Bus Math-Module 6.5 Test of of Significant Differences

Interpreting Data: Tests of
Significant Differences
1
Data analysis is critical for
understanding challenges
and exploring data in
meaningful ways in the
business world.
2
Decision-makers can then use
this context to increase
productivity and profit.
3
But how do we analyze data
inferentially to answer
business questions?
4
Example: Is there a significant
difference in the spending
patterns of “Millennial” and
“Gen Z” generations?
5
In this lesson, you will learn
how data should be analyzed
using hypothesis testing and
how it is vital in the business
world.
6
I SEE THE LIGHTS!
A manufacturer stated that the mean lifespan of his lightbulbs is 48
months. The standard deviation is 35 months. Forty-five bulbs are
selected, and the mean lifespan is found to be 36 months. Using the
critical value approach, should the manufacturer’s statement be rejected
at α=0.05?
7
SOLUTION
STEP 1: State the hypotheses.
You are asked to state the null and alternative hypothesis in

words and in symbols.
H0: The average lifespan of the manufacturer’s lightbulbs is 48

months.μ=48 months
H1:The average lifespan of the manufacturer’s lightbulbs is not 48

months. μ≠48 months
8
SOLUTION
STEP 2: Determine the critical values and rejection region.
You are asked to identify the critical values through the level of
significance and the rejection region through the sign of the
alternative hypothesis.
The significance level is 0.05. The unequal sign found in the

alternative hypothesis signifies that the test has two rejection
regions, one at each end of the normal distribution curve of the
mean. Because the total area of both rejection regions is 0.05
(significance level), the area of rejection in each tail is
9
SOLUTION
STEP 2: Determine the critical values and rejection region.
Since the area to the right of the mean is 0.5, the area between 0
and the critical value z is 0.475. Looking at the
normal distribution table, the critical value is 士 1.96.
10
SOLUTION
STEP 3: Compute for the test statistic.
You are asked to compute for the test statistic using the formula
. . Thus,
11
SOLUTION
STEP 4: Make a decision.
You are asked to state the decision rule base from the test
statistic in STEP 3.
The test statistic zc=-2.30 is less than the critical value z=-1.96 and
it falls in the rejection region in the left tail. Therefore, the null
hypothesis is rejected.
12
SOLUTION
STEP 5: Conclusion.
You are asked to give a conclusion base from the decision in STEP
4.
It can be concluded that the mean lifespan of the manufacturer’s

lightbulbs is not equal to 48 months.
13
QUESTIONS TO PONDER
1. What is hypothesis testing?

2. What is the difference between null and alternative hypotheses?
3. How can hypothesis testing be implied in real-life problems?
14
How vital is hypothesis testing in a business
industry?
15
● a method in making
inferential analysis
TEST OF DIFFERENCE ● determine whether the
differences between
two sets of data are
significant
16
HYPOTHESIS TESTING
● an analyzation process
HYPOTHESIS TESTING ● used in assessing claims
about a population
17
HYPOTHESIS TESTING
Starts by considering the statistical hypotheses: an

assumption about the population under study
18
HYPOTHESIS TESTING
NULL HYPOTHESIS ALTERNATIVE

HYPOTHESIS
● symbolized as H0
● assumes that there has ● symbolized as H1
been no significant ● implies a significant
difference between the difference between the
population mean and a population mean and a
specific value specific value
19
HYPOTHESIS TESTING
NULL HYPOTHESIS ALTERNATIVE

HYPOTHESIS
phrases used:
phrases used: ● is not equal to
● is equal to ● is not the same as
● is the same as ● is greater than
● is lower than
● etc.
20
Example 1
A researcher stated that the average salary of an accountant is

