MATH03-CO5-Lesson2-Hypothesis Testing (One Sample)

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MATH03 | Statistics and Probability

MATHEMATICS and ABM CLUSTER


SCHOOL YEAR 2021 - 2022

Statistics and Probability


MATH03
Course Outcome 5
Quarter 04

Prepared by:
Hanzel A. Monforte
Revised by:
Ipapo, Redwaynne Jester T.

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Telephone number: (02) 8247 - 5000
MATH03 | Statistics and Probability

NAME: ____________________________________ TEACHER: ________________________


YEAR AND SECTION: _______________________ SCHEDULE: _______________________

Lesson Hypothesis Testing


2
(One Sample)

COURSE OUTCOME BULLETIN

Objective: Discuss and apply comprehensively the basic concepts of hypothesis testing (one
sample).

Subject Matters:
Lesson 2. Introduction to Hypothesis Testing
Lesson 2.1. Hypothesis Testing for the Population Mean: 𝝈 Known
Lesson 2.2. Hypothesis Testing for the Population Mean: 𝝈 Unknown
Lesson 2.3. Hypothesis Testing for the Population Proportion
Learning Competencies:
I. Apply the basic concepts hypothesis testing (one sample) to real world problems.

Evaluation:
Performance Task: PT5A to be deployed on Blackboard (Week 17)

Written Work: WW5A to be deployed on ALEKS (Week 16)

What do I know? (Pre-test)


Choose the letter of the correct answer for each item.

1. It refers to a process that help us make decisions for evaluating claims about a population
a. Estimation c. Hypothesis Testing
b. Correlation d. Standardization
2. Which of the following is not a method of conducting hypothesis testing?
a. Traditional Approach c. P-value Method
b. Confidence Interval Method d. Point Estimation Method
3. This refers to the hypothesis that states that there is no significant difference between a parameter
or specific value or that there is no significant difference between two parameters.
a. Alternative Hypothesis c. Hypothesis testing
b. Null Hypothesis d. Zero Hypothesis

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4. Which of the following are correct decisions?


I: Rejecting a true null hypothesis
II: Accepting a true null hypothesis
III: Rejecting a false null hypothesis
IV: Accepting a false null hypothesis
a. I and III only c. I, II, III, and IV
b. II and IV only d. None of them
5. The following is a correct decision rule in a traditional approach except one, which is it?
a. Reject 𝐻𝑜 if 𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒 ≤ 𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 for Left-Tailed test
b. Reject 𝐻𝑜 if 𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒 ≥ 𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 for Left-Tailed test
c. Reject 𝐻𝑜 if 𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒 ≥ 𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 for Right-Tailed test
d. Reject 𝐻𝑜 if |𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒| ≥ |𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒| for Two-Tailed test
6. Which of the following is the correct arrangement of steps for conducting hypothesis testing using p-
value method.
1 – Compute Test Statistic
2 – Formulate Hypothesis
3 – Interpret the results
4 – Make a decision
5 – Compute the p-value
a. 1-2-3-4-5 c. 5-1-2-3-4
b. 2-5-1-4-3 d. 2-1-5-4-3
7. A grocery store owner claims that the population mean age of his customers is 34.5 years with a
standard deviation of 5 years. A sample of 36 customers has a mean age of 36 years. The claim is to
be tested using critical value approach at 95% confidence level. What is the value of the test statistic?
a. −1.25 c. 1.02
b. 1.25 d. −1.02
8. A grocery store owner claims that the population mean age of his customers is 34.5 years with a
standard deviation of 5 years. A sample of 36 customers has a mean age of 36 years. The claim is to
be tested using critical value approach at 95% confidence level. What is the critical value?
a. ±1.645 c. ±1.96
b. ±2.575 d. ±2.33
9. A grocery store owner claims that the population mean age of his customers is 34.5 years with a
standard deviation of 5 years. A sample of 36 customers has a mean age of 36 years. The claim is to
be tested using critical value approach at 95% confidence level. What is the decision?
a. Reject 𝐻𝑜 c. No Decision
b. Fail to reject 𝐻𝑜 d. Not enough information
10. A grocery store owner claims that the population mean age of his customers is 34.5 years with a
standard deviation of 5 years. A sample of 36 customers has a mean age of 36 years. The claim is to
be tested using critical value approach at 95% confidence level. What is the interpretation of the
decision?
a. There is enough evidence to reject 𝐻𝑜 c. There is not enough evidence to reject 𝐻𝑜
b. It cannot be decided d. Not enough information

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What is it?
2. Introduction to Hypothesis Testing
Hypothesis Testing is a decision-making process for evaluating claims about a population. It is an
essential procedure in statistics. We perform a test of hypothesis only when we are making a
decision about a population parameter based on the value of a sample statistic. When we say that a
finding is statistically significant, it's thanks to a hypothesis test.

