Statistics and

Probability
Quarter 4 – Module 4:
Test Concerning Proportions
(Central Limit Theorem)
Statistics and Probability- Grade 11
Alternative Delivery Mode
Quarter 4 – Module 4: Test Concerning Proportions
(Central Limit Theorem)
First Edition, 2020

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 Statistics and
Probability
Quarter 4 – Module 4:
Test Concerning Proportions
(Central Limit Theorem)
Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions,
directions, exercises, and discussions are carefully stated for you to understand
each lesson.

Each SLM is composed of different parts. Each part shall guide you step-by-
step as you discover and understand the lesson prepared for you.

Pre-tests are provided to measure your prior knowledge on lessons in each

SLM. This will tell you if you need to proceed on completing this module or if you
need to ask your facilitator or your teacher’s assistance for better understanding of
the lesson. At the end of each module, you need to answer the post-test to self-
check your learning. Answer keys are provided for each activity and test. We trust
that you will be honest in using these.

In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how they
can best help you on your home-based learning.

Please use this module with care. Do not put unnecessary marks on any
part of this SLM. Use a separate sheet of paper in answering the exercises and
tests. And read the instructions carefully before performing each task.

If you have any questions in using this SLM or any difficulty in answering
the tasks in this module, do not hesitate to consult your teacher or facilitator.

Thank you.
 What I Need to Know

This module was designed to help you master test concerning proportions.
The scope of this module permits it to be used in many different learning
situations. The language used recognizes the diverse vocabulary level of students.
The lessons are arranged to follow the standard sequence of the course. But the
order in which you read them can be changed to correspond with the textbook you
are now using.

The module includes one lesson, that is:

 Test Concerning Proportions(CLT)

After going through this module, you are expected to:

1. identify the appropriate form of test-statistic when the Central Limit
Theorem is to be used (M11/12SP-IVe-3); and
2. identify the appropriate rejection region for a given level of significance when
the Central Limit Theorem is to be used (M11/12SP-IVe-4).

1
 What I Know

Directions: Choose the letter of the best answer. Write the letter that corresponds
to your answer on a separate sheet of paper.

1. When do you apply Central Limit Theorem?

a. n ≥ 10 b. n ≤ 10 c. n ≥ 30 d. n ≤ 30

2. What is the formula used for z –score?

𝑥̄− µ𝑦 𝑥̄− µ
a. 𝑧= 𝜎 c. 𝑧= 𝜎
√𝑛 √𝑛

𝑥̄− µ 𝑥̄− µ
b. 𝑧= 𝜎 d. 𝑧= 𝜎
√𝑚𝑛 √𝑛

3. Given the values of 𝑥̄ = 75, µ = 73, 𝜎 = 6, n = 100, find z.

a. 3.31 b. 3.32 c. 3.33 d. 3.34

4. The symbol µ means

a. population mean c. sample mean

b. population standard deviation d. sample size

5. The symbol 𝜎 means

a. population mean c. sample mean

b. population standard deviation d. sample size

For numbers 6-10. Given 𝛼 and the z-values. Identify whether the decision is to
REJECT or DO NOT REJECT the null hypothesis for each of the following.

6. 𝛼 = 0.05, z = 3.5, two-tailed

7. 𝛼 = 0.05, z = –1.625, one-tailed

8. 𝛼 = 0.05, z = 1.75, one-tailed

9. 𝛼 = 0.01, z = 1.65, two-tailed

10. 𝛼 = 0.01, z = -3.8, two-tailed

2
Lesson

1 Test Concerning Proportions

As discussed in the previous modules, test statistic on population can be

computed using the traditional method and the P-value method and is focused on
the traditional method of hypothesis testing. This module will give way to a deeper
understanding of the test concerning proportions particularly when the central
limit theorem is to be used.

What’s In

ACCEPT ME OR REJECT ME
Check the box “accept” if the statement is true and check the box “reject” if the
statement is false.
Statement Accept Reject
1. If n = 65, the Central Limit Theorem applies.
𝜎
2. When 𝜎 = 8.5 and n = 110, then = 0.81.
√𝑛
3. If the computed test statistic falls in the rejection region, reject
the null hypothesis.
4. If the alternative hypothesis is directional, then the two-tailed
test shall be used.
5. If the alternative hypothesis is non-directional, then the one-
tailed test shall be used.

