r a c c e p t o r re j e c t o u r a s sum pti o n. Hy po th e s i s te s ti ng a lso
a llows u s t o m a ke c l a i ms a b o u t a p o p u l a t i o n b a s e d o n t h e c h a ra c t e r i s t i c s o f a s a m p l e c o m i n g
f ro m t h a t p o p u l a t i o n . T h i s mo d u l e p ro v i d e d a c t iv i t i e s t o e n h a n c e yo u r l e a rn i ng i n
hy p o the s is te s ting a n d w i l l g u i d e yo u a b o u t t h e s t e p s i n hy po th e s i s te s ti n g whi ch w i ll he lp
yo u i n so lv in g re al- life problems.
T h i s mo d u l e w i l l h e l p yo u u n d e r s t a n d h o w t o :
• illustrates: (a) null hypothesis; (b) a lte rna tive hypothesis; (c) level of significance; (d)
re je cti o n re g ion; and (e) types of errors in hypothesis testi ng;
• i d e n tif ie s the pa rame te r to be te s te d g ive n a real-life proble m.

Learning Task 1.0: Readiness Check: What I Know? (optional)

T h i s i s 5 - i t e m m ultip le ch o ic e .

D i re c tio n s: (1) Re ad the q ue s tio n s ca re f ully . (2) Ch o o se the i t e m tha t c o rre sp o nd s to yo ur

a nswe r . (3 ) Rev ie w yo ur a nswe r s be fo re sub mi t ti ng . (4) Try up to 3 a tte mpts only.
Lesson Resource 1.2: Hypothesis Testing

H y p o t h e s i s Te s t i n g i s a d e c i s io n - ma ki n g p ro c e s s fo r e va l u a t i n g c l a i m s a b o u t a p o p u la t i o n
b a s e d o n t h e c h a ra c t e r i s t i c s o f a s a m p l e p u r p o r t e d ly c o m i n g f ro m t h a t p o p u la t i o n . The
d e c i s i o n i s wh e th e r t h e c hara c te ri stic s i s a cc e p ta b le o r n o t .

Tw o Ty p e s o f H y p o t h e s e s

1. Nu l l hy p ot h e si s, d e no te d by H 0 , i s a s ta t e me nt tha t th e re i s n o d i f fe re nc e b e twe e n a
p a ra m e t e r a n d a s p e c i f i c va lue , o r the re i s n o d i f fe re n ce b e twe e n two p a ra me te rs . The
n u l l hy p o t h e s i s i s a n i n i t i a l c l a i m b a s e d o n p re v i o u s a n a lys e s , wh i c h t h e re s e a rc he r
tries to disprove, re ject, or nullify.
2. A l te r n a t ive hy p o t h e si s , d e n o t e d by H a , i s a s ta te me nt tha t t he re i s a d i ffe re nc e
b e twe e n a p ara me te r a nd a sp e ci fi c va lue , o r tha t the re i s a d i ffe re nc e be twe e n two
p a ra me t e r s . T h e a l t e r n a t ive hy p o t h e s i s i s c o n t ra r y t o n u l l hy p o t h e s i s , w h i c h sh ow
tha t o b se rvat io ns a re the re sult o f a rea l effe ct.

Formulating the Ho and Ha hypotheses

E x a m p l e 1 . A l e c t u r e r c l a i m s t h a t h i s s t u d e n t s s c o r e d a n ave ra g e o f 5 5 m a r k s i n t h e i r
S t a t i s t i c s t e s t . Th e s u b je c t s u p e r v i s o r wa n ts to kn ow whe the r the le c ture r ’ s c la i m is

ac c e pta ble o r n o t .
So l utio n : x
̅
L e t μ b e t h e p o p u l a t i o n me a n s c o re a n d b e t h e m e a n s c o re o f s t u d e n t s i n h i s c l a s s .
H 0 : Th e me a n sc o re o f the st ud e nts i n th e i r S ta tistics test is 5 5 or μ = 5 5.
H a : Th e me a n sc o re o f the s tud e n ts i n the i r Sta tistics test is not 5 5 or μ ≠ 5 5 .

Ex ampl e 2. A car manufacturer claims that the mean selling price of all cars manufactured
c o s t s o n ly P h p 8 0 ,0 0 0 . A c o n s u me r a g e n c y wa n t s t o t e s t wh e t h e r t h e m e a n s e l l i n g p r i c e o f a l l

the cars manufactured exceed Php80,000 . x

̅
So lut io n:
L e t μ b e t h e p o p u l a t i o n me an se lli n g p ri c e a nd b e t he me a n s e lli ng p ri c e o f the c ar
m a n u f a c t u r e r.
H 0 : The me an s e lli ng p ric e o f the c a r i s Ph p8 0 ,0 0 0 o r μ = P h p8 0 ,0 0 0 .
H a : Th e me a n s e l li n g p r i c e o f the c a r exce e d s P h p8 0 ,0 0 0 o r μ > P hp 8 0 ,0 0 0 .

Example 3. A manufacturer of juices claims that all labeled 1.5 liters bottles contains an
ave ra g e o f 1 .4 9 l i t e r s o f j u i c e . A re t a i l e r w i s h e s t o te s t whe the r the me a n a mo u nt o f j ui c e in
x
̅
a labe le d 1.5 -lite r jui ce is le ss tha n 1.4 9 l i te rs.
So l utio n :
L e t μ b e t h e p o p u la t i o n me a n vo lu me o f j ui c e o n a bo ttle la b e le d 1 .5 li te rs a nd be
t h e m e a n vo lu m e o f j u i c e p ro d u c e d by t h e m a n u fa c t u re r o n a b o t t l e l a b e l e d 1 .5 l i te rs .
H 0 : The me an volume of juice on a bottle la beled 1.5 liters is 1.4 9 li te rs or μ = 1.49.
H a : Th e me a n vo lu me o f jui ce o n a bo ttle la be le d 1 .5 li te r s i s le s s t ha n 1.49 li te rs or
μ < 1.49.

Now , it’s yo ur turn!

B a s e d o n t h e fo l l o w i n g s c e n a r i o , fo r m u la t e the two hy po th e s e s a bo ut the ave ra ge a ge o f
wo r k i n g s t u d e n t s .
S c e n a r i o : A ra n d o m s a m p l e o f 6 0 wo r k i n g s t u d e n t s wa s t a ke n i n o rd e r t o d e t e r m i n e w h e t h e r
th e ave ra ge a ge o f wo rking st ud e nts d i f fe re n t fro m 1 9 ye a rs.
H0 :
Ha :

Yo u c o u l d a s k yo ur te a che r fo r the c o rre c t a ns we r to ve r i f y yo ur wo rk.

 Ty p e s o f Er r o r s

1. Ty p e I e r r o r i s c o m mi t t e d whe n the re s e a rch e r re j e c ts a nul l hy p o the s i s

whe n i n fa ct it is true . It is a ls o ca lle d the l eve l o f s i g ni f i c a n c e . A lph a a is
use d to re pre se n t t he pro b abi li ty of a Type I e rror.
2. Ty p e II e r ro r is co mmi tte d whe n th e re s e a rch e r fa i ls to re j e c t a n ull
hy p o t h e s i s t h a t i s fa ls e . B e t a β i s u se d t o re pre se nt the pro b a bi li ty o f a
Type II error.

Decision Tr u e S t a t e o f N a t u r e
T h e n u l l hy p o t h e s i s i s t r u e T h e n u l l hy p o t h e si s is false

Re j e c t t h e n u l l hy p o t h e s i s H 0 Type I error Correct decision

A c c e p t t h e n u l l hy p o t h e s i s H 0 C o r r e ct d e c i s i o n Type II error

To illustrate:
1 . Pe r s o n i s j u d g e d a s g u i l t y wh e n t h e p e r s o n a c t u a lly d i d n o t c o mm i t the
c rime (c o nvi ct ing a n in no c e n t p erson)
An swe r: Ty pe I
2. Stephen’s Hairline
S te p h e n s ays t h a t h e i s n o t b a l d . H i s h a i r l i n e i s j u s t re c e d i n g . I s h e
c o m mi t t i n g a n e r ro r ? W h a t t y p e ?
An swe r: Ye s . Ty pe I e rro r .
3. Monkey-Eating Eagle Hunt
A ma n p la n s t o g o h u n t i n g t h e P h i l i p p i n e m o n ke y - e a t i n g e a g l e b e l i ev i n g
tha t i t a p ro o f o f h is me ttle . Wh a t typ e of e rro r i s this?
A n s w e r : H u n t i n g t h e P h i l i p p i n e e a g l e i s p ro hi bi te d by law. Th us , i t i s no t a
good sport. It is a type II error.

O n e -t a i l e d an d Two -t a i l e d Te st s

1. O n e -t a i l e d te st , t h e a l t e r nat ive hy p o the s i s use s t he s ym bo ls > o r < . The re j e c ti o n

re g i o n i s o n o n e s i d e o f t he d i str i but i o n. If t he hy po th e s i s c o nta i n s the > , the n
the re g io n o f re je c ti o n is o n the r i g ht ta i l o f the c urve . If i t c o n ta i n s th e < s ym bol,
the n the re gio n o f re je c tio n is o n the le f t ta i l o f the curve. A one -ta iled te st is
d irectional. Th e t o t a l a r e a o f t he a lph a a tha t c o rre spo nd s to the re j e c ti o n re gi o n i s
p lac e d o n o n e tail only.

Critical value

Rejection region
Acceptance region

O n e -ta ile d t e st H 1 , with < symbol

Critical value

Rejection region
Acceptance region

O ne -tail e d te st H 1 , with > symbol

2. Two -t a i l e d te st , the re je ctio n re gi o n i s o n bo th s i d e s o f the cur ve . Th e a lte rn a tive

hy p o t h e s i s c o n t a i n s t h e s y m b o l ≠ . Tw o - ta i l e d t e s t i s n o n -d i re ct i o na l. Alph a a whi ch
c o rre s po n d s to the re je c tio n re gi o n i s d iv i d e d e qua lly betwee n the two tai ls.
 Rejection region
Rejection region

Two-ta iled test H 1 , contains ≠

Fro m o ur pre vi o us example , le t u s i d e n ti f y i f o n e - ta i le d or two - ta i le d te st c a n be a p pli e d .

F ro m E xa mp le 1. A lecturer claims tha t his stud ents sco red a n avera ge of 55 ma rks in the ir
S t a t i s t i c s t e s t . Th e s u b je c t s u p e r v is o r wa n t s to know wh e th e r the le c ture r’ s c la i m
is a cc e pta ble o r no t .

Fro m t h e g ive n s i t u a t i o n , w e le t μ b e th e m e a n sc o re i n S ta ti sti c s te s t .

H0 : μ = 55
Ha : μ ≠ 55

a a

2 2

N o te t h a t i f t he a lt e rn ative hy p o the s is H a c o n ta i n s t he sy mbo l ≠ , u se two - ta i le d te s t .

H ow e ve r , i f t h e l e c tu re r c l a i ms t h a t t h e ave ra g e s c o re o f hi s s tud e n ts i s l e ss tha n 5 5 , th e n
H0 : μ = 55
Ha : μ < 55

N o te tha t le f t-ta ile d te s t is us e d wh e n H a co n ta i ns the s ym bo l < .

O n t h e o t h e r h a n d , i f th e l e c t u re r c l a i m s t h a t t h e ave ra ge s co re o f hi s s tud e n ts i s g re a te r
than 55, then
H0 : μ =
55
Ha : μ >
55

a
N o t e t h a t r i g h t-ta ile d te st is us e d whe n H a co n ta i ns the sy m bo l > .

U n d e r t h e n o r ma l c u r ve , the re j e ct i on re g i o n re fe r s to the re gi o n whe re t he va lue o f the

sta tis tic li e s fo r whic h we w ill re je ct t he null hy po th e s i s. Thi s re gi o n i s c a lle d cr i ti cal region.
O n t h e o t h e r h a n d , the no n-re j e cti o n re g i on ( o r a c ce pta nc e re g i o n ) i s the se t o f a ll va l ue s
of
t h e t e s t s t a t i s t i c t h a t c a u s e s u s t o f a i l to re j e c t the null hy p o the s i s . Th e cr i ti cal val u e i s a
p o int (b o und ary ) o n th e te s t d istr ibut i o n tha t i s c o mp a re d t o the te st sta ti sti c to de termine
if t h e n u l l hy p o t h e s i s wo uld b e re je c te d . Yo u co u ld re fe r to th e ta b le be l ow fo r the
co mmo n ly u s e d c o n f i d e n c e l e ve l a n d i t s c o rre s po nd i ng c ri ti c a l va lue s.

A c r i t i c a l va l u e o f z i s u se d whe n the sa m pl i ng d i s tri b uti o n i s no r ma l o r c lo se to

normal.
Table of Critical Val ues (Z-Score)
L e ve l o f Si g n i f i c a n ce ( a )
Te s t T y p e
a = 0. 01 a = 0. 025 a = 0. 05 a = 0. 10
Le ft-tailed test −2.33 −1.96 −1.645 −1.28
Right-tailed test 2.33 1.96 1.645 1.28
Two-tailed test ±2.575 ±2.33 ±1.96 ±1.645

Non-Rejection Region
or Acceptance Region
Rejection Region

Critical Value
E xe rc i s e s :
Fo r N umb e rs 1-5 b e low , d o the following:
F i r s t , d raw t h e n o r m al c ur ve .
S e c o n d , l o c a t e t h e z - va l u e .
Third , i nd ica te if the z-va lue is in the re j e c ti o n re gi o n o r i n th e a cc e pta nc e re g i o n.
1 . z = 2, 9 5%, two-tailed
2 . z = -2 .6 8 , 9 5 % , two -tai le d
3 . z = 1 .8, 95%, o ne -tai le d
4 . z = 1 .3 3 , 9 9%, o ne -tail e d
5 . z = - 4 .0 , 99 %, t wo-tai le d

E x a m p l e 4 . D r a w a n o r m a l c u r ve a n d s k e t c h t h e re j e c ti o n re g i o n o f th e t e s t hy p o t h e s i s w i t h
cr itic al va lue s o f ±1.75 3 and d e te rmi ne i f t he c o m put e d t-va lue of −1 .5 2 li es in that re gion.
S o luti o n:
D raw a t -d is trib utio n c ur ve . S inc e the re a re two cr i ti c a l va lue s , i t i s a two ta i le d te s t. Lo ca te
t h e c r i t i c a l va l u e s a n d sha d e the re je c ti o n re gi o ns .

N ow , l o c a t e t h e c o m p u t e d t - va l u e o f - 1 .5 2 . Yo u c a n c l e a r ly s e e tha t i t i s no t a t t he re j ec t i on
reg i o n a s s h o w n i n t h e fo l l ow i n g f i g u re . T h e c o mp ute d t- va lu e i s a t the n o n- re j e c ti o n re gi o n.
The re fo re , we fa il to reject the null hypothesis, H 0 .

- 1.52

- 1.753 1.753
(critical value) (critical value)
Example 5.
Learning Resource 1.2.1: Introduction to Hypothesis Testing
C li c k
h t t p s: / / w w w . y o u t u b e . c o m / w a t c h ? v = D l w O T O y d e y k & l i s t = P L D 3 f Y c 0 b A j C _ 7 C h L J 2 J y 9 c W g G f 3
x k - B O 4 & i n d e x = 1 & t = 11 s l i n k t o o p e n r e s o u r c e .

Learning Resource 1.2.2: Types of Errors

C l i c k h t t p s: / / w w w . y o u t u b e . c o m / w a t c h ? v = 5 u 0 1 m 3 4 3 - 1 M l i n k t o o p e n r e s o u r c e .

Lesson Resource 1.3: Identifying Parameters for Testing in Given Real-

Life Problems

Pa ra me t e r s i n s t a ti s t i c s a re i mp o r t a n t c o m p o n e n t o f a ny s t a t i s t i c a l a n a lys i s. In si mp le
w o r d s , a p a r a m e t e r i s a ny n u m e r i c a l q u a n t i t y t h a t c h a r a c t e r i z e s a g i ve n p o p u l a t i o n o r s o m e
o f i t s a s p e c t s . T h i s m e a n s t h e p a ra m e t e r t e l l s u s s o m e t h i n g a b o u t t h e wh o l e
p o p u la t i o n . H o we ve r, th e n u me r i c a l m e a s u re t h a t i s c a l c u l a te d f ro m t h e s a m p l e i s
c a l l e d s t a t i st i c . S t a t i s t i c i s a k n o w n n u m b e r a n d a va r i a b l e t h a t d e p e n d s o n t h e p o r t i o n o f
the population.
A paramete r de note s the true value that would be obtaine d if a census rather than
a s a m p l e w a s u n d e r t a ke n .
Examp les of pa ra mete rs are the mea sures of centra l tend en cy. These tell us how
t h e d a t a b e h a v e o n a n a v e r a g e b a s i s . Fo r e x a m p l e , m e a n , m e d i a n , a n d m o d e a r e m e a s u r e s
o f c e n t ra l t e n d e n c y t h a t g ive u s a n i d e a a b o u t wh e re t h e d a t a c o n c e n t ra t e . M e a nwh i l e ,
s t a n d a r d d e v i a t i o n t e l l s u s h o w t h e d a t a a r e s p r e a d f r o m t h e c e n t r a l t e n d e n c y, i . e . w h e t h e r
t h e d i s t r i b u t i o n i s w i d e o r n a r r o w . S u c h p a r a m e t e r s a r e o f t e n ve r y u s e f u l i n a n a lys i s .
I n t h e n o r ma l d i s t r i b u t i o n , t h e re a re t wo p a ra me te rs tha t ca n c ha ra c te ri z e a
d i str i b uti o n - t h e m e a n a n d s t a n d a r d d e vi a t i o n . By va r y i n g the se two pa ra mete rs, yo u
c a n g e t d i ffe re nt ki nd s o f no rmal d i stri buti on .
D i f fe re n t s y m b o ls a re u s e d t o d e n o te p a ra me te r s. Th e fo llowi ng s ym bo ls a re g ro up e d
a s ind ic ate d in the tab le b e low.
Me asu re Statistic Parame te r
mean ( x- bar) μ (myu)
x
̅ 2
variance S2 σ (sigma squared)
standard deviation S σ (sigma)
proportion p (phat) p
̂

I d e nt i fy i n g Pa ra m e t e r to b e Te s te d

I l l u st ra t ive Exa m p l e s :
1 . The ave ra ge h e ig ht o f ad ult Fili pi n o s 2 0 ye a rs a nd o ld e r i s 1 6 3 c m fo r ma le s .
Pa ra m e te r : t h e ave ra g e h e i g h t o f a d u l t F i l i p in os 20 ye ar s and ol d e r
I n hy p o t h e s i s t e s t i n g , t h e p a ra m e t e r w i l l b e tra n s la te d i nto sy mb o ls suc h a s μ = 1 6 3
wh e re μ i s t h e s y mb o l fo r me a n / ave ra g e a n d 163 i s t h e va lue th a t p e rta i n s to the
ave ra ge h e ig ht.

2. A G ra d e 1 1 re s e a rc h e r re p o r t e d t h a t t h e av e ra g e a llowa n ce o f Se ni o r Hi g h Sc ho o l
s t u d e n t s i s ₱ 1 0 0 . A s a m p l e o f 4 0 s t u d e n t s h a s m e a n a l l o wa n c e o f ₱ 1 2 0 . A t a =
0 .0 1 t e s t , i t wa s t h e c l a i me d t h a t t h e s t u d e n t s h a d a l l o wa n c e o f ₱ 1 0 0 . T h e
s t a n d a rd d ev ia tio n o f the po p ula ti o n i s ₱ 5 0 .
Pa r a m e t e r s : t h e ave r a g e al l owa n c e o f S e n i o r H i gh S ch o o l st u d e n t s i s
r 1 0 0 or μ = ₱ 1 0 0
 3. Ac co rd in g to a sur vey, 6 3 % o f the p a re n ts a re wi l li ng to s pe nd extra mo ney fo r the ir
chi ldre n’s health and education matters.
Pa ra m e te r : t h e p e r ce n t ag e / p r o p o r t i o n o f p a r e n t s w i l l i n g to s p e n d ex t ra m o n e y
i n t h e i r c h i l d r e n ’ s h e alt h and e d u cati o n m atte r o r p = 0 . 6 3

Learning Resource 1.3.1: Stating Hypotheses & Defining Parameters

C l i c k h t t p s: / / w w w . y o u t u b e . c o m / w a t c h ? v = q v s S R L X 2 r W M l i n k t o o p e n r e s o u r c e .
Learning Task 1.1: Null vs Alternative

T h i s i s 5 -i t e m e s s ay t y p e q u i z a b o ut the t wo ty p e s o f hy po th e s i s.

D i re c tio n s: ( 1 ) Re ad the q ue s tio n s c are f ul ly. ( 2 ) En c o d e yo ur re sp o ns e o n t he sp a c e p rov i d e d.

(3) Rev ie w yo ur a ns we rs be fo re su bmitting. (4) Try up to 3 a ttempts only.
Learning Task 1.2: Type I or Type II

T h i s i s 5 -i t e m mu l t ip l e c h o i c e p ro b l e m s a b o u t t he two t yp e s o f hy p o the s i s .

D i re c tio n s: (1) Re a d the qu e st io ns c a re f ul ly . (2) Ch o o se t he i te m tha t c or re s po n d s to yo ur

ans we r. (3) Rev i e w yo ur a ns we rs b e fo re s ubm i tti ng. (4 ) Tr y up to 3 a tte mpts only.
Learning Task 1.3: Are You In or Out?

T h i s i s 5 -i t e m m u l t i p l e c h o ic e a bo ut re j e c ti o n re g i o n a n d n o n- re j e cti on re gi o n.

D ire c ti o ns: (1) Re a d the q ue s tio n s c a re fu lly. (2 ) C ho o s e the i te m th a t c o rre spo nd s to yo u r

an swe r. (3) Revi e w yo ur an swe r s b e fo re sub mi tt i ng . (4) Tr y up to 3 atte mpts only.

Illus trate the re je ctio n re g io n give n the c ri ti ca l va lue a nd i d e n ti f y i f the t -values lie in the non-
re je c tio n re gio n o r re je c tio n re gio n. To s ubm i t the i llus tra t ion, upload the file (.pdf, .jpg, .doc
f ile ) o f yo ur an swe r o n this go o g le d rive link . The file na me must follow this
format: L a s t n a m e _ _ G r a d e a n d S e c t i o n ( E xa m p l e : J o s o n _ _ A B M 1 1 F )
Learning Task 1.4: knowing My Parameter

T h i s i s 5 -i t e m m u l t i p l e c h o i c e a b o u t p a ra m e te r.

