Testing Hypothesis

Situation

The leader of the association of jeepney drivers claims that the

average daily take home pay of all jeepney drivers in Pasay
City is Php 400. A random sample of 100 jeepney drivers in
Pasay City was interviewed and the average daily take home
pay of these drivers is found to be Php 425. Use a 0.05
significance level to find out if the average daily take home pay
of all jeepney drivers in Pasay City is different from Php 400.
Assume that the population variance is Php 8 464.
Key Concept

HYPOTHESIS: A statement about the value of a population parameter

developed for the purpose of testing.
 
HYPOTHESIS TESTING: A procedure based on sample evidence and
probability theory to determine whether the hypothesis is a reasonable
statement.
Five-Step Procedure for Testing a Hypothesis
 Step 1: State the null and the alternate hypotheses

NULL HYPOTHESIS, symbolized by H0, is a statistical hypothesis that states that there is no difference
between a parameter and a specific value or that there is no difference between two parameters.

ALTERNATE HYPOTHESIS, symbolized by Ha, is a statistical hypothesis that states a specific difference
between a parameter and a specific value or states that there is a difference between two parameters.
To state hypotheses correctly, researchers must translate the conjecture or claim from words into
mathematical symbols. The basic symbols used are as follows:

Equal to = Greater than >

Not equal Less than <
 Step 1: State the null and the alternate hypotheses
The null and alternative hypotheses are stated together, and the null hypothesis
contains the equals sign, as shown (where k represents a specified number).
Examples:
A medical researcher is interested in finding out whether a new medication will have any
undesirable side effects. The researcher is particularly concerned with the pulse rate of
the patients who take the medication. What are the hypotheses to test whether the pulse
rate will be different from the mean pulse rate of 82 beats per minute?
Ho:
Ha:
two
This is a ________-tailed test.
A chemist invents an additive to increase the life of an automobile battery. If the
mean lifetime of the battery is 36 months, then his hypotheses are
Ho:
Ha:
right
This is a _______-tailed test.
Examples:
A contractor wishes to lower heating bills by using a special type of insulation in
houses. If the average of the monthly heating bills is $78, her hypotheses
about heating costs will be
Ho:
Ha:
left
This is a ________-tailed test.
 
Answer Skills Practice 1 on page 50.
State the null and alternative hypotheses for each conjecture.
a.A researcher thinks that if expectant mothers use vitamin pills, the
birth weight of the babies will increase. The average birth weight of
the population is 8.6 pounds.
Ho:
Ha:
right
This is a _______-tailed test.
State the null and alternative hypotheses for each conjecture.
b. An engineer hypothesizes that the mean number of defects can be
decreased in a manufacturing process of compact disks by using
robots instead of humans for certain tasks. The mean number of
defective disks per 1000 is 18.
Ho:
Ha:
This is a _______-tailed
left test.
State the null and alternative hypotheses for each conjecture.
State the null and alternative hypotheses for each conjecture.
c. A psychologist feels that playing soft music during a test will change
the results of the test. The psychologist is not sure whether the
grades will be higher or lower. In the past, the mean of the scores
was 73.
Ho:
Ha:
two
This is a _______-tailed test.
Step 2: Get the critical value for a given level of significance

LEVEL OF SIGNIFICANCE The probability of rejecting the null hypothesis

when it is true, designated α.

TYPE I ERROR Rejecting the null hypothesis, Ho, when it is true.

TYPE II ERROR Accepting the null hypothesis, Ho, when it is false.

Typical significance levels are: 0.10, 0.05, and 0.01.

For example, when α = 0.10, there is a 10% chance of rejecting a true null
hypothesis.
 
The CRITICAL VALUE separates the critical region from the noncritical region.
The symbol for critical value is C.V.
 Step 2: Get the critical value for a given level of significance
Step 1
Draw the figure and indicate the appropriate
area.
•If the test is right-tailed, the critical region, with
an area equal to a, will be on the right side of the
mean.
•If the test is left-tailed, the critical region, with
an area equal to a, will be on the left side of the
mean.
• If the test is two-tailed, a must be divided by 2;
one-half of the area will be to the right of the
mean, and one-half will be to the left of the
mean.
 
If a=0.01, then one-half of the area, or 0.005,
must be to the right of the mean and one-half
must be to the left of the mean.
Step 2: Get the critical value for a given level of significance
Finding the critical value for a = 0.01
( right-tailed test)
Step 2: Get the critical value for a given level of significance
The critical or rejection region is the
Reject Ho ifofthe
range of values computed
the test value that
zindicates
lies inthat
thisthere
region.
is a significant
difference
Hence, acceptand thatHa. the null
hypothesis should  be rejected.
 

The noncritical or nonrejection region is The critical value for a = 0.01

Accept
the range ofHo if the
values of thecomputed
test value  
z lies
that in this
indicates region.
that the difference was
probably due to chance and that the
Hence, reject
null hypothesis shouldHa.not be rejected. 
Summary of Hypothesis Testing and Critical Values
Step 3 Compute the test value/test statistic.
TEST STATISTIC A value, determined from sample information, used to determine whether
to reject the null hypothesis. There are many test statistics. In this lesson we use both z and
t as the test statistic. (Note: Use z-test if and use t-test for )

Formula:
Step 4 Make the decision to reject or not reject the null hypothesis.

Reject Ho if the computed z

lies in this region.
Accept Ho if the computed
Hence, accept Ha.
z lies in this region.  
Hence, reject Ha.

Step 5 Summarize the results.

Example 3:
The leader of the association of jeepney drivers claims that the average daily take home pay of all jeepney
drivers in Pasay City is Php 400. A random sample of 100 jeepney drivers in Pasay City was interviewed
and the average daily take home pay of these drivers is found to be Php 425. Use a 0.05 significance level
to find out if the average daily take home pay of all jeepney drivers in Pasay City is different from Php 400.
Assume that the population variance is Php 8 464.
Step 1: Ho:
State the null and the alternate Ha:
hypotheses two
This is a _______-tailed test. 
Step 2: Since   0.05  0.025 and the test is
Get the critical value for a 2 2
given level of significance a two-tailed , the critical value is
z=
Example 3:
Step 3: Compute for the test
value/ test statistic  
Example 3:
Step 4: Make a decision to reject or not to
reject the null hypothesis

Step 5: Summarize the results

Example 2:
A researcher reports that the average salary of assistant professors is more than Php
42,000. A sample of 30 assistant professors has a mean salary of Php 43,260. At a = 0.05,
test the claim that assistant professors earn more than Php 42,000 a year. The standard
deviation of the population is Php 5230.
Step 1: State the null and the Ho:
alternate hypotheses Ha:
This is a right-tailed test.
 
Step 2: Get the critical value for a  
given level of significance
Example 2:
Step 3: Compute for the test value/
test statistic

Step 4: Make a decision to reject or Since the test value, 1.32, is less than the
not to reject the null hypothesis critical value, 1.65, and is not in the critical
region, the decision is to not to reject/accept
the null hypothesis.

The computed z lies in the

acceptance region of the null
hypothesis
Example 2:

Step 5: Summarize the results There is no enough evidence to support the

claim that assistant professors earn more than
Php 42,000 on average per year.
Answer the problems found on page 55, 56, and
57. You may discuss with a partner.