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11abm Gokongwei prob

Accounting 11 (Metro Manila College)

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SHS

Statistics and Probability

Quarter 4: Week 3-Module 11
Forms of Test Statistic

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Statistics and Probability

Grade 11 Quarter 4: Week 3 - Module 11: Forms of Test Statistic
First Edition, 2021

Copyright © 2021
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form
without written permission from the copyright owners.

Development Team of the Module

Author: Alexander Randy C. Estrada, TIII

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, PHD

Assistant Schools Division Superintendent

German E. Flora, PHD, CID Chief

Virgilio C. Boado, PHD, EPS in Charge of LRMS

Erlinda M. Dela Peña, EDD, EPS in Charge of Mathematics

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II

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Target

It was stated in your past lesson that hypothesis testing is a decision-making

process for evaluating claims about a population based on the characteristics of a
sample purportedly coming from that population. The decision is whether the
characteristic is acceptable or not.
This learning material will provide you with information and activities that
will deepen your understanding about identifying the appropriate form of test
statistics and the appropriate rejection region for a given level of significance.
After going through this module, you are expected to:
1. identifies the appropriate form of the test-statistics when: (a) the
population variance is assumed to be known (b) the population variance is
assumed to be unknown (c) the Central Limit Theorem is to be used.
(M11/12SP-IVb-2)
2. identifies the appropriate rejection region for a given level of significance
when: (a) the population variance is assumed to be known (b) the population
variance is assumed to be unknown and (c) the Central Limit Theorem is to
be used. (M11/12SP-IVc-1)

Subtasks:
1. determine the different forms of test statistic
2. illustrate the rejection region given the level of significance

Before going on, check how much you know about this topic. Answer
the pretest on the next page in a separate sheet of paper.

Pretest
Directions: Choose the letter of the correct answer. Write your answer on a
separate sheet of paper.

1. Which of the following terms makes a statement about a population for testing
purpose?
A. Hypothesis B. Level of significance
C. Statistic D. Test-Statistics

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2. Which is considered as the rejection probability of null hypothesis when it is

true?
A. Level of Confidence B. Level of Rejection
C. Level of Margin D. Level of Significance

3. What test is used when the sample size is below 30 and the population
standard deviation is unknown?
A. Chi square test B. F-test C. t- test D. z-test

4. What is the assumption made for performing the hypothesis test with
t-distribution?
A. The distribution is non-symmetric
B. The distribution has a constant variance
C. The distribution follows a normal distribution
D. The distribution has more than one modal class

5. Which test of hypothesis is being described when the critical value is evenly
distributed?
A. One-tailed B. Three-tailed
C. Two-tailed D. Zero-tailed

6. Which word should be placed in the blank to make the statement correct “If a
null hypothesis is accepted then the value of test statistic lies in the______.”?
A. Acceptance region B. Critical region
C. Rejection region D. Sample region

7. What type of statistical test for hypothesis concerning means is used when
standard deviation is known?
A. Chi square test B. p-test C. t-test D. z-test

8. How many samples are needed for the sample size to be considered as large?
A. n>10 B. n>20 C. n>25 D. n>30

9. Which is the significance level if the level of confidence is 95%?

A. α = .025 B. α = .01 C. α = .05 D. 0.10

10. If the null hypothesis is false then which of the following is accepted?
A Alternative Hypothesis B. Negative Hypothesis
C. Null Hypothesis D. Positive Hypothesis

11. Which of the following illustrates confidence level?

A. 10.5 B. 50.0 C. 50-55 D. 90%

12. What is the number of sample size that is considered enough for central limit
theorem?
A. 5 samples B. 10 samples C. 20 samples D. 30 samples

13. Which is the other term for non-directional test?

A. One tailed test B. Two tailed test

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C. Three tailed test D. Zero tailed test

14. Which of the following term should be placed in the blank to make the
statement correct, “In central limit theorem the samples should be ________.?
A. Large enough B. Precise
C. Medium enough D. Small enough

15. What is the value of α when the confidence level 99%?

A. 0.01 B.0.05 C. 0.1 D. 0.5

Jumpstart

For you to understand the lesson well, do the following activities.