D i re c tio n s: (1) Re a d the qu e st io ns c a re f ul ly . (2) Ch o o se t he i te m tha t c or re s po n d s to yo ur

ans we r. (3) Rev i e w yo ur a ns we rs b e fo re s ubm i tti ng. (4 ) Tr y up to 3 atte mpts only.
 LESSON
2

Learning Resource 2.1: What I Need to know?

I n s ta t i s t i c s , hy p o t h e s i s t e s t i n g i s t h e p r o c e s s o f usi ng st a ti sti c a l te s ts to d e te rm i ne whe th e r

an o bse rve d d if fe re n ce be twe e n two o r m o re s a m ple s i s s ta ti sti c a l ly si gn i f i c a nt or not. In
a p ra c t i c a l p o i n t o f v i e w , hy p o t h e s i s t e s t i n g a ll ows yo u to c o lle c t sa m ple s a nd ma ke
d e c is io n b a s e d o n f a c t s , n o t o n h ow yo u fe e l o r wh a t yo u thi n k i s ri g ht . To be a ble to
p rove yo ur
a s s u m p t i o n s , yo u m u s t s t a t e f i r s t t h e n u l l a n d a lt e r n a t ive hy p o t h e s e s .
T h i s mo d u l e w i l l h e l p yo u u n d e r s t a n d h o w t o :
• fo r m u l a t e s t h e a p p ro p r i a t e n u l l a n d a l t e r n a t ive hy p o t h e s e s o n a p o p u l a t i o n m e a n ;
• i d e n tif ie s the a ppro pri ate fo rm o f the te st -s ta ti sti c wh e n: (a) t he po p ula ti o n va r i a nc e
i s a s s u m e d t o b e k n o w n ; ( b ) t h e p o p u l a t i o n va r i a n c e i s a s s u m e d t o b e u n kn o w n ;
and
(c) the C e n tral Limit The o re m i s to be used.
Learning Task 2.0: Readiness Check: What I Know? (optional)

T h i s i s 5 - i t e m mu l t i p l e c h o i c e i nvo lvi ng n ull a nd a lt e rn a tive hy p o the s i s .

D ire c ti o ns: (1) Re a d the q ue s tio n s c a re fu lly. (2 ) C ho o s e the i te m tha t c o rre sp o nd s to yo ur

an swe r. (3) Revi e w yo ur an swe rs b e fo re sub mi tt i ng . (4) Try up to 3 a tte mpts only.
Learning Resource 2.2: Formulating Appropriate Null and Alternative
Hypotheses on a Population Mean

A s t a t i s t i c a l h y p o t h e s i s i s a s t a te m e n t a b o u t a p a ra m e t e r a n d d e a l s w i t h e va l u a t i n g t h e
va l u e o f p a ra m e t e r.

I n s t a t i s t i c a l hy p o t h e s i s t e s t i n g , t h e re a r e a lways two hy po th e s e s : t he nu l l a nd al te r nat ive

hy p o t h e s e s . B e l o w i s a c o mp a r i s o n b e t w e e n the two .

To s t a t e t h e n u l l a n d a l t e r n a t ive hy p o t h e se s c o r re ct ly :
1. Id e n tif y the p ara me te r in a give n pr oblem.
2 . I d e n t i f y t h e c l a i m t o b e t e s t e d tha t may sh ow up i n nul l o r a lt e rn a tive hy po t he s i s .
3 . Tr a n s l a t e t h e c l a i m i n t o m a t h e m a t i c a l s y m b o ls / n o t a ti o n s .
4. Fo rmu late f irs t the n ull hyp o the si s (H 0 ) th e n a lt e rnative hypothesis (H a ) based on the
thre e d iffe re nt ways in w ritin g hyp o the si s a s i llus tra ted below:
Le t u s t a ke a n e x a mp l e f ro m yo u r p re vi o us a c tivi ty.
“The survey shows that the number of students (n) who have parents with a house
of their own is less than 20. ”

T h e c l a i m u s e d t h e w o rd “ l e s s t h a n ” w h i c h a s s e e n i n t h e t a b l e a b o v e , c o r re s p o n d s t o
t h e s y m b o l ( < ) . T h e re f o re , t h e a n s w e r i s n < 2 0 .

I l l u s t ra t ive E xa m p l e s :
E x a m p l e 1 . T h e av e r a g e w e i g h t o f a l l G ra d e 1 1 s t u d e n t s i n S e n i o r H i g h S c h o o l i s 1 6 9
cms. Is this claim true?

S o l u t i o n : F i r s t , i d e n t i f y t h e p a ra me t e r wh i c h i s t h e m e a n h e i g h t o f a ll G ra d e 1 1 s t u d e n t s .
S i n c e i t i s a p o p u l a t i o n m e a n , u s e t h e n o t a t i o n μ . Th e c l a i m i n t h i s e x a m p l e i s t h a t
the average weig ht is 1 6 9 cm which transla tes to μ = 16 9 a nd is consid ered as null
h y p o t h e s i s . To fo r mu l a t e t h e a l t e r n a t ive hy p o t h e s i s, w ri te the c o m ple me n t/o p po s i te
o f the n ull h y p o t h e s i s w h i c h i s t h e a v e r a g e w e i g h t i s n o t e q u a l t o 1 6 9 c m .

H o : T h e ave ra g e we i ght o f a ll G rad e 1 1 stud e n ts i s 1 6 9 cm . / H0 : μ = 1 6 9 ( cl ai m)

H a : T h e ave ra g e w e i g h t o f a l l G ra d e 1 1 s t u d e n t s i s n o t 1 6 9 c m./ Ha : μ ≠ 1 6 9

E x a m p l e 2 . T h e av e r a g e p r i c e p e r s q u a r e m e te r o f r e s i d e n t i a l l o t i n an exc l u s ive
s u b d iv i s i o n i s a b o ve r 1 5 , 0 00 . A b u y e r w a n t s to te s t t h e a g e n t ’ s c l a i m .

S o l u t i o n : In t h i s hy p o t h e s i s , t h e p a ra m e t e r i s t h e ave ra g e . T h e re f o re , yo u w i l l u s e t h e s y m b o l
μ . The claim is above r15,000 can be written as μ > r15,000 and greater than falls at
a l t e r n a t ive hy p o t h e s i s , H a : μ > ₱1 5 ,0 0 0 . S i n c e yo u h ave a l re a dy f o r m u l a t e d t h e a lte rna tive ,
t h e n u l l hy p o t h e s i s w i l l b e H o : μ ≤ ₱ 1 5 ,0 0 0 a s c o m p l e m e n t o f >. Y o u c a n a lso wr i te yo ur
n ull hy p o t h e s i s a s H o : μ = ₱ 1 5 , 0 0 0 .
Ho: μ ≤ ₱ 1 5 , 0 0 0 or Ho: μ = ₱ 1 5 , 0 0 0
Ha:μ > ₱15 ,0 00 ( claim)

E x a m p l e 3 . H o l i s t i c F i t n e s s C e n t e r c l a i m s t h a t t h e i r m e m b e r s r e d u c e d a n av e ra g e o f
1 3 p o u n d s a f t e r j o i n i n g t h e c e n t e r . A n i n d e p e n d e n t a g e n c y w a n t e d t o c h e c k t h i s cl a i m
t o o k s a m p l e o f 40 m e m b e r s a n d f o u n d t h a t t h ey re d u c e d a n ave ra g e o f 1 2 p o u n d s
w i t h t h e s t a n d a r d d e v i a t i o n o f 4 p o u n d s. D e te r m i n e t h e n u l l a n d a l te r n a t ive
hy p o t h e s i s .

Solution: In this example, the parameter to be tested is the average and the claim is
reduced of 13 pounds. The claim that pertains to the parameter has the notation of (<)
. T h e re fo re , t h e c l a i m i s fo u n d a t t h e a l t e r n a t ive hy p o th e s i s a nd c a n b e w ri tte n a s H a : μ <
13 .
T h e n u l l hy p o the si s wo uld b e H o : μ ≥ 1 3 o r H o : μ = 1 3
Ho: μ ≥ 1 3 or Ho: μ = 1 3 .
Ha:μ < 13 (claim)

E x a m p l e 4 . T h e t r e a s u r e r o f a m u n i c i p a l i t y c l a i m s t h a t t h e ave r a g e n e t w o r t h o f
f a m i l i e s i n t h e m u n i c i p a l i t y i s a t l e a st r 73 0 , 0 00 . A ra n d o m s am p l e o f 5 0 f a m i l i e s f ro m
t h i s a r e a p r o d u c e d a m e a n n e t w o r t h o f r 8 6 0 , 0 00 w i t h s t a n d a r d d e v i a t i o n o f r 6 5 , 0 00 .
W h a t a r e t h e n u l l a n d a l te r n at ive hy p o t h e s e s?

S o l u t i o n : I n t h i s e x a m p l e , t h e p a r a m e t e r i s t h e a v e r a g e a n d t h e c l a i m i s t h a t t h e ave ra g e i s
a t l e a s t ₱ 7 3 0 , 0 0 0 . T h e w o r d a t l e a s t h a s t h e n o t a ti o n o f ( ≥ ) w h i c h m e a n s t h a t t h e c la i m i s
a t t h e n u l l hy p o t h e s i s . I n t h e a l t e rn a t ive hyp o the si s, yo u wi l l u se ( < ) a s i ts
c o mple me nt . Therefo re :

Ho: μ ≥ ₱ 7 3 0 , 0 0 0 or Ho: μ = ₱ 7 3 0 , 0 0 0 ( claim)

Ha: μ < ₱ 7 3 0 , 0 0 0

E x am pl e 5. An acade mi c o rganiz at io n cl aimed that Grade 11 students’ study time is

a t m o s t 2 4 0 m i n u t e s p e r d ay , o n ave r a g e . A n o t h e r su r vey wa s c o n d u c te d to f i n d
w h e t h e r t h e c l a i m i s t r u e . T h e g r o u p to o k a ra n d o m s a m p l e o f 3 0 s t u d e n t s an d f o u n d
a m e a n s t u d y t i m e o f 3 0 0 m i n u t e s w i t h s t a n d a r d d e v i a t i o n o f 90 m i n u te s . W h a t
a r e t h e n u l l a n d a l t e r n a t i v e hy p o t h e s e s?

S o l u t i o n : T h e p a r a m e t e r u s e d i n t h i s e x a m p l e i s a v e r a g e ( μ ) a n d t h e c l a i m i s t h a t a ve r a g e
i s a t m o s t 2 4 0 m i n u t e s . T h e w o r d ‘ a t m o s t ’ h a s t h e n o t a t i o n o f ( ≤ ) wh i c h m e a n s t h a t c la i m
i s a t t h e n u l l hy p o t h e s i s . T h e n u l l hy p o t h e s i s w o u l d b e Ho : μ ≤ 2 4 0 . To fo rm ula te
the a lt e rn ative , use the no ta tio n (>) a s the c o mpl e me n t of (≤). The re fo re , alternative
hypothesis is H a : μ > 2 4 0 .

Ho: μ ≤ 2 40 or Ho: μ = 240 (claim)

Ha: μ > 2 4 0

O n e -Ta i l e d an d Two -Ta i l e d Te st

T h e a l t e r n a t ive hy p o t h e s i s c a n t a ke a n o t h e r fo r m d e p e n d i n g o n the va l ue o f the
p a r a m e t e r . T h e p a r a m e t e r m ay i n c re a s e , d e c re a s e , o r c h a n g e d f ro m t h e n u l l va l u e . A n
a l t e r n a t ive hy p o t h e s i s p re d i c t s n o t o n ly t he d i f fe re n ce o f s a m ple me a n fro m the
po p ula tio n me an b ut als o how it wo u ld be d i ffe re nt i n a sp e c i f i c d i re cti o n – l o wer or higher.
This te st is c all e d a d i re c ti o nal o r o ne -tai l e d te st b e c a us e the re j e c ti o n re gi o n i s e nti re ly
w ithi n o ne tail o f the d istr ibut io n.

O n t h e o t h e r h a n d , s o m e hy p o the se s pre d i c t o nly tha t o n e va lue w i ll b e d i f fe re n t f ro m

a n o t h e r , w it h o u t a d d i ti o n a l ly p re d i c t i n g w h i c h w i l l b e hi g he r. Th e t e st o f suc h a hyp o the si s
i s nond ire ct i onal o r two -tai l e d be c a use a n ex tre m e te s t s ta ti sti c i n e i the r ta i l o f
the d i stri buti o n (po sitive or negative) will le ad to the rejection of the null hypothesis
of no diffe rence.
T h e t a b l e b e l o w s h ow s t h e n u l l and a lte rn a tive hyp o the se s s ta te d t o ge t he r w i th th e
d ire c tio na l test.

I l l u s t ra t ive E xa m p l e s :
D e t e r m i n e t h e hy p o t h e s e s a n d t h e hy p o t h e s i s t e s t .

E x a m p l e 6 . Te a c h e r A w a n t s t o k n o w i f m a t h e m a t i c a l g a m e s a f f e c t t h e p e r f o r m a n c e o f
t h e s t u d e n t s i n l e a r n i n g M a t h e m a t i c s . A c l a s s o f 4 5 s t u d e n t s w a s u s e d i n t h e st u dy.
T h e m e a n s c o r e wa s 9 0 a n d t h e s t a n d a r d d ev i a t i o n wa s 3. A p r e v i o u s s t u dy r e ve a l e d
t h a t μ = 8 5 a n d t h e st and ard d evi at i on σ = 5 .

T h e p a ra me t e r i s t h e p o p u la t i o n m e a n = 8 5 . Yo u c a n w r i t e t h e hy p o t h e s e s i n t o s y m b o l s : H o ∶ μ
= 85 and Ha∶μ ≠ 85. The phrase ‘affects performance’ has no clue of the direction of
t h e s tu dy , s o i t i mp lie s e ith e r in cre as e o r d e c re a s e i n p e rfo rm a nc e . Thi s te lls yo u tha t the
te st is
two-tailed test.

Ho ∶μ = 85 and Ha∶μ ≠ 85 (two-tailed test)

E x a m p l e 7 . A p i g g e r y ow n e r be l i e ve s t h a t u s i n g o rg a n i c f e e d s o n h i s p i g s w i l l y i e l d
g r e a t e r i n c o m e . H i s av e ra g e i n c o m e f r o m t h e p r e v i o u s ye a r wa s r 12 0 , 0 0 0 . St a te t h e
hy p o t h e s i s a n d i d e n t i f y t h e d i r e c t i o n a l te s t .

I n t h i s e xa m p l e , t h e n u l l hy p o t h e s i s i s H o ∶μ = 1 2 0 ,0 0 0 . Yo u m ay n o t i c e t h a t t he hy p o th e s is
used the phrase ‘greater income’ that is associated with greater than. Therefore, Ha∶μ
> 120 ,000. Thi s hypothe si s uses ine qua lity symbol (>) so it is one-tailed test and it
uses
g rea ter tha n which spe cifically called for the right-tailed test.
Ho ∶μ = 120 ,000 and Ha∶μ > 120 ,000 (right-tailed test)

E x a m p l e 8 . T h e ave r a g e w a i t i n g t i m e o f a l l c o s t u m e r s i n a r e s t a u ra n t be f o r e b e i n g
s e r v e d i s l e s s t h a n 2 0 m i n u t e s . D e t e r m i ne t h e hy p o t h e se s a n d t h e d i re c t i o n a l te st .

Yo u m a y n o t i c e t h a t t h e h y p o t h e s i s u s e d t h e p h r a s e ‘ l e s s t h a n ’ w h i c h d e n o t e s t h a t t h e
a lte rn ative hyp o the si s i s Ha ∶μ < 2 0 . Thi s hy p o the s i s us e s i n e q ua li ty sy m bo l ( < ) so i t i s
on e- t a i l e d t e s t a n d i t u s e d l e s s t h a n w h i c h s p e c i f i c a l l y c a l l e d f o r t h e l e f t - t a i l e d t e s t .
In this
exa mpl e , the nul l hy po th e s is is Ho ∶μ ≥ 2 0 .

Ho ∶μ ≥ 20 and Ha∶μ < 20 (left-tailed test)

Learning Resource 2.2. 1: Null and Alternative Hypotheses

C l i c k h t t p s: / / w w w. y o u t u b e . c o m / w a t c h ? v = p l A i Y X Ya q Y 0 l i n k t o o p e n r e s o u r c e .
Learning Resource 2.3: Identifying Appropriate Test Statistics Involving
Population Mean

Be fo re we move for wa rd to the diffe rent te st statistics, it is impo rtant to d efi ne the following
te r ms :
• A p o p u l a t i o n i n c l u d e s a l l o f t h e e l e m e n ts fro m a s e t o f d a ta .
• A sa m p l e c o n s i s t s o f o n e o r m o re o b s e r va t i o n s d raw n f ro m the p o pu la ti on .
• S a m p l e m e a n ( x) i s t h e m e a n o f s a m p l e v a l u e s c o l l e c t e d .
̅
• P o p u l a t i o n m e a n ( μ ) i s t h e m e a n o f a l l t h e va l u e s i n t h e p o p u l a t i o n . I f t h e s a m p l e
i s ra n d o mly s e l e c t e d a n d s a mp l e s i z e i s l a r g e , t h e n th e s a m p l e m e a n wo uld be a g o o d
e s t i m a t e o f t h e p o p u la t i o n m e a n .
• P o p u l a t i o n s t a n d a r d d e v i a t i o n ( σ ) i s a pa ra mete r which is a me asure of varia bility
w i t h f i xe d va l u e c a l cul ate d fro m eve r y i n d iv i d ua l i n t he po p ula ti o n .
• Sample standard deviation ( s ) is a statistic which means that this measure of
va r i a b i l i t y i s c a l c u l a te d f r o m o n ly s o me o f the i n d iv i d ua ls i n a p o p ula ti o n.
• Population variance ( σ2 ) , in the same sense, indicates how the population
d a t a p o i n t s a re s p re a d o u t . I t i s t h e ave ra g e o f the d i s ta n ce s fro m e a ch d a ta p o i n t
in the p o p u l a t i o n t o t h e me a n , s q u a re d .

S i n c e w e a l re a dy d e f i n e d i mp o r t a n t thi ng s i n i d e n ti f y i ng t he te st s ta t i sti cs i n hy po th e si s
t e s t i n g , l e t u s n o w d e t e r m i n e t h o s e c o n c e p t s w h e n g ive n a p ro b l e m . L e t ’ s u se the exa mp le in
th e fo llow in g situ ation.

Example 9.

N o w yo u a lre a dy k n o w h o w t o g e t t h e d a t a n e e d e d i n c h o o si ng te s t s ta ti sti cs . Thi s ti me , yo u

w i l l d e t e r mi n e wh a t t e s t s t a t i s t i c is a pp ro pr i a te i n c o mpu ti n g te st va lue i n the hyp o the si s
te s tin g.

A test sta tistic is a rand om va riable that is calculated from sample data and used
i n a hy p o t h e s i s t e s t . Yo u c a n u s e t e s t s t a ti s ti c s to d e te rm i ne wh e th e r to re j e c t o r a cc e pt t he
n u l l hy p o t h e s i s . Th e t e s t s t a t i s t i c c o m p a re s yo u r d a t a w i t h wh a t i s e x p e c t e d u n d e r t h e n u ll
hy p o t h e s i s .
To i d e n t i f y t h e t e s t s t a t i s t i c , yo u m u s t c o n s i d e r wh e t h e r t h e p o pu la ti o n sta nd a rd
deviation/variance is known or unknown. If the population standard deviation σ is known,
t h e n t h e m e a n h a s a n o r m a l d i s t r i b u t i o n . U s e z - t e s t . I f t h e p o p u l a ti o n s t a n d a rd d e v i a t i o n
σ is unknown, then the mean has a t- distribution. Use t-test. Instead of the
p o p u l a t i o n s t a n d a r d d e v i a t i o n , u s e t h e s a m p l e s t a n d a rd d e v i a ti o n .
z- te s t
I n a z - t e s t , t h e s a m p l e i s a s s u m e d t o b e n o r m a l ly d i s t r i b u t e d . A z- s c o re i s c a lcu la te d
w i t h p o p u l a t i o n p a ra m e t e r s s u c h a s “ p o p u l a t i o n m e a n” a n d “ p o p u l a t i o n s t a n d a rd d e v i a t i o n” .
I t i s u s e d t o va l i d a t e a hy p o t h e s i s t h a t t h e s a m p l e d ra w n b e l o n g s t o t h e s a m e
po p ulat io n. W h e n t h e v a r i a n c e i s k n o w n a n d e i t h e r t h e d i s t r i b u t i o n i s n o r m a l o r s a m p l e
s i z e i s l a r g e , u s e a z- t e s t s ta tis tic .
t - te s t
 L i ke a z -t e s t , a t - t e s t a l s o a s s u m e s a n o r m a l d i s t r i b u t i o n o f t h e s a m ple . A t- t e s t i s
u s e d w h e n t h e p o p u l a t i o n va r i a n c e o r s t a n d a rd d e v i a t i o n a re n o t k n o w n . W h e n t h e va r i a n c e
is unknown and a sample size is less than 30, use a t-test statistic assuming that
t h e p o p u l a t i o n i s n o r m a l o r a p p rox i m a t e ly n or ma l.

C e n t ra l L i m i t T h e o r e m
In Cen tral Limit Theorem, if the population is normally distributed or the sample
size is large and the true population mean μ = μ0 , then z has a standard
normal d i s t r i b u t i o n .
W h e n p o p u l a t i o n s t a n d a rd d e v i a t i o n σ i s n o t kn ow n , we m ay s t i l l u s e z- s c o r e by
r e p l a c i n g t h e p o p u l a t i o n s t a n d a rd d e v i a t i o n σ b y i t s e s t i m a t e , s a m p l e s t a n d a rd d e v i a t i o n
s . S i n c e t h e s a m p l e i s l a r g e the re s ulti n g te s t sta ti st i c st i ll h a s a d i stri buti o n that
i s a p p r o x i m a t e l y s t a n d a rd n o r ma l .
H i s t o r i c a l ly , t h i s wa s ve r y u s e f u l , a s m o s t s ta ti sti c i a ns b e fo re d i d no t have a cc e ss to
t h e t -t a b l e o f q u a n t i t i e s f o r ve ry la r ge n um be r o f d e g re e s o f fre e d o m. Bu t w i th mo d e r n
c o mp u t e r s t o d ay , u s i n g t -t e s t w i th a ve ry la rge s a m ple s i z e i s no t a pro b le m a t a ll.
H o we ve r , s i n c e yo u wi ll be u si n g a t- t a ble w i th on ly l i mi te d n um be r o f d e gre e s o f
f re e d o m , yo u w i l l u s e z - t e s t wh e n t h e s a m p l e si z e i s l a rg e eve n th o ugh the
po p ula tio n s t a n d a r d d e v i a t i o n i s u n k n o w n .
W h e n s a m p l e s i z e s a r e s m a l l , t h e C e n tra l L i m i t T h e o re m d o e s n o t a p p ly. Yo u m u s t
t h e n i mp o s e s t r i c t e r a ss umptio n s o n the p o pu la ti o n to g ive sta ti s ti c a l va li d i ty to the te s t
p r o c e d u r e . O n e c o m m o n a s s u m p t i o n i s t h a t t h e p o p u l a t i o n f ro m w h i c h t h e s a m p l e i s t a ke n
h a s a n o r ma l p ro b a b i l i t y d i s t r i b u t i o n t o b e g i n w i t h . U n d e r s u c h c i rc u m s t a n c e s ,
i f t he
p o p u l a t i o n s t a n d a rd d e v i a ti o n i s kn ow n , t h e n t h e t e s t s t a t i s ti c s t i ll ha s the
sta nd ard

n o r m a l d i s t r i b u ti o n.