There are three methods in Hypothesis Testing:


1) Traditional Method / Critical-Value Approach

By applying the critical value approach, it is determined, whether or not the observed test statistic
is more extreme than a defined critical value. Therefore the observed test statistic (calculated on
the basis of sample data) is compared to the critical value.

2) P-Value Method

For the p-value approach, the likelihood (p-value) of the numerical value of the test statistic is
compared to the specified significance level (α) of the hypothesis test.

3) Confidence Interval Method

For the confidence interval method, if the confidence interval contains the value claimed by the null
hypothesis, then our sample result is close enough to the claimed value, and we therefore fail to
reject the null hypothesis.

A hypothesis test evaluates two mutually exclusive statements about a population to determine
which statement is best supported by the sample data. Those statements are known as null
hypothesis and alternative hypothesis.

Two Types of Hypotheses:

Null Hypothesis (𝑯𝟎) – a statistical hypothesis that states that there is no significant difference
between a parameter and a specific value, or that there is no significant different between two
parameters. Also, null hypothesis is a claim about a population parameter that is assumed to be true
until it is declared false.

Alternative Hypothesis (𝑯𝒂 or 𝑯𝟏) – a statistical hypothesis that states that there is a significant
difference between a parameter and a specific value, or that there is a significant difference between
two parameters. Also, alternative hypothesis is a claim about a population parameter that will be
declared true if the null hypothesis is declared to be false.

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In conducting hypothesis testing, one of the three possible tests can happen. Either right-tailed test
or left-tailed test or two-tailed test. To determine whether a test is two-tailed or one-tailed, we look
at the sign in the alternative hypothesis.

Types of Tests:

1) One-Tailed Test – indicates that the null hypothesis should be rejected when the test value is in
the critical region on one side of the mean. It is either right-tailed test or left-tailed test.

a) Right-Tailed / Upper-Tailed - When the alternative hypothesis has a greater than (>) sign,
the test is always right-tailed. In a right-tailed test, the rejection region is in the right tail of the
distribution curve.

𝑯𝟎 : 𝝁 ≤ 𝒌
𝑯𝟏 : 𝝁 > 𝒌

Retrieved from https://towardsdatascience.com/hypothesis-testing-the-


what-why-and-how-867d382b99ca, Sept 7, 2021.
b) Left-Tailed / Lower-Tailed - When the alternative hypothesis has a greater than ( < ) sign,
the test is always right-tailed. In a left-tailed test, the rejection region is in the left tail of the
distribution curve.

𝑯𝟎 : 𝝁 ≥ 𝒌
𝑯𝟏 : 𝝁 < 𝒌

Retrieved from https://towardsdatascience.com/hypothesis-testing-the-


what-why-and-how-867d382b99ca, Sept 7, 2021.
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2) Two-Tailed Test – indicates that the null hypothesis should be rejected when the test value is in
either of the two critical regions. If the alternative hypothesis has a not equal to ( ≠ ) sign, it is a two-
tailed test. A two-tailed test has two rejection regions, one in each tail of the distribution curve.

𝑯𝟎 : 𝝁 = 𝒌
𝑯𝟏 : 𝝁 ≠ 𝒌

Retrieved from https://towardsdatascience.com/hypothesis-testing-the-


what-why-and-how-867d382b99ca, Sept 7, 2021.

Two Types of Regions:


Critical / Rejection Region – the range of values of the test value that indicates that there is a
significant difference; thus, the null hypothesis should be rejected.
Non-Critical / Acceptance Region – the range of values of the test value that indicates that the
difference was probably due to chance, and that the null hypothesis should not be rejected.

Two Types of Errors:


Type I Error (𝜶 Error) – rejects the null hypothesis when the null hypothesis is true.
Type II Error (𝜷 Error) – does not reject the null hypothesis when the null hypothesis is false.

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Two Types of Values:


a. Critical Value – separates the critical region from the non-critical region. This value
normally comes from either the 𝑧-table or 𝑡-table.
b. Test Value – test statistic that can be manually calculated by using a formula.
Steps in Solving Hypothesis Testing:
a. Traditional / Critical-Value Approach
i. State the hypotheses and identify the claim.
ii. Find the critical value(s) with the corresponding level of significance and type
of test.
iii. Compute the test value.
iv. Make a decision.
➢ For right-tailed, reject 𝐻0 if 𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒 ≥ 𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒.
➢ For left-tailed, reject 𝐻0 if 𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒 ≤ 𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒.
➢ For two-tailed, reject 𝐻0 if |𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒| ≥ |𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒|.
v. Interpret the result.

Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All Rights Reserved.

b. P-Value Method
i. State the hypotheses and identify the claim.
ii. Compute the test value.
iii. Find the 𝑝-value.
iv. Make a decision. Reject 𝐻0 if 𝑝 − 𝑉𝑎𝑙𝑢𝑒 ≤ 𝛼.
v. Interpret the result.
IMPORTANT NOTE: for CO5, we are going to use p-value method for z-tests ONLY

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Prem Mann, Introductory Statistics, 9/E


Copyright © 2015 John Wiley & Sons. All Rights Reserved.

Some Common Hypothesis Testing Phrases

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Examples:
Formulate the null and alternative hypotheses for each of the following situations. Indicate if it is
right-tailed, left-tailed, or two-tailed. Identify the claim as well.
1. A group of researchers wishes to test if the mean number of hours spent working per week
by college students who hold jobs is different from 20 hours.
𝑯𝟎 : 𝝁 = 𝟐𝟎 𝒉𝒐𝒖𝒓𝒔
𝑯𝟏 : 𝝁 ≠ 𝟐𝟎 𝒉𝒐𝒖𝒓𝒔 (𝑪𝒍𝒂𝒊𝒎)
This is a two-tailed test.

2. One department from a bank wants to test whether or not the bank’s ATM is out of service
for an average of more than 8 hours per month.
𝑯𝟎 : 𝝁 ≤ 𝟖 𝒉𝒐𝒖𝒓𝒔 𝒑𝒆𝒓 𝒎𝒐𝒏𝒕𝒉
𝑯𝟏 : 𝝁 > 𝟖 𝒉𝒐𝒖𝒓𝒔 𝒑𝒆𝒓 𝒎𝒐𝒏𝒕𝒉 (𝑪𝒍𝒂𝒊𝒎)
This is a right-tailed test.
3. A Master’s Degree undergraduate wishes to test if the mean length of experience of airport
security guards is at most 5 years.
𝑯𝟎 : 𝝁 ≤ 𝟓 𝒚𝒆𝒂𝒓𝒔 (𝑪𝒍𝒂𝒊𝒎)
𝑯𝟏 : 𝝁 > 𝟓 𝒚𝒆𝒂𝒓𝒔
This is a right-tailed test.
4. The Operations Manager of a BPO Company wants to test if the mean time a customer has
to wait on the phone to speak to a representative is less than 18 minutes.
𝑯𝟎 : 𝝁 ≥ 𝟏𝟖 𝒎𝒊𝒏𝒖𝒕𝒆𝒔
𝑯𝟏 : 𝝁 < 𝟏𝟖 𝒎𝒊𝒏𝒖𝒕𝒆𝒔 (𝑪𝒍𝒂𝒊𝒎)
This is a left-tailed test.

2.1 Hypothesis Testing for the Population Mean: 𝝈 Known


In real-world applications,
Three Cases:
a. Case I
i. The population standard deviation 𝜎 is known.
ii. The sample size is small (𝑛 < 30).
iii. The population from which the sample is selected is approximately normally
distributed.
b. Case II
i. The population standard deviation 𝜎 is known.
ii. The sample size is large (𝑛 ≥ 30).
c. Case III
i. The population standard deviation 𝜎 is known.
ii. The sample size is small (𝑛 < 30).

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iii. The population from which the sample is selected is not normally distributed
(or the shape of the distribution is unknown).
Test Statistic for the Population Mean (𝝈 Known)
̅−𝝁
𝒙
𝒛=𝝈
⁄ 𝒏

where 𝒙̅ = sample mean, 𝝁 = hypothesized population mean, 𝜎 = population standard deviation,
and n = sample size
Examples:
1. A researcher reports that the average salary of assistant professors in a certain area is more
than $42,000. A sample of 30 assistant professors has a mean salary of $43,260. At 𝛼 =
0.05, test the claim that the assistant professors earn more than $42,000 per year. Assume
the population standard deviation to be $5,230. Use the Critical-Value Approach.
STEP 1: Formulate the hypotheses and identify the claim.
𝑯𝟎 : 𝝁 ≤ $𝟒𝟐, 𝟎𝟎𝟎
𝑯𝟏 : 𝝁 > $𝟒𝟐, 𝟎𝟎𝟎 (𝑪𝒍𝒂𝒊𝒎)
STEP 2: Find the critical value with the corresponding level of significance and type of test.
𝛼 = 0.05, Right-Tailed Test
𝒛 = 𝟏. 𝟔𝟒𝟓 (Critical Value)
STEP 3: Compute the test value.
𝑥̅ −𝜇 𝟒𝟑𝟐𝟔𝟎−𝟒𝟐𝟎𝟎𝟎
𝑧=𝜎 = 𝟓𝟐𝟑𝟎⁄
⁄ 𝑛
√ √𝟑𝟎

𝒛 = 𝟏. 𝟑𝟐𝟎 (Test Value)

STEP 4: Make the decision.