Take note that Null Hypothesis (H0) is rejected if the computed test statistic
≤ negative critical value or if the computed test statistic ≥ positive critical value.

Otherwise, do not reject Null Hypothesis (H0).

3
 What’s New

Consider the given situation below. Analyze the problem carefully and try to
identify the appropriate form of test statistic to be used in solving this.

In the previous election, 65% of the voters in the province of Bataan have
voted for the administration candidate for congressman. Suppose 775 out of the
1,260 randomly selected voters indicate that they had voted for the administration
candidate. At 0.10 level of significance, find out whether the percentage of voters
for the administration candidate for congressman is different from 65%.

Guide questions:

1. What is the appropriate form of test statistic to be used to answer the problem?

2. Is Central Limit Theorem helpful to answer this problem?

3. How would you solve the given problem?

Notes to the Teacher

The students should understand the importance of Central Limit
Theorem in research.

4
 What is It

The problem above is an example of a real life situation that can be solved by
using appropriate test statistic formula to test the hypothesis about population
proportion p.

The normal distribution is used to help measure the accuracy of many

statistics, includes sample mean, using an important result called the Central
Limit Theorem (CLT). This theorem will give you the ability to measure how much
the means of various samples will vary, without having to take any other sample
means to compare it with. By taking this variability into account, you can use your
data to answer questions about a population, such as “What’s the mean household
income for the whole Bataan?” or “This report said 65% of all gift cards go unused;
is that really true?” (The two analysis are made possible by applications of the
Central Limit Theorem called confidence intervals and hypothesis tests,
respectively.)

The Central Limit Theorem (CLT) basically says that for non-normal data,
the distribution of the sample means has an approximate normal distribution, no
matter what the distribution of the original data looks like, if the sample size is
large enough (usually at least 30) and all samples have the same size. And it
doesn’t just apply to the sample mean; the CLT is also true for other sample
statistics, such as the sample proportion.

Moreover, the Central Limit Theorem states that the formula for the z-score
when working with the sample mean is given by:
𝑥̄ − µ
𝑧= 𝜎
√𝑛

where:

𝑥̄ = sample mean

µ = population mean

𝜎 = population standard deviation

𝑛 = sample size

5
 This means that the sampling distribution of the sample mean 𝑥̄ is
approximately normally distributed with the mean µ from which the samples are
drawn. The variance of the sampling distribution of the mean is equal to the
variance divided by the sample n.

Example #1: Identify the value of z given the values of sample mean, population
mean, population standard deviation and sample size.

Given: 𝑥̄ = 92, µ = 90, 𝜎 = 6, n = 100

Solution:
Steps Solution
1. Write the computing formula. 𝑥̄ − µ
𝑧=
𝜎x
that simplifies to
𝑥̄ − µ
𝑧= 𝜎
√𝑛

2. Replace the terms in the formula by 92−90

𝑧= 6
the given values. √100

2
𝑧 = 0.6
𝑧 = 3.33

Example #2: Identify the value of z given the values of sample mean, population
mean, population standard deviation and sample size.

Given: 𝑥̄ = 90, µ = 92, 𝜎 = 5, n = 65

Solution:
Steps Solution
1. Write the computing formula. 𝑥̄ − µ
𝑧=
𝜎x
that simplifies to
𝑥̄ − µ
𝑧= 𝜎
√𝑛

6
2. Replace the terms in the formula by 90−92
𝑧= 6
the given values.
√65

−2
𝑧=
0.744
𝑧 = −2.69

The Central Limit theorem asserts that if the sample size is sufficiently large,
then the mean of the random sample form a population has a sampling distribution
that is approximately normal, even when the original population is not normally
distributed. This means that whatever the shape of the original distribution, the
sampling distribution of the mean approaches a normal distribution as long as the
sample size is large enough. The mean of the sampling distribution of means is
equal to the mean population (µx̅ = µ). The standard deviation of the sampling
distribution of the means is equal to the standard deviation population divided by
𝜎
the square root of the sample size (𝜎 = ).
√𝑛

Recall the following z score formula:

