Department of Education

National Capital Region

Schools Division of Parañaque City
Self-Learning Modules
Statistics and Probability: Quarter 2 Week 4

Testing Hypothesis About Population Mean

When the Variance is Known

ENTRY BEHAVIOUR
Brief Introduction
This module will help you, the learner, identify the appropriate form of test statistic,
determine the rejection region for a given level of significance; and draws conclusion about
the population mean after comparing the computed test statistic and tabulated value.

Learning Competencies

At the end of this module, the learner should be able to;

1. Identifies the appropriate form of test statistic 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.
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.
3. Compute for the test statistic value (population mean);
4. Draws conclusion about the population mean based on the test statistic
value and the rejection region; and
5. Solve problems involving test of hypothesis on the population mean.

Objectives

The objectives of this module are for the students to identify the appropriate
test statistic; determine the rejection region for a given level of significance through normal
curve; compute for the test statistic value and compare to the tabulated value; and, draw
conclusion about the population mean based on the statistic value and the rejection region.

Let’s Recall

Let us review the following concept below:

1. What is hypothesis testing? Hypothesis testing is a procedure used in quantitative
research by statisticians to determine whether or not to accept the assumption
about the population.

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2. What is Null Hypothesis? Null Hypothesis is a statement stating that there is NO

significant difference between population parameter and the value that is being
claimed.
3. What Alternative Hypothesis? Alternative Hypothesis is a statement stating that
there is a significant difference between the population parameter and the value
that is being claimed. It is also the hypothesis considered to be true once the null
hypothesis is rejected.
4. When is z-test for a mean appropriate to used? Z-test is used for the mean of a
population when n ≥ 30, or when a population is normally distributed and σ is known.

Let’s Understand
In hypothesis testing consider the 5-Step Procedures below:
1. State the hypotheses and identify the claim.
2. Find the critical value(s) from the appropriate table.
3. Compute the test statistic.
4. Make the decision to reject or not to reject the null hypothesis.
5. Summarize the result.

z-Test for a Mean

The z test is a statistical test for the mean of a population. It can be used
when n ≥ 30, or when the population is normally distributed and σ is known.

Where:
𝑥ҧ −𝜇 𝑥ҧ =sample mean
z= 𝜎 𝜇 =population mean
ξ𝑛 𝜎= standard deviation
n = sample mean

Remember that in the first encounter with hypothesis testing is somewhat

challenging and confusing, since there are many new concepts being introduced at the
same time. To understand all concepts, simply follow each step in the examples below.

Example 1.
A researcher reports that the average salary of assistant professors is more than
P42 000. A sample of 20 assistant professors has a mean salary of P43 200. At 5%
significant level, test the claim that the assistant professors earn more than P42 000 a year.
The standard deviation of the population is P4 500.

Solution:
Step 1: State the hypothesis and identify the claim.
H0 : µ > 42 000 (claim)
Ha : µ ≤ 42 000

Step 2: Find the critical value. Since α = 0.05 and the test is one-tailed test to the

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right.
0.5000 – 0.0500 = 0.4500 locate this area to the z table and get the
corresponding z-value, that is, the critical value z = 1.65.
Step 3: Compute the test value.

𝑥ҧ −𝜇 43 200−42 000
z= 𝜎 = 4 500 = 1.19
ξ𝑛 ξ20

Step 4: Make the decision. Since the test statistic is 1.19 less than the critical
value, 1.65, and is not in the critical region, the decision is not to reject null hypothesis.

0.45

Rejection region
0.05

0 1.19 1.65

Step 5: Summarize the results. There is enough evidence to support the claim
that the assistant professors earn more than P42 000.

Example 2.
A researcher claims that the average cost of men’s athletic shoes is less than P3
840. He selects a random sample of 20 pairs of shoes from a catalog and find the following
costs. Is there enough evidence to support the researcher’s claim at α = 0.10?
2 880 3 360 3 600 2 640 3 840
2 400 1 920 3 840 3 360 2 400
5 760 4 320 3 600 4 080 4 080
5 280 3 120 3 840 4 320 3 360
Solution:
Step 1: State the hypothesis and identify the claim.
H0 : µ < 3 840 (claim)
Ha : µ ≥ 3 840

Step 2: Find the critical value. Since α = 0.10 and the test is one-tailed test to the
left.
0.5000 – 0.1000 = 0.4000 locate this area to the z table and get the
corresponding z-value, that is, the critical value z = -1.28.

Step 3: Compute the test value. Since the exercise gives raw data, it is necessary
to compute the mean and standard deviation of the sample. The computed 𝑥ҧ = 3 600 and
s = 3 756.59. Substitute in the formula.

𝑥ҧ −𝜇 3600−3840
z= 𝑠 = 3756.59 = - 0.29
ξ𝑛 ξ20
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Step 4: Make the decision. Since the test statistic is – 0.29 greater than the critical
value, -1.28, and is not in the critical region, the decision is not to reject null hypothesis.