T h e t a b l e s h o ws wh a t t e s t s tati sti c i s a pp ro pr i a te whe n:

Identifying Appropriate Test Statistic

I l l u s t ra t ive E xample s:

E x a m p l e 1 0 . A m a n u f a c t u r e r c l a i m e d t h a t t h e a v e r a g e l i fe o f b a tt e r i e s u s e d i n t h e i r
e le c t ro n i c ga me s i s 1 5 0 h o u r s . I t i s know n t ha t the sta nd a rd d ev i a ti o n o f thi s ty pe o f
b atte ry i s 2 0 h o u r s . A c o n s u me r w is h e d t o t e s t t h e m a n u fa c t u re r ’ s c l a i m a n d a c c o rd i n g ly
t e s t e d 1 0 0 e l e c tro n i c ga m e s u s i n g t h e b a t t e r y . It w a s fo u n d o u t t h a t t h e m e a n i s e q u a l to
1 4 4 ho u rs.

Here, the sample size (n) is 100 (extremely large) and population standard deviation
(20 hours) is known, then the appropriate test statistic to be used is z-test.

E x a m p l e 11 . A n E n g l i s h t e a c h e r w a n t e d t o t e s t w h e t h e r t h e m e a n r e a d i n g s p e e d o f s t u d e n t s
i s 5 5 0 wo rd s p e r mi n u t e . A s a mp l e o f 1 2 s t u d e n t s re ve a l e d a s a m p l e me a n o f 5 4 0 wo rd s
p e r mi n u t e w i t h a s t a n d a rd d e v i a t i o n o f 5 wo rd s p e r m i n u t e . A t 0 .0 5 si g n i fi ca nc e l eve l ,
i s the re a d i n g s p e e d d iffe re nt fro m 5 5 0 wo rd s pe r mi n ute ?

The sample size (n) is 12 which is less than 30 and sample standard deviation
(5 words per minute) was given. Therefore, the appropriate test is t-test.

E x a m p l e 1 2 . A s t u d y w a s c o n d u c t e d t o l o o k a t t h e a v e r a g e t i m e s t u d e n t s e x e rc i s e . A
re s e a rc h e r c l a i me d t h a t i n ave ra g e , s t u d e n t s e xe rc i s e l e s s t h a n 1 5 h o u r s p e r moxn th. In
̅
a ra n d o m s a mp l e s i z e n = 1 1 5 , i t w a s f o u n d t h a t t h e m e a n t i m e stu d e n ts exe rci se i s =
1 1 .3 h o u r s p e r m o n t h w it h s = 6 . 4 3 h o u r s p e r m o n t h .

S i n c e n = 11 5 , t h e s a m p l e s i z e i s l a r g e a n d v a r i a n c e i s u n k n o w n .
Hence, z-test is the appropriate tool. (Central Limit Theorem)
Learning Resource 2.3. 1: One-tailed t-test for mean
Click
h t t p s : / / w w w. y o u t u b e . c o m / w a t c h ? v = f i M F q f a t i e E & l i s t = P L D 3 f Y c0 b A j C _ 7 C h L J 2 J y 9 c W g G f 3 x k -
B O 4 &i n d e x = 3 & t = 1 s l i n k t o o p e n re s o u rc e .

Learning Resource 2.3.2: Two-tailed z test for mean

C l i c k h t t p s: / / w w w . y o u t u b e . c o m / w a t c h ? v = p f r Z Y f c f J E A l i n k t o o p e n r e s o u r c e .

Learning Task 2.1: One-tailed or Two-tailed Test

Thi s i s 5 -ite m multip le c ho ic e invo lv in g o ne - ta i le d a nd two - ta i le d te s t .

D ire c tio ns : (1 ) Re a d the q ue s tio n s ca re f ully . (2) Id e nti fy whe the r the given hypothesis is one-
ta ile d o r two -tail ed. (3) Choose ONE if it is one-tai led a nd TWO if i t is two-ta ile d test.
(4) Rev ie w yo ur a nswe r s be fo re sub mi t ti ng . ( 5 ) Try u p to 3 a tte mp ts o nly .
Learning Task 2.2: Which Is Which?

T h i s i s 5 -i t e m mul tiple c ho i ce i nvo lvi ng t- t e s t a n d z- te st .

D ire c ti o ns: (1) Read the que stions care fully. (2 ) Identify the a ppropriate test sta tistic (t-test
o r z - t e s t ) t o b e us e d in e ac h pro b le m . ( 3 ) Cho o s e the i te m tha t co rre sp o nd s to yo ur a ns we r.
(4 ) Rev ie w yo ur a nswe r s be fo re su bmitting. (5) Try up to 3 a tte mpts only.
Learning Task 2.3: Fill Me!

1. A s c h o o l p r i n c i p a l c l a i ms t h a t t h e G ra d e 1 1 s t u d e n t s i n h e r h i g h s c h o o l h ave a me an
score of 9 2.
Pa ra me t e r : N u l l H y p o the s i s:
Claim: mean score of 92 Alternative Hypothesis: H a : μ ≠ 92

2. A m e d i c i n e c o m p a ny h a s m a n u f a c t u r e d a n d c l a i m e d t h a t t h e i r m e d i c i n e p i l l c o n t a i n s
an ave rag e o f 1 4 mg o f a ctive in gre d i e n t .
 Para me te r : ave rag e N u l l H y p o t h e s i s:
C l a i m : me a n s c o re o f 9 2 A lte r na tive Hy po the si s:

3. A c e r t a i n p r o d u c t p r o d u c e d b y a m a n u f a c t u r i n g c o m p a ny i s s u p p o s e d t o we i g h a t
le ast 1 2lbs.
Parameter: Null Hypothesis: H 0 : μ ≥ 121
C l a i m : me a n s c o re o f 9 2 A l t e r n a t ive H y p o t h e s i s:

4. T h e B u re a u o f In t e r n a l Re ve n u e c la i m s t h a t t h e m e a n wa i t t i m e f o r t a x p aye r d u r i n g
a re c e n t t a x f i l i n g i s a t mo s t 8 . 7 m i n u te s . A ra n d o m s a m p l e o f 1 1 t a x p aye r s h a s
a m e a n w a i t t i m e o f 8 . 7 m i n u t e s a n d a s t a n d a rd d e v i a t i o n o f 2 . 7 m i n u t e s . Is
t he re e no ug h ev id e nc e to re je ct the cla i m a t a si g ni fi c a nc e leve l o f 0 .1 0 ?
Pa ra me t e r : N u l l H y p o the si s:
Claim: mean score of 92 Alternative Hypothesis: H a : μ > 8.7

5. Ac c o rd i n g t o a c o m p a ny , t h e m e a n p H l e ve l o f th e rive r wa te r i s 7 .4 . A re s e a rch e r
ra n d o m ly s e l e c t e d 1 5 r ive r wa t e r s a m p l e s a n d f o un d o u t t ha t the me a n i s 6 .7
w ith s t a n d a rd d e v i a t i o n o f 0 . 2 4 .
Pa ra me t e r : me a n
Cla im: me a n pH leve l o f the wa te r rive r i s 7 .4
N u l l H y p o t h e s is:
A lte rn a tive H yp o the sis :

Learning Task 2.4: What I Have Learned

D i re c tio n s: (1) Co mple te the fo ll ow in g s e n te n c e s by se le c ti n g/ma t chi ng the c o rre c t wo rd o r

phra se .. (2) C ho o s e the ite m th at co rre sp o nd s to yo ur a ns we r. (3 ) Revi e w yo ur a n swe rs
be fo re su bmi tting . ( 4 ) Try u p to 3 atte mp ts o nly.
 LESSON
3

Learning Resource 3.1: What I Need to Know?

I n t h e p re v i o u s mo d u le , yo u have le a rn e d to i d e nti f y the a pp ro pr i a te te s t sta ti sti c

wh e n t h e p o p u l a t i o n va r i a n c e i s k n o w n o r u n k n o w n . Yo u we re a ble to d e f i ne
d iffe re nt s t a t i s ti c a l c o n c e p t s re la t e d t o z -t e s t a n d t- te s t a s the to o ls fo r c o mpu ti n g va lue i n
hy po th e s is t e s t i n g p ro b l e m . T h e s t e p s i n c h o o si ng c or re c t s ta ti sti ca l te s t we re a lso
d isc us se d . M o re ove r, t h e t e s t u s e d fo r C e n t ra l L i m i t T h e o re m wa s e xpla i ne d .
S i n c e yo u a lre a dy k n o w h ow t o c h o o s e t h e t e s t s t a t i sti c a ppl i c a ble i n hy p o the s is
t e st ing , yo u a re n ow re ady to id e n ti f y th e a p pro p ri a te re j e c ti o n re g i o n whe n
p o pula tio n va r i a n c e i s k n o w n o r u n k n o w n . I n d e t e r m i n i n g re j e ct i o n re g i o n , yo u w i ll a lso be
d e f ini ng o th e r s t a t i s t i c a l c o n c e p t s s u c h a s c r i t i c a l v a lu e

O n e p a r t i n t e s t i n g h y po the s i s i s d e te rm i ni n g i f the re su lt s o f a the o ry o r the

hy po th e s is fro m th e ex pe r ime nt is p ro ba b ly true o r sta ti st i c a lly si g ni fi ca nt . To b e a ble to
d o this , the re je c ti o n re gio n o r c rit ica l re gi o n will be e mployed . Every rejection region can
be d raw n o n a p ro b a b i l i t y d i s t r i b u t i o n . I t s i m a g e c a n b e d o n e u s i n g t h e no r ma l cu rve . It
c an e i the r be o n e -t aile d o r t wo -tai le d reje ction region. Mo re specifi cally, one-tai led rejection
region c an b e l e f t-tai le d o r rig ht-t aile d . N ow, how c a n we d e te rm i ne the re j e cti o n re g i o ns ? Le t
u s f in d out!

At t h e e n d o f t h i s le ss o n, yo u a re a bl e to :

• d e f ine the c ri tic al valu e s , leve l o f si gni f i ca nc e , hy po th e s i s te s t , a nd re j e c ti o n

re gio n;
• i d e n t i f y t h e c r i t i c a l va l u e w h e n p o p u l a t i o n va r i a n c e i s k n ow o r unkn ow n ; a nd
• i d e n tif y the a ppro pr iate re je c tio n re gion for a given level of signifi cance whe n:
( a ) t h e p o p u l a t i o n va r i a n c e i s a ss ume d to be know n;
( b ) t h e p o p u l a t i o n va r i a n c e i s a s s u m e d t o b e u n k n o w n ; a n d
(c) the C e ntral Li mi t The o re m is to b e used.
Learning Resource 3.2: Critical Values and One-tailed and Two-tailed
Tests

I n hy p o t h e s i s t e s t i n g , a c r i t ic al val ue i s a p o i n t o n the te s t d i s tri buti o n tha t is

c o mp a re d t o t h e t e s t s t a ti sti c to d e te rm i ne whe th e r to re j e c t the n ull hyp o the si s. It
d e p e n d s u p o n t h e t e s t s t a t i s t i c , w h i c h i s s p e c i f i c to the t yp e o f the te st a nd si g ni fi cance
leve l (a ) whic h d e fi ne s the se n sitiv ity o f the te s t . A va lue o f a = 0 .0 5 i m pli e s tha t the n ull
hyp o the sis is rejected 5 % of the time it is in fact true.

Th e re a re t h r e e ( 3) H y p o t h e s i s Te s t Ty p e s . T h e s e d e p e n d s o n th e s y m b o l i n th e
alte rn ative hy p o the s is H a .
1. L e f t - t a i l e d t e st : I f t h e a l t e r n a t ive hy p o t h e s i s H a c o n t a i n s t h e l e ss - t h a n i n e q u a l i t y sy mb o l
(<), th e hy p o the sis test is a left-tailed test.
2. R i g h t - t a i l e d t e s t : If t h e a lt e r n a t ive hy p o t h e s i s H a c o n t a i n s t h e g re a t e r t h a n sy m b o l ( > ) ,
the hy po th e s is te s t is a rig ht-ta ile d te st .
3. Two -t a i l e d te s t : I f t h e a l t e r n a t ive hy p o t h e s i s H a c o n ta i n the n o t - e qu a l - t o symb o l ≠ ), th e
hy p o t h e s i s t e s t i s a t wo -t a i l e d t e st . In t wo-t ai le d te st , e ach t ai l h as an are a o f a.
2

Learning Resource 3.2.1: Critical Values of z-distribution

I t w a s d i s c u s s e d i n t h e l a s t l e s s o n t h a t Z - s c o re s a re u s e d wh e n t h e p o p u l a t i o n
s t a n d a rd d e v i a t i o n i s kn ow n , o r wh e n yo u h ave l a r g e r s a m p l e s i z e i n w h i c h we u s e t h e C e n tral
L i m i t Th e o r e m.

A c r i t i c a l va l u e o f z i s u s e d whe n the sa m pl i ng d i s tri b uti o n i s no r ma l o r c lo se to

n o r ma l .

Table of Crit ical Values (Z-Score)

L eve l o f S i g n i f i c a n c e ( a )
Te s t T y p e
a = 0. 01 a = 0. 025 a = 0. 05 a = 0. 10
Le ft-tailed test −2.33 −1.96 −1.645 −1.28
Right-tailed test 2.33 1.96 1.645 1.28
Two-tailed test ±2.575 ±2.33 ±1.96 ±1.645

Exam p le : Fin d the c riti ca l z-va lue of a le f t- ta i le d te st w i th a si g ni fi c a nt va l ue a = 0 . 0 5 .

S o l u ti o n: B as e d o n t he tab le of c riti ca l va lue s o f z , the c ri ti ca l va lue i s z = − 1 . 9 6 .

Learning Resource 3.2.2: Critical Values oft-distribution

T h e va l u e s i n t h e t - d i s t r i b u t i o n t a b l e a re t h e c r i t i c a l va l u e s wh e n t he po p ula ti o n sta nd a rd
d e v i a t i o n i s u n kn ow n a n d t h e s a mp l e si z e i s s ma l l. To ge t the c ri ti ca l va lue s fo r the t-
d istr ibuti o n, fo llow the steps below:
1 . Id entify the level of significance .
2. Ide ntify the degrees of fre edom, df = n − 1 .
3 . Fin d the c rit ica l va lue u sin g t-d is tri buti o n i n t he row wi t h n - 1 d e g re e s o f fre e d o m. If the
hyp o the sis te st is:
a . L e f t -t a i l e d , u s e “ a fo r o n e - t a i l e d te s t ” c o l u m n w i t h a n e g a t i v e s i g n .
b . R i gh t - t a i l e d , u s e “a fo r o n e - t a i l e d t e s t ” c o l u m n w i t h a p o s i t i v e s i g n .
c . Tw o - t a i l e d , u s e “ a fo r t w o - t a i l e d t e s t ” c o l u m n w i t h a p o si t i v e a n d n e g a t i v e s i g n .
 Critical Value Table fort-distribution
a for one-tailed test
0 . 05 0 . 025 0 . 01 0 . 005
0 1 0 0 0 5 0 0 2 0 0 1
. . . .
a f o r t w o - t a i l e d t e s t

d f = n − 1

1 6 . 3 11 1 2 . 7 0 6 3 1 . 8 2 1 6 3 . 6 5 7

2 2. 92 4 . 3 0 3 6 . 0 65 9 . 9 2 5

3 2 . 3 53 3. 18 2 4 . 5 4 1 5. 84 1

4 2 . 1 32 2. 77 6 3. 7 47 4 . 6 0 4

5 2.025 2.571 3.365 4.032

6 1.943 2.447 3.143 3.707

7 1.895 2.365 2.998 3.499

8 1.86 2.306 2.896 3.355

9 1.833 2.262 2.821 3.25
10 1.812 2.228 2.764 3.169
11 1.796 2.201 2.718 3.106
12 1.782 2.179 2.681 3.055
13 1.771 2.16 2.65 3.012
14 1.761 2.145 2.624 2 .9 7 7
15 1.753 2.134 2.602 2.947
16 1.746 2.12 2.583 2.921
17 1.74 2.11 2.567 2.898
18 1.734 2.101 2.552 2.878
19 1.729 2.093 2.539 2.861
20 1.725 2.086 2.528 2.845
21 1.721 2.08 2.512 2.831
22 1.717 2.074 2.508 2.819
23 1.714 2.069 2.5 2.807
24 1.711 2.064 2.492 2.797
25 1.708 2.06 2.485 2.787
26 1.706 2.056 2.479 2.779
27 1.703 2.052 2.473 2.771
28 1.701 2.048 2.467 2.763
29 1.699 2.045 2.462 2.756
30 1.697 2.042 2.457 2.75
Exa mp le : Fin d the c ri tic al val ue fo r a le ft -ta i le d te s t w ith a = 0.05 a nd n = 21. Assume
t h a t t h e p o p u l a t i o n s t a n d a rd d e vi a ti o n
A n s we r : B a s e d o n t h e tab le o f cr i ti c a l va lue s o f t , the cr i ti c a l va lue i s t = −1 . 7 2 5 .

Learning Resource 3.3: Critical Regions/ Rejection Regions

C r i t i c a l re g i o n , a ls o kn ow n a s t h e r e j e c t i o n r e g i o n , d e s c ri be s the e n ti re a re a o f
va l u e s t h a t i n d i c a t e s yo u re je ct the n ull hyp o the si s. In o t he r wo rd s , the c ri ti ca l re g i o n i s the
a re a e n c o mp a s s e d by t h e va l u e s n o t i n c l u d e d i n t h e a c c e p t a n c e re g i o n . I t i s th e a re a o f
the “ tai ls” o f the d i stri buti o n.

The “ ta il s” o f a te st a re th e va l ue s o utsi d e o f the c ri ti ca l va lue s. In o th e r wo rd s , the

t a i l s a re the e n d s o f th e d istr ibut io n a nd the y b e g i n a t th e gre a te st o r le a st va lue i n
the alte rn ative hypothesis (the critical value s) .

Learning Resource 3.3.1: Rejection Region If Population Variance

Is Known

To d e te rmin e the c riti ca l re g io n fo r a n o rm a l d i stri buti o n , we u se the ta b le for the

s tan d a rd no rmal d i stri buti o n . If the leve l o f s i g ni fi c a n c e i s a = 0.10 , the n fo r a one -ta iled
test , the critical region is below z = − 1.28 or above z = 1 .28. For a two-ta iled test, use =
0.05 and
th e c riti ca l re g io n is be low z = − 1 .64 5 a n d a b ove z = 1 .645 . If the a bs o lute
va lue o f t he
0 a
c a l c u l a te d s t a t i s t i c s h a s a va l u e e q u a l t o o r g re a t e r tha n th e c ri ti ca l va lue , th e n
t he n ull hy p o t h e s e s H s h o u l d b e re je c t e d a n d t h e a l t e r n a te hy p o t h e s i s H i s a s s u m e d t o b e
supported.
 When Ha contains ...

Inequality Symbol < > ≠

Type of Test left-tailed right-tailed Two-tailed

za za
Critical Region − za
2

Rejection Region

Illustra tive Ex ample : R ight-taile d test where σ is known, a = 0 . 05, and n = 34

I n t h i s e xa mp l e , t h e p o p u l a t i o n s ta n d a rd d e v i a t i o n i s k n o w n . The re fo re , th e te s t
s tati stic wo ul d b e z-t e st . To o b tai n the c ri ti c a l va lue fo r the leve l o f s i gn i f i c a n ce o f 0.05 a nd
o ne -tail e d t e st , z-va lue f ro m the tab le i s 1.64 5. The hy p o the s i s te st i s ri g ht-tai led, so
the i ne qua lity sy mbo l wo uld be ≥. He n ce , the re je ction re gion for a one -tailed test is z ≥
1.64 5.

To s ke t c h t h e g ra ph, lo c ate f ir st th e cr i ti c a l va lue o f 1 .6 4 5 whi c h i s be t we e n the 1 a nd

2 i n t h e n o r ma l c u r ve . T h e n , s h a d e t h e re g i o n g re a t e r t h a n t h e cr i ti c a l va lue be ca us e i t i s a
ri ght -taile d test .

Learning Resource 3.3.2: Rejection Region If Population Variance Is

Unknown

To d e te rmine the c ritic a l re gi o n fo r a t-d i s tri b uti o n , we use the ta bl e o f the t-

d i stri buti o n. ( As sume tha t we use a t- d i s tri bu ti o n w i th 2 0 d e g re e s o f fre e d o m .) If the le ve l
o f significance is a = 0.10 , then for a one-tailed test, t = −1.325 or t = 1.325. For a two-
tailed te s t, use = 0.05 , a nd then t = −1.7 25 a nd t = 1.72 5. If the a bsolute value of the
calculated s t a t i s t i c s h a s a va l u e e q u a l t o o r g re a t e r th a n t h e c r i t i c a l va lue , t he n the n ull
hy po th e s e s H o w il l b e re je c t e d a n d t h e a lt e r n a te hy po th e s e s Ha i s a ss ume d to b e c o rre ct .

When Ha contains ...

Inequality Symbol < > ≠

Type of Test left-tailed right-tailed Two-tailed

ta
Critical Region ta −t a
2

Rejection Region
Illu stra tive Ex amp le: A survey rep orts a customer i n the drive thru lane of one fast food
c h a i n s p e n d s e i g h t mi n u t e s t o w a i t fo r h i s / h e r o rd e r . A s a m p l e o f 2 4 c u s t o m e rs a t the
d rive t h r u l a n e s h o w e d m e a n o f 7 .5 m i n u t e s w i t h a s t a n d a rd d e v i a ti o n o f 3 . 2 m i n u t e s . I s t h e
wa i t i n g t i m e a t t h e d r ive t h r u l a n e l e s s t h a n t h a t o f t h e s u r ve y m a d e ? U s e 0 .0 5 s i g ni f i c a n c e
leve l.

