Statistics & Probability

Quarter 2 – Module 9: Hypothesis Testing

First Edition, 2020

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Published by the Department of Education Division of Pasig City

Development Team of the Module

Writer: Analyn A. Yabut

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Statistics & SENIOR
HIGH

Probability SCHOOL

Module

Hypothesis Testing 9
Quarter 2

Introductory Message

For the facilitator:

Welcome to the (Statistics &Probability with Grade11)Module on(Hypothesis Testing)

!
This module was collaboratively designed, developed and reviewed by educators
from Schools Division Office of Pasig City headed by its Officer-In-Charge Schools
Division Superintendent, Ma. Evalou Concepcion A. Agustin in partnership with the
Local Government of Pasig through its mayor, Honorable Victor Ma. Regis N. Sotto.
The writers utilized the standards set by the K to 12 Curriculum using the Most
Essential Learning Competencies (MELC) while overcoming their personal, social,
and economic constraints in schooling.

This learning material hopes to engage the learners into guided and independent
learning activities at their own pace and time. Further, this also aims to help
learners acquire the needed 21st century skills especially the 5 Cs namely:
Communication, Collaboration, Creativity, Critical Thinking and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies that
will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to manage
their own learning. Moreover, you are expected to encourage and assist the learners
as they do the tasks included in the module.

For the learner:

Welcome to the Statistics & Probability Module on (Hypothesis Testing)!

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a learner
is capable and empowered to successfully achieve the relevant competencies and
skills at your own pace and time. Your academic success lies in your own hands!

This module was designed to provide you with fun and meaningful opportunities for
guided and independent learning at your own pace and time. You will be enabled to
process the contents of the learning material while being an active learner.

This module has the following parts and corresponding icons:

Expectation - These are what you will be able to know after completing the
lessons in the module

Pre-test - This will measure your prior knowledge and the concepts to be
mastered throughout the lesson.

Recap - This section will measure what learnings and skills that you
understand from the previous lesson.

Lesson- This section will discuss the topic for this module.

Activities - This is a set of activities you will perform.

Wrap Up- This section summarizes the concepts and applications of the
lessons.

Valuing-this part will check the integration of values in the learning

competency.

Post-test - This will measure how much you have learned from the entire
module. Ito po ang parts ng module
 EXPECTATION

Learning Objective:

At the end of the learning episode, you are expected to identify the appropriate
rejection region to a given level of significance when the Central Limit Theorem was
used.

PRETEST

Direction: Choose the letter of the correct answer.

1. Suppose you want to test Ho: p = 0.4 versus Ha: p > 0.40 at the 0.05 level of
significance. What would your conclusion be?
A. Reject Ho. C. Accept Ha.
B. Accept Ho D. Fail to reject Ho.
.2. What is the appropriate alternative hypothesis of Ho: p = 0.5 in a one-tailed
test (right) s test proportion?
A. p =0.05 C. p ≠ 0.05
B. p < 0.5 D. p > 0.5
3. In a z-test proportion, the computed z lies in the rejection region. This means
that:
A. the sample proportion is equal to the hypothesized proportion.
B. the sample proportion is equal to the population proportion.
C. the sample proportion is not equal to the hypothesized proportion.
D. the sample proportion is not equal to the population proportion.
4. In a one-tailed z-est of proportions, the comparative statement is 0.35> 0.42.
What decision should be made about Ho.
A. Reject Ho
B. Accept Ho
C. The sample proportion > the population proportion
D. The sample proportion < the population proportion

5. Find the critical value /s for a two-tailed test with α = 0.05.

A. 1.64 C. – 1.64
B. ± 1.96 D. ± 0.06

RECAP
The central limit theorem states that if you have a population with mean μ and
standard deviation σ and take sufficiently large random samples from the
population with replacement, then the distribution of the sample means will be
approximately normally distributed.

If population standard deviation is unknown and n < 30, then t-test is

appropriately used.

Note: If the assumption about the population cannot be met and n is large, we and
can use the z-test and the sample standard deviation s is substituted for σ.
It was mentioned in the previous lesson that for sufficiently large sample
(n ≥ 30), the sampling distribution of the mean can be approximated closely with a
normal distribution, and z is a value of a random variable having approximately the
standard normal distribution.

LESSON

What is the Significance Level?

The significance level, also denoted as alpha or α, is the probability of rejecting

the null hypothesis when it is true, or we aim to reject the null if it is false.
For example, a significance level of 0.05 indicates a 5% risk of concluding that a
difference exists when there is no actual difference.

However, as with any test there is a small chance that we could get it wrong and
reject a null hypothesis that is true.

Typical values for alpha or α 0.01, 0.05 and 0.1. It is a value that we select based
on the certainty we need in most cases, the choice of α is determined by the
context we are operating in but 0.05 is the most common used value.
What is the Rejection Region?

It will depend on how big should Z be , for us to reject the null hypothesis.
In a two-sided or two-tailed test, there are two cut-off lines , one on each side.
When we calculate Z, we will get a value . If this alue falls into the middle part,
then we cannot reject the null . If it falls outside in the shaded region, then we
reject the null hypothesis.

The shaded region is called rejection region as shown below.

 rejection region rejection region

What Does the Rejection Region Depend on?

The area that is cut-off depends on the significance level. If the level of
significance α is 0.05. Then we have α divided by 2 or 0.025 on the left
side and 0.025 on the right.