𝑥̄ − µ
𝑧=
𝜎
If the sample means are normally distributed, then the formula can be
converted to

𝑥̄ − µx
𝑧=
𝜎x
𝜎
But then, according to the Central Limit Theorem (µx = 𝜇 ) and (𝜎 = ) if
√𝑛
the sample size is sufficiently large. Hence,
𝑥̄ − µ
𝑧= 𝜎
√𝑛

If n is sufficiently large, and 𝜎 is unknown, the formula becomes:

𝑥̄− µ
𝑧= 𝑠 .
√𝑛

where:

𝑥̄ = sample mean

µ = population mean

𝑠 = sample standard deviation

𝑛 = sample size

7
 The Central Limit Theorem is not limited to sample means. It can also be applied
to sample proportions. The sample size is considered differently large if np > 5 and
𝑝𝑞
nq > 5. The standard deviation of the sample proportion is √ . Substituting p̂ for 𝑥̄,
𝑛

𝑝𝑞
p for µx , and √𝑛 for the standard deviation 𝜎x in the formula
𝑥̄ − µx
𝑧=
𝜎x

will result to the following formula that can be used as an appropriate test statistic
to test the hypothesis about population proportion p.

𝑝−𝑝 𝑝−𝑝
𝑧= 𝑝𝑞
or 𝑧=
𝑝(1−𝑝)
√𝑛 √
𝑛

where:

p̂ = sample proportion

p = population proportion

n = sample size

q=1–p

The following are the steps when testing hypothesis concerning proportion:

Step 1. State the null and the alternative hypotheses.

Step 2. Choose a level of significance 𝛼.

Step 3. Compute test statistic.

Step 4. Determine the critical value.

Step 5. Make a decision.

8
Now, let us answer the problem in the previous part.

Example #1: In the previous election, 65% of the voters in the province of Bataan
have voted for the administration candidate for congressman. Suppose 775 out of
the 1,260 randomly selected voters indicate that they had voted for the
administration candidate. At 0.10 level of significance, find out whether the
percentage of voters for the administration candidate for congressman is different
from 65%.
Solution:

Step 1: State the null and the alternative hypothesis.

Ho : p = 0.65

Ha : p ≠ 0.65

Step 2: Choose a level of significance: 𝛼 = 0.10

Step 3: Compute the test statistic.

𝑥̄
𝑝=
𝑛
775
𝑝= 1,260

𝑝 = 0.62
𝑝 − 𝑝
𝑧=
𝑝(1−𝑝)
√
𝑛

0.62 − 0.65
𝑧= 0.65(1 − 0.65)
√
1,260

𝑧 = −2.233

Step 4: Determine the critical value.

The alternative hypothesis is non-directional. Hence, the two-tailed test shall

be used. Divide 𝛼 by 2, and then subtract the quotient from 0.5.

𝛼 0.10
= = 0.05
2 2

0.5 – 0.05 = 0.45

9
 Using the Areas Under the Normal Curve table, z = 1.645. At 10% level of
significance the critical value is±1.645.

Step 5. Draw a conclusion.

Since the computed test statistic z = -2.233 falls in the rejection region, reject the
null hypothesis. Conclude that at 0.10 level of significance, there is enough
evidence that the percentage of voters for the administration candidate is different
from 65%.

Example #2: In the midst of pandemic because of COVID-19, a survey was

conducted on a BPO company last 2020 showed that 25% of the employees would
rather work at home because of the pandemic than work as skeletal force in the
company. The company has decided to give additional internet allowance. Recently,
in a survey conducted this 2021, out of the 125 randomly sampled employees 28%
said that they would rather work from home than work as skeletal force. At 0.05
level of significance, is there sufficient evidence to suggest that employees in the
work from home scheme increased since the company has decided to give
additional internet allowance?

Step 1. State the null and the alternative hypotheses.

Ho : p = 0.25

Ha : p > 0.25

Step 2. Choose a level of significance: 𝛼 = 0.05

10
Step 3. Compute the test statistic.
𝑝̂ − 𝑝
𝑧=
𝑝(1−𝑝)
√
𝑛

0.28 − 0.25
𝑧=
0.25(1 − 0.25)
√
125

𝑧 = 0.775

Step 4. Determine the critical value.