Have fun and good luck!

Activity 1: Identify Me!

Directions: Identify the Appropriate Test Statistic to be used. Tell whether t-test
or z-test will be used in the following:

1. µ = 10 =3 n = 68 x̄ = 9.2
2. µ=7 s=3 n = 10 x̄ = 5
3. µ = 9.1 s = 1.8 n = 15 x̄ = 7.2
4. µ = 52 =7 n = 160 x̄ = 49.6
5. µ = 75 = 5.8 n = 118 x̄ =72.2

Activity 2. Is the test two tailed or one tailed?

Directions: Determine whether the test is two tailed or one tailed. If it is one tailed,
specify whether it is a left tailed or right tailed.
1. Ho: µ = 25
Ha: µ ≠ 25

2. Ho: µ = 45
Ha: µ < 45

3. Ho: µ = 35
Ha: µ > 35

4. Ho: µ = 80
Ha: µ > 80

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µ = 78 s=4 n = 10 x̄ =78

5. Ho: µ = 65
Ha: µ ≠ 65
µ = 78 s=3 n = 15 x̄ =66

Activity 3. Complete Me!

Directions: Complete the table showing the rejection regions for common values of
α.

REJECTION REGIONS FOR COMMON VALUES OF α

ALTERNATIVE HYPOTHESIS
α Left-tailed Right Tailed Two tailed
α =.10 z<-1.645 or z>1.645
α =.05 z>1.645
α = .01 z<-2.33

Discover

TEST STATISTIC

Test statistic is a statistic used in statistical hypothesis testing, provides a

basis for testing a Null Hypothesis. A test statistic is random variable that is
calculated from sample data and used in a hypothesis test. The sample statistic is
use to either reject Ho (null hypothesis) or not to reject Ha (alternative hypothesis).
There are two types of test statistic, we have z-test statistic and t-test statistic.

1. z - test
A z-test is a statistical test used to determine whether two population
means are different when the variances are known, and the sample size is
large. The test statistic is assumed to have a normal distribution and nuisance
parameters such as standard deviation should be known for an accurate z-
test to be performed. z-tests are used when we have large sample size (n≥30).
Large enough for the Central Limit Theorem to apply. Below is the formula to
be used in solving z-value where the population variance is assumed to be
known.

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x̄ −µ
z= 𝜎
√𝑛

where: z = z - test
x̄ = sample mean
µ = population mean
= population standard deviation
n = sample size
2. t - test
A t-test is a calculation used to test a hypothesis, but they are
useful when we need to determine if there is a statistically significant
difference between two independent sample groups. Usually t-tests are
most appropriate when dealing with problems with a limited sample size
(n<30). t-tests are used when the sample size is below 30 and the population
standard deviation is unknown.

x̄ −µ
t= 𝑠
√𝑛
where: t = t test
µ = population mean
x̄ = sample mean
s = standard deviation of the sample
n = sample size

Let’s consider below examples. Identify what test statistic to be used.

Example 1: Identify the appropriate test statistic given the information below:
µ = 50 =7 n = 150 x̄ = 9.2
Answer:
Since the population standard deviation is known, and n≥30, the
appropriate test statistic is the z-test.

Example 2: Given the following data: Ho: µ = 80, Ha: µ ≠ 80, n = 100, ² = 8100,
x̄ = 105. Determine the test statistic.
Answer:
Since the population variance is known, and n≥30, the
appropriate test statistic is the z-test.

Example 3: The assistant principal of the Senior High School Department

announced that the mean score of Grade 11 students in the first
quarter examination in Statistics was 89 and the standard deviation
was 12. One teacher who believed that the mean score was less than
this, randomly selected 34 students and computed their mean score.
She obtained a mean score of 85. At 0.01 level of significance,
Determine the appropriate test statistic.
Answer:

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Since it is the population mean that is being tested, the population

standard deviation is known, and n≥30, the appropriate test statistic is
the z-test for a single mean.