Since 𝑻𝒆𝒔𝒕 𝑽𝒂𝒍𝒖𝒆 < 𝑪𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝑽𝒂𝒍𝒖𝒆, fail to reject 𝑯𝟎 .
STE 5: Interpret the result.
Since we fail to reject 𝑯𝟎 AND the claim is 𝑯𝟏 , there is no sufficient evidence to support the
claim that the average salary of assistant professors in a certain area is more than $42,000.

2. A researcher claims that the average cost of men’s athletic shoes is less than $80. He
selects a random sample of 36 pairs of shoes from a catalog and finds the following costs

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(in dollars). Assuming that the standard deviation for the population is 19.2, is there
enough evidence to support the claim at 𝛼 = 0.10? Use the Critical-Value Approach.

STEP 1: Formulate the hypotheses and identify the claim.


𝑯𝟎 : 𝝁 ≥ $𝟖𝟎
𝑯𝟏 : 𝝁 < $𝟖𝟎 (𝑪𝒍𝒂𝒊𝒎)
STEP 2: Find the critical value with the corresponding level of significance and type of test.
𝛼 = 0.10, Left-Tailed Test
𝒛 = −𝟏. 𝟐𝟖 (Critical Value)
STEP 3: Compute the test value.
𝑥̅ − 𝜇 75 − 80
𝑧=𝜎 =
⁄ 𝑛 19.2⁄
√ √36
𝒛 = −𝟏. 𝟓𝟔 (Test Value)
STEP 4: Make a decision.
Since 𝑻𝒆𝒔𝒕 𝑽𝒂𝒍𝒖𝒆 < 𝑪𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝑽𝒂𝒍𝒖𝒆, reject 𝑯𝟎 .
STEP 5: Interpret the result.
Since we reject 𝑯𝟎 AND the claim is 𝑯𝟏 , there is sufficient evidence to support the claim that
the average cost of men’s athletic shoes is less than $80.
3. The Medical Rehabilitation Education Foundation claims that the average cost of
rehabilitation for stroke victims is $24,672. To see if the average cost of rehabilitation is

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different at a particular hospital, a researcher selects a random sample of 35 stroke victims


at a hospital, and finds that the average cost of rehabilitation is $25,226. The population
standard deviation is $3,251. At 5% level of significance, can the claim be rejected? Use the
Critical-Value Approach.
STEP 1: Formulate the hypotheses and identify the claim.
𝑯𝟎 : 𝝁 = $𝟐𝟒, 𝟔𝟕𝟐 (𝑪𝒍𝒂𝒊𝒎)
𝑯𝟏 : 𝝁 ≠ $𝟐𝟒, 𝟔𝟕𝟐
STEP 2: Find the critical value with the corresponding level of significance and type of test.
𝛼 = 0.05, Two-Tailed Test
𝒛𝜶⁄ = ±𝟏. 𝟗𝟔 (Critical Values)
𝟐

STEP 3: Compute the test value.


𝑥̅ − 𝜇 25226 − 24672
𝑧=𝜎 =
⁄ 𝑛 3251⁄
√ √35
𝒛 = 𝟏. 𝟎𝟏 (Test Value)
STEP 4: Make a decision.
Since |𝑻𝒆𝒔𝒕 𝑽𝒂𝒍𝒖𝒆| < |𝑪𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝑽𝒂𝒍𝒖𝒆|, fail to reject 𝑯𝟎 .
STEP 5: Interpret the result.
Since we fail to reject 𝑯𝟎 AND the claim is 𝑯𝟎 , there is no sufficient evidence to reject the claim
that the average cost of rehabilitation for stroke victims is $24,672.