The alternative hypothesis is directional. Hence, the one-tailed test shall be used.

𝛼 = 0.05

0.5 – 0.05 = 0.45

Using the Areas Under the Normal Curve Table, 𝑧 = 1.645. Hence, at 5% level of
significance, the critical value is 1.645.

Step 5. Draw a conclusion.

Since the computed test statistic z = 0.775 does not fall in the rejection region, do
not reject the null hypothesis. Conclude that at 0.05 level of significance, there is
no enough evidence to conclude that work from home scheme have increased since
the company has decided to give additional internet allowance.

Note: Normal distribution is a probability distribution that is symmetric about the

mean showing that data near the mean are more frequent in occurrence than data
far from the mean. In graph form, normal distribution will appear as a bell curve.

11
 What’s More

Let us check your understanding by doing this activity.

Directions: Read and analyse the given problems carefully and solve using
appropriate form of test statistic. Write your answer on a separate sheet of paper.

1. Millennials really enjoyed attending concerts especially Korean artists, 75% of

the millennial preferred watching Korean concert over local. During lockdown, out
of 150 randomly chosen for a survey (through online), 105 said they still watch
Korean artist concert after the pandemic. Does this indicate that some millennial
are losing interest in watching Korean artist concert? Use 0.05 level of significance.

2. When the pandemic happened, 70% of the workers lost their jobs. Suppose 405
out of the 620 randomly selected workers that lost their jobs. At 0.10 level of
significance, find out whether the percentage of workers who lost their jobs is
different from 70%.

3. In the province of Bataan, a survey was conducted. 60% of the women became
plantita. Suppose 480 out of the 850 randomly selected women that they became
plantita. At 0.10 level of significance, find out whether the percentage of women
who became plantita is different from 60%.

12
 What I Have Learned

Good job! You already know how to identify the appropriate form of test-
statistic and rejection region for a given level of significance when the Central Limit
Theorem is to be used. Write what you have learned by filling in the circles below,
you may add more circles if necessary.

I Learned…

What I Can Do

Try to answer this activity before you take the assessment test.

Directions: Read and analyse the given problems carefully and solve using
appropriate form of test statistic. Write your answer on a separate sheet of paper.

1. Education is greatly affected by the new normal situation, 75% of the students
chose to enrol in public over private. Before the class opening, out of 150 randomly
chosen for a survey (through online), 115 said they will enrol in public school. Does
this indicate that most of the students wants to enrol in public? Use 0.05 level of
significance.

13
Step 1.

_________________________________________________________________________________

Step 2.

_________________________________________________________________________________

Step 3.

_________________________________________________________________________________

Step 4.

_________________________________________________________________________________

Step 5.

_________________________________________________________________________________

2. 65% of the small time businesses were forced to close because of health crisis.
Suppose 560 out of the 900 randomly selected small time businesses were forced to
close. At 0.10 level of significance, find out whether the percentage of the small
time businesses that were forced to close is different from 65%.
Step 1.

_________________________________________________________________________________

Step 2.

_________________________________________________________________________________

Step 3.

_________________________________________________________________________________

Step 4.

_________________________________________________________________________________

Step 5.

_________________________________________________________________________________

14
 Assessment

Now, it’s time for you to take this test.

Write the letter of your answer on a separate sheet of paper.