Solution:

S inc e t he va ria n ce i s unkn own , we us e t- sc o re w i th d f = 2 4 − 1 = 2 3 a s the re fe re n c e to

d e te rmine the c rit ica l value . T his is a le ft -ta i le d te s t , so the cr i ti c a l va lue we n e e d i s
n e gative . The critical value is 2. 069 and the rejection region is t ≤ −2. 069.

Learning Resource 3.3.3: Rejection Region Using the Central Limit

Theorem

To d e te rmine the re je ctio n re gi o n fo r a leve l o f s i g ni f i c a n c e whe n t he Centra l Limit

Th e o re m (C LT ) i s t o b e u s e d , fo l l o w t h e s t e p s i n t he Le ar ni ng Re so u rce 3.2.1: Re j e ct io n
R e g i o n I f Po p u l a t i o n Va r i an c e I s K n ow n

Ill ust ra tive Examp le: Le ft-taile d test where σ is unknown, a = 0 . 0 1, and n = 4 0
S i n c e t h e va r i a n c e i s u n k n o w n b u t t h e s a m p l e p o p u l a t i o n i s c o n s i d e re d
s u f f i c i e n t ly
la rge (n ≥ 3 0), the n by C LT, we us e z-sc o re a s the re fe re n c e to fi nd the c ri t i ca l value.
This
is a le f t-tai le d te s t, so the c ri tica l va lue we need is negative. The so lution is z = −2 .3 3.
The rejection region is z ≤ −2.33.

z = −2. 33

Learning Resource 3.4: Video Lesson

Wa tc h the v id e o be low fo r ad d it io na l re so urce s.

C l i c k h t t p s: / / w w w . y o u t u b e . c o m / e m b e d / G 9 O I X i O W q u Y ? s t a r t = 2 7 0 & e n d = 9 2 5 l i n k t o open
re s ou rc e .
Learning Task 3.1: What Is My Value?
Learning Task 3.2: Think Critically!
D i r e ct i o n s : I d e n t i f y a n d g ra p h t h e c r i t i c a l va l u e o f e a ch g ive n pro b le m. Sha d e the re j e cti o n
re g i o n a n d s ke t c h t h e c u r ve o n a s e p a ra t e s h e e t o f p a pe r.

1. A s u r ve y re p o r t s t h e me a n a g e a t d e a t h i n t h e P h i li p p i ne s i s 7 0 .9 5 ye a rs o ld . An a g e n cy
e x a m i n e s 1 0 0 r a n d o m ly s e l e c t e d d e a t h s a n d o b t a i n s a m e a n o f 7 3 ye a r s w i t h
s t a n d a rd d e v i a t i o n o f 8 .1 ye a rs. At 1 % leve l o f s i gn i f i c a n ce , t e st wh e th e r the a g e n cy ’ s
d a ta sup p o rt t h e a l t e r n a t ive hy p o t h e s i s t h a t t h e p o p u l a t i o n m e a n i s g re a t e r t h a n 7 0 .9 5 .

cr i t i cal value =
n =
“ =
t ai le d te st :
te s t s t a t i st i c :

2. Th e me a n t i m e c o s t u me r w a i t s i n l i n e b e f o re c h e c k i n g i n a gro c e r y c ha i n i s le s s tha n 1 0
mi n u t e s . To ve r i f y t h e p e r fo r ma n c e o f t h e s t o re , t h e o b t a i n i n g m e a n t i me o f 2 5
c o stu me rs i s 9 .5 mi n u t e s w i t h s t a n d a rd d e v i a t i o n o f 1 .6 m i n u t e . U s e t h e s e d a t a t o
t e s t t h e n u ll hy p o t h e s i s t h a t t h e m e a n t i m e i s 1 0 m i n u t e s , a t 0 .0 1 l e ve l o f s i gn i f i c a n ce .

cr i t i cal value =
n =
“ =
t ai le d te st :
te s t s t a t i st i c :
G e n e ra l D i r e c t i o n s:
(1 ) Su bmi t yo u r an swe rs o n d o c . fi le usi ng thi s sa m ple f i le na me . (co m ple te n a m e ___ti tle of
Ac t iv i t y ) e . g . D e l a C r u z , J u a n M ._ _ LT 3 .2
(2 ) Wr i t e yo u r s o l u t i o n s o n t h i s a n s we r s h e e t . o r S c a n / t a ke a p i c ture yo ur so luti o n s a nd t he n
u p l o a d yo u r wo r k u s i n g f i l e n a me fo r m a t .
( 3 ) S h ow c o mp l e t e s o lu t i o n s . B o x /B o ld yo u r f i n a l a ns we r.

Learning Task 3.3: Deepen Your Understanding

Learning Task 3.4: What Have I Learned?
 48

LESSON 4

Learning Resource 4.1: Introduction

O n e o f t h e s t e p s i n hy p o t h e s i s t e s t i n g i s t h e c o m p u t a t i o n o f te s t s t a t i s t i c . R e me mb e r
t h a t i t i s t h e va l u e c a l c u l a t e d f ro m a s a m p l e d a t a wh i c h i s n e e d e d w he the r yo u re j e c t the null
hy p o t h e s i s o r n o t . I n t h i s l e s s o n, yo u w i ll le a rn ho w to c o mpu te th e te st sta ti s ti c o n
a p o p u la t i o n me a n p a r ti cul arly the t -te s t a nd z- te st . It i s a ski ll tha t yo u ne e d to d eve lo p to
be a b l e t o d e t e r mi n e w h e the r yo u re j e c t the null hy p o the s i s o r o the rw i s e yo u wi l l a pp ly
yo u r k n o wl e d g e a n d s k i l l s o n s o lv i n g p ro b l e m s i n hy p o the si s te s ti ng . Eve n tua lly, yo u w i ll
d e c id e wh e th e r yo u wil l re je c t the n ull hy p o the s i s o r n o t .

H y p o t h e s i s t e s t i n g i s a m e t h o d o f t e s t i n g a c l a i m o r hy p o t h e s i s a b o u t a p a ra me t e r in
a p o p u l a t i o n u s i n g d a t a m e a s u r e d i n a s a m p l e . I n t h i s m e t h o d , we t e s t s o m e hy p o t h e s e s by
d e t e r m i n i n g t h e l i ke l i h o o d t h a t a s a m p l e s t a t i sti c c o uld have be e n s e le ct e d a nd i f
the hy p o t h e s i s re ga rd i n g t h e p o p u la t i o n p a ra m e t e r wa s t r u e .

A t t h e e n d o f t h is le s so n , yo u a re a ble to :

• c o mp u t e f o r the te st sta ti s ti c va lue (p o pu la ti o n m e a n) ; a nd

• d r a w s c o n c l u s i o n a b o u t t h e p o p u la t i o n m e a n b a s e d o n t h e t e s t - s t a t i s t i c va l u e a n d
the re je ction re gion.
 49

Learning Resource 4.2: Computing for Test Statistic Values for

Population Mean

T h e re a re t wo s p e c i f i c t e s t s t a t i s t i c s u s e d fo r h y po th e s i s t e st i ng co n c e rn i n g m e a ns : z- te st
and t-test.

z—
test

z— t—
test test

A . I n f i n d i n g t h e z -va l u e , u s e t h e fo r mu la b e low :
z = μ

where : = sample mean

μ = population mean
n = sample size
σ = p o p u l a t i o n s t a n d a rd d e v i a ti o n

B . The fo rmu la fo r the t-val u e , is:

t= μ

where: = sample mean

μ = population mean
n = sample size
s = s a m p l e s t a n d a rd d e v i a t i o n
 50

Learning Resource 4.2: Computing for Test Statistic Values for

Population Mean
E xa m p l e 1: C o mp u t e the z-va lue give n the fo llowi ng i n fo rm a ti o n. U se o n e - ta i le d t e st a nd 0 . 0 5
leve l o f s ig nificance.
x̅ = 71.5 μ = 70 σ = 8 n = 100
S o l u t i o n: S i n c e σ i s k n o w n a n d n ≥ 3 0 , we w i l l u s e z -t e s t . T h u s, we h ave :

x Fo rm ula fo r z- te st
̅ μ
z =

= 71. 5 − 70 S u b s t i t ut e t h e g ive n t o the fo r mula

8
√10 0

= 1. 5 S i mp li f y
8
10

1. 5
=
0. 8

= 1. 875 Therefore, the computed z-value is 1.875.

E xa m p l e 2: T h e g o ve r n m e n t c la i ms t h a t t h e m o n t h ly e x p e n s e s o f a F i l i p i n o fa m i l y w i th fo ur
members is P10,000. A sample of 26 family’s expenses has a mean of P10,900 and a
s t a n d a r d d e v i a t i o n o f P 1 ,2 5 0 . I s th e re e n o u gh ev i d e nc e to re j e ct t he gove rnm e n t’ s c la i m a t a
= 0. 01?

S o l u t i o n : L e t u sx f i r s t i d e n t i f y t h e g ive n . Thus , we h ave :

̅ = P 10,900 μ = P 10,000 s = P 1,250 n =
26
S i n c e n < 3 0 a n d p o p u l xa t i o−n s t a n d a rd d e v i a ti o n i s u n k n o w n, we w i ll us e t- te s t:
Fo rm ula fo r t-te st
t = ̅ μs
√n

= 1 0,9 00 −1 S u b s t i t u t e t h e g ive n t o the fo rm ula

0 ,00 0
1,250
√26
= 900 S i mp li f y
1250
√26

900
=
245. 10
Therefore, the computed t-value is 3.671 .
= 3. 671
Learning Resource 4.3: Drawing Conclusion
I n t e s t i n g hy p o t h e s i s o n t h e p o pu la ti o n m e a ns , fo llow the ste ps be low:
1. S ta t e t h e n u l l hy p o th e s i s H o a n d t h e a l t e r n a tive hy po t he s i s Ha .
2. D e t e r mi n e t h e t e s t s t a t i s t i c t h a t w i l l b e u s e d t o c o n d u c t t h e hy p o th e s i s t e s t . T h e n , c a lc ula te
it s va lue .
3. Find th e cri tic al val ue fo r the test
4. D raw the c ritic a l re gio n .
5. D e c i d e a n d d raw a c o n c lu s i o n b a s e d o n t h e c o m p a r i s o n o f t h e c a l c u l a te d va l u e o f t h e t e s t
s tati stic and th e c ri tic al val ue o f the te s t
 51

In t h i s p a r t o f t h e l e s s o n , w e w i l l f o c u s o n t h e la st ste p: D raw i ng c o n clu si o n s.

I n a r i g h t - t a i l e d t e s t , i f t h e c o m p u t e d v a l u e i s g r e a t e r t h a n t h e c r i t i c a l va l u e , w e
re j e c t t h e n u l l hy p o t h e s i s a n d s u p p o r t t h e a l t e r n a t ive hy p o t h e s i s . B u t i f t h e c o m p u t e d va l u e
is le s s than the cr itic al valu e , we fa i l to re j e c t t he n ull hyp o the si s a nd the
a lt e rn ative hy p o t h e s i s i s n o t s u p p o r t e d .

critical value critical value

Gra p h

computed value computed value

Decision Reject H 0 The re i s no t e no ugh ev id ence to reject H 0

I n a l e f t - t a i l e d t e s t , i f t h e c o m p u t e d va l u e i s l e s s t h a n t h e c r i t i c a l va l u e , w e re j e c t
t h e n u l l hy p o t h e s i s a n d s u p p o r t t h e a l t e r n a t ive hy p o t h e s i s . B u t i f t h e c o m p u t e d va l u e i s
g re a te r th an the c rit ica l val ue , we fa i l to re j e ct the n ull hyp o the si s a nd the
a lte r nat ive hy p o t h e s i s i s n o t s u p p o r t e d .

critical value critical value

Gra p h

computed value computed value

Decision Reject H 0 Th e re i s no t e n o ug h e vi dence to reject H 0

In general, if the absolute value of the computed value is greater than the
a bso lut e va lu e o f th e critical value, we reject the null hypothesis and support the
alternative hypothe sis. But if the absolute value of the computed value is less than
t h e ab solut e va lue of the cri tica l va lue , we fail to re je ct the null hypothesis and the
a l t e r n a t ive hy p o t h e s i s i s n o t s u p p o r t e d .

In g e n e ra l , t h e d e c i s i o n me t h o d wh e n u s i n g z -t e s t a n d t- te s t i s :

Comparison z c omp u ted ≥ z a or t c omp u ted ≥ t a z compu ted < z a or t c omp u ted < t a
Decision Reject H 0 The re i s n o t e no u gh ev i d e nc e to
reject H 0

Learning Resource 4.3.1: Examples: Drawing Conclusion

Exam p l e 1: What w ill be the d e ci sion if z a = 1. 8 75 and z c o m p u t e d = 1. 9 6 ?

A nswe r : Si nc e zc omp u ted > z a, we re je ct Ho. Thus, we su pp o rt Ha.

Exa m p l e 2: Wh a t w i l l t h e d e c i s i o n b e i f we have the gra ph o n

th e rig ht?

An swe r : Si nc e t c o m p u t e d is at t he r ig ht o f t he c ri ti c a l va lue t a ,
t c omputed
t h e re i s n o t e n o u g h e v i d e n c e t o re je c t H o . T h u s, we acce p t H o . ta
Exa m p l e 3: A s u r ve y re p o r t s a c u s t o m e r i n t h e d r ive t h r u l a n e o f o n e fa s t f o o d cha i n sp e nd s
e i g h t mi n u t e s t o wa i t fo r h i s /h e r o rd e r . A sa m ple o f 2 4 cu sto m e rs a t the d rive thr u la ne
 52

s h o w e d m e a n o f 7 . 5 m i n u t e s w i t h a s t a n d a rd d e v i a ti o n o f 3 . 2 m i n u t e s . Is t h e wa i t i n g t i m e a t
t h e d r ive t h r u l a n e l e s s th a n t ha t o f t h e s u r ve y m a d e ? U s e 0 .0 5 s i g n i f i c a nc e leve l.

Solution:

Hypotheses Hypothesis Po p u l ati o n L e ve l o f Number Sample z-

Te s t S t a n d a rd Significance of Mean te s t
Deviation Sample or t-
Known/U nknown te s t
H0 : μ ≥ 8 Left-taile d σ is unknown. a = 0.05 n = 24 x 7.5 = t-test
Ha : μ < 8 test s = 3.2 ̅

Si nc e the var ian ce is u nknow n , we use t- sc o re wi t h d f = 2 4 − 1 = 2 3 a s th e re fe re nc e t o

d e te r mi ne the c riti ca l va lue . Thi s is a le f t- ta i le d te st , s o th e c ri ti c a l va l ue we n e e d i s
n e ga tive . The critical value is −1.714 and the re jecti on re gion is t ≤ −1. 714.

rejection region′

criti cal value

t =
−1. 714

x − 0. 5
̅ = = −0. 765
μ 3. 2
t c o mp u ted = =
√24

rejection region′

c ritical value
t = −1. 714

tcomputed = − 0 . 7 65

S i n ce t c o m p u t e d > t a , t h e r e i s n o t e n o u gh ev i d e nce to re j e ct H 0 .
T h u s , c u s t o me r s i n a d r ive t h r u l a n e o f a f a s t - fo o d c h a i n s p e n d s e i g h t m i n u te s t o wa i t
for their order.

Learning Resource 4.3.2: Examples: Drawing Conclusion

C l i c k h t t p s : / / y o u t u . b e / A s N 1 V k 9 l 8 3 ol i n k t o o p e n r e s o u r c e .

Learning Task 4.1: Am I z -test or t-test?

Directions:
(1) Thi s i s f ive it e ms s ho rt an swe r quiz. 2 points for each item.
(2) Fin d the c o mp ute d z-va lue o r t-va lue o f the fo llowi ng g iv e n condi tions.
(3) Always begin your answer with z = or t = .
( 4 ) Wri te yo ur an swe r to the n e a re s t tho usa nd ths . .
 53

Learning Task 4.2: The Corona!

 54

Learning Task 4.3: Reject or Accept Ho?

D i r e c t i o n s : D e t e r m i n e t h e d e c i s i o n f o r e a c h o f t h e f o l l ow i n g g ive n t h e c o m p u te d z- t e s t
o r t -te st .
N o t e : Yo u n e e d t o i d e n t i f y t h e c r i t i c a l v a l u e f i r s t f o r s o me o f t h e i t e m s .
 55

Learning Task 4.4: What I Have Learned

D ire ct io ns :
( 1 ) Th is is five i te ms TRUE o r FA LSE q ui z .
( 2 ) C h o o s e TRU E i f t h e s t a t e m e n t p ro v i d e d i s c o r re c t, o th e rw i s e c ho o s e FALS E.
(3) Yo u h ave o nly 2 atte mpts.
(4) O ne p o in t e ach item.
 56

LESSON
5

Learning Resource 5.1: What I Need to Know?

I n t h e p re v i o u s mo d u l e s , yo u h ave l e a r n e d a l l t h e s t e p s o n h ow to te s t hy po t he s i s c o nc e rn i n g
p o p u l a t i o n m e a n a n d s a m p l e m e a n u s i n g t h e c r i t i c a l va l u e a p p ro a c h . Yo u a l s o a p p l i e d t h o s e
c o n c e p t s i n s o lv i n g re a l -life pro b le m s. O f co u rse , the pro ble ms pre se nte d we re li m i te d
to t e s t i n g h y p o t h e s i s c o n c e r n i n g p o p u l a t i o n m e a n .
T h i s t i me , yo u w i l l l e a r n h o w t o t e s t hy p o t h e s i s i nvo lvi ng a no the r pa ra m e te r, the po p ula t i o n
p ro p o r ti o n . A re t h e s t e p s i n t e s t i n g hy p o t h e s i s o n p o p ula ti o n p ro po r ti o n the sa me a s th e ste ps
yo u h ave l e a r n e d ? I s i t e a s i e r t o t e s t hy p o t h e s i s c o nc e r ni n g p o pula ti o n pro p o rti o n
tha n p o p u l a t i o n m e a n ? T h e s e a r e s o m e o f t h e q u e s t i o n s yo u m ay a n s we r yo u r s e l f a s yo u g o
a lo n g w i t h t h e n e x t mo d u l e s . S p e c i f i c a l ly, yo u a re ex pe ct e d to :
• f o r mu l a t e a p p ro p r i a t e n u l l hy p o t h e s i s a n d a l t e r n a t ive hy p o the s i s o n a p o pu la ti o n
pro po r ti o n; an d
• id e nt ify ap pro p ria te te s t s tat isti c i nvo lv i n g po p ulation proportion;

A c t iv i t y 1
M a t c h t h e g ive n t e r m s / p h r a s e s i n C o l u m n A w i t h t h e c o r r e c t s y m b o l s i n C o l u m n B .
A B
1. A lte rna tive Hy po the si s n
2 . S a mp l e P ro po rti o n α
3 . N u l l H y p o t h e s is p
̂
4. Po p ula tio n Pro p o rtion Ha
5 . S a mp l e S i z e q
6 . Val ue o f 1 - p
7. Level of Significance Ho
p
Answer the following questions:
1. How did you find the activity?
2 . We re y o u a b l e t o re c a l l t h e d i f f e re n t n e c e s s a r y s y m b o l s u s e d i n t e s t i n g h y p o t h e s i s
correctly?
3. Did you encounter both familiar and unfamiliar symbols?
4. What is the importance of those symbols?
 57

Solution:
1. H a 5. n
2. p 6. q
̂
3. H o 7. α
4. p

Learning Resource 5.2: Formulating Hypothesis Concerning Population

Proportion

O n c e yo u a l r e a d y k n ow t h a t yo u a re d e a l i n g w i t h a p o p u la t i o n p ro p o r ti o n , yo u c a n c o n d u c t
t h e hy p o t h e s i s t e s t . Yo u c a n s t a r t w i t h t he f i r s t s t e p o f a hyp o the si s te st whi ch i s to d e te rm in e
t h e hy p o t h e s e s . I n o rd e r t o fo r m u l a t e n u l l a n d a lt e r n a t ive hy p o t h e s i s c o n c e rni ng
p o pula tio n p ro p o r ti o n s , yo u c a n w r i t e t h e m i n s e n t e n c e f o r m o r yo u c a n u s e d i f fe re n t
s y mb o ls. He re , yo u w ill us e the sy mbo ls p fo r the p o pu la ti o n p ro po r ti o n.

Re m e m b e r t h a t t he hy p o t h e s e s a re c la i m s a b o u t t h e p o p u l a t i o n p ro p o r t i o n , p . T h e n u l l
hy p o t h e s i s s tate s tha t the p ro po r tio n i s e qua l to a sp e c i f i c va lue o r hy po th e s i z e d p ro po r ti o n,
p 0 . O n t h e o t h e r h a n d , t h e al te r n a t ive hy p o t h e s i s i s t h e c o m p e t i n g c l a i m t h a t t h e p o p u l a tio n
pro po r ti o n is le s s th an , g re a te r tha n o r not equal to p 0 .
I f yo u a re g o i ng to wr ite the nu l l hy p ot h e sis i n se n te nc e fo rm, yo u w i ll usu a lly us e “i s ” o r “ is
e qu a l t o ”. In s y mb o l s , yo u are go i ng to u se :
Ho: p = p 0

M e a nwh i l e , t o fo r mu la t e al te r n a t ive hy p o t h e s i s i n s e n t e n c e fo r m o r i n s y m b o ls, yo u wi l l j u st

re me mbe r the A l tfo
e rllowing:
n a t ive H y p o the s e s
CLUES/WORDS USED
(SYMBOLS TO BE USED)
a . H a: p < p 0 sm a lle r, le ss , d e c re a se d , fe we r , lowe r
b . Ha : p > p 0 la r ge r, g re a t e r, mo re , i nc re a se d
c. Ha: p ≠ p 0 d i f fe re n t , n o t e qua l to , cha n ge d

wh e re p is the p o pu lati o n p ro po r tio n

p 0 is the hy po th e s iz ed proportio n

I n t h e g ive n s y mb o l s a s s h o w n a b ove , l e t t e r s a a nd b a re use d i n a o ne - ta i le d te s t o r o n e - s i d e d

tests (directional) while lette r c is use d for a two-taile d test (non-d irecti onal). For the
purpose o f thi s l e ss o n, the ta ble b e low shows the d i ffe re nc e s be t we e n o n e - ta i le d te s t a nd
two -tai le d te s t .