4. Melanie wishes to test the claim that the average cost of tuition and other fees at a four-
year public college is greater than $5,700. She selects a random sample of 36 four-year
public colleges and finds the mean to be $5,950. If the population standard deviation is
$659, is there enough evidence to support the claim at 10% level of significance? Use the 𝑃-
Value Method.
STEP 1: Formulate the hypotheses and identify the claim.
𝑯𝟎 : 𝝁 ≤ $𝟓, 𝟕𝟎𝟎
𝑯𝟏 : 𝝁 > $𝟓, 𝟕𝟎𝟎 (𝑪𝒍𝒂𝒊𝒎) Right-tailed test
STEP 2: Compute the test value.
𝑥̅ − 𝜇 5950 − 5700
𝑧=𝜎 =
⁄ 𝑛 659⁄
√ √36
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𝒛 = 𝟐. 𝟐𝟖 (Test Value)
STEP 3: Find the 𝒑-value.
The area to the left of the test value z = 2.28 is 0.9887.
So that area to the right of the test value z is 1 – 0.9887 = 0.0113.
Thus, p-value = 0.0113
STEP 4: Make a decision.
Since 𝒑 − 𝒗𝒂𝒍𝒖𝒆 = 𝟎. 𝟎𝟏𝟏𝟑 < 𝜶 = 𝟎. 𝟏𝟎, reject 𝑯𝟎 .
STEP 5: Interpret the result.
Since we reject 𝑯𝟎 AND the claim is 𝑯𝟏 , there is sufficient evidence to support the claim that
the average cost of tuition and other fees at a four-year public college is greater than $5,700.

5. A physicist claims that the average wind speed in a certain city is 8 miles per hour. A sample
of 32 days has an average wind speed of 8.2 miles per hour with a population standard
deviation of 0.6 mile per hour. At 𝛼 = 0.05, is there enough evidence to reject the claim?
Use the 𝑃-Value Method.
STEP 1: Formulate the hypotheses and identify the claim.
𝑯𝟎 : 𝝁 = 𝟖 𝒎𝒊𝒍𝒆𝒔 𝒑𝒆𝒓 𝒉𝒐𝒖𝒓 (𝑪𝒍𝒂𝒊𝒎)
𝑯𝟏 : 𝝁 ≠ 𝟖 𝒎𝒊𝒍𝒆𝒔 𝒑𝒆𝒓 𝒉𝒐𝒖𝒓 Two-tailed test
STEP 2: Compute the test value.
𝑥̅ − 𝜇 8.2 − 8
𝑧=𝜎 =
⁄ 𝑛 0.6⁄
√ √32
𝒛 = 𝟏. 𝟖𝟗 (Test Value)
STEP 3: Find the 𝒑-value.
The area to the left of the positive test value z = 1.89 is 0.9706. Its area to the right is 0.0294. Since
this is two-tailed, this means that it is 0.0294 from the left and 0.0294 from the right. Therefore,
𝑝 − 𝑣𝑎𝑙𝑢𝑒 = 2(0.0294) = 𝟎. 𝟎𝟓𝟖𝟖.
STEP 4: Make a decision.
Since 𝒑 − 𝒗𝒂𝒍𝒖𝒆 = 𝟎. 𝟎𝟓𝟖𝟖 > 𝜶 = 𝟎. 𝟎𝟓, fail to reject 𝑯𝟎 .
STEP 5: Interpret the result.
Since we fail to reject 𝑯𝟎 AND the claim is 𝑯𝟎 , there is no sufficient evidence to reject the claim
that the average wind speed in a certain city is 8 miles per hour.
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2.2 Hypothesis Testing for the Population Mean: 𝝈 Unknown


Three Cases:
a. Case I
i. The population standard deviation 𝜎 is unknown.
ii. The sample size is small (𝑛 < 30).
iii. The population from which the sample is selected is approximately normally
distributed.
b. Case II
i. The population standard deviation 𝜎 is unknown.
ii. The sample size is large (𝑛 ≥ 30).
c. Case III
i. The population standard deviation 𝜎 is unknown.
ii. The sample size is small (𝑛 < 30).
iii. The population from which the sample is selected is not normally distributed
(or the shape of the distribution is unknown).
Test Statistic for the Population Mean (𝝈 Unknown)
̅−𝝁
𝒙
𝒕= 𝒔
⁄ 𝒏

where 𝒙̅ = sample mean, 𝝁 = hypothesized population mean, s = sample standard deviation, and
n = sample size

Examples:
1. A medical investigator claims that the average number of infections per week at a hospital
in Southwestern Pennsylvania is 16.3. A random sample of 10 weeks had a mean number of
17.7 infections. The sample standard deviation is 1.8. Is there enough evidence to support
the investigator’s claim at 𝛼 = 0.05? Use the Traditional Approach.
STEP 1: Formulate the hypotheses and identify the claim.
𝑯𝟎 : 𝝁 = 𝟏𝟔. 𝟑 (𝑪𝒍𝒂𝒊𝒎)
𝑯𝟏 : 𝝁 ≠ 𝟏𝟔. 𝟑
STEP 2: Find the critical value with the corresponding level of significance and type of test.
𝛼 = 0.05 with df = n − 1 = 10 − 1 = 9, Two-Tailed Test

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𝒕𝜶⁄ = ±𝟐. 𝟐𝟔𝟐 (Critical Values)


𝟐

STEP 3: Compute the test value.