₱30 000.
H0:The average salary of an accountant is ₱30 000.
H1:The average salary of an accountant is not ₱30 000.
21
Example 2
A paint manufacturing company reported that the mean

drying time of their paints is more than 30 minutes.
H0:The mean drying time of the paints is no more than 30

minutes.
H1:The mean drying time of the paints is more than 30

minutes.
22
Example 3
In a certain barangay, it was affirmed that the mean age of the

residents is more than or equal to 50 years old.
H0:The mean age of the residents is not less than 50 years old.
H1:The mean age of the residents is less than 50 years old.
23
HYPOTHESIS TESTING
● refers to the point of

significance that a null
hypothesis is accepted or
rejected
LEVEL OF
SIGNIFICANCE
● assumption: 100%
accuracy can not be
attained
24
HYPOTHESIS TESTING
LEVEL OF SIGNIFICANCE
Thus, the researcher decides a level of significance depending

on the extremity of the type 1 error (Note: A type 1 error
happens when a researcher rejects the null hypothesis when
it is true). This probability is represented by α (Greek letter
alpha).
25
HYPOTHESIS TESTING
divides the entire normal

CRITICAL VALUE distribution into rejection
and nonrejection regions
26
HYPOTHESIS TESTING
REJECTION REGION NON-REJECTION REGION
● denotes a significant ● the difference between

difference between the the population mean,
population mean and the specific value
(parameter) and the under study is due to
specific value chance
27
HYPOTHESIS TESTING
REJECTION REGION NON-REJECTION REGION
● null hypothesis should ● null hypothesis should

be rejected not be rejected
28
HYPOTHESIS TESTING
REJECTION REGION
● can be found at the tailed part of a normal distribution:

○ at the left tail
○ right tail
○ in some instances, both tails of a normal distribution.
29
REJECTION REGION
Two-tailed test
Left-tailed test Right-tailed test
30
HYPOTHESIS TESTING (REJECTION REGION)
TWO-TAILED TEST
A test with two rejection

regions
31
ONE-TAILED TEST Left-tailed test
A test with one rejection Right-tailed test

region
32
RIGHT-TAILED TEST
● The alternative hypothesis shall utilize greater than (>) as

its mathematical phrase or any phrase similar to this.
● The critical value used in this type of test is positive.
33
LEFT-TAILED TEST
● The alternative hypothesis shall utilize less than (<) as its

mathematical phrase or any phrase similar to this.
● The critical value used in this type of test is negative.
34
The table below will guide you further in understanding statistical hypotheses
and rejection regions.
Two-tailed Left-tailed Right-tailed

Text 1
test test test
Signs in the H0 H0:=x H0:≥x or H0:=x H0:≤x or H0:=x
Signs in the H1 H1:≠x H1:<x H1:>x
35
TWO APPROACHES IN HYPOTHESIS TESTING
CRITICAL VALUE P-VALUE APPROACH

APPROACH
● traditional approach
● modern approach
● uses critical values to
● uses probabilities to
set the rejected regions
make a decision
of a normal distribution
36
THE CRITICAL VALUE APPROACH
focuses more on the critical value obtained from the level of

significance, which will be compared to the specific value from
the sample to come up with a conclusion
37
THE CRITICAL VALUE APPROACH
1. State the null and alternative hypotheses.

2. Determine the critical values and rejection region.
3. Compute the test statistic.
4. Make a decision
5. Conclusion.
38
Example 1
Chocolate milk powder is packed in a one-kilogram bag. An

inspector from the Department of Trade and Industry suspects
the bags may not contain 1-kilogram. A sample of 45 bags
produced a mean of 0.98 kilograms and a standard deviation of
0.16 kilograms. Using the critical value approach, is there
enough evidence to conclude that the bags do not contain 1
kilogram as stated at 𝛼 = 0.10?
39
Example 1
Solution
Step 1: State the null and alternative hypothesis.
H0:The bags contain one-kilogram of chocolate milk powder.
μ=1 kilogram
H1:The bags do not contain one-kilogram of chocolate milk

powder.
μ≠1 kilogram
40
Example 1
Solution
Step 2: Determine the critical values and rejection region.
The significance level is 0.10. The unequal sign found in the