Example 4: Identify the appropriate test statistic given the information below:
µ = 11 s=3 n = 12 x̄ = 14
Answer:
Since the population standard deviation is unknown, and n<30,
the appropriate test statistic is the t-test.
Example 5: Given the following data: Ho: µ = 400, Ha: µ ≠ 400, α = 0.01, n =15,
s = 21.5, x̄ = 390. Determine the test statistic.
Answer:
Since the population standard deviation is unknown, and
n<30, the appropriate test statistic is the t-test.

Example 6: During the Covid-19 pandemic crisis local officials in the province
announced that the average price of a kilogram of chicken in the
province is ₱195.00. However, a sample of 15 prices randomly collected
from different markets in the province showed an average of ₱200.00
and a standard deviation of ₱9.50. Using a 0.05 level of significance, is
this sufficient evidence to conclude that the average price of chicken
in the province is more than ₱195.00? Normality is assumed over the
population. Select the test statistic.
Answer:
Since it is the population mean that is being tested, the population
standard deviation is unknown, and n<30, the appropriate test
statistic is the t-test.

Example 7: Determine the test statistic to be used and identify whether the Central
Limit Theorem is applicable or not given the following information:

a. Ho: µ = 250 Ha: µ < 250 α = 0.05 = 5 µ = 11 n = 100 x̄ = 14

Answer:
Since n=100, the Central Limit Theorem is applicable, the
distribution is normally distributed. The appropriate test statistic is the
z-test statistic.

b. Ho: µ=8 Ha: µ≠8 α=0.05 =5 µ = 11 n = 16 x̄ = 7.6

Answer:
Since n=16, the Central Limit Theorem cannot be applied. The
appropriate test statistic is the t-test statistic.

REJECTION REGION
A rejection region is the set of all values of the test statistic that cause us
to reject the null hypothesis. It is also called as critical region. Below are the notes to
remember about the rejection region.
* If the test statistic falls into the rejection region, we reject the null
hypothesis in favor of the alternative hypothesis.

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* If the test statistic falls in the non-rejection region, we say that we do

not have evidence to reject the null hypothesis.

A non-rejection region is a set of values not in the rejection region that

leads to non-rejection of the null hypothesis (Ho).
Considering the type of hypothesis test is also vital such as one-tailed test
(left or right-tailed) and two-tailed test to determine the critical values to be used.

When do we use two-tailed test?

* If the sample mean can be lesser than or greater than the population mean
the test is two tailed.
* If the alternative hypothesis contains the inequality (≠) symbol then the test
is two- tailed.
* The test is two tailed if the probability (shaded region) is found on both tails
of the distribution.
Illustration:

Since the two tailed test is non-directional, the rejection region is on both
sides of the curve.

When do we use right-tailed test?

* If the hypothesis contains the greater symbol (>), then the rejection
region is on the right tail of the curve.
* If the sample mean is greater than the population mean the test is
one tailed, right tail.
Illustration:

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Since the test is right-tailed test and is directional, then the rejection region is on
the right tail of the distribution

When do we use left-tailed test?

* If the hypothesis contains the less than symbol (<) then, the rejection region
is on the left tail of the curve.
* If the sample mean is lesser than the population mean the test is one tailed,
left tail.

Illustration:

Since the test is left-tailed test and is directional, then the rejection region is on
the left tail of the distribution

As we can see in the three illustrations above, there are lines that separates the
rejection and the non-rejection region. This line corresponds to a number called
critical values. Critical values are very important in concluding whether the null
hypothesis is to be rejected or not. The critical values could be determined using the
z-table (pls see the attach z-table after the references), if n ≥ 30, large enough to apply
the central limit theorem and the population is assumed to be known and t-table
(pls see the attach t-table after the references) if n < 30, where central limit theorem
cannot be applied and the population variance is assumed to be unknown.
Let’s consider below examples:
Example 1: Identify the rejection region and the critical values when the test is two
tailed, the level of significance is 0.05, the variance is known and n =
35?
Given: Two-tailed
Variance is known
𝛼 = 0.05
n = 35
Solution:
𝛼
= 0.025 Divide the level of significance (𝛼) by 2
2
0.5 – 0.025 = 0.4750 Subtract the quotient from 0.5