𝑥̅ − 𝜇 17.7 − 16.3
𝑡=𝑠 =
⁄ 𝑛 1.8⁄
√ √10
𝒕 = 𝟐. 𝟒𝟔𝟎 (Test Value)
STEP 4: Make a decision.
Since |𝑻𝒆𝒔𝒕 𝑽𝒂𝒍𝒖𝒆| > |𝑪𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝑽𝒂𝒍𝒖𝒆|, reject 𝑯𝟎 .
STEP 5: Interpret the result.
Since we reject 𝑯𝟎 AND the claim is 𝑯𝟎 , there is no sufficient evidence to support the claim that
the average number of infections per week at a hospital in Southwestern Pennsylvania is 16.3.
2. An educator claims that the average salary of substitute teachers in school districts in
Allegheny County, Pennsylvania is at least $60 per day. A random sample of school districts
is selected, and the daily salaries (in dollars) are as follows: 60, 56, 60, 55, 70, 55, 60, and
55. Is there enough evidence to support the educator’s claim at 99% confidence? Use the
Critical-Value Approach.
STEP 1: Formulate the hypotheses and identify the claim.
𝑯𝟎 : 𝝁 ≥ $𝟔𝟎 𝒑𝒆𝒓 𝒅𝒂𝒚 (𝑪𝒍𝒂𝒊𝒎)
𝑯𝟏 : 𝝁 < $𝟔𝟎 𝒑𝒆𝒓 𝒅𝒂𝒚
STEP 2: Find the critical value with the corresponding level of significance and type of test.
𝛼 = 0.01 with 𝑑𝑓 = 𝑛 − 1 = 7, Left-Tailed Test
𝒕 = −𝟐. 𝟗𝟗𝟖 (Critical Value)
STEP 3: Calculate the test value.
Solve for the sample standard deviation.
Calculate the sample standard deviation.

∑(𝑥 − 𝑥̅ )2 (60 − 58.875)2 + (56 − 58.875)2 + ⋯ + (55 − 58.875)2


𝑠=√ =√
𝑛−1 8−1

𝑠 = 5.082691568
Solve for the test value.
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𝑥̅ − 𝜇
𝑡=𝑠
⁄ 𝑛

58.875−60
= 5.082691568

√8

𝒕 = −𝟎. 𝟔𝟐𝟔 (Test Value)


STEP 4: Make a decision.
Since 𝑻𝒆𝒔𝒕 𝑽𝒂𝒍𝒖𝒆 > 𝑪𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝑽𝒂𝒍𝒖𝒆, fail to reject 𝑯𝟎 .
STEP 5: Interpret the result.
Since we fail to reject 𝑯𝟎 AND the claim is 𝑯𝟎 , there is sufficient evidence to support the
educator’s claim that the average salary of substitute teachers in school districts in Allegheny
County, Pennsylvania is at least $60 per day.

2.3 Hypothesis Testing for the Population Proportion


Population Proportion (𝒑) – obtained by taking the ratio of the number of elements in a
population with a specific characteristic to the total number of elements in the population.
𝑿
𝒑=
𝑵
Sample Proportion (𝒑 ̂) – obtained by taking the ratio of the number of elements in a sample with a
specific characteristic to the total number of elements in the sample.
𝒙
̂=
𝒑
𝒏
Test Statistic for 𝒑
̂−𝒑
𝒑
𝒛=
𝒑𝒒

𝒏
Where 𝒑̂ = sample proportion, 𝒑 = hypothesized population proportion, 𝒒 = 1 - 𝒑 , and n =
sample size
Examples:
1. A dietician claims that 60% of people are trying to avoid trans fats in their diets. She
randomly selected 200 people, and found that 128 people stated that they were trying to
avoid trans fats in their diets. At 𝛼 = 0.05, is there enough evidence to reject the dietician’s
claim? Use the Critical-Value Approach.
STEP 1: Formulate the hypotheses and identify the claim.
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𝑯𝟎 : 𝒑 = 𝟔𝟎% (𝑪𝒍𝒂𝒊𝒎)
𝑯𝟏 : 𝒑 ≠ 𝟔𝟎%
STEP 2: Find the critical value with the corresponding level of significance and type of test.
𝛼 = 0.05, Two-Tailed Test
𝒛𝜶⁄ = ±𝟏. 𝟗𝟔 (Critical Value)
𝟐

STEP 3: Compute the test value.