alternative hypothesis signifies that the test has two
rejection regions, one at each end of the normal distribution
curve of the mean. Because the total area of both rejection
regions is 0.10 (significance level), the area of rejection in
each tail is
area in each tail = (α/2) = (0.10/2) = 0.05
41
Example 1
Solution
Since the area to the right of the mean is 0.5, the area
between 0 and the critical value z is 0.45. Looking at the
normal distribution table, the critical value is 土 1.65.
42
Example 1
Solution
Step 3: Compute the test statistic.
Plot the data and compute the test statistic.
43
Example 1
Solution
44
Example 1
Solution
Step 4: Make a decision.
The test statistic zc= -0.84 is more than the critical value z=-
1.65, and it falls in the non-rejection region. Therefore, the
null hypothesis is not rejected.
45
Example 1
Solution
Step 5: Conclusion
It can be concluded that the bag contains one-kilogram

chocolate milk powder.
46
Example 2
The average cost of tuition fee for last school year was less
than ₱45 400. A sample of 50 college institutions indicated that
their tuition fee had an average of ₱42 900 and a standard
deviation of ₱6 700. At 0.01 level of significance, is there
sufficient evidence to conclude that the cost was less than ₱45
400? Use a critical value approach.
47
Example 2
Solution
H0:The average cost of tuition fee was ₱45 400.
μ=₱45 400
H1:The average cost of tuition fee was less than ₱45 400.
μ<₱45 400
48
Example 2
Solution
The significance level is 0.01. The less than sign found in the
alternative hypothesis signifies that the test has one
rejection region. Since the area to the left of the mean is 0.5,
the area between 0 and the critical value z is 0.49. Looking at
the normal distribution table, the critical value is -2.33.
49
Example 2
Solution
50
Example 2
Solution
51
Example 2
Solution
The test statistic zc=-2.64 is less than the critical value z=-
2.33 and it falls in the rejection region. Therefore, the null
52
Example 2
Solution
Step 5: Conclusion
It can be concluded that the average cost of tuition fee was

less than ₱45 400.
53
THE P-VALUE APPROACH
focuses more on the area under the normal distribution

illustrating the probability of the data obtained from the
sample
54
THE P-VALUE APPROACH
Steps:
1. State the null and alternative hypotheses.
2. Compute the test statistic.
3. Find the p-value.
4. Make a decision.
5. Conclusion.
55
Example 1
A health club affirmed that after getting their membership for

the first month, their members lose more than 16 pounds. A
researcher who ought to check this report took 40 members
for his study and found out that they lost an average of 13
pounds in the first month after getting their membership.
Using p-value approach what will be your decision if 𝛼=0.05 if
the standard deviation of 7 pounds?
56
Example 1
Solution
H0:The members lose 16 pounds the first month after joining

the center.
μ=16 pounds
H1:The members lose more than 16 pounds the first month

after joining the center.
μ>16 pounds
57
Example 1
Solution
58
Example 1
Solution
59
Example 1
Solution
Step 3: Find the p-value.
The p-value of zc= –2.71 is 0.0034 following the normal

distribution table and is found on the left side of the normal
distribution curve.
60
Example 1
Solution
Since the rejection region happens to be the 0.05 at the right

tail of the curve, the p-value falls in the nonrejection region.
Therefore, the null hypothesis is not rejected.
61
Example 1
Solution
Step 5: Conclusion
It can be concluded that the members lose 16 pounds the

first month after joining the center.
62
Example 2
Study shows that the average time a person spends on