Use the z-table since n = 35 to find the

critical values

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Note: The area 0.4750 is under column headed 0.06. Move along this row to the left
until 1.9 under column headed z is reached. Therefore, Zα/2 = 1.96 at 5% level of
significance, the critical values are ±1.96.

𝛼 𝛼
=0.025 =0.025
2 2
Rejection region Rejection region

In the figure, the two tailed test with α = 0.05, the critical value for the
𝛼
rejection region cuts off =0.025 or 2.5% in the two tails of the z
2
distribution, so that Z0.025 = ±1.96. The null hypothesis (Ho) will be
rejected if z>1.96 or z<-1.96.

Example 2: Identify the rejection region and the critical values when the test is two
tailed, the level of significance is 0.05, the variance is unknown and
n = 20?
Given: Two-tailed
Variance is unknown
𝛼 = 0.05
n = 20
Solution:
df = n -1 = 20-1 =19 Solve for the degrees of freedom
using the formula n-1

Use the t-table since the variance

is unknown and n = 20 to find
the critical values

Note: In the table of critical values of t locate 19 in the first column headed df.
Because the test is two tailed with α = 0.05, refer to the column indicating an area of
0.05 in two tails. The critical values are ± 2.093.

𝛼 𝛼
=0.025 =0.025
2 2
Rejection region Rejection region

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-2.093 2.093

The null hypothesis (Ho) will be rejected if t>2.093 or t<-2.093.

REJECTION REGIONS FOR COMMON VALUES OF α if n ≥ 30, variance is

known and central limit theorem is used.

ALTERNATIVE HYPOTHESIS
α Left-tailed Right Tailed Two tailed
α =.10 z<-1.28 z>1.28 z<-1.645 or z>1.645
α =.05 z<-1.645 z>1.645 z<-1.96 or z>1.96
α = .01 z<-2.33 z>2.33 z<-2.575 or z>2.575

Explore

Here are some enrichment activities for you to work on to master and
strengthen the basic concepts you have learned from this lesson.

Activity 1: IDENTIFY ME!

Directions: Identify the appropriate test statistic to be used in the following:

1. µ = 8 s=3 n = 12 x̄ =6
2. µ = 9.3 s = 31.6 n = 15 x̄ =7.4
3. µ = 12 s = 5.2 n = 10 x̄ =8.8
4. µ = 400 = 92 n = 100 x̄ =425
5. µ = 73 =8 n = 200 x̄ =78

Activity 2: FIND ME!

Directions: Find the critical value of the following.

1. A right tailed test; α=0.05; df = 20

2. A two tailed test; α=0.01; df = 26

3. A left tailed test; α=0.05; df = 28

4. A right tailed test; α=0.1; df = 28

5. A two tailed test; α=0.05; df = 16

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Activity 3: DRAW MY REJECTION REGION

Directions: Find the appropriate rejection region in each case.

1. Ha: µ > μ0 ; α = 0.05

2. Ha: µ < μ0 ; α = 0.05
3. Ha: µ ≠ μ0 ; α = 0.05
4. A right-tailed test at 10% level of significance.
5. A left -tailed test at 10% level of significance.

Great job! You have understood the lesson.

Are you now ready to summarize?

Deepen

At this point, make an output by completing the table. Apply your knowledge about
identifying the appropriate test statistic and identifying the appropriate rejection
region. The scoring rubric will be used in assessing your outputs.