O n e - Ta i l e d Te s t T w o - Ta i l e d Te s t
• A l t e r n a t ive hy p o t h e s i s c o n ta i n s the • A l t e r n a t ive hy p o t h e s i s c o n ta i n s the
greater than (>) or less than (<) inequality (≠) symbol.
s y mb o ls . • It h a s no d i re ct i o n.
• It is d irectional (either right-tailed or
left-tailed)

T h e n e x t t a b l e b e l ow s h o ws t h e n u l l a nd a lte rn a tive hy po t he s e s s ta te d to ge the r w i th the ty p e s

o f hy p o t h e s i s t e s ts .
R i g h t - Ta i l e d Te s t L e f t - Ta i l e d Te s t T w o - Ta i l e d Te s t
N ul l H y p o t h e s is Ho: p = p 0 or Ho: p = p 0 or
Ho: p = p 0
Ho: p ≤ p 0 Ho: p ≥ p 0
Alternative
Hypothesis Ha: p > p 0 Ha: p < p 0 Ha: p ≠ p 0
 58

Le t’ s h ave the fo l lowin g exa mple s:

E x a m p l e 1 . I t h a s b e e n c l a i m e d t h a t 4 0 % o f s t u d e n t s i n a p a r t i c u l a r s e n i o r h i g h s c h o o l d i s l i ke
M a t h e m a t i c s . W h e n a s u r ve y wa s c o n d u c t e d by a re s e a rc h e r, i t s h o we d t h a t 1 4 5 o u t o f 8 0 0
s t u d e n t s d i s l i ke M a t h e ma t i c s . Te s t i f t h e c l a i m wa s d i f f e re n t a t α = 0 .0 5 l e ve l .
Null Hypothe sis (Ho):
I n t h i s e x a mp l e , t h e hy p o t h e s i z e d p ro p o r ti o n i s 4 0 % o r 0 .4 0 . He nc e , t he n ull
hy p o the s is w ill be ,
The proportion of students who dislike Mathematics is 40%.
I n s y m bo ls , yo u c a n w r i t e ,
Ho: p = 0.40
Al te rn ative Hypothe sis (Ha):
O u r c u e wo rd h e re i s “d if fe re n t” wh i ch m e a ns “ no t the sa me ” o r “ no t e qu a l”. Th e re fo re ,
the alte rn ative hy po th e s is is,
The proportion of students who dislike Mathematics is not equal to
40%.
I n s y m b o l s , yo u c a n w r i t e ,
Ha: p ≠ 0.40

S i n c e t h e wo rd “ d i f fe r e nt” is use d i n t he g ive n pro b le m , the sy mbo l to be us e d in

alte rn ati ve hypothesis is “≠” .

N o t e: T h i s i s a t w o - t a i l ed t e st o r no n -di re ct i on a l .

E x a m p l e 2 . A c e r t a i n s e n i o r h i g h s c h o o l p l a n s t o o p e n S T E M ( S c i e n c e a n d Te c h n o l o g y,
E n g i n e e r i n g , a n d M a t h e m a t i c s ) a s a n a c a d e m i c t ra c k o n ly i f 6 0 % o f t h e s t u d e n t s i n
t h e i r j u n i o r h i g h s c h o o l w i l l e n ro l l o n t h e f o l l o w i n g a c a d e mi c ye a r. A sur vey c o nd uc te d
a mo n g a ra n d o m s a mp l e o f s t u d e n t s re ve a l e d t h a t 4 5 0 o u t o f 1 0 0 0 s t u d e n t s w i l l e n ro ll . I s t he
e xp e c te d e n ro l l m e n t s i g n i f i c a n t ly l o w e r t h a n t h e d e s i re d e nro llm e n t? Te st a t α = 0 .0 5 l eve l.

Null Hypothesis (Ho):

Th e hy po t he s iz e d p ro po r tio n he re i s 6 0 % o r 0 .6 0 , the re fo re the n ull hy p o the s i s w i ll be ,
The proportion of students who will enroll on STEM strand is 60%.
In s y mb o l s , i t c a n b e w ritte n a s,
Ho: p = 0.60
Alte rna tive Hypothesis (Ha):
Yo u r h i n t i n fo r mu l a t i n g t h e a l t e r n a tive hy p o the s i s i n th i s exa mpl e i s t he phra se “ lowe r
th a n” wh i c h me a n s “ le s s t h a n”. S o , yo u r a l t e r n a t ive hy p o t h e s i s w i l l b e ,
The proportion of students who will enroll on STEM strand is lower than
60%.
wh i c h c a n b e w r i t t e n ,
Ha: p < 0.60

S i n c e t h e w o rd “ l ow e r ” i s u s e d i n the g ive n p ro ble m, the sy m bo l t o b e use d i n

alte rn ative hy pothesis is “<” .

N o t e: T h i s i s a o n e-ta iled test or di re ct i on a l .

Example 3. It has bee n claime d that 40% of qualified applicants passed in a

p a r t i c u la r j o b i n t e r v i e w . W h e n a s u r ve y wa s c o n d u c t e d by a re s e a rc h e r o f a c e r ta i n c o m p a ny ,
i t s h owe d tha t 9 0 o f 1 4 5 a p p l i c a n t s p a s s e d the j o b i n te rv i e w. Te s t i f th e cla i m wa s l a rg er a t α
= 0 .0 5 leve l.
Null Hypothe sis (Ho):
4 0 % i s t h e hy p o t h e s i z e d p ro p o r t i o n ; h e n c e yo u h ave t h e n u l l hy p o the si s
sta te d a s
The proportion of qualified applicants in a particular job interview is
40%.
A n d i t c a n b e w r i t te n i n s y m b o l s a s ,
Ho: p = 0.40
A lte r na tive Hypothesis (Ha):
Th e wo rd “ lar ge r ” i s sy n onym o us to “ gre a te r ” he n ce yo ur a lte rna tive
hy po th e s is w ill
be ,
The proportion of qualified applicants in a particular job interview is
larger than
40%.
Or in symbols, Ha: p > 0.40
 59

S i n c e t h e w o rd “ l a r g e r ” i s use d i n the g ive n p ro ble m, th e sy mb o l to be u se d i n

alte rn ative hy pothesis is “>” .

N o t e: T h i s i s a o n e-ta il ed test o r d i re ct i o na l .

Learning Resource 5.2.1: Null and Alternative Hypotheses

on a
Population Proportion
C l i c k h t t p s : / / w w w. y o u t u b e . c o m / w a t c h ? v = w E F Q 5 v P W Z k Al i n k t o o p e n r e s o u r c e .

Learning Resource 5.3: Identifying Test Statistic Involving

Population Proportion

D e a l i n g w it h va r i o u s p ro b le ms o r s i t u a t i o n s o f t e n t i m e s le a d s to c o nf us i o n . In thi s se ct i o n,
t a k e n o t e t h a t p r o b l e m s i nvo lv i n g p ro p o r ti o n s , u n l i ke i n p o p u la t i o n m e a n a n d s a m p l e m e a n ,
n e ve r u s e t e r ms s u c h a s “ave ra g e ” a n d “m e a n ” b u t “ p e rc e n t a g e ” i n s t e a d . L e t u s f i r s t
d e f ine wh a t p o p u la t i o n p ro p o rtio n is .

Po p u l ati o n p rop or t i on ( p) i s a p ar t o f the po p ula t i o n w i th a pa rticular a ttribute or trait

e x p re s s e d a s a f ra c t io n , d e c i ma l , o r p e rc e n t a g e o f the who le po p ula ti o n . In sy mb o l:
numbeT of membeTs numbeTinoftℎepopulation
membeTs in tℎe witℎ a paTticulaT attTibute
population
p =
p
̂
S a m p l e p ro p o r t i o n ( ) i s t h e ra ti o o f t h e n umb e r o f e le me n ts i n the sa mp le p o ss e ss i n g th e
c h afo
the rarmula
c t e r i s:t i c s o f i n te re st ove r the nu mbe r o f e le m e n ts i n the sa mpl e ( n ). It i s c o mp ute d
by numbeT of successes inn samples
p =
̂ numbeT of tTials oT size of tℎe sample
p x
̂
= n
wh e re p i s t h e p ro p o r t i o n o f t h e n u m b e r o f s u c c e s s e s i n n s a m p l e s a n d re a d a s “ p h a t ”
̂ x re pre se nts the numbe r of “succe sses” in n samples; and
n re p re s e n t s t h e si z e o f the sa mp le .

E x a m p l e 1 . Fo r a c l a s s p r o j e c t , a G r a d e 1 2 S T E M s t u d e n t w a n t s t o e s t i m a t e t h e p e rc e n t a g e
o f s t u d e n t s i n h i s s c h o o l wh o a re re g i s t e re d vo t e r s . Fro m 4 5 % G ra d e 1 2 stu d e nts , h e
su rve ys 5 0 0 s t u d e n t s a n d f i n d s t h a t 2 0 0 a re re g i s t e re d vo t e r s . D e t e r m i n e t h e va l u e o f p a n d
c o mp u t e fo r the s ample proportion p .
̂
So lut io n:
Th e p o pu lati o n p ro po r tio n is the ra te o r p e rc e nt use d f ro m the e nti re G ra d e 1 2
s t u d e n t s . T h e re fo re :
Pop u l at i on Pro po r t i on, p = 45% o r 0. 45

To find the sample proportio p n ( ), ide ntify the followi ng:

Sur veye d Grad e 1 2 stu d ê nts ( n ) = 50 0
Re g iste re d G rad e 12 students (x) = 200

The re fo re , the sa mp le pro p o rti o n w i ll be c o mp ute d a s fo llo ws:

p numbeT of successes inn samples
Sample Proportion, ̂ = n u m b e T o f t T i a l s o T s i z e o f t ℎ e sample

p =x
̂ n
2 00
p
̂ 500 =
p
̂ = 0. 4
 60

U s i n g t h e C e n t ra l L i m i t T h e o r e m i n Te s t i ng Po p u l a t i o n P r o p o r t i o n
Whe n te sti ng si tuat io ns i nvo lvi ng p ro po r ti o n, a p e rc e n ta g e , o r a p ro ba bi li t y, t he fo llow i n g
assumptions must be considered:
1 . Th e c o n d i t i o n s f o r b i n o mi a l e x p e ri me nt a re me t . Tha t i s, t he re i s a f i xe d n um be r o f
i n d e p e n d e n t t r i a l s w i t h c o n s t a n t p ro b a b i l i t i e s a n d e a c h t r i a l h a s two o utc o me s that we
u s u a l ly c la s s i f y a s “s u c ce s s ” ( p ) a n d “ fa i l u r e ” ( q) . T h e s u m o f p a nd q i s 1 . H e n ce , we
can write p + q = 1 or q = 1 – p .
2 . T h e c o n d i t i o n s n p ≥ 5 a nd n q ≥ 5 a re b o th sa ti sf i e d so tha t th e b i no mi a l d i stri buti o n
o f s a mp l e p ro p o r t i o n c a n b e a p p ro x i m a t e d by a n o r m a l d i s t r i b u t i o n w i th µ = n p a nd
σ = √ n pq . ( Howeve r, the sp e c i f i c n um be r va ri e s f ro m s o urc e to so urc e , so me a ut ho rs
u s e 1 0 i n s t e a d o f 5 d e p e n d i n g o n h ow g o o d a n a p p rox i m a t i o n o n e wa nts .)

L i ke w i s e , t h e s e c o n d a s s u m p t i o n s e r ve s a s t h e b a s i s t o d e t e r m i n e w h e t h e r t he s a m ple siz e
f ro m t h e p o p u l a t i o n p ro p o rtio n is su ff i c i e ntly la r ge o r no t . Re me mb e r t ha t t hi s ti me ,
the c o n d i t i o n t h a t s a m p l e b e l a rg e i s n ot n to a t le a s t 3 0 but i t sh o uld sa ti s fy the
se c on d a s s u mp t i o n . Fo r a l a r g e s i z e o f s a m p l e p ro p o r ti o n s, the Ce ntra l Li m i t Th e o re m ( CLT)
c an be u s e d .
N ow, l e t u s c h e c k t h e a s s u m p t i o n s f ro m t h e p re v i o u s s i t u a t i o n :
1 . It i s ev id e nt tha t the re s po n se s have only two outcome s: “regi stered voter” (success) or
“no t re g is te re d vo te r ” (fa ilur e). Therefore, the first assumption is met .
2 . To b e a b l e t o s a t i s f y t h e s e c o nd c o n d i ti o n, we fi nd the hy p o the s i z e d va lue o f the
po p ula tio n pro p o rti o n p = 0.45 whi le n = 500. To g e t q, q = 1 – p whi ch ma ke s
q = 1 – 0 . 4 5 where q = 0 . 5 5 .

T h r o u g h s u b s t i t u t i o n , i t s h o w s t h a t t h e s e c o n d a s s u m p t i o n i s a ls o m e t , s i n c e :
np ≥ 5 and nq ≥ 5
500 (0.45) ≥ 500(0.55) ≥ 5
5 and 275 ≥ 5
2 and
S i n c e we h ave s h o w n t h a t n p ≥ 5 a25 n d ≥nq
5 ≥ 5 , a ll c o nd i ti o ns a re m e t wh e re the s a m ple s i z e is
t r u l y l a r g e e n o u g h t o u s e C LT . I n t h i s c a s e , w e u s e z - t e s t s t a t i s t i c f o r p r o p o r t i o n s
d
bye nzoc to emdo r t h e c o m p u te d z- va l u e .
p − p −
z com = ̂ p oT z com = ̂ p

wh e re z c o m i s the z-test statistic for proportion.

p is the s ample proportion = .
̂
p i s t h e hy p o t h e s i z e d va lue o f the p o pu la ti o n pro p o rti o n.
n i s s a mp l e s i z e o r th e n u mb e r o f o b s e r va t i o n s i n the s a m ple .
q is equal to 1 – p.

Re m e m b e r t h e s e f o r m u l a s b e c a u s e yo u a re g o i n g t o u s e t h e m i n n e x t l e s s o n w he re t h e a c t u a l
c o mputa tio n fo r th e t e st st ati stic i nvo lv i ng p o p ula ti o n pro p o rti o n w i ll be held.
 61

Learning Task 5.1: Notice me!

(Assignment)
I d e n t i f y wh e t h e r e a c h i n d i c a te d p ai r o f hyp o the se s i s c o rre c t . If c o rre c t , i n d i c a te the se nte n c e
fo r m o f e a c h hy p o t h e s i s a n d If in co r re c t , give the co r re c t hy po th e s i s i n sy m bo ls be fo re
indicating the sentence form. Then, identify whethe r each will use a right-tailed, left-
tailed o r t w o - t a i l e d t e s t .

1. In a pu blic marke t , 6 5 % o f the ve n d o rs p re fe rre d to u se p la s ti c ove r p a p e r ba g s. Af te r

t h e l o c a l o rd i n a n c e wa s s i g n e d , 9 2 o ut o f 1 2 0 ra nd o mly se le c te d ve n d o r s
p re fe rre d p l a s ti c o ve r p a p e r b a g s . D o e s t h i s i n d i c a t e t h a t ve n d o r s i n t h a t p ubl i c
marke t have l e ss p re f e re n c e i n u s i n g p a p e r b a g s ? U s e 0 . 0 5 l e ve l o f s i g n i f i c a n c e .
Ho: p = 0 . 6 5
Ho:

Ha : p < 0 .6 5
Ha:

Te s t to be us e d :

2. T h e s c h o o l p r i n c i p a l i n a c e r ta i n p r iva te j un i o r h i gh sc ho o l c la i m e d tha t 3 5 % o f a ll
s t u d e n t s a re i n favo r o f t h e n e w P E u n i f o r m . A re s e a rc h t e a c h e r a s ke d h i s s t u d e n t s
t o ve r i f y t h e c la i m. Wi t h t h i s , 2 7 1 o u t o f 4 0 0 ra n d o m ly s e le c te d stu d e n ts a gre e d to
the n e w u n i f o r m.

U s i n g α = 0 .1 0 l e ve l , i s t h e re e n o u g h e v i d e n c e to c o nc lud e tha t th e p e rc e n ta g e o f
s t u d e n t s wh o a re i n favo r o f th e n e w P E u n i fo r m i s d i f f e re n t f ro m 3 5 %?
Ho: p = 0 . 3 5
Ho:

Ha: p > 0 . 3 5
Ha:

Te s t t o be us e d :

3. A re s e a rc h f o u n d o u t t h a t 5 % o f t h e s e n i o r h i g h s c h o o l s t u d e n ts i n a c e r ta i n sc ho o l
a re wo r k i n g s t u d e n t s . A re s e a rc h e r ra n d o m ly s e l e c t e d 3 5 o u t o f 3 0 0 s t u d e n t s wh o a re
wo r k i n g . I s t h e re a p e rc e n t a g e i n c re a s e i n t h e n u m b e r o f s e n i o r hi g h sc ho o l
stu d e n ts who are wo rkin g? U se α = 0 .0 1 leve l.
Ho: p = 0 . 0 5
Ho:

Ha: p ≠ 0 . 0 5
Ha:

Te st to be use d :

G e ne ra l D i r e c t i o n s:

( 1) S ubmit yo ur an swe rs on d o c . f ile u si n g t hi s sa m ple fi le n a m e . (c o mpl e te n a m e ___ti tle o f

Ac t iv i t y ) e .g . D e l a C r u z, J u a n M ._ _LT 5 .1

( 2) Wr i te yo u r s o l u t i o n s o n t h i s a n s we r s h e e t . o r S c a n /t a k e a p i ct ure yo ur s o luti o n s a nd
t h e n u p l o a d yo u r wo r k u s i n g f i l e n a m e fo r m a t .

( 3) S h ow c o mp l e te s o lu ti o n s . B o x /B o l d yo ur f i n a l a ns we r.
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Leaning Task 5.2: I can

(Quiz)
I n d i c a t e t h e va l u e o f p a n d p -h a t i n e a c h i t e m . A lw ays s t a r t w i t h t h e va l u e o f p t h e n t h e va lu e
o f p -hat se pa rat e d by a co mma ( ,). Yo u a re g ive n thre e (3 ) a tte mp ts fo r thi s ta sk.
 63

Learning Task 5.3: Fast Break

(Quiz)
G ive n t h e n u m b e r o f s u c c e s s e s a n d t h e s a m p l e s i z e , c o m p u t e fo r t h e va l u e o f t he s a m p l e
p ro p o r t i o n in a s fa st as yo u c an . ( A nswe r s i n ne a re st h und re d ths) . Yo u a re g ive n thre e ( 3 )
a t t e mp t s f o r t h i s tas k.
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Learning Task 5.4: On My Own

(Quiz)
Te l l w h e t h e r t h e s a m p l e i n e a c h p ro b le m i s su ff i ci e nt ly l a rg e e no ugh to use the C e n tra l Li mit
Th e o re m i n n o r ma l a p p rox imatio n. Yo u a re give n two ( 2 ) a tte mpt s fo r thi s ta sk.
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LESSON
6

Learning Resource 6.1: What I Need to Know?

Re c a l l : O n e p a r t i n t e s t i n g hy p o t h e s is i s d e te rmi ni n g i f the re su lts o f a the o ry o r the hy po th e s is

fro m the exp e ri me nt is pro b ably t rue o r s ta t i sti ca lly s i g ni f i c a n t. To b e a ble to d o thi s,
the rejection regio n or critical region will be e mploye d.

Fo r a t wo ta ile d o r two -taile d te s t, the re jection re gion i s on both the left a nd ri ght-taile d. For
a le f t-taile d te s t, the re je ctio n re gion is on the left. For a right taile d test, the reje ction re gion
is o n t he rig ht.
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N ow , h ow c a n we d e t e rmine th e re j e cti o n re g i o ns ? Le t us fi nd o u t!
Fo r this le ss o n, yo u are exp e c te d t o:
• id e nti fy a pp ro pr iat e re je ctio n re gi o n i nv olving population proportio n;
• co mpu te fo r the te s t-st ati stic va lue (po p ula ti o n proportion);
• d raw s c o n c l u s i o n a b o u t t h e p o p u la t i o n p ro p o r t i o n b a s e d o n t h e te s t sta ti st i c va lue
a nd the re je c tio n re gi o n; an d
• s o lve p ro b l e ms invo lvi ng te s t o f hyp o the si s o n the p o pu la ti on p ro po r ti o n.

Ac t iv i t y 1
I n e a c h o f t h e fo l l ow i n g s t a t e me n t s , fo r m u la t e th e a lt e r n a t ive hy p o t he s i s , H a t he n , d e te rmi ne
i f i t d e sc ri be s t wo -tai le d , r ig ht tai le d , o r le ft -taile d test. The first one i s done for you a s
an e xa mp l e .
1 . T h e hy p o th e s i s t h a t l e s s t h a n 2 0 % o f t h e p o p u l a t i o n i s r i g h t - h a n d e d .
Ha: p < 0 . 20 ; left-ta il ed
2 . T h e h y p o t h e s i s t h a t t h e p ro p o r t i o n o f A D H D s tu d e n t s i n t h e s c h o o l i s n o t 0 .4 0 .
3 . Th e hy p o t h e s i s t h a t m o re t h a n 4 5 % o f t h e b a ra n gay p o p u l a t i o n i s m a l e re s i d e n ts .
4 . Th e c l a i m t ha t l e s s t h a n 3 5 % o f t h e s t u d e n t s a re f l u e n t F i l i p i n o l a n g u a g e s p e a ke r s .
5. Th e p r i n c i p a l’ s c la i m t h a t 3 0 % o f G ra d e 4 s t u d e n t s s t ay i n th e p l a ygro und a f te r
classes.

Solution:
2. Ha: p≠0.40 ; two-tailed 4 . H a : p< 0. 3 5 ; l e f t - t a i l e d
3 . H a : p > 0 . 45 ; ri g h t -t a i l e d 5 . Ha : p ≠ 0 . 3 0 ; t w o - t a i l e d

Learning Resource 6.2: Identifying Appropriate Rejection Region

Involving Population Proportion

Th e re a re t wo ways t o t e s t t he hy p o t h e s i s : wi t h a p - va lue a ppro a c h a nd w i th a c ri ti c a l va l ue

a p p ro a c h . We w i l l c on s id e r the re je c ti o n re gi o n w i th t he c ri ti ca l va lue a pp ro a ch. The cri tic al
va l u e e n a b le s u s t o re je c t o r no t the nul l hy po th e s i s. Als o , i t i s ca lc ula te d thro ug h a lph a
( α ) leve ls an d sy mbo li zed by z or z t a b .