Facebook is more than 6 hours. In a sample of 38 people, the
average time they ran through on Facebook was 8 hours. The
standard deviation is 4 hours. Is there enough proof to
presume that the average time a person spends on Facebook is
at most 6 hours if the level of significance is at 𝛼 = 0.01?
63
Example 2
Solution
H0:A person spends 6 hours on Facebook.
μ=6 hours
H1:A person spends more than 6 hours on Facebook.
μ>6 hours
64
Example 2
Solution
65
Example 2
Solution
66
Example 2
Solution
Step 3: Find the p-value.
The p-value of zc=3.08 is 0.9990 following the normal

distribution table and is found on the right side of the
normal distribution curve.
67
Example 2
Solution
Since the rejection region happens to be the 0.01 at the right

tail of the curve, the p-value falls in the rejection region.
Therefore, the null hypothesis is rejected.
68
Example 2
Solution
Step 5: Conclusion
It can be concluded that a person spends more than 6 hours

on Facebook.
69
THE DIFFERENT HYPOTHESIS TESTING
ONE SAMPLE Z TEST ONE SAMPLE T TEST
a statistical test used to

a statistical test for the know the difference between
mean of a population the sample and the known
value of the population mea
70
ONE SAMPLE Z TEST
● used if the data gathered happened to be in either interval

or ratio level of measurement and the sample under study
is greater than or equal to (≥) 30.
● Often, hypotheses are tested using the formula:
71
ONE SAMPLE Z TEST
In the given formula, the observed value is referred to as the

obtained data from the sample of the study. These
information are also called statistic. The expected value is
referred to as the data one is expecting to have from the
population of the study if the null hypothesis is not rejected.
72
ONE SAMPLE Z TEST
The standard error is referred to as the difference between

the sample statistic and the population mean. So to make it
more specific, a researcher can do one sample z test using:
73
Example 1
A survey found that men over the age of 53 consume an

average of more than 6 bottles of alcohol in a month. To know
if the bottles of alcohol consumed by men over the age of 53
living in a certain barangay is the same, the researcher
sampled 48 men over the age of 53 and found the average
bottles of alcohol consumed was 9 monthly. The standard
deviation was 8 bottles of alcohol. At 𝛼=0.05, can it be
concluded that there is no significant difference between the
bottles of alcohol consumed by men over age 53? Use a critical
value approach.
74
Example 1
Solution
H0:The average alcohol consumption of men over 53 is 6

bottles.
μ=6 bottles
H1:The average alcohol consumption of men over 53 is more

than 6 bottles.
μ>6 bottles
75
Example 1
Solution
The significance level is 0.05. The greater than sign found in

the alternative hypothesis signifies that the test has one
rejection region. Since the area to the right of the mean is
0.5, the area between 0 and the critical value z is 0.45.
Looking at the normal distribution table, the critical value is
1.65.
76
Example 1
Solution
77
Example 1
Solution
78
Example 1
Solution
The test statistic zc=2.60 is more than the critical value

z=1.65 and it falls in the rejection region. Therefore, the null
79
Example 1
Solution
Step 5: Conclusion
It can be concluded that the average alcohol consumption of

men over 53 is more than 6 bottles.
80
Example 2
Study claims that teenagers spend an average of at most 8

hours on studying during weekdays. A researcher ought to
know if this report is true. A sample of 53 teenagers were
taken from a particular city and showed that teenagers spend
an average of 6 hours on studying during weekdays with a
standard deviation of 5 hours. Using the 10% level of
significance, can you conclude that the report that all
teenagers spend an average of at most 8 hours on studying
during weekdays is false?
81
Example 2
Solution
H0:The average time teenagers spend on studying during

weekdays is 8 hours.
μ=8 hours
H1:The average time teenagers spend on studying during

weekdays is less than 8 hours.
μ<8 hours
82
Example 2
Solution
The significance level is 10%. The less than sign found in the
alternative hypothesis signifies that the test has one
the area between 0 and the critical value z is 0.40. Looking at
the normal distribution table, the critical value is -1.28.
83
Example 2
Solution
84
Example 2
Solution
85
Example 2
Solution
The test statistic zc=-2.91 is less than the critical value z=-
1.28 and it falls in the rejection region. Therefore, the null
86
Example 2
Solution
Step 5: Conclusion
It can be concluded that the average time teenagers spend

on studying during weekdays is less than 8 hours.
87
ONE SAMPLE T TEST
used if the data gathered happened to be in either interval or