A) FILL ME OUT!
Directions: fill out the missing parts of the table. Some parts of the table are
already fill out for your guidance.
Given Test 2 tailed or Rejection Region Draw the
Information Statistic 1tailed (Right, Left or both rejection region
left and right)
Ho: µ=84
Ha: µ≠84 z-test Both left and right
x̄ = 90 =12
n=32α =0.01
Ho: µ=30
Ha: µ>30 1 tailed
x̄ = 32 =5.5
n=34α =0.05
Ho: µ=40
Ha: µ<40 left
x̄ = 39 =8.5
n=42α =0.05
Ho: µ=25
Ha: µ≠25
x̄ = 15 s=2.5
n=24α =0.05 0.025
0.025

Ho: µ=45
Ha: µ>45
x̄ = 35 s=2.5
n=26α =0.05

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Rubrics for Scoring the Output

Exemplary Accomplished Developing Beginning
Criteria Score
3 2 1 0
Identifies the Identifies Most but not Some Incorrect
appropriate correctly all appropriate appropriate or no test
Test all test statistic test statistic
Statistics and appropriate and rejection statistic and
appropriate test region and rejection
rejection statistics identified. rejection region
region and region were identified
appropriate identified
rejection correctly.
region
Completeness Addresses Addresses or Addresses Does not
of answer or answers answers most or answers answer
all parts parts few parts any parts.
correctly
Timeliness The The learner The learner The
learner finished the finished 1 learner
finished task assigned week finished
the task just on time. late. more than
assigned 1 week
before the late.
time
allotted.

Gauge

Directions: Read each item carefully. Write the letter of the correct answer.
Use a separate sheet for your answers.

_______1. What test should be utilized if an economist wishes to determine whether

there is evidence that average family income in a community exceeds
P15,000?
A. A two-tail test should be utilized
B. A one-tail test should be utilized to the left.
C. A one tail test should be utilized to the right
D. Either one tail or two-tai test could be used with equivalent results.

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_______2. A teacher wants to know how well his students perform in his Statistics
class relative to students in other Statistics classes in the school. He
administers a standardized test which students in other classes had taken
with a mean of 65 and standard deviation of 10. His class has 50 students.
Which statistical method should he use?
A. t-test B. z-test C. Both t and z test D. None of these
_______3. Which of the following gives the correct description for the figure below?

A. Left-tailed; Reject Ho if z ≤ zα
B. Right-tailed; Reject Ho if z ≥ zα
C. Two tailed: Reject Ho z ≥ zα/2
D. None of these
__________4. Which of the following terms should be be used to complete the
statement, “In a two- sample test of means for independent samples,
the equal sign always appears in the ____________.”?
A. Alternate hypothesis
B. Left tail of the test statistic
C. Null hypothesis
D. Right tail of the test statistic

________5. The figure below shows a normal curve with its rejection region shaded.
The dot shows the calculated test statistic. Is the test one tailed or
two tailed?

A. The test is one-tailed, left tail

B. The test has no tail
C. The test is one-tailed, right tail
D. The test is two tailed

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_______6. The figure below shows a normal curve with its rejection region shaded.
The dot shows the calculated test statistic. Should the null hypothesis
be rejected or accepted?

A. The null hypothesis must be accepted because the test statistic is

within the rejection region.
B. The null hypothesis must be rejected because the test statistic is
within the rejection region.
C. The null hypothesis must be rejected because the test statistic is not
within the rejection region.
D. The null hypothesis must be accepted because the test statistic is
not within the rejection region.
__________7. Consider a hypothesis Ho where µo=23 against µa<23. The test is?
A. Right tailed B. Centered tailed
C. Left tailed D. Non directional
__________8. Consider a hypothesis Ho where µo = 5 against µa > 5.The test is?
A. Right tailed B. Centered tailed
C. Left tailed D. Non directional
__________9. Which test statistic should be used using the given information
below?
Ho: µ = 350
Ha: µ > 350
= 77 n = 60 x̄ =380
A. p-test B. t- test C. v-test D. z-test
__________10. What is the significance level if the level of confidence is 99%?
A. 0.1 B. 0.01 C. 0.05 D. 0.5
__________11. Which test statistic to be used given µ = 10, s = 5.1, n = 10 , x̄ = 7.8?
B. p-test B. t- test C. v-test D. z-test
__________12. Suppose that the z is the test statistic for hypothesis testing, calculate
the value of z for µ = 100 = 12 n = 130 x̄ = 92
A.-6.72 B.6.72 C. 7.62 D. -7.62
__________13. Identify the appropriate rejection region: A teacher claims that his
students scored an average of 90 in their Statistics exam. The principal
wants to know whether the teacher’s claim is acceptable or not.
A. The rejection region is located at the right tail of the distribution
curve.
B. The rejection regions are located at both tail of the distribution curve.
C. The rejection region is located at the left tail of the distribution curve.
D. None of the above.