T h e s t a t e m e n t : “ T h e hy p o t h e s i s t h a t l e s s t h a n 2 0 % o f t he p o p u l a t i o n a re r i g h t - h a n d e d ” w h e re
Ha : p < 0 .2 0 i nd ica te s a le f t-ta ile d re je cti o n re g i o n. Ill ustra ti n g i t i n t he no rm a l c urve , we
wi ll c o me w ith:

Rejection Region (α)

No n - Re j e ct i o n
Re gi o n

z tab the critica l va lue

T h e i l l u s t ra t i o n a bove is fo r yo u to v isu a li z e how the sta te m e n t wo uld lo o k l i ke whe n p ut i nto
t h e n o r ma l c u r ve . N o tic e that the li ne re pre se n te d by z t a b s e p a ra te s th e cur ve i n to two re gi o ns .
T h e s h a d e d p a r t i s t h e re j e c ti o n re gi o n whi le th e no n - sha d e d pa r t i s the no n - re j e ct i o n
re gi o n o r t h e a c c e p t a n c e re g i o n / a re a . T h e re fo re , i t i s i mp o rta nt t ha t we d e te r mi n e the
value o f z t a b o r the c ri tica l valu e . Now , le t us proceed !
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L e t u s n ow d e s c r i b e t h e f o l l o w i n g impo r ta nt te r ms tha t we w i ll b e n e e d i ng i n o ur d i sc us si o n .

L e ve l o f S i g n i fi cance, α ( Gre e k Le tte r, al p h a) re fe rs to t he d e g re e o f si g ni fi c a n c e i n whi ch we

re je c t the nu ll hy po t he s is . It i s t he ba s i s fo r the c ri ti ca l o r the rejection regio n d ictate d by the
a lte rn ative hy po th e s is. The val ue s 0 .0 1 ( hi g hly si g n i fi ca nt) , 0 .0 5 (sta ti sti c a lly si g ni fi c a n t) an d
0 .1 0 ( s i g n i f i c a n t ) a re t h e c o m mo n va l ue s o f st a ti sti c a l si gn i f i c a nc e .

Re j e c t i o n Re g i o n i s t h e ra n g e o f t h e t e s t va l u e wh i c h i n d i c a t e s t h a t t h e r e i s a si gn i f ic an t
d if fe re n c e and t hat the nul l hy po th e s i s ( H o ) s ho uld be re je c te d .
N o n - Re j e c t i o n Re g i o n i s t h e ra n g e o f va l u e s o f t h e t e s t va l u e w h i c h i n d i c a te s t h a t t h e
d if fe re n ce was st ati stic al ly i ns ign if ic a n t a nd tha t we fa i le d to reje ct the null hypothesis (H o ) .

C r i ti cal Val u e , z t a b se pa rate s the re je c ti o n re gi o n f ro m the a c c e pta n ce re gi o n. It i s d e r ive d f ro m

t h e l e ve l o f s i g n i f i c a n c e a n d i s e x p re s s e d a s the sta n d a rd z- va lue .
We c a n u s e t h e t a b l e o f c r i t i c a l va l u e s fo r t h e c o m m o n ly u s e d leve ls o f si g ni fi ca nc e a s p re s e n te d
i n t h e p re v i o u s l e ss o ns.

Level of Significance
Te s t Ty p e
α = 0.01 α = 0.025 α = 0.05 α = 0.10
left-tailed -2.33 - 1.96 - 1.645 - 1.28
r i gh t-t ai led 2.33 1.96 1.64 5 1.28
two-tailed ±2.575 ± 2 .3 3 ± 1 .9 6 ± 1 .6 4 5

E x a m p l e 1 . A s a m p l e o f 1 0 0 s t u d e n t s i s r a n d o m ly s e l e c t e d f r o m P i n a g p a l a H i g h S c h o o l a n d
1 8 o f t h e m s a i d t h e y a re l e f t -h a n d e d . Te s t t h e hy p o th e s i s t h a t l e s s t h a n 2 0 % o f t h e s t u d e n t s
a re l e f t -h a n d e d by u s i n g α = 0 .0 5 as the le ve l o f si gni f i ca n ce .

W h at to d o :
a. Id e n tif y leve l o f significance .
b . Fo r m u l a t e t h e a lt e r n a t ive hy p o t h e s i s , H a .
c . D e t e r mi n e the c riti ca l va lue , z t a b .
d . Illus trate t he re je ctio n re gi o n i n the no rm a l c urve .

Solution:
a . Th e leve l o f s ig nif ic an c e is 0 .0 5 o r α = 0 .05.
b. T h e a l t e r n a t ive hy p o t h e s i s i s H a : p < 0 .2 0 .
c. To d e t e r m i n e the c riti ca l va lue u si n g t he ta bl e , we c o nsi d e r t he i nte rs e c ti o n o f the row
fo r t h e l e f t -t a i l e d te s t a nd the co lu mn fo r α = 0 .0 5 . He nc e , th e ta b le te l ls us tha t
t he c ri tic al val ue is - 1.645.
d. I l l u s t ra t i n g i t u n d e r t h e n o r m a l c u r ve m a k e s:

Re je cti o n Re g io n
α = 0.05 No n - re je c ti o n
Re gi o n

- 1.645 0
is the
critical value
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Fro m he re , yo u w ill d e ci d e wh e the r t he null hyp o the si s w i ll be re je c te d o r no t .

Example 2. In Kalinga Special Education School, a sample of 144 students was chosen and
a mo n g t h e m , 4 8 a re d i a g n o s e d w i t h Atte nti on D e f i c i t H yp e ra c tiv i ty D i s o rd e r ( AD H D ) . At α
= 0 .0 1 , t e s t t h e hy p o t h e s i s t h a t t h e p ro p o r t i o n o f A D H D s t u d e n t s i n t h e s c h o o l i s n o t 0 . 4 0 .

W h at to d o :
a. Id e ntif y le ve l o f significance.
b . Fo r m u l a t e t h e a lt e r n a t ive hy p o t h e s i s , H a .
c . D e t e r mi n e the c riti ca l va lue , z t a b .
d . Illus trate t he re je ctio n re gi o n i n the no rm a l c urve .

Solution:
a . Th e le ve l o f si gn if ica n ce is 0 .0 1 o r α = 0 .0 1.
b . Th e a l t e r n a t ive hy p o th e s i s i s H a : p ≠ 0 .4 0 d u e t o t h e e x p re s si o n “ i s n o t 0 .4 0 ”. This
exp lai ns why it i s n o n-d ire c ti on a l o r two -ta i le d .
c. To d e t e r mi n e t h e c riti ca l va lue us i n g th e ta bl e , we c o nsi d e r the i n te rs e c ti o n o f t he row
f o r t h e t wo - t a i l e d t e s t a n d the c o lumn fo r α = 0 .0 1 . He nc e , the ta b le t e lls us tha t the
cr itic al va lue is ±2.575.
d. Illus trati ng the re je c tio n re gio n i n th e n o rm a l c ur ve g ives:

Re je c tio n Re gi o n
α/2 = 0.01/2 No n - re je c ti o n
= 0 .0 0 5 Re gi o n

- 2 .5 7 5 0 2 .5 7 5

Learning Resource 6.3: Computing Test Statistic Value Involving

Population Proportion

S i t u a t i o n : A re c e n t s u r v e y d o n e b y t h e P h i l i p p i n e H o u s i n g A u t h o r i t y f o u n d t h a t 3 5 % o f t h e
population owns their homes. In a random sample of 240 heads of households, 78
re s p o n d e d t h a t t h e y o w n t h e i r h o m e s .

It is o bs e r vab le that the c ite d situ atio n d i d n ot us e no r me nti o n wo rd s li ke “ m e a n” o r “ave ra ge ”

b u t “ p e rc e n ta g e ” i n s t e a d . A l s o , i t u t i l i z e d c o u n t d a t a . P ro b l e m s s uc h a s thi s
i nvo lve s p o p u l a t i o n p ro po r tio n . Infe re n ce s i nvo lvi ng p ro po r ti o ns a re ma d e i n t he co n text o f
p ro ba bili ty o f “ s u c c e s s ”, p , i n a b i n o m i a l d i s t r i b u t i o n .

Fro m th e s i t u a t i o n t h a t we p re s e n t e d i n t he a bove a ctiv i ty, the re sp o nd e n ts h ave o nly two

po s si ble o pti o ns fo r the ir re s po n se s a nd tho se a re th e fo llowing:

Option 1 Th e y o w n t h e i r h o u s e . “ success” or p
O ptio n 2 T h e y d o n o t o w n t he i r h o use . “failure” or q

S h o w i n g i f t h e n u mb e r o f s a mp l e s i s l a r g e e n o u g h a s t h e C e n t ra l L i m i t T h e o re m s t a t e s , we
n e e d t o s a t i s f y t h e t w o a s s u mpti o ns . It i s ev i d e nt tha t the re s po n se s have o n ly two po s si ble
o ut co me s : “ow ne d” (s uc ce s s) or “n o t ow ne d” (fa i lu re ). Therefore, the cond iti on for
binomial
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ex pe rime n t is me t . A lso , to be ab le to sa ti s fy the co n d i ti o n t ha t n p ≥ 5 a nd nq ≥ 5 , we

find t h a t t h e hy p o the s ize d va lue o f th e p o pu la ti o n pro p o rti o n i s p = 0. 35 wh i le n = 240. To
ge t q, q = 1 – p makes q = 1 – 0 . 3 5 = 0 . 6 5 .

T h r o u g h s u b s t i t u t i o n , we c a n s h ow t h a t t h e s e c o n d c o n d i t i o n i s a l s o m e t , s i n c e :

np ≥ 5 and nq ≥ 5
240(0.35) ≥ 5 240(0.65) ≥ 5
84 ≥ 5 and 156 ≥ 5
and
S i n c e we h ave s h o w n t h a t n p ≥ 5 a n d n q ≥ 5 , a ll c on d i ti o ns a re me t whe re the sa m ple s i z e is
l a r g e e n o u g h t o u s e C e n t ra l L i mi t Th e o re m . I n t h i s c o n d i ti o n, the te s t sta ti s ti c to be us e d is
t h e z - t e s t s t a t i s t i c fo r p ro po r tio ns d e n o te d by z c o m o r t h e co m p u te d z-val ue .

We w i l l u s e t h i s fo rmu la in the examp le s tha t fo llow.

Z – Te s t S t a t i s t i c f o r Po p u l a t i o n P r o p o r t i o n
Re m e mb e r t h a t t h e fo r mu l a f o r the va lue o f z- te st sta ti s ti c fo r p op ula ti o n pro p o rti o n wo uld be :
zcom = OT zcom =

whe re: zcom is the z-te st statistic for proportion

p is the sa mple pro po r ti o n

p̂ i s t h e hy p o t h e s i z e d va lue o f the p o pu la ti o n p ro p or ti o n
n i s t h e s a m p l e s i z e o r t h e n u m b e r o f o b se rva ti o n s i n the s a m ple
q is equal to 1 - p

E x a m p l e 1 . L e t u s n o w d e te r mi n e t h e z - va l u e i n th e s i t u a t i o n p re s e n t e d p re v i o u s ly. To b e
able to solve it, we need to id entify first the va lues of the followi ng:
Z co m = ?
p = = = 0.325
̂
p = 35% = 0.3 5
n = 2 40
q = 1 – p = 1 – 0.35 = 0.65

T h e n , s u b s t i t u t e t h e s e va l u e s i n t h e fo r m u l a :
p −
z com = ̂p

= 0. 325 − 0.35

−0.025
=

0. 2275
√ 240
−0.025
=
√0.0009479
−0.025
= 0.03079
T h e re fo re , t h e c o mp u t e d z -va lue is z c o m = – 0.812.
I f yo u a re s t i l l a b i t c o nf us e d , he re i s a no t he r exa mp le .
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E x a m p l e 2 . Th e c la i m i s ma d e t h a t 4 0 % o f t a x f i l e r s u s e c o m p u t e r s o f t wa re t o f i l e t h e i r t a xe s .
I n a s a m p l e o f 5 0 , 1 4 use d c o mpute r s o ft wa re to f i le the i r ta xe s. To te s t Ho : p = 0 .4
ve rsu s H a : p > 0 .4 a t α = 0 .0 5 w h e re p i s t h e p o p u l a t i o n pro p o rti o n who use c o m pute r
so ftware to f i l e t h e i r t a xe s . A n d t o t e s t u s i n g t h e b i n o m i a l d i s t r i buti o n a nd te s t u si ng
the n o rma l a p p ro x i ma t io n t o t h e b i n o m i a l d i s t r i b u t i o n. D e te rm i n e fi r st the va lue o f z c o m .

Solution:
Fir st, d e te r min e the va lue o f the fo llowing:
Z co14
m = ?
x
p
̂ = n( ) = 50
= 0.28
p = 4 0% = 0.40
n = 50
q = 1 – p = 1 – 0.40 = 0.60
T h e n , s u b s t i t u t e pt h e−s e va l u e s i n t h e f o r m u l a :
z com = ̂p

0.28 −
= 0.40 (0
0.4050 .60)
√
−0.12
=

−0.12
=
√0.0048
−0.12
= 0.069
Th e re fo re , th e co mpu te d z-va lu e is z c o m = - 1.739.

Learning Resource 6.4: Solving Problems and Drawing Conclusions About

Population Proportion Based on Test Statistic Value and Rejection
Region

I n d raw i n g c o n c l u s i o n s , t h e re a re t w o d i f fe re n t a ppro a c he s tha t yo u may a pp ly: the c ri ti c a l

va l u e a p p ro a c h ( c o m p u t e d z - va l u e ) a n d p - va l u e a p p ro a c h .

C r i t i c a l Va l u e A p p ro a c h

I n a p p ly i n g t h e f ir st a pp ro ac h wh ich is d e te rm i ni n g the c ri ti ca l va lue ( whi c h yo u we re a lre a dy

ta u g h t i n t h e p re vi o us mo d ule s ) , yo u n e e d to c o nsi d e r t he fo llow i n g:
a . N u l l a n d A l t e r n a t ive H y p o t h e s e s;
b. Leve l of Significance (α);
c. C o m p u t e d Te s t S ta t i s t i c , C r i t i c a l V a lue ( i nc lud i n g re j e cti o n re g i o n) ; a n d
d. Decision (whethe r to re je ct or fa il to re je ct the null hypothesis (H o ) .

D e te rmi ne if th e t e st sta tis tic falls in the re j e c ti o n re gi o n . If i t d o e s, re j e ct the nul l hypothesis.

If it d o e s n o t , d o no t re je ct t he null hyp o the si s.

• If the c o mp ute d z -s tati sti c (z c o m ) i s > o r < the tabular value (z t a b ), reject the null hypothesis
(Ho) .
• If t he co mpu te d z-sta tis tic (z c o m ) f alls in the re je ction re gion, reject the null hypothesis (H o ) .
• If the c o mp ute d z -st ati stic (z c o m ) d o e s n o t fa ll in the re je ction region, fail to reject the null
hypothesis (H o ) .
 72

Example 1 . a. Ho : p = 0.85
H a: p < 0 .8 5
b. Leve l o f S ign if ic an ce : α = 0 .0 1
c . C o m p u t e d Te s t S t a t i s t i c :
G ive n : x = 3 2 5 p = 0 .8 5 n = 40 0
p
p x
̂
−p
̂ = com
Z =
n

= 325 = 0.81−0.85
(1−
400 0.85 4 00
0.85)
√
p
̂ = 0. 81 z com = −2. 24

T h e a l t e r n a t ive hy p o t h e s i s i s d i rec t i o n a l . H e n c e , o ne - ta i le d te s t sh a ll be use d .

U s i n g t h e A re a u n d e r t h e N o r m a l C u rv e Ta b l e , t h e c r i t i c a l v a l u e i s - 2 . 3 2 6 a t α = 0 . 0 1 l e v e l . T h ere
i s a n e g a t i v e i n t h e v a l u e d u e t o t h e d i re c t i o n o f t h e a l t e r n a t i v e h y p o t h e s i s.

d. D e c isi o n: Si nc e the c ompu te d te st sta ti st i c (z c o m ) z = -2 .2 4 d o e s n o t fa ll i n

the re je c tio n re gi o n, fail to reject the null hypothesis (H o ) .
C o n c l u s i o n : T h e re f o re , a t 0 . 0 1 l e v e l o f si g n i f i c a n c e , t h e re i s n o t e n o u g h e v i d e n c e t o
c o n c l u d e t h a t t h e re i s a d e c re a s e i n t h e n u m b e r o f s t u d e n t s w h o p re f e r m a l e
rather tha n fema le can didates.

P-Va l u e A p p r o a c h
W h a t i s p -va l u e ?
I n c r i t i c a l va l u e a p p ro a c h , a t e s t sta ti s ti c i s c o m pa re d wi th a cri ti c a l va lu e . Howeve r, i n p-
va lue app ro ac h ( s ho rt fo r p ro ba bili ty va lue ) , p ro ba b i li ti e s o r a re a s a re c o m pa re d. P-va lue
m e a s u r e s t h e c o n s i s t e n c y o f t h e s a m p l e s t a t i s t i c s w i t h t h e n u l l hy p o t h e s i s . H i g h P-
va l u e s me a n t h a t s a mp l e re s u lt s a re c o n s i s t e n t w i t h a t r u e n u l l hy p o t h e s i s wh i le l ow P -
va lue s a re n o t c o n s i s t e n t . I f t h e P- va l u e i s s m a l l e n o u g h , we c a n c o n c l u d e t h a t t h e
s a m p l e i s s o i n c o mp a t i b l e w i t h t h e n u l l hy p o th e s i s . T h e re f o r e , we c a n re j e c t the null
hyp o the sis fo r the e n t i re p o p u lati o n.
P- va l ue a p p ro a c h u s e s t h e f o l l ow i n g b a s i c p r o c e d ure s:
a . S t a t e t h e n u l l hy p o t h e s i s H 0 a n d t h e a l t e r n a t ive hy p o t h e s i s H a .
b. Se t the le ve l o f si gnificance α .
c . C a l c u l a t e t h e t e s t s t a t i stic .
d . C a l c u l a t e t h e p - va lu e .
e. M a ke a d e c i s i o n . C he c k wh e th e r t o re j e c t t h e n u l l hy p o t h e s i s by c o m p a r i n g p - va l u e t o
α.
• If the p -valu e < α, the n re je ct H 0 . Oth e r wi s e , d o no t re je c t H 0 .

Example 2. a . H0 : p = 0.5
p > 0.5
b . α = 0 . 0 5 , x = 1 3 , 1 7 2 and n = 2 5 , 4 6 8
p
c. U s in g the pfo rmula, = 0̂ .517 2
Z = −p ̂
com
n

p(1−p)
√ 0.5 )( 0.5
= 0. 5172−0.5
25 ,4 68

( )
√

zcom = 5 . 4 9

d . T h e p - va l u e i s re pre s e nte d i n the gra ph be low:

 73

< 0 .0 0 0 0

0 5 .4 9

p = P(z ≥ 5.49) = 0.0000 ≈ 0

e. Conclusion: Because the p-value is smaller than the significance level α =

0 . 0 5 , w e c a n re j e c t t h e n u l l h y p o t h e s i s . A g a i n , w e w o u l d s a y t h a t t h e re i s
s u f f i c i e n t / e n o u g h e v i d e n c e t o c o n c l u d e t h a t b o y s a re m o re c o m m o n t h a n g i r l s
i n t h e e n t i re p o p u l a t i o n a t α = 0 . 0 5 l e v e l .

A s s h o u l d a l w a y s b e t h e c a s e , t h e t w o a p p ro a c h e s l e a d t o t h e s a m e c o n c l u s i o n .

Ex ampl e 3 . Give n: a. n = 50
b. α = 0.0 1 s ig nif ic an c e le ve l
c. H 0 : The pro p o rtio n o f stud e n ts tha t wa nt to g o to the z o o i s 85 % .
H 0 : p = 0 .8 5
H a : Th e p ro po r tio n o f s tud e n ts t ha t wa nt to g o to the z o o is not 8 5% .
Ha : p ≠ 0 . 8 5
d. p 554
= 0 .7
̂
zcom =

= 0. 7554−0.85

(0.85 0. 15) )(
√ 50

zcom = - 1.87

½ ( p - value) ½ ( p - value)

- 1.87 0 1.87
p = P(z < -1.87) = 0.03074

S i n c e t h i s i s a t w o - t a i l e d t e s t , w e m u l t i p l y t h e p - v a l u e b y 2 ( re p re s e n t i n g t h e s h a d e d p a r t i n t h e
f i g u re a b o v e) . T h a t i s p = 0 . 03 074 x 2 = 0 .0 6 14 8.
e . C o n c lu s i o n : B e c a u s e p > α , w e f a i l t o re j e c t the n ull hy p o the s i s .
Th e re fo re , the re i s i n suf f i c i e nt ev i d e nc e to su gg e s t tha t t he pro p o rtion
o f stud e n ts that wa nt to g o to the z o o i s n o t 8 5 % .

To s o lve p ro b l e ms invo lv in g po p ula tio n p ro po r ti o ns , j us t fo llow the 5 - ste p p ro c e d u re .

E x a m p l e 4 . E ve r y ye a r , t h e a s s i g n e d t e a c h e r s d e t e r m i n e t h e B o dy M a s s I n d e x ( B M I ) o f
s t u d e n t s . I n a c e r t a i n p u b l i c j u n i o r h i g h s c h o o l , a s t u dy f i n d s t h a t 1 0 % o f G ra d e 7 s t u d e n t s
 74

o b s e r v e d a r e u n d e r we i g h t . A s a mp l e o f 7 8 0 G ra d e 7 s t u d e n t s we re ra n d o m ly c h o s e n a n d i t
was fo u nd o ut tha t 125 o f the m are u nd e rwe i g ht. Is th i s c la i m d i f fe re nt fo r the i r g ra d e
lev el a g e ? U s e 0 .0 5 l e ve l o f s i g n i f ic an c e .

Solution:
S T E P 1: S t a t e t h e n u l l a n d a l te r n a t ive hy p o t h e s i s.
H 0 : p = 0.10
Ha : p ≠ 0 . 1 0
S T E P 2 : C h o o s e a l e ve l o f s i g n i f i ca n c e . α = 0 . 0 5
STEP 3: Compute the test statistic.
G ive n : x = 1 2 5 p = 0 .1 0 n = 780
x p −p
p z com = ̂
̂= n
n
p(1−p)
125 √
0. 16−0.10
p
̂ 780
zcom = √
0.10 (1−0.10)
780
= z com =
p = 0. 0.06
̂ 16 0.03
zcom =
5. 59

S T E P 4 : D e t e r m i n e t h e c r i t i c a l va l u e.
S i n c e t h e a l t e r n a t i v e h y p o t h e s i s i s n o n - d i re c t i o n a l , t h e t w o - t a i l e d t e s t s h a l l b e u s e d . D i v i d e α
b y 2 w h i c h w i l l re p re s e n t t h e s h a d e d re g i o n . U s i n g t h e A re a U n d e r t h e N o r m a l C u rv e Ta b l e ,
cr i t i c a l v a l u e s a t 0 . 0 5 l e v e l o f s i g n i f i c a n c e f o r t w o - t a i l e d t e s t a re ± 1 . 9 6 .