ratio level of measurement and the sample under study is less
than to (<) 30
88
ONE SAMPLE T TEST
In addition, to know the critical value for one sample t test,

degrees of freedom (df=n-1) need to be obtained first after
setting up the level of significance. A researcher can do one
sample t test using:
89
Example 1
An automotive repair shop reported that they can change one

tire in at most 13 minutes. An expert who wishes to verify if it
is true, selected ten restoration works. He found out that the
average time to change one tire is 12.4 minutes with a
standard deviation of 2.3 minutes. At 𝛼 = 0.005, is there enough
proof to presume that the average time in changing a tire is at
most 13 minutes?
90
Example 1
Solution
H0:The average time a tire can be changed is 13 minutes.
μ=13 minutes
H1:The average time a tire can be changed is less than 13

minutes.
μ<13 minutes
91
Example 1
Solution
The significance level is 0.005. The less than sign found in

the alternative hypothesis signifies that the test has one
the area between 0 and the critical value t is 0.495. Looking
at the normal distribution table, the critical value is -3.25.
92
Example 1
Solution
93
Example 1
Solution
94
Example 1
Solution
The test statistic t=-0.82 is less than the critical value z=-3.25
and it falls in the nonrejection region. Therefore, the null
hypothesis is not rejected.
95
Example 1
Solution
Step 5: Conclusion
It can be concluded that the average time a tire can be

changed is 13 minutes.
96
Example 2
The newly appointed library clerk noticed from one of the

reports that the average number of students using the library
per hour was 86. To verify this hypothesis, he selected a day
and tracked down the number of students who used the
library in an eight-hour period. Below were the following
results:
90, 94, 88, 86, 86, 89, 91, 93
At 𝛼 = 0.05, can the library clerk conclude that the average
number of students who uses the library is 86?
97
Example 2
Solution
H0:The average number of students who use the library is

86.
μ=86 students
H1:The average number of students who use the library is

not 86.
μ≠86 students
98
Example 2
Solution
The level of significance is 𝛼 = 0.05. The unequal sign found

in the alternative hypothesis signifies that the test has two
rejection regions, one in each end of the normal distribution
curve of the mean. Because the total area of both rejection
regions is 0.05 (significance level), the area of rejection in
each tail is
area in each tail=(α/2)=(0.05/2)=0.025
99
Example 2
Solution
Since the area to the right of the mean is 0.5, the area
between 0 and the critical value t is 0.475. Looking at the
normal distribution table, the critical value is 2.365.
100
Example 2
Solution
Since the sample mean and the standard deviation is not

presented, you have to compute it first. For the mean, we
will follow the formula:
101
Example 2
Solution
Thus,
102
Example 2
Solution
The sample mean then is x=89.625. Next is the standard

deviation. To know its value, we will utilize the formula:
103
Example 2
Solution
Thus,
104
Example 2
Solution
105
Example 2
Solution
The standard deviation is s=2.97.
106
Example 2
Solution
107
Example 2
Solution
The test statistic t=3.45 is more than the critical value

t=2.365 and it falls in the rejection region. Therefore, the null
108
Example 2
Solution
Step 5: Conclusion
It can be concluded that the average number of students

who use the library is not 86.
109
THE CAN LABEL OF AN EVAPORATED MILK STATES THAT THE
NET CONTENT OF EACH IS 370 ML. AN INSPECTOR
1 SUSPECTS THAT EACH CAN HAS LESSER NET CONTENT.
WITH THIS, HE OPENED A RANDOM OF FORTY CANS ONLY
TO FIND OUT THAT THEIR MEAN NET CONTENT IS 365.8 ML
WITH A STANDARD DEVIATION OF 36 ML. IS THE
MANUFACTURER CORRECT IN THEIR CLAIM? USE 𝛼 = 0.05.
Answer area
110
THE SURVEY SHOWS THAT EACH MOBILE USER HAS AN
AVERAGE CONSUMPTION OF AT MOST 156 TEXT MESSAGES
2 IN A MONTH. TO VERIFY THE CLAIM, A TEAM FROM A
TELECOMMUNICATION COMPANY SURVEYED 15 MOBILE
USERS AND FOUND THAT THE AVERAGE CONSUMPTION OF
EACH MOBILE USER IS 133. THE STANDARD DEVIATION OF A
SAMPLE IS 20. AT 𝛼 = 0.1, CAN THE CLAIM BE AS IS?
Answer area
111
Research and Development in Business
Since prehistoric times, research has been one of our constant