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___________14. A wine manufacturer claims that the average selling price of all the
manufactured wine cost only 250 pesos. A buyer wants to test
whether the mean selling price if all the wine manufactured exceed
250 pesos. Which is the appropriate rejection region?
A. The rejection region is located at the right tail of the distribution
curve.
B. The rejection regions are located at both tail of the distribution curve.
C. The rejection region is located at the left tail of the distribution curve.
D. None of the above.
___________15. Which test statistics should be used given the following information?
µ = 26 = 4.5 n = 80 x̄ = 28.3
A. p-test B. t- test C. v-test D. z-test

References
Printed Materials:
Belecina, E. B. (2016). Statistics and Probability (pp 216-232). Sampaloc, Manila: Rex
Printing Company, INC.

Website:
https://www.statology.org/
https://www.chegg.com/homework-help
PERCDC learnhub quexbook.com

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PRETEST
1. A
2. D
3. C
4. C
5. C
6. A
7. D
8. D
9. C
10. A
11. D
12. D
13. B
14. A
15. A
JUMPSTART
ACTIVITY 1. IDENTIFY ME!
1. z test
2. t test
3. t test
4. z test
5. z test
ACTIVITY 2. IS THE TEST TWO TAILED OR ONE TAILED
1. TWO TAILED
2. ONE TAILED, LEFT TAIL
3. ONE TAILED, RIGHT TAIL
4. ONE TAILED, RIGHT TAIL
5. TWO TAILED
ACTIVITY 3. COMPLETE ME!
ALTERNATIVE HYPOTHESIS
α Left-tailed Right Two tailed
Tailed
α =.10 z<-1.28 z>1.28 z<-1.645 or z>1.645
α =.05 z<-1.645 z>1.645 z<-1.96 or z>1.96
α = .01 z<-2.33 z>2.33 z<-2.575 or z>2.575
EXPLORE
ACTIVITY 1. IDENTIFY ME!
1. t-test
2. t -test
3. t-test,
4. z-test ,
5. z-test,
ACTIVITY 2. FIND ME!
1. 1.725
2. 2.779
3. 1.701
4. 1.313
5. 2.12
ACTIVITY 3. DRAW MY REJECTION REGION.
1. 2. 3.
Answer Key
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DEEPEN
A. FILL ME OUT
Given Information Test Statistic 2 tailed or Rejection Region Draw the rejection region
1tailed (Right, Left or Both
Right and Left)
Ho: µ=84
Ha: µ≠84
Z test 2 tailed Both Right and Left
n=32α =0.01
x̄ = 90 =12
Ho: µ=30
Ha: µ>30
Z test 1 tailed Right
n=34α =0.05
x̄ = 32 =5.5
Ho: µ=40
Ha: µ<40
Z test 1 tailed Left
n=42α =0.05
x̄ = 39 =8.5
Ho: µ=25
Ha: µ≠25
T test 2 tailed Both Right and Left
n=24α =0.05
x̄ = 25 s=2.5
Ho: µ=35
Ha: µ>35
T test 1 tailed Right
n=26α =0.05
x̄ = 35 s=2.5
GAUGE
1. C
2. B
3. A
4. C
5. A
6. B
7. C
8. A
9. D
10. B
11. B
12. D
13. B
14. A
15. D
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t-table

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z-table

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