α/2 = 0.025 α / 2 = 0 .0 2 5
No n - re j e c ti o n Re gi o n

- 1.96 0 1.96
Rejection Region Rejection Region

S T E P 5: Ma ke a d e c i si o n w h e t h e r to r e j e c t o r f ai l to r e j e c t t h e n u l l hy p o t h e si s. D raw a
conclusion.

DECISION: Since the computed test statistic zcom = 5.59 is greater than the critical value or
it falls in the rejection region, reject the null hypothesis.
C O N C L U S I O N : T h e re f o re , w e c o n c l u d e t h a t a t 0 . 0 5 l e v e l o f s i g n i f i c a n c e , t h e r e i s e n o u g h
e v i d e n c e t h a t t h e p e rc e n t a g e o f G r a d e 7 s t u d e n t s w h o a re u n d e r w e i g h t i s d i f f e re n t f ro m 1 0 % .

No te :
C o n c l u s i o n s a re a n s w e r s i n s e n t e n c e fo r m wh i c h i n c l u d e : 1 ) w h e t h e r t he re i s e no ugh ev i d e nc e
o r no t (bas e d o n the d e cision); 2) the leve l of si gni ficance; and 3) whethe r the original cla im is
su pp o rte d o r re je c ted .

C o n c l u s i o n s a re b a s e d o n t h e o r i g i n a l c l a i m wh i c h m ay b e t h e n u l l o r a l t e r n a t iv e hy po th e s is.
Th e d e c i s i o n s a re a lw ays b a s e d o n t h e n u l l hy p o t h e s i s .

Learning Resource 6.4.1: Hypothesis Testing - Solving Problems With

Proportions
C l i c k h t t p s: / / w w w . y o u t u b e . c o m / w a t c h ? v = 7 6 V r u a r G n 2 Q l i n k t o o p e n r e s o u r c e .
 75

Learning Resource 6.4.2: Hypothesis Testing for Proportions | Statistics

and Probability | TAGALOG-ENGLISH
C l i c k h t t p s: / / w w w . y o u t u b e . c o m / w a t c h ? v = h _ _ H Z E z E Z KQ Y l i n k t o o p e n r e s o u r c e .

Learning Task 6.1: Borderline

(Quiz)
C a re f u l ly re a d a n d a n a ly z e t h e fo l l o w i n g si tua t i o ns . Cho o s e the c o rre c t a nswe r f ro m t he
c ho i ce s p rov id e d fo r e a c h i te m . Yo u are g ive n two (2) a tte mpts for this task.
76
 77

Learning Task 6.2: Finding Zcom

(Quiz)
D e t e r mi n e t h e va l u e o f z c o m g ive n t h e fo llow i ng i nfo rma ti o n . A ns we rs sh o uld be ro un d e d o ff t o
t h e n e a re s t h u n d re d t h s . Yo u are g ive n thre e ( 3 ) a tte mp ts fo r thi s ta s k.

Learning Task 6.3: Accept or Reject

(Quiz)
Re a d a n d a n a l y z e t h e f o l l ow i n g s t a t e m e n t s . C h o o s e ACC E P T i f t h e s t a t e m e n t i s c o r re c t
o t h e r w i s e , c h o o s e R EJ E C T . Yo u a re g ive n t wo (2 ) a tt e m p t s fo r t h i s t a s k .
 78

Learning Task 6.4: Make Your Own

(A ssi gn me nt)
U s i n g t h e g ive n s e t o f va l u e s / p a r t s o f t h e t e s t o f hyp o the si s i nvo lvi ng p o pu la ti o n
p ro p o r t i o n s , c o n s t r u c t yo u r o w n wo rd p ro b l e m a b o u t t h e s p e c i f i e d t op i c i n e a ch n umbe r
a n d s o lve i t u s i n g t h e 5 -ste p pro c e d ure .

1. To p i c : N u m e ra c y ra te o f a ce r t ai n h i g h s c h o o l
α = 0.0 5
Ho : p = 0 .6
Ha : p ≠ 0 .6
2. To p i c : S p re ad o f v i r u s / b a c te r i a
Po pul atio n p ro po r tio n is 0 .8 5 .
N o n-d ire c ti o na l te s t

Ge n e ra l D i re c t i o n s:

(1 ) Sub mit yo ur a ns we r s o n d o c . f ile u si n g t hi s sa m ple f i le na m e . (c o mp le te n a m e ___ti tle of

Ac t iv i t y ) e .g . D e l a C r u z, J u a n M ._ _LT 6 .4

(2 ) Wr i t e yo u r s o l u t i o n s o n t h i s a n s we r s h e e t . o r S c a n /t a ke a p i ctu re yo ur so luti o n s a nd
t h e n u p l o a d y o u r wo r k u s i n g f i l e n a me f o r m a t .

( 3 ) S h o w c o m p l e t e s o l u t i o n s . B o x /Bo ld yo ur fi na l a ns we r.
 79

LESSON
7

M a k i n g s o u n d d e c i s i o n s i s a ve r y i m p o r t a n t s k i l l t h a t n e e d s to be d eve lo pe d a mo n g
i n d iv i d u a l s . S o me p e o p l e e ve n c la i m th a t l i f e i s t h e p ro d u c t o f e ve r y d e c i si o n h e m a ke s.
Thu s, t h e d a t a a n d va r i a b l e s i nvo lve d s h o u l d b e c a re f u l ly e x a m i n e d a n d s t u d i e d b e fo re
makin g d e c i s i o n s . A t t h e e n d o f t h i s m o d ul e , yo u c a n b e a b l e t o :
1 . Illus trate th e n atu re o f biva ri a te d a ta .
2 . C o n s t r u c t s a s c a t te r p l o t .
3. D e s cr ibe sh ap e (fo rm ), tre n d (d i re cti o n), a nd vari ation (strength) based on a scatte r
plot.
4. C a l c u l a t e t h e Pe a r s o n ’ s s a mp le co r re la ti o n c o e f fi c i e n t .
5. S o lve pro b le ms i nvo lv ing c o rre la ti o n a na lys i s .

Learning Resource 7.1 Illustrating the nature of bivariate data

A va r i a bl e i s a n a tt r i b u t e o r c h a ra c t e r i s t i c t h a t m ay t a ke m o re t ha n o n e va lu e whi ch
c a n e i t h e r b e me a s u re d o r c l a s s i f i e d . T h e h e i g h t a n d we i g h t o f s t u d e n t s , n u m b e r o f h o u r s
s t u d e n t s s p e n d i n s t u d y i n g a t h o m e , a n d d a i ly a l l o wa n c e o f s t u d e n t s a re e xa m p l e s
o f va r i a b l e s . Fro m s u c h va r i a b l e s , i n f o r m a t i o n i s c o l l e c t e d a nd a na lyz e d . If we a re give n
a b iva r i a t e d a t a , t h e d e g re e o f a s s o c i a ti o n be t we e n the two va ri a ble s c a n be d e te r mi ne d .
D a ta t h a t i nvo lve o n e va ria ble i s c a lle d u nivar iate d ata. U n iva r i a te d a ta a re o f te n
d e s c r i b e d u s i n g t h e m e a s u re s o f c e n t ra l t e n d e n c y ( m e a n o r ave ra g e , m o d e , a n d m e d i a n ) ,
va r i a t i o n s , o r o t h e r d e s cr iptive s ta tisti cs . H e re a re exa m ple s o f u niva ri a te d a ta :
Examples Var i able Involve d
D e p a r t me n t o f H e a l t h ( D O H ) r e c o rd e d the number of infected cases
n u m b e r o f i n f e c t e d C O V I D - 1 9 c a s e s f ro m
A pr il 1 4 to May 2 1 , 2 0 2 0 in the P hi li pp i ne s.
World health organization (WHO) summarized number of COVID- 19 recoveries
the number of COVID- 19 recoveries around the
world.
 80

D a ta t h a t i nvo lve two va ria ble s a re c a lle d bivar i ate d ata. The s ta ti sti c a l pro c e d ure
u s e d t o d e t e r m i n e a n d d e s cr ibe the re la ti o n shi p b e twe e n two va ri a ble s i s c a lle d
co r re lat i on a n a lys i s .
E xa m p l e s Var i able s I nvo lve d
I n Taya b a s C i t y p u b l i c m a r k e t , a c o n s u m e r s u p p ly a n d p ri c e o f ve ge t a ble
o b se rve d t hat the fe we r i s th e sup ply o f ve g e ta ble s,
the hig he r t he pri ce g e ts .
Th e Q u e z o n p ro v i n c i a l g o ve r n me n t gave e m p h a s i s numbers of household members
that li miti ng the number of household members a n d t h e ra t e o f Co V ID - 1 9 i nfe c ti o n
g o i n g o u t s i d e to p urc has e e s se ntia l g o o d s w i ll he lp
d e c re a s e t h e ra t e o f C O VID - 1 9 in fe c ti o n i n the
province

Learning Resource 7.1.1 Pearson Product-Moment Correlation

Coefficient
h t t p s : / / y o u t u. b e / f 7 6 W I A s M t _ 4

Learning Resource 7.2. Scatter Plot

S c a t t e r p l o t , s c a t te r g ra p h , s c a t te r d i a gra m, o r sc a tte r gra m i s a g ra ph i c al
re pre se n tat io n tha t shows th e re lati o ns hi p o r the co rre la ti o n o f t wo va ri a ble s o f
b ivari ate d a t a .
S ca tte r p lo t sh ows how po in ts co lle c te d f ro m a s e t o f biva ri a t e d a t a a re s c a tte re d o n
a C a r t e s i a n pla ne . It g ive s a g o o d vi sua l p i c ture o f h ow two va ri a ble s a re re la te d o r a ss o ci a te d
w i t h o n e a n o t h e r i n t e r ms o f f o r m , tre n d , a nd va ri a ti o n of co r re la ti o n . The fo r m o f po i nts
in t h e s c a t te r p lo t d e t e r mi n e s t h e s h a p e o f the c o rre l a ti o n o f th e va ri a bl e s. The tre nd
d e te r min e s the d ire c tio n o f the po i nts , e i the r t he va r i a b le s have po s i tive , n e ga tive , o r no
c o rre l atio n . The va r i a t i o n o r s t re n gth o f co r re la ti o n i s b a s e d o n the c lo s e n e s s o f the p o i n ts
o n a tre n d li ne , a n d i t d e t e r mi n e s wh e t h e r t h e va r i a b l e s h ave n o , w e a k, mo d e ra te ,
stro ng, o r pe rfe c t c o rre latio n.
I n c o n s t r u c ti n g a s c a t t e r p lo t , yo u s h o u l d k n o w h ow t o p lo t p o i nts i n a C a rte si an
p la n e . T h e i n d e p e n d e n t va r i a b l e w i l l a s s u m e t h e va l u e s o f x o r a b s c i s s a wh i l e t h e d e p e n d e n t
va r i a b l e w i l l a s s u m e the va lue s o f y o r o rd i n a te .
E xa m p l e 1
A M a t h t e a c h e r c o n d u c te d a s t u dy re ga rd i n g t h e p e r fo r m a n c e o f g ra d e 1 1 s t u d e n t s i n
G e n e ra l M a t h e ma t i c s . T h e i r ave ra g e g ra d e s we re t a ke n a t d i f fe re n t ti me o r p e ri o d . Th e d at a
are give n below.
O rd e r o f p e r io d o f the su bje ct 1 2 3 4 5 6 7 8
Ave rag e gra d e s 86 88 84 82 82 81 80 79
Fro m t h e d a t a g ive n , th e i n d e p e n d e n t va r i a ble i s the o rd e r o f the su bj e ct a nd the
d e pe nd e n t va ria ble i s th e ave ra ge g ra d e . Fro m th i s, o rd e r o f the su bj e ct w i ll be p lo tte d o n
the x-a x i s a n d g ra d e s w i l l b e p lo tte d o n the y- a x i s a s i llu stra te d be low.
 81

Example 2
A re s e a rch e r a ske d fo r the we ig ht o f 1 0 s tud e n ts t o ge t he r w i th the we i g ht o f the i r
mo the r (b io lo gi ca l) a nd c re a te d a sc a tter plot a s prese nted below.
Weight of mother (kgs) 65 69 74 78 59 81 76 80 81 75
We ight of students (kgs) 52 55 62 63 47 66 63 69 68 65
O n t h e g ive n , t h e i n d e p e n d e n t va r i a b l e i s t h e we i g h t o f the mo the r wh i le the d e p e n d e nt
va ria ble i s the we i ght o f the s tud e n t . Th e s ca tte r p lo t i s p re s e nte d be low.

U s i n g s c a t t e r p lo t , t h e re l a t i o n sh i p o f the va ri a bl e s i nvo lve d c a n be v i s ua l i z e d . Th e

s c a t t e r p l o t s h o ws t he s h a p e , t r e nd , an d va r i a t i o n of th e var i ab le s i nvolve d .
D o Yo u R e m e m b e r ?
Fro m a p re v i o u s l e s s o n i n M a t he m a ti c s , t h e c o n c e p t o f s l o p e h a s a lre a dy b e e n
d i s c u s s e d . Le t u s s e e h o w fa r yo u re m e m b e r f ro m yo u r G ra d e 8 A l g e b ra .

A l ine ha s a po s itive sl o pe if th e l i ne ri se s fro m le ft to right. A line has a negative slope

i f the line r is e s fro m right to left . A line with a ze ro slope is para lle l to x-axis.
U s i n g t h e s a m e c o n c e p t , t h e va r i a b l e s h ave p o si tive c o rre la t i o n i f t he p o i nts o n the
sc a tte r plo t fo ll ow a tre nd o f risi ng f ro m le f t t o right porti on of the gra ph. The varia bles have
n e gative c o rre lati o n if the points on the scatter plot follow a trend of rising from right to
left . Fina lly , the va ria ble s h ave no o r ne g li g i ble c o rre la ti o n i f the p o i nts a re sc a tte re d w i th n o
tre nd or direction of rise.
The c o rre lati o n o f the var iab le s c a n be d e s cri be d i n te rm s o f fo r m (sh ape) ,
trend (d i re ct io n) , a nd var i ati o n (st re ng th ) o f s ca tte r p lo t. The fo rm o f corre lation
can be d e t e r mi n e d b y the s ha pe o f p o i n ts o n a s ca tte r p lo t c a te go ri z e d a s l i ne ar o r
cu r v i l i ne ar. The fo r m o f co r re la tio n i s li ne a r i f the p o i nt s o n sc a tte r p lo t fo llo w a trend of
straight line. The f o r m o f s c a t t e r plo t i s no n - li ne a r i f the po i nts fo ll ow a tre nd of cu r ve
l ine . S amp le s ca tte r plo ts s how ing c ur vi li ne a r fo rm o f c o rre la tion a re give n below.
 82

Th e c o rre latio n o f va ria ble s ca n a ls o b e d e sc ri be d i n te rm s o f i ts tre nd o r d i re c ti o n .

The tre n d o f co r re la tio n c an b e po s i tive , ne ga tive , o r z e ro /ne gli gi b le d e pe nd i ng on
the d i re c t i o n o f t h e po in ts. The tre n d o f c o rre l a ti o n i s s um ma ri z e d i n t he ta bl e th a t fo llows.

T h e c l o s e n e s s o f t h e p o i n t s a ro u n d t h e t re n d l i n e d e t e rm i n e s the va ri a ti o n o r stre n gth

o f the c o rre lat io n be twe e n the va ri able s i nvo lve d . The c lo se r the po i nts to the tre nd line , the
s tro ng e r the c o rre lati o n o f the va ria ble s i s. Th e stre ngt h o f c o rre la t i o n be twe e n two
variables c a n b e p e r f e c t , s t ro n g , we a k , o r n o /n e g l i g i b l e c o r re la ti o n. To s um ma ri z e t he
stre ngt h o f corre lation, refe r to the table be low.
 83

T > 0.7

0.3 < T < 0.5

−0.3 < T < 0.3

 84

−0.5 < T < −0.3

-0.5 < r < - 0.7

r < -0.7

Two var ia ble s c an a lso have p e rfe c t po s i tive o r pe rfe c t n e ga tive c orrela ti on. In a sca tte r plot,
th e vari abl e s w ith pe r fe ct c o rre l atio n w i ll sh ow po i n ts tha t fa ll into a straight line .

Learning Resource 7.2.1 Pearson Product Moment Correlation

Coefficient (Part 2)
https://youtu.be/md2bil-SNDQ

Learning Resource 7.2.2 Pearson Product Moment Correlation

Coefficient (Part 3)
https://youtu.be/Y2yOC80fb38
 85

Learning Resource 7.3 Pearson’s Product-Moment Correlation

Coefficient
Th e Pe ar so n’ s sa mp le c o rre l atio n c o e f fi c i e n t ( a ls o kn ow n a s Pe a rso n ) , d e n o te d by r,
i s a t e s t s t a t i s t i c t h a t me as ure s the stre ng th o f the li ne a r re la ti o n shi p be twe e n two
var iabl e s . To f in d r, the fo ll ow i n g fo r mula i s us e d :

The correlation coefficient (r) is a number be twe en - 1 and 1 that d escribe s both
the stre ngth and the direction of corre lation. In symbol, we write - 1 ≤ r ≤ 1 .

Example 3
Te a c h e r s o f Pa g - a s a N a t i o n a l H i g h S c h o o l i n s t i l l e d a m o n g t h e i r s t u d e n t s t h e va l ue o f
t i me ma n a g e me n t a n d e xc e l le n c e i n e ve r y t h i n g t h e y d o . The ta ble be l ow shows the ti m e i n
h o urs sp e nt i n stu dyi ng ( X) by si x G ra d e 1 1 stu d e n ts a nd t he i r s co re s i n a te st ( Y ) .
S olve f o r t h e Pe a r so n ’ s sa m p l e co r re l ati o n co e ffi ci e nt r.

x 1 2 3 4 5 6
y 5 10 10 15 25 30

T h e n e x t s e c t i o n w i l l g u i d e yo u o n h o w t o c o m p u te t h e Pe a rso n p ro d u ct mo m e n t c o rre la ti o n
r.
 86

T h e re i s a r u l e o f t h u m b fo r in te r pre ti ng the s tre ngth o f a re la t i o ns hi p b a s e d o n i ts r.

Abs o lute va lue o f r S tre n g t h o f re l a ti o nsh i p
r < 0.3 n o ne o r ve r y we ak
0.3 < r < 0.5 we a k
0.5 < r < 0.7 mo d e ra te
r > 0.7 strong
r = 1 perfect
 87

Learning Resource 7.3.1 Pearson Product Moment Correlation

Coefficient (Part 4)
https://youtu.be/ziuwNf4J4uQ

Learning Task 7.1: Uni or Bi

D ire ct io ns : Id e nti fy whe the r the y invo lve univa ri a te o r biva r i a te d ata.
 88

Learning Task 7.2 Construct, Describe and Compute

D ire ct io ns :
(1) C o nst ruc t a s ca tte r p lo t o f th e g ive n biva riate da ta.
(2) D e s cr ibe th e fo rm , tre nd , a nd var ia t i o n o f the s ca tter plot.
( 3 ) C o mp u t e fo r t h e Pe a r s o n’s P ro d u ct- Mo me nt Co rre la ti o n Co e ff i c i e nt .
(4) Na me yo u r f ile by t he ff . fo rmat an d s ave i t a s a PDF: [Surname, Name__Se ction__LT7.2 ]
(5) Upload it to the google d rive provide d by yo ur tea che r.

1. Matalino High School is known for students who excel in Math. A researcher
recorded the IQ of the students and their scores on a 50- item Math test
as the focus of his study.

IQ scores 85 87 93 95 87 97 105 110 115 120

Test scores 21 23 30 34 31 35 40 42 45 48

2. ABM 11 students believe on the value of thriftiness. That is why they

conducted a research on selected elementary learners regarding the
amount they save from their daily allowance and their corresponding weight as
follows.

Amount 10 8 15 20 5 3 5 25 10 15
S ave d i n
p e so
We i gh t i n 36 40 37 36 42 41 39 35 36 37
ki l og ram s

Learning Task 7.3: “Fill it out”

D i re c t i o n s : F i l l i n t h e b l ank w ith the c o rre c t wo rd o r p hra se to c o m ple te e a ch se n te nc e .
 89

Learning Task 7.4: Looking Back

I n t h i s l e a r n i n g ma t e r i a l , yo u l e a r n e d : n a t ure o f biva ri a te , sc a tte r p lo t , Pe a rs o n’ s r a n d
so lv in g p ro ble ms invo lvi ng c o rre lati o n a na lys i s.
DIRECTIONS:
1 . H o n e s t ly p e r fo rm yo ur ta s k.
2 . Wr i t e yo u r a n s we r i n yo ur no te bo o k o n ly.
3 . D o n o t s u b mi t t h i s re f l e c t i o n / a s s i g n m e n t .
Yo ur Ta sk: Yo ur ta sk is to c o mp le te the re fl e c ti o n a ctiv i ty be low.

Please insert Lesson tagging

 90

LESSON
8

If two vari able s are c o rre late d , the n we ca n e xplore the pre dictive abi lity of
i n d e p e n d e n t va r i a b l e o n c o n t i n u o u s n u m e r i c d e p e n d e n t va r i a b l e . Fo r e xa m ple , i t i s be li eve d
t h a t t h e a mo u n t o f fa mi ly i n c o me i s re la t e d t o t h e a m o u n t o f e x p e n d i t ure s . If i nd e e d the re
i s a s i g n i f i c a n t re l a t i o n s h i p b e t we e n t h e s e t w o v a ri a ble s, t he n we ca n p re d i c t the a mo u nt o f
e x p e n d i t u re s i n t e r ms o f f a mi ly i n c o m e o r v i c e ve r sa . Thus , li ne a r re g re s si o n i s mo re
s o p h i s ti c a te d e xte n s io n o f c o rre l atio n .
A t t h e e n d o f t h i s mo d u l e , yo u c a n b e a b l e to :
1 . i d e n t i f y t h e i n d e p e n d e n t a n d d e pe nd e n t va ri a ble ,
2 . c a l c u l a te t h e s l o p e a n d y-in te rce pt o f the re gre ss i o n li ne ,
3 . i n te r p re t t h e c a lcu late d slo p e a nd y- i nte rc e p t o f the re g re s si on li ne ,
4. p re d i c t s t h e va l u e o f t h e d e p e n d e n t va r i a b l e g ive n the va lue o f th e i nd e p e nd e nt
va r i a b l e , a n d
5. s o lve pro b le ms invo lv in g re gre ss io n a na lysi s.