companions. It enables us to learn, adapt, and create new
information as soon as we discover one. It means gaining a
better understanding of issues and raising awareness of the
existing situation. It enables us to distinguish between truths
and lies. It's even a tool for seeing, calculating, and seizing
opportunities. Business is one of the industries that has relied
heavily on research.
Leann Zarah, “7 Reasons Why Research is Important,” Owlcation, 2020,
https://owlcation.com/academia/Why-Research-is-Important-Within-and-Beyond-the-
Academe, last accessed on February 23, 2021. 112
Many of today's successful businesses put money into research

and development. It allows companies to get an advantage
over their competition. It determines how things should be
done in a more effective and efficient manner, and it helps
distinguish a company's products from those of competitors.
Through focused marketing, research can also help a company
maintain a positive commercial image, retain existing
customers, and attract new customers. Marketing is a form of
communication, and firms must understand their customers in
order for that communication to be effective.
Scientists also use research to verify the validity and

dependability of their own and other scientists' claims. The
quality of their research determines their integrity and
competency. However, not all of the findings of scientists are
accepted. Before being published, scientific work is usually
peer-reviewed. This means that before a piece of research is
published with the scientific community at large, it is fact-
checked and reviewed by others in the field for common
biases, statistical errors, and methodological flaws.
People are encouraged to investigate options, comprehend

current challenges, and reject fabrications when they conduct
research. All of our technological achievements and other
developments would have remained imaginations if not for
study. A curious mind's desire for knowledge, learning, and
wisdom is aided by reading, writing, observing, and analyzing.
We must cross a bridge called research in order to fulfill all of
our personal and societal objectives.
● The test for significant difference is a research undertaking aimed
at determining whether there are significant differences between
groups concerning a particular variable. It is done through
hypothesis testing.
116
● In hypothesis testing, the following are determined: the null and
alternative hypothesis and the level of significance at which a null
hypothesis is accepted or rejected.
117
● There are two widely known approaches in hypothesis testing: the
critical value and p-value approaches.
○ The critical value approach focuses more on the critical value
obtained from the level of significance which will be compared to
the specific value from the sample to come up with a conclusion.
○ The p-value approach or probability value approach focuses
more on the area under the normal distribution illustrating the
probability of the data obtained from the sample.
118
● There are different hypothesis testing used in tests of difference.
These are one sample z test and one sample t test.
119
Identify what is being asked in each item.
1. It is an assumption about a population parameter.
Answer area
120
2. It is used to test the mean of a population.
Answer area
121
3. It is a typical statistical theory which suggests that no

statistical relationship and significance exists in a set of
given single observed variables, between two sets of
observed data and measured phenomena.
Answer area
122
4. It is an area which lets the researcher decide to reject the

null hypothesis.
Answer area
123
5. It is a statistical test used to know the difference between

the sample and the known value of the population mean.
Answer area
124
Answer the following questions.
1. A producer of auto batteries reported that the average

lifespan of their batteries is 46 months. The Department of
Trade and Industry wants to verify this report. With that,
they selected 38 batteries and found that the mean
lifespan is 44.80 months with a standard deviation of 6
months. Using 2.5% level of significance, would you
presume that the mean lifespan of these auto batteries is
46 months?
Answer area
125
Answer area
126
Answer the following questions.
2. A group of farmers claims that the average weight of each