1. What is the value of z given 𝑥̄ = 92, µ = 100, 𝜎 = 10, and n = 120?

a. z = -8.67 b. z = -8.76 c. z = -8.86 d. z = -8.96

2. If the value 𝑥̄ = 49.6, µ = 52, 𝜎 = 7, and n = 150, then what is z

a. z = -4.20 b. z = -4.50 c. z = -4.70 d. z = -4.90

3. What is z when; 𝑥̄ = 9.2, µ = 10, 𝜎 = 4, and n = 65

a. z = -1.54 b. z = -1.58 c. z = -1.76 d. z = -1.61

4. What is the decision if 𝛼 = .05 and z = 2.75, in a two-tailed

a. Do not reject H0 because z value < positive critical value

b. Do not reject H0 because z value > negative critical value

c. Reject H0 because z value ≥ positive critical value

d. Reject H0 because z value ≤ negative critical value

5. Given 𝛼 = 0.05 and z = -1.321, in a one-tailed, what will be the decision

a. Do not reject H0 because z value < positive critical value

b. Do not reject H0 because z value > negative critical value

c. Reject H0 because z value ≥ positive critical value

d. Reject H0 because z value ≤ negative critical value

6. What can you conclude if 𝛼 = 0.05 and z = 1.141, in a one-tailed

a. Do not reject H0 because z value < positive critical value

b. Do not reject H0 because z value > negative critical value

c. Reject H0 because z value ≥ positive critical value

d. Reject H0 because z value ≤ negative critical value

15
7. In the given 𝛼 = 0.10 and z = -1.796, in a two-tailed, the null hypothesis is

a. Do not reject H0 because z value < positive critical value

b. Do not reject H0 because z value > negative critical value

c. Reject H0 because z value ≥ positive critical value

d. Reject H0 because z value ≤ negative critical value

8. When the population standard deviation 𝜎 = 8.5 and the sample size n = 110,
𝜎
then is
√𝑛

a. 0.80 b. 0.81 c. 0.82 d. 0.83

9. If n = 85, the Central Limit Theorem applies

a. Yes, because n ≤ 30

b. Yes, because n ≥ 30

c. No, because n ≤ 30

d. No, because n ≤ 30

10. A research, which was conducted in an establishment last year, showed that
25% of the workers would rather drink coffee than soft drinks. The owner has
decided to give free coffee. Recently, in a research conducted, out of the 125
randomly sampled worker, 28% said that they would rather drink coffee than
soft drinks. At 0.05 level of significance, is there sufficient evidence to suggest
that workers who drink coffee increased since the company has decided to give
free coffee?

a. There is no enough evidence to conclude that workers drinking coffee

increase after the owner has decided to give free coffee.

b. There is no enough evidence to conclude that workers drinking soft drinks

increase after the owner has decided to give free coffee.

c. There is enough evidence to conclude that workers drinking coffee increase

after the owner has decided to give free coffee.

d. There is enough evidence to conclude that workers drinking soft drinks

increase after the owner has decided to give free coffee.

16
 Additional Activities

Let us master your skill.

On your answer sheet, give one situation or example where Central Limit
Theorem is being applied. Don’t forget to include the level of significance, sample
proportion, population proportion, and sample size. Please be guided by the rubrics
while doing the activity.
______________________________________________________________________________
__________________________________________________________________________________
__________________________________________________________________.

RUBRICS FOR ASSESSING UNDERSTANDING

Criteria Advanced(4) Good(3) Fair(2) Needs

Improvement(1)
Concept (5) Appropriate Appropriate Appropriate Appropriate
content is content is used content may content is not
used for each for each word be used. observed.
word problem. problem. Student shows Student does
Student Student shows little not demonstrate
clearly some understanding an
understands understanding of the understanding
the of the mathematical of the
mathematical mathematical concepts. mathematical
concepts. concepts concepts.
Organization(5) The word The word The word The word
problem is problem is problem is not problem is not
written in written in clear written in written in clear
clear and and coherent clear and and coherent
coherent language. It is coherent language, or
language. It is easy to read language. It is may not be
easy to follow most of the easy to follow observed. It is
and read. time. and read some difficult to read
of the time. and follow.
Mechanics(5) Proper Proper Proper Proper
language, language, language, language,
capitalization capitalization capitalization capitalization
and and and and
punctuation punctuation are punctuation punctuation are
are present present with no may be used, not observed.
with no more than two but more than
mistakes. mistakes. two mistakes.