Learning Resource 8.1 Identifying the Independent and Dependent

Variable

B iva r i a t e d a t a a lway s i nvo lve t wo va r i a b l e s . O n e o f t h e s e va r i a b l e s i s t h e d e p e n d e n t v a ri a b le

a n d t h e o t h e r o n e i s t h e i n d e p e n d e n t v a ri a b l e .
D e p e n d e n t v a r i a b l e d e p e n d s o n o t h e r va r i a b l e s o r f a c t o r s . I t i s s o m e t h i n g t h a t i s
i n f l u e n c e d a nd af fe cte d . It is a ls o ass o c i a te d wi t h the wo rd e f fe ct o r o u tco me .
I n d e p e n d e n t v a r i a b l e a f f e c t s t h e d e p e n d e n t v a r i a b l e . I t i s s o m e t h i n g y o u h a ve
c o n t r o l o ve r , o n e w h i c h y o u c a n c h o o s e a n d m a n i p u l a t e . H ow e ve r, i n s o m e c a s e s , yo u m ay
 91

n o t b e a b l e t o ma n i p u l a t e t h e i n d e p e n d e n t va r i a b l e . I t i s c o m m o n ly kn o w n a s t h e c a use o r
the reason be hind change s.
Fo r e xa mp l e , t h e re s e a rc h e r w a n ts t o d e te rm i ne the e ffe c ts o f u se o f so ci a l me d i a i n
t h e a c a d e m i c p e r f o r m a n c e o f s t u d e n t s i n M a t h e m a t i c s . Th e b iva r i a t e d a t a i n t h e s t u dy a re
u s e o f s o c i a l m e d i a a n d a c a d e m i c p e r f o r m a n c e . T h e a c a d e m i c p e r fo r m a n c e d e p e n d s o n th e
u s e o f s o c i a l me d i a , o r we c a n s ay t h a t a c a d e m i c p e r fo r m a n c e i s a f f e c t e d by the us e o f
s o c i a l me d i a . Th e re fo re , i n d e p e n d e n t va r i a b l e h e re i s t h e us e o f so c i a l m e d i a a nd the
d e p e n d e n t va r i a b l e i s t h e a c a d e mi c p e r fo r m a n c e .

Re g re s s i o n a n a lys i s m a t h e m a t i c a l ly d e s c r i b e s t h e re l a t i o n s h i p b e t we e n i n d e p e n d e n t
va r i a b l e s a n d a d e p e n d e n t va r i a b l e .

Learning Resource 8.1.1 Simple Linear Regression (Part 1)

h t t p s: / / y o u t u . b e / t N M W r 7 I S L 9 8

Learning Resource 8.2 Calculating the slope and y-intercept

of the regression line

W h e n e ve r t h e re a re m o re t h a n t wo p o i n ts o f d a ta , i t i s u su a lly i mp o s si b le to f i n d o n e
l i n e t h a t p a s s e s t h ro u g h a l l p o i nt s. Howe ve r, a b e s t-f i t li ne tha t i s a go o d a p prox i ma ti o n o f
t h e d a t a c a n u s u a l ly b e fo u n d . Th i s b e s t - f i t s t ra i g h t li ne us e d to pre d i c t the va l ue o f y fo r
a give n val ue of x i s c al le d the re gre ss i o n line.
Fo r s tati sti cs , the re is a simple r way to fi nd the e qua ti o n o f the be s t- f i t li ne . The
e qua tio n o f the b e s t-fi t lin e is als o c alle d e qu a ti o n o f th e re gre ss i o n li ne o r si m ply regre ssion
equation.

Examples:
a. y = 2x + 3 b = 2; a = 3; The slope i s 2 a ndy-i ntercept is 3.
̂ x 1 1
b. y = − 1, b = ; a = −1; The slope is andy-intercept is - 1.
̂ 2 2 2

Fo r m u l a f o r c a l c u l a t i n g s l o p e , an d y-in te rc e p t o f the re g re s si o n li ne

The ste p s i n ca lc ulati ng the sl o pe a nd y- i nte rce pt fro m a g ive n s e t o f d a ta a re the fo llowi ng :
S t e p 1 : M a ke a d a t a t a b l e w i t h fo u r c o l u m n s ( x, y, x y , a n d x 2 ) . N o te the sa m ple s i z e , n .
S t e p 2 : L i s t t h e d a t a f o r x a n d y . M u l t i p ly x a n d y t o g e t x y . S q u a re x t o g e t x 2 . Co m ple te the
tab le .
S t e p 3 : F i n d t h e s u m o f x , y, x y , a n d x 2 b y a d d i n g t h e va l u e s i n e a c h c o l u m n .
S t e p 4 : S u b s t i t u t e t he s o lve d va l u e s i n t o t he c o r re s p o n d i n g f o rmu la .
 92

I l l u s t ra t ive E xa m p l e P r o b le m:
A t e a c h e r b e l i e ve s t h a t e xc e l le n c e i s a f r u i t o f h a r d wo rk a nd p e r si s te n ce . Tha t i s why sh e
wa n t s t o p rove i f t h e n u m b e r o f s t u d e n t s ’ a b s e n c e s i s re l a te d to the i r ge ne ra l ave ra ge . O n
he r ga t h e re d d a t a , t h e re c o rd e d n u m b e r o f a b s e n c e s a n d g e n e ra l ave ra g e i n t h e re c e n t
s e m e s te r a re s h o w n o n t h e t a b le .
D i re c t i o n s : F i n d t h e e qua tio n o f the re gre ss i o n li n e .
D o in g the f ir st t hre e s te p s we have .

Fro m t h e t a b l e o f d a t a , yo u w i l l b e a b l e t o d e t e r m i n e t h e s u m o f x , y, x y, a n d x 2 . T h e s e
a re t h e va l u e s t h a t w i l l b e s u b s t i t u t e d i n t o t h e fo r m u la t o c a l c u l a t e t h e s l o p e a n dy - i n te rc e pt .
n = 7 ∑ x = 37 ∑ y = 609 ∑ xy = 3111 ∑ x2 =
269

There fore, the equation of the regression line is ŷ = −1.47x + 94.77.

Learning Resource 8.2.1 Simple Linear Regression (Part 2)

h t t p s: / / y o u t u . b e / U H I - - K 6 H C q s

Learning Resource 8.3 Interpreting the Calculated Slope and Y-intercept

of the Regression Line
B a s e d o n t h e s l o p e , yo u c a n d e t e r m i n e t h e re l a t i o n s h i p b e t we e n t h e va r i a ble s a nd
the n, in te rp re t it s me a nin g re la te d to the si tua t i o n . Th e s i gn o f the slo p e (b) i s use d to
id entify t h e tre n d o r d i re c t i o n o f re l a t i o n s h i p b e t we e n the d e pe nd e n t a nd i n d e pe nd e n t
va ria ble .
 93

ŷ = bx + a Re lati o ns hip In te r pre ta ti o n

If i) b = + Po si tive slo p e me a ns positive W h e n x - va l u e i n c r e a s e s , y- va l u e

re la t i o n s h i p b e tw e e n va r i a bl e s x a nd i n c r e a s e s . O R x - va l u e d e c r e a s e s , y-
y. va l u e d e c re a s e s
If ii) b = - Ne ga tive sl o pe me a ns n e ga tive When x-value incre ases, y- value
re l a t i o n s h i p b e t we e n va r i a b le s x a n d decreases OR x - va l u e d e c re a s e s ,
y. y- va l u e i n c re a s e s
If iii) b = Z e ro s l o p e me a n s no re la ti on s hi p The re i s n o re la ti o n sh i p be twe e n x
0 b e t we e n x a n d y. a n d y.

T h e y -i n t e rc e p t c an a lso be in te rp re te d to d e te rmi ne i ts re leva nc e o n a s pe c i f i c si tu a ti o n.

• S ub s t i t u t e t h e va l u e o f y i n t o t h e e q u a t i o n .
• A n a ly z e i f t h e va l u e s o f th e d e p e n d e n t a n d i n d e p e n d e n t va r i a b le s d e pi ct a po s si ble
s itu atio n b e twe e n the two va ri a ble s.

N o te : U n l i ke t h e s l o p e , wh i c h i s e a s i ly d e t e r m i ne d , a na lys i s o f the si tu a ti o n i s n e e d e d to
d e te r mi ne if the y-in te rc e p t i s re leva nt wi th re sp e c t to the si tua t i o n.
Lo o k a t the fo llowi ng exa mp le s .

E xa m p l e 1: A b i o l o g i s t wa n ts to s tudy the re la ti o ns hi p b e twe e n

t h e n u m b e r o f t re e s p e r s q u are me te r ( x) a n d t he num be r o f
bird s p e r s q u a re me t e r ( y) . S h e c a me u p w i th the e qu a ti o n
o f the re g re s si o n line,
ŷ = 3x + 4

S l o p e , a n d y - i n te r ce p t
Th e slo p e i s 3. Th e positive slope
in d ic a te s a p os itive re la tio n shi p
b e t we e n x a n d y.
Th e y-in te rce pt is 4 .
I n te r p r e tat i on
Fo r eve ry a d d i ti o n a l tre e , you c a n ex pe ct a n ave ra g e
o f 3 a d d i t i o na l b i rd s p e r sq ua re me t e r.
I t m e a n s t h a t t h e ave ra g e n u m b e r o f b i rd s p e r
s q u a re m e t e r i n a n a re a w i t h n o t re e s i s 4 . Th is
va l u e i s re l e va n t b e c a u s e t h e n u m b e r o f t re e s c a n b e
0 a n d i t i s p o s s i b le t o h ave a bi rd i n a n a re a wi tho ut
tre e s .

S l o p e , a n d y - i n te r c e p t
The slope is - 1. The negative
i n d i c a t e s a ne gative re lat io ns hip
Th e y -in te rc e pt i s 15 .
E xa m p l e 2 : A s u r ve y wa s d o n e t o kn o w t h e
re l a t i o n s h i p be twe e n the a ge i n ye a rs o f a
yo u n g p e r s o n ( x) a n d t h e ti me i n mi n ute s a
pe r so n c a n ru n o n e mi l e ( y ) . D a ta f ro m
ch i ld re n be twe e n the a ge s o f 8 a nd 15 we re
co l le c te d . The re g re s si o n e qu a ti o n i s
ŷ = −x + 15
I n te r p r e tat i on
slope Fro m t h e s i t u a t i o n , a s a yo u n g p e r s o n a g e s 1 ,
h i s r u n ti m e d e c re a s e by 1 mi n ute .
Th i s i s n o t re l e v a n t be c a use a z e ro - ye a r- o ld
c h i l d c a n n o t r u n o n e m i le . It i s a lso sta te d in
t h e p ro b l e m t h a t t h e d o m a i n i s b e t we e n 8 a nd
15. The age of a person cannot be 0.
T h u s , g e tti ng th e y -i nte rc e pt i s a vi olation
to the p ro b le m b u t n o t o n t h e re g re ss i o n
e qua ti o n.
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Learning Resource 8.3.1 Simple Linear Regression (Part 3)

h t t p s: / / y o u t u . b e / 7 f j K A w m o a 2 M

Learning Resource 8.4: Predicting the Value of Dependent Variable given

the Value of Independent Variable
Re g re s s i o n e q u a t i o n s c a n b e u s e d t o m a ke p re d i c t i o n s . T h e f i e l d o f s ta ti sti c s that
d e a l s w i t h p re d ic tio n i s c alle d re g re s si o n a n a lysi s . In thi s le s so n , yo u w i ll le a rn h ow
to e s t i ma t e a n d p re d i c t t h e va lue o f o n e va r i a ble i n te r ms o f th e o t he r va ri a ble .
In p re d i c t i n g t h e d e p e n d e n t va r i a b l e y , j u s t s u b s t i t u t e t h e g iv e n va l ue o f x i nto the
equation ŷ = bx + a.
Let us look back at the situation in the previous Illustrative Example
Problem:
What might be the grade of a student that has no absences? How about 4
absences?
Recall that the equation
y of the regression line is
̂ = −1.47x +
y 94.77
a. x = 0 y
̂
̂ y = −1.47x +
̂
94.77
= −1.47 (0) +
94.77
y
̂ =
y 94.77
̂
H e n c e , i t i s e x p e c t e d t h a t a s t uyd e n t wh o h a s n o a b s e n c e s w i l l h ave a g ra d e o f 9 4 .7 7 .
̂ y
b. x = 4
̂
= −1.47x +
94.77
= −1.47 (4) +
94.77
= −5.88 +
94.77
=
88.89
Learning
T h u s ,Task
i t i s e8.1:
x p e c t eIt
d tDepends on…
hat a studen t w h o h a s f o u r a b s e n c e s t o h ave a g ra d e o f 8 8 . 8 9 .

D i re c t i oLearning Resource
n s : G ive n the 8.4.1
two va ria ble s , i d eSimple
n ti f y wh i cLinear
h o f the ff Regression
. s ta t e me nt i s(Part
co r re c t4)
.
Example. h t t p s: / / y o u t u . b e / x 1 t U H R K q N FA
Variables D e p e n d e n t va r i a bl e d e p e nd s
o n i n d e p e n d e n t var i abl e
Number of hours Te st score Te s t s c o re d e p e n d s o n the
s t u dy i n g for a test n u m be r o f h o u r s s t u dy i n g f o r a
test
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96
 97

Learning Task 8.2 Complete and Calculate

D ire c ti o ns:
(1 ) Complete the table.
(2 ) Cal cul ate the s lo pe a nd y -int e rc e p t o f the re gre ss i o n line.
(3 ) Provid e the equation of the regre ssion line .
(4 ) Show yo ur c o mp le te s o lution.
(5 ) Name yo ur f ile by the f f . fo rma t [S urn ame , Na me__Sectio n__LT8.2], the n save i t in PDF
fo r ma t .
(6) Upload it on the google drive.

P ro b l e m : F i f te e n ( 1 5 ) ra n d o mly se le c te d G ra d e 1 1 stu d e n ts to o k a Ma th Ap ti tu d e Te st
b e fo re t h e y s t a r t e d t h e i r S ta t i sti cs a nd Pro b a bi li ty su bj e ct . W ha t re gre s si o n e qu a ti o n b e s t
p re d i c t s p e r f o r m a n c e i n t h e F i r s t Pe r i o d i c a l Te s t i n S ta t i s ti c s ba se d o n M a th Ap ti tud e Te st?
I f a s t u d e n t g o t a s c o re o f 4 2 o n t h e M a t h A p t i t u d e Te s t, wh a t s c o re wo u l d the stu d e n t
ex pe c t in the Fir st Pe r io d i ca l Te st i n Sta ti s ti c s?
 98

Learning Task 8.3: Complete My Thoughts.

D i re c tio n s: Fill i n the mis si ng wo rd s to c o m ple te the pa ra g ra p h. (1) Int e rp re t the slo p e a n d
y-int e rc e p t o f th e re gre ss io n li ne . (2 ) Pre d i c t the va lue o f the d e p end ent vari able given the
va l u e o f t h e i n d e p e n d e n t va ri able .
A c o u n s e l l o r h a s c o l le c t e d d a t a o n t h e n u m b e r o f t i m e s p e r ye a r a S H S s t u d e n t g o e s o u t o n
a d a t e (x ) a n d t h e n u m b e r o f h o u r s a s t u d e n t s p e n d s i n d o i ng ho m e wo rk p e r we e k ( y ) . S he
c a me u p w i t h t h e e q u a t i o n o f the re g re s si o n l i ne : y = - 0 .2 x + 3 0 .

Learning Task 8 . 4 Q & A

D i re c t i o n s : A n s w e r t h e fo l l o w ing q ue s ti o n s h o ne stly. Wri te yo ur a ns we r o n a wo rd

p ro c e s s o r , t h e n n a me i t u sin g the ff . fo rm a t [Su rna me , Na me __ Se ct i o n_ _ LT8 .4 ] . S ave i t i n PD F
fo r ma t , th e n su bmit i t o n the g o og le d r ive .
1 . W h a t c o n c e p t s h ave yo u l e a r n e d i n t h i s l e s s o n ?
2 . W h a t t e c h n i q u e s d i d yo u l e a r n a n d u s e i n s o lv i n g re g re s s i o n a n a lys i s p ro b l e m s ?
C i t e a t l e a s t t h re e t e ch niq ue s .
3 . Wh a t d i f f i cul tie s d id yo u ex pe r ie n c e i n so lv i n g li ne a r re gre ss i o n p ro ble ms ?
 99

Book
D e p a r t me n t o f E d uc a ti o n ( 2 0 2 0 ) . S ta t i s t i c s a n d P ro b a b i l i ty P I VO T4 A L e a r n e r’ s Ma te r i a l.

Vi d e o s
J o s h u a E m m a n u e l ( 2 0 1 6 , A p r i l 1 2 ) . H y p o t h e s i s Te s t i n g - I n t ro d u c t i o n [ V i d e o ] . Yo u t u b e .
h t t p s : / / y o u t u . b e / D l w O T O y d e y k.
J o s h u a E m m a n u e l ( 2 0 1 6 , A p r i l 1 7 ) . H y p o t h e s i s Te s t i n g : O n e - t a i l e d t t e s t f o r m e a n [ V i d e o ] .
Yo u t u b e . h t t p s: / / y o u t u . b e / f i M Fq f a t i e E .
J o s h u a E m m a n u e l ( 2 0 1 6 , A p r i l 1 5 ) . H y p o t h e s i s Te s t i n g : Tw o - t a i l e d z t e s t f o r m e a n [ V i d e o ] .
Yo u t u b e . h t t p s : / / y o u t u . b e / p f r Z Y f c f J E A.
Love , B e a tric e ( 2 0 2 1 , A pr il 20). H yp o the si s Te sti n g fo r Pro po r ti o ns | S ta ti sti c s a n d
P r o b a b i l i t y | TA G A L O G - E N G L I S H [ V i d e o ] . Yo u t u b e .
h t t p s : / / y o u t u . b e /h _ _ H Z E z E Z KQ Y .
M A mi T E O t e a c h e s M AT H ( 2 0 2 1 , A p r i l 2 8 ) . N u l l a n d A l te r n a tive H y p o t h e s e s o n a Po p u l a t i o n
P ro p o r t i o n | M A m i T E O t e a c h e s M AT H [ V i d e o ] . Yo u t u b e .
h t t p s: / / y o u t u . b e / w E F Q 5 v P W Z k A .
M AT H Ro b e r g ( 2 0 1 7 , Fe b r u a r y 1 1 ) . Sta ti n g H yp o the se s & D e f i ni ng Pa ra m e te rs [Vi d e o ] .
h t t p s: / / y o u t u . b e / q v s S R L X 2 r W M .
N u m b e r b e n d e r ( 2 0 1 4 , Fe b r u a r y 1 7 ) . S t a t i s t i c s : I n t ro d u c t i o n t o Hy p o t h e s i s Te st i n g i n F i l i p i n o
[ V i d e o ] . h t t p s : / / yo u t u . b e / p l A i Y X Ya q Y 0 .
N u m b e r b e n d e r ( 2 0 1 4 , M a r c h 1 3 ) . S TA T I S T I C S : Ty p e I a n d Ty p e I I e r ro rs i n C o n d u c t i n g a
H y p o t h e s i s Te s t i n g [ V i d e o ] . h t t p s : / / y o u t u . b e / 5 u 0 1 m 3 4 3- 1 M .
S a n t o s , Pa u l J o re l ( 2 0 2 1 , M ay 6 ) . P ea r so n P ro d u c t M o m e n t C o r re l a t i o n C o e f f i c i e n t (P a rt 1 )
[ V i d e o ] . Yo u t u b e . h t t p s :/ /yo u t u .b e / f 7 6 W I A s M t_ _ 4 .
S a n t o s , Pa u l J o re l ( 2 0 2 1 , M ay 6 ) . P ea r s o n P ro d u c t Mo me n t C o rre l a t i o n C o e f f i c i e n t ( P a r t 2 )
[ V i d e o ] . Yo u t u b e . h tt p s : / / yo u t u . b e / m d 2 b i l - S N D Q.
S a n t o s , Pa u l J o re l ( 2 0 2 1 , M ay 6 ) . P e a r s o n P ro d u c t Mo m e n t C o rre l a t i o n C o e f f i c i e n t ( P a rt 3 )
[ V i d e o ] . Yo u t u b e . h t t p s : / / y o u t u . b e / Y2 y O C 8 0 f b 3 8 .
S a n t o s , Pa u l J o re l ( 2 0 2 1 , M ay 6 ) . P e a r s o n P ro d u c t Mo m e n t C o rre l a t i o n C o e f f i c i e n t ( P a r t 4 )
[ V i d e o ] . Yo u t u b e . h tt p s : / / yo u t u . b e / z i u w N f 4 J 4 u Q .
S a n t o s , Pa u l J o re l ( 2 0 2 1 , M ay 1 0 ) . S i mp l e L i n ea r R eg re ssi o n (P art 1 ) [Vi d e o ] .
y o u t u b e . h t t p s: / / y o u t u . b e / t N M Wr 7 I S L 9 8 .
S a n t o s , Pa u l J o re l ( 2 0 2 1 , M ay 1 0 ) . S i mp l e L i n e a r R e g r e ssi o n (P art 2 ) [Vi d e o ] .
Yo u t u b e . h t t p s: / / y o u t u . b e / U H I - - K 6 H C q s .
S a n t o s , Pa u l J o re l ( 2 0 2 1 , M ay 1 0 ) . S i m p l e L i n e a r R e gressi o n (P art 3 ) [Vi d e o ] .
Yo u t u b e . h t t p s : / / y o u t u . b e /7 f j K Aw m o a 2 M .
S a n t o s , Pa u l J o re l ( 2 0 2 1 , M ay 1 0 ) . S i m p l e L i n e a r R e g re ssi on (P a rt 4) [V i d e o ] .
Yo u t u b e . h t t p s: / / y o u t u . b e / x 1 t U H R K q N FA .
Te ac he r Ayhi . (20 21, Ap ril 1 3). Id e nti fy i n g Ap pro p riate Rejection Regi on for a given Leve l of
S i g n i f i c a n c e [ V i d e o ] . Yo u t u b e . h t t p s : / / y o u t u . b e / G 9 O I X i O Wq u Y.
T h e O r g a n i c C h e m i s t r y T u t o r ( 2 0 1 9 , O c t o b e r 2 9 ) . H y p o t h e si s Te s t i n g - S o l v i n g P ro b l e m s
Wi t h P ro p o r t i o n s [ V i d e o ] . Yo u t u b e . h t t p s : / / y o u t u . b e / 7 6 Vr u a r G n 2Q.
W O W M AT H . ( 2 0 2 1 , M ay 1 3 ) . D r a w i n g C o n c l u s i o n A b o u t Po p u l a t i o n M e a n B a s e d O n Te s t
S t a t i s t i c Va l u e A n d C r i t i c a l Re g i o n [ V i d e o ] . Yo u Tu b e . yo ut u .b e / A s N 1 V k 9 l 8 3 o .