̂.
Solve for 𝒑
128
𝑝̂ =
200
𝑝̂ = 0.64
Solve for the test value.
𝑝̂ − 𝑝 0.64 − 0.60
𝑧= =
𝑝𝑞
√ √(0.60)(0.40)
𝑛 200
𝒛 = 𝟏. 𝟏𝟓 (Test Value)
STEP 4: Make a decision.
Since |𝑻𝒆𝒔𝒕 𝑽𝒂𝒍𝒖𝒆| < |𝑪𝒓𝒊𝒕𝒊𝒄𝒂𝒍 𝑽𝒂𝒍𝒖𝒆|, fail to reject 𝑯𝟎 .
STEP 5: Interpret the result.
Since we fail to reject 𝑯𝟎 AND the claim is 𝑯𝟎 , there is no sufficient evidence to reject the
dietician’s claim that 60% of people are trying to avoid trans fats in their diets.
2. An attorney claims that more than 25% of all lawyers advertise. A sample of 140 lawyers in
a certain city showed that 42 had used some form of advertising. At 1% level of significance,
is there enough evidence to support the claim? Use the 𝑃-Value Method.
STEP 1: Formulate the hypotheses and identify the claim.
𝑯𝟎 : 𝒑 ≤ 𝟐𝟓%
𝑯𝟏 : 𝒑 > 𝟐𝟓% (𝑪𝒍𝒂𝒊𝒎) Right-tailed test
STEP 2: Compute the test value.
̂.
Solve for 𝒑
42
𝑝̂ =
140
𝑝̂ = 0.30
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Solve for the test value.


𝑝̂ − 𝑝 0.30 − 0.25
𝑧= =
𝑝𝑞
√ √(0.25)(0.75)
𝑛 140
𝒛 = 𝟏. 𝟑𝟕 (Test Value)
STEP 3: Find the 𝒑-value.
The area to the left of 𝑧 = 1.37 is 0.9147.
Since it is right-tailed, 𝑝 − 𝑣𝑎𝑙𝑢𝑒 = 1 − 0.9147 = 𝟎. 𝟎𝟖𝟓𝟑.
STEP 4: Make a decision.
Since 𝒑 − 𝒗𝒂𝒍𝒖𝒆 > 𝜶, fail to reject 𝑯𝟎 .
STEP 5: Interpret the result.
Since we fail to reject 𝑯𝟎 AND the claim is 𝑯𝟏 , there is no sufficient evidence to support the
attorney’s claim that more than 25% of all lawyers advertise.

What’s more?
Solve the following problems by showing the 5-step process of conducting hypothesis testing.
1. A supermarket researcher claims that a box of a certain brand of cereal has an average of
more than 365 grams of cereal. A sample of 25 boxes of that cereal found to have an
average of 370.5 grams of cereal. The company that produces the cereal specified that 𝜎 =
15 grams. Is there enough evidence to support the researcher’s claim at 𝛼 = 0.05?
2. The school principal of School A claims that the average age of all employees in the school
is 42.5 years. A random sample of 10 employees were obtained and their ages were listed
below.
25, 36, 45, 50, 40, 45, 28, 30, 48, 45
Is the sample obtained enough to support the school principal’s claim at 𝛼 = 0.10?
3. Manila Bulletin reported that about 48% of the general consumer population in the
Philippines is loyal to the automobile manufacturer of their choice. Suppose Chevrolet did a
study for a random sample of 1000 Chevrolet owners and found that 490 said they would
buy another Chevrolet. Does this indicate that the report is well supported by the sample?
Use level of significance of 0.01.

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What I have learned


In five sentences, write down the challenges you have experienced in learning about hypothesis
testing (one sample), and what did you do to overcome these challenges?

What I can do
Solve the following problems by showing the 5-step process of conducting hypothesis testing.
1. A marketing company claims that it receives at least 4% responses from its Mailing.
To test this claim, a random sample of 500 were surveyed with 25 responses. Test at the
𝛼 = 0.05 significance level.
2. An engineer measured the Brinell hardness of 15 pieces of ductile iron that were sub
critically annealed. The resulting data were:

170 167 174 179 179


156 163 156 187 156
183 179 174 179 170
The engineer hypothesized that the mean Brinell hardness of all such ductile iron pieces is
at most 170. Is there enough evidence to support the engineer’s hypothesis at 0.01 level of
significance?