0.4
Rejection region
0.10

-1.28 0
-0.29

Step 5: Summarize the results. There is enough evidence to support the claim
that the average cost of men’s athletic shoes is less than P3 840.
Example 3.
The Medical Rehabilitation Foundation reports that the average cost of rehabilitation
for stroke victims is P1 184 256. To see if the average cost of rehabilitation is different at
a particular hospital, a researcher selected at random sample of 30 stroke victims at the
hospital and found that the average cost of their rehabilitation is P1 210 848. The standard
deviation of the population is P156 048. At α = 0.01, can it be concluded that the average
cost of stroke rehabilitation at a particular hospital is different from P1 184 256?
Solution:
Step 1: State the hypothesis and identify the claim.
H0 : µ = P1 184 256 (claim)
Ha : µ ≠ P1 184 256
𝛼
Step 2: Find the critical value. Since α = 0.01, = 0.005 and the test is two-tailed test.
2
0.5000 – 0.005 = 0.4950 locate this area to the z table and get the
corresponding z-value, that is, the critical value z = ±2.58.
Step 3: Compute the test value. 𝑥ҧ −𝜇 1 210 848 −1 184 256
z= 𝜎 = 156 048 = 0.93
ξ𝑛 ξ30

Step 4: Make the decision. Since the test statistic is 0.93 less than the critical value, 1.65,
and is not in the critical region, the decision is not to reject null hypothesis.

Rejection region Rejection region

Step 5: Summarize the results. There is enough evidence to support the claim that the
average cost of stroke rehabilitation
-2.58 at a 0particular hospital is different from P1 184 256.
2.58

0.93

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Let’s Apply
Direction: Solve the following problems below. Fill in the blanks with the correct
value/s or statement/s.

Problem 1.
The leader of the association of tricycle drivers claims that the average daily takes
home pay of all tricycle drivers in Multinational Village is P800. A random sample of 50
tricycle drivers was interviewed and the average daily take home pay of these drivers is
found to be P850. Use 0.05 level of significance to find out if the average daily take home
pay is different from P800. Assume that the population variance is 9 025.
Solution:
Step 1: State the hypothesis and identify the claim.
H0 : µ = _____ (claim) Ha : µ ≠______
𝛼
Step 2: Find the critical value. Since α =_____, = _______ and the test is two tailed test.
2
0.5000 – ______ = ______ locate this area to the z table and get the
corresponding z-value, that is, the critical value z = ±_______.
Step 3: Compute the test value.

𝑥ҧ −𝜇 ___________ −________
z= 𝜎 = ___________ = _____
ξ𝑛 ξ_____

Step 4: Make the decision. Since the test statistic is ____ greater than the critical value,
z=_____, and is in the critical region, the decision is ______________ hypothesis.

Label the normal curve with the correctly.

Step 5: Summarize the results. There is not enough evidence to support the claim that
the average ___________________________________________________________.

Problem 2.

According to the study conducted last year, the average monthly consumption of
senior high school students for mobile phone loads is P400. A group of statistics students
believes that the amount was increased in the last quarter. Is there a reason to believe that
the amount has really increased if the sample of 20 students has an average monthly
expenses of P450 for mobile phone loads. Use 0.05 level of significance. Assume that the
population standard deviation is P70.
Solution:
Step 1: State the hypothesis and identify the claim.

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H0 : µ = _____ (claim) Ha : µ ≠______

𝛼
Step 2: Find the critical value. Since α =_____, = _______ and the test is two tailed test.
2
0.5000 – ______ = ______ locate this area to the z table and get the
corresponding z-value, that is, the critical value z = ±_______.
Step 3: Compute the test value.

𝑥ҧ −𝜇 ___________ −________
z= 𝜎 = ___________ = _____
ξ𝑛 ξ_____

Step 4: Make the decision. Since the test statistic is ____ greater than the critical value,
z=_____, and is in the critical region, the decision is ______________ hypothesis.
Step 5: Summarize the results. There is not enough evidence to support the claim that the
average ___________________________________________________________.

Let’s Analyze

A. Direction: Compute the test statistic given the following information and test the
hypotheses.

1. H0 : µ = 80 4. H0 : µ = 30
Ha : µ ≠ 80 Ha : µ > 30
𝑥ҧ = 87; σ = 10; n = 35; α = 0.01 𝑥ҧ = 32; σ = 5.5; n = 35; α = 0.05

2. H0 : µ = 50 5. H0 : µ = 40
Ha : µ < 50 Ha : µ ≠ 40
𝑥ҧ = 40; σ = 12; n = 35; α = 0.05 𝑥ҧ = 42; σ = 9; n = 32; α = 0.01

3. H0 : µ = 60
Ha : µ ≠ 60
𝑥ҧ = 77; σ = 10.5; n = 50; α = 0.1

Let’s Evaluate
Direction: Solve the following problems. Show the step by step process.

1. It is claimed that the mean annual salary of a Teacher I is P254 000. A researcher
randomly selected 40 Teachers I faculty members of SHS. He computed the mean of their
annual salaries and obtained a mean of P260 000. Does this show that the mean salary
of teachers I is greater than P254 000? Use 0.05 level of significance and assume that the
population standard deviation is P4000.
2. A company which produces batteries claims that the life expectancy of their batteries is
96 hours. In order to test the claim, a consumer interest group tested a random sample of
40 batteries. The test resulted to a mean life expectancy of 84 hours. Using the level of
significance of 0.01, can it be concluded that the life expectancy of their batteries is less
than 96 hours? Assume that the population standard deviation is known to be 22 hours.

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