pineapple they ship is at least 1 000 grams and has a
standard deviation of 153 grams. Data gathered from a
sample of 53 pineapples selected randomly from shipment
shows an average weight of 1 005 grams. Is there enough
proof to reject the farmer’s claim? Use 𝛼=0.05.
127
Answer area
128
Perform the tasks required.
ABC Company believes that having enough sleep is essential to
every individual. With this, they are planning to create a new
product that will aid an individual from ages twenty to thirty
years old in their sleep. During the preparation of the business
proposal they have learned that individuals at this age sleep
for an average of seven hours or more.
129
Do as instructed.
As part of the research team, you are assigned to test if the
claim is true. Below are the tasks you are to do:
1. Set up the null and alternative hypotheses.
2. Set your significance level, find the critical value and set the
rejection region.
3. Gather data from 10 individuals ages twenty to thirty years
old.
4. Identify the sample mean and standard deviation.
5. Compute for the test statistic.
6. Make a decision.
7. Draw a conclusion.
130
Do as instructed.
Use the space provided to express your work.

Answer area
131

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Interpreting Data: Tests of

You are asked to state the null and alternative hypothesis in

H0: The average lifespan of the manufacturer’s lightbulbs is 48

H1:The average lifespan of the manufacturer’s lightbulbs is not 48

The significance level is 0.05. The unequal sign found in the

It can be concluded that the mean lifespan of the manufacturer’s

1. What is hypothesis testing?

Starts by considering the statistical hypotheses: an

NULL HYPOTHESIS ALTERNATIVE

NULL HYPOTHESIS ALTERNATIVE

A researcher stated that the average salary of an accountant is

H0:The average salary of an accountant is ₱30 000.

H1:The average salary of an accountant is not ₱30 000.

A paint manufacturing company reported that the mean

H0:The mean drying time of the paints is no more than 30

H1:The mean drying time of the paints is more than 30

In a certain barangay, it was affirmed that the mean age of the

H1:The mean age of the residents is less than 50 years old.

● refers to the point of

Thus, the researcher decides a level of significance depending

divides the entire normal

REJECTION REGION NON-REJECTION REGION

● denotes a significant ● the difference between

REJECTION REGION NON-REJECTION REGION

● null hypothesis should ● null hypothesis should

● can be found at the tailed part of a normal distribution:

Left-tailed test Right-tailed test

A test with two rejection

ONE-TAILED TEST Left-tailed test

A test with one rejection Right-tailed test

● The alternative hypothesis shall utilize greater than (>) as

● The alternative hypothesis shall utilize less than (<) as its

Two-tailed Left-tailed Right-tailed

Signs in the H1 H1:≠x H1:<x H1:>x

CRITICAL VALUE P-VALUE APPROACH

THE CRITICAL VALUE APPROACH

focuses more on the critical value obtained from the level of

THE CRITICAL VALUE APPROACH

1. State the null and alternative hypotheses.

Chocolate milk powder is packed in a one-kilogram bag. An

Step 1: State the null and alternative hypothesis.

H0:The bags contain one-kilogram of chocolate milk powder.

H1:The bags do not contain one-kilogram of chocolate milk

Step 2: Determine the critical values and rejection region.

The significance level is 0.10. The unequal sign found in the

area in each tail = (α/2) = (0.10/2) = 0.05

Step 2: Determine the critical values and rejection region.

Step 3: Compute the test statistic.

Plot the data and compute the test statistic.

Step 3: Compute the test statistic.

Step 4: Make a decision.

It can be concluded that the bag contains one-kilogram

Step 1: State the null and alternative hypothesis.

H0:The average cost of tuition fee was ₱45 400.

Step 2: Determine the critical values and rejection region.

Step 3: Compute the test statistic.

Plot the data and compute the test statistic.

Step 3: Compute the test statistic.

Step 4: Make a decision.

It can be concluded that the average cost of tuition fee was

THE P-VALUE APPROACH

focuses more on the area under the normal distribution

THE P-VALUE APPROACH

A health club affirmed that after getting their membership for