3. Jeffrey, as an eight-year old, established a mean time of 16.45 seconds for swimming the
25-yard freestyle, with a standard deviation of 0.85 seconds. His dad, Frank, thought that
Jeffrey could swim the 25-yard freestyle faster using goggles. Frank bought Jeffrey a new
pair of expensive goggles and timed Jeffrey for fifteen 25-yard freestyle swims. For the 15
swims, Jeffrey’s mean time was 15.95 seconds. Frank thought that the goggles helped
Jeffrey to swim faster than the 16.45 seconds. Is the sample support Frank’s claim? Use 𝛼 =
0.05.

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Assessment (Post-test)
Choose the letter of the correct answer for each item.

1. It refers to a process that help us make decisions for evaluating claims about a population
a. Estimation c. Hypothesis Testing
b. Correlation d. Standardization
2. Which of the following is not a method of conducting hypothesis testing?
a. Traditional Approach c. P-value Method
b. Confidence Interval Method d. Point Estimation Method
3. This refers to the hypothesis that states that there is no significant difference between a parameter
or specific value or that there is no significant difference between two parameters.
a. Alternative Hypothesis c. Hypothesis testing
b. Null Hypothesis d. Zero Hypothesis
4. Which of the following are correct decisions?
I: Rejecting a true null hypothesis
II: Accepting a true null hypothesis
III: Rejecting a false null hypothesis
IV: Accepting a false null hypothesis
a. I and III only c. I, II, III, and IV
b. II and IV only d. None of them
5. The following is a correct decision rule in a traditional approach except one, which is it?
a. Reject 𝐻𝑜 if 𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒 ≤ 𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 for Left-Tailed test
b. Reject 𝐻𝑜 if 𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒 ≥ 𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 for Left-Tailed test
c. Reject 𝐻𝑜 if 𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒 ≥ 𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒 for Right-Tailed test
d. Reject 𝐻𝑜 if |𝑇𝑒𝑠𝑡 𝑉𝑎𝑙𝑢𝑒| ≥ |𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑉𝑎𝑙𝑢𝑒| for Two-Tailed test
6. Which of the following is the correct arrangement of steps for conducting hypothesis testing using p-
value method.
1 – Compute Test Statistic
2 – Formulate Hypothesis
3 – Interpret the results
4 – Make a decision
5 – Compute the p-value
a. 1-2-3-4-5 c. 5-1-2-3-4
b. 2-5-1-4-3 d. 2-1-5-4-3
7. A grocery store owner claims that the population mean age of his customers is 34.5 years with a
standard deviation of 5 years. A sample of 36 customers has a mean age of 36 years. The claim is to
be tested using critical value approach at 95% confidence level. What is the value of the test statistic?
a. −1.25 c. 1.02
b. 1.25 d. −1.02
8. A grocery store owner claims that the population mean age of his customers is 34.5 years with a
standard deviation of 5 years. A sample of 36 customers has a mean age of 36 years. The claim is to
be tested using critical value approach at 95% confidence level. What is the critical value?
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a. ±1.645 c. ±1.96
b. ±2.575 d. ±2.33
9. A grocery store owner claims that the population mean age of his customers is 34.5 years with a
standard deviation of 5 years. A sample of 36 customers has a mean age of 36 years. The claim is to
be tested using critical value approach at 95% confidence level. What is the decision?
a. Reject 𝐻𝑜 c. No Decision
b. Fail to reject 𝐻𝑜 d. Not enough information
10. A grocery store owner claims that the population mean age of his customers is 34.5 years with a
standard deviation of 5 years. A sample of 36 customers has a mean age of 36 years. The claim is to
be tested using critical value approach at 95% confidence level. What is the interpretation of the
decision?
a. There is enough evidence to reject 𝐻𝑜 c. There is not enough evidence to reject 𝐻𝑜
b. It cannot be decided d. Not enough information

Answer Key

the claim.
10. c evidence to reject 10. c
9. b insufficient the claim. 9. b
8. c 3. There is evidence to support 8. c
7. b the claim. 3. There is sufficient 7. b
6. d evidence to reject claim. 6. d
5. b insufficient evidence to reject the 5. b
4. a 2. There is 2. There is insufficient 4. a
3. b the claim. claim. 3. b
2. d evidence to support evidence to reject the 2. d
1. c 1. There is sufficient 1. There is insufficient 1. c
What do I know? What’s more? What I can do Assessment

References

Elementary Statistics: A Step By Step Approach 10th Edition by Allan Bluman. McGraw-Hill
Education.

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