17
 18
What’s More: 2. 3.
1. Step 1. Ho : p = 0.70 Step 1. Ho : p = 0.60
Ha : p≠ 0.70 Ha : p≠ 0.60
Step 1. H o : p = 0.75
H a : p< 0.75 Step 2. 𝛼 = 0.10 Step 2. 𝛼 = 0.10
Step 3. Step 3.
Step 2. 𝛼 = 0.05 𝑝 = 0.57
𝑝 = 0.65
Step 3. 𝑧 = −2.717 𝑧 = −1.785
𝑝 = 0.70
𝑧 = −1.414 Step 4. The alternative hypothesis is Step 4. The alternative hypothesis is
non-directional. Hence, the two-tailed non-directional. Hence, the two-tailed
Step 4. The alternative hypothesis is
test shall be used. test shall be used.
directional. Hence, the one-tailed test
shall be used. 𝛼 = 0.10 𝛼 = 0.10
𝛼 0.10 𝛼 0.10
𝛼 = 0.05 = = 0.05 = = 0.05
2 2 2 2
0.5 – 0.05 = 0.45
Using the Areas Under the Normal 0.5 – 0.05 = 0.45 0.5 – 0.05 = 0.45
Curve Table, 𝑧 = 1.645. Hence, at 5% Using the Areas Under the Normal
level of significance, the critical value Using the Areas Under the Normal
Curve Table, 𝑧 = 1.645. Hence, at 10%
is – 1.645. level of significance, the critical value Curve Table, 𝑧 = 1.645. Hence, at 10%
is±1.645. level of significance, the critical value
Step 5. Since the computed test statistic is ±1.645.
𝑧 = – 1.414 does not fall in the rejection Step 5. Since the computed test statistic
region, do not reject the null 𝑧 = – 2.717 falls in the rejection region, Step 5. Since the computed test statistic
hypothesis. Conclude that at 0.05 level reject the null hypothesis. Conclude 𝑧 = – 1.785 falls in the rejection region,
of significance, there is no enough that at 0.10 level of significance, there reject the null hypothesis. Conclude
evidence to conclude that some is enough evidence that the percentage that at 0.10 level of significance, there
millennials are losing interest in of workers who lost their jobs is is enough evidence that the percentage
watching Korean artist concert. different from 70%. of women who became plantita is
different from 60%.
What’S New: What’S In: What I know:
1. Z – test 1. Accept 1. C
2. Yes 2. Accept 2. C
3. Answers may vary 3. Accept 3. C
4. Reject 4. A
5. Reject 5. B
6. REJECT
7. DO NOT REJECT
8. REJECT
9. DO NOT REJECT
10. REJECT
Answer Key
 19
Additional Activities: Assessment:
1. B
2. A
Students answer may vary 3. D
4. C
5. B
6. A
7. D
8. B
9. B
10. A
What I Have Learned: What I Can Do: 2.
1. Step 1. H o : p = 0.65
H a : p≠ 0.65
Step 1. H o : p = 0.75
H a : p< 0.75 Step 2. 𝛼 = 0.10
Students answer may vary Step 3.
Step 2. 𝛼 = 0.05 𝑝 = 0.62
Step 3. 𝑧 = −1.887
𝑝 = 0.77
𝑧 = 0.566 Step 4. The alternative hypothesis is
non-directional. Hence, the two-tailed
Step 4. The alternative hypothesis is
test shall be used.
directional. Hence, the one-tailed test
shall be used. 𝛼 = 0.10
𝛼 0.10
𝛼 = 0.05 = = 0.05
2 2
0.5 – 0.05 = 0.45
Using the Areas Under the Normal 0.5 – 0.05 = 0.45
Curve Table, 𝑧 = 1.645. Hence, at 5% Using the Areas Under the Normal
level of significance, the critical value Curve Table, 𝑧 = 1.645. Hence, at 10%
is 1.645. level of significance, the critical value
is±1.645.
Step 5. Since the computed test statistic
𝑧 = 0.566 does not fall in the rejection Step 5. Since the computed test statistic
region, do not reject the null 𝑧 = – 1.887 falls in the rejection region,
hypothesis. Conclude that at 0.05 level reject the null hypothesis. Conclude
of significance, there is no enough that at 0.10 level of significance, there
evidence to conclude that some of the is enough evidence that the percentage
students wants to enrol in public is of the small time businesses that were
different from 75%. forced to close is different from 65%.
References

Book:

Mercado & Orines, (2016). Next Century Mathematics Statistics and Probability,
Phoenix Publishing House

Balecina, Baccay, & Mateo, (2016). Statistics and Probability, First Edition. REX
Book Store

De Guzman, Danilo, (2017). Statistics and Probability, C&E Publishing Inc.

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