α = 0.05
Rejection region Rejection region

𝛼 𝛼
= .025 = .025
2 2

ACCEPT

Critical Value of Z.
α 0.10 0.05 0.03 0.02 0.01

Confidence Level 90% 95% 97% 98% 99%

One-tailed(directional) 1.28 1.64 1.88 2.05 2.33

Two-tailed 1.64 1.96 2.17 2.33 2.58

(non-directional)

Now these are values we can check from the z-table. When α is 0.025 and Z is
1.96 . So, 1.96 is on the right side and minus 1.96 on the left side. Therefore, if
the value we get for Z from the test is lower than minus 1.96 or higher than
1.96, we will reject the null hypothesis. Otherwise, we will accept it.

The Central Limit Theorem states that if you have a population with a µ and
standard deviation 𝜎 and take sufficiently large random samples from the
population with replacement, then the distribution of the sample means will be
approximately normally distributed. It states that of sample size are large
enough, the distribution will be approximately normal. The general rule of
n≥30 applies.
 The confidence level is equivalent to 1 – the alpha level. So, if your
significance level is 0.05, the corresponding confidence level is 95%.
If the P value is less than your significance (alpha) level, the
hypothesis test is statistically significant.

How to Calculate the Rejection Region for one -tailed and two-tailed test?

Alpha levels can be controlled by you and are related to confidence levels. To
get α subtract your confidence level from 1. For example, if you want to be 95
percent confident that your analysis is correct, the alpha level would be
1 – .95 = 0.05 or 5 %, assuming you had a one tailed test. For two-tailed tests,
divide the alpha level by 2. In this example, the two - tailed alpha would be
.05/2 = 0.025 or 2.5 %.

Example 1. A researcher used a developed problem-solving test to randomly

select 5 Grade 5 pupils. In this sample, 𝑥̅ = 80 and s = 10. µ= 75
and 𝜎 = 15 with 95 % confidence level.

Ho: µ = 75
Ha: µ ≠ 75
Since n= 50 by the central limit theorem
Α = 1-0.95 =0.05
X critical values: ± 1.96
Using test static z and 𝜎 = 15

̅−𝝁
𝒙 𝟖𝟎−𝟕𝟓
𝒛= = 𝟏𝟓 = 2.36
𝝈𝒙̅
√𝟓𝟎

Since 2.36 > 1.96, the null hypothesis is rejected

𝛼 𝛼
= 0.025 = 0.025
2 1-α 2

- 1.96 + 1.96
2. A soda company distributes diet cola in bottles label 32 oz. The
 Department of Trade and Industry randomly selects 50 of these bottles,
measures the contents, and obtains a sample mean of 31.0 oz. Assuming
that σ is known to be 75 oz, is it valid at 0.01 significance level to conclude
that the soda company is cheating on its consumers?

In this sample, 𝑥̅ = 31, n = 50 µ= 75 and 𝜎 = 0.75

with significance level α = 0.01
Ho: µ ≥ 32 oz
Ha: µ < 32 oz
Reject Ho if z computed < zα . (left -tailed rule)
This implies that the rejection region of P(𝑥̅ = 32) is the region to the left of z = -2.33, since it is a
left -tailed test.

Rejection region
-9.43

Z= - 2.33

If 𝑥̅ = 31 and in Normal Distribution (n≥30, the CLT suggests it can be approximated by normal
distribution.
̅−𝝁
𝒙 𝟑𝟏−𝟑𝟐
𝒛 = 𝝈 = .𝟕𝟓 = -9.43
√𝟓𝟎
√𝒏

Decision: Reject Ho
Conclusion: There is sufficient evidence to the mean content of diet soda is less
than 32 oz.
The company is cheating on its consumers.

3. A manufacturer of fishing rods, has developed a new product that the

company claims has a mean breaking strength of 8 kg with a standard deviation
of 0.5 kg. If a random sample of 50 rods is tested and found to have a mean
breaking strength of 7.8 kg, test the claim of the manufacturer at a 0.01 level of
significance.

In this sample, 𝑥̅ = 7.8, n = 50 µ= 75 and 𝜎 = 0.5

with significance level α = 0.01

Ho: µ = 8 kg
Ha: µ ≠ 8 kg
This implies that the non- rejection region of P(𝑥̅ = 46) is the region between z = -
2.58 and z = 2.58, since it is a two-tailed .

̅−𝝁
𝒙 𝟕.𝟖 −𝟖
𝒛 = 𝝈 = 𝟎.𝟓 = - 2.83
√𝒏 √𝟓𝟎
 If 𝑥̅ = 7.8 and in Normal Distribution (n≥30, the CLT suggests it can be approximated by
normal distribution.

-2.83

Z= -2.58

Since -2.83 < - 2.58, which also suggests that the z value falls on the rejection
region, we now have the decision.

Decision: Reject the Ho

Conclusion: The average breaking strength is not equal to 8 kg, in fact it is less
than 8 kg.

ACTIVITIES

A. Solve the following problems. Show your complete solution

1. A manufacturer claims that his tires last at least 40,000 miles.
A test on 25 tires reveals that the mean life of a tire is 39,750 miles,
With a standard deviation of 387 miles. Test the Manufacturer’s claim
at α = 0.01.

A. Fail to reject Ho C. Reject Ho

B. Reject Ha D. Fail to reject Ha

2. A one sample t-test is conducted on Ho: µ = 81.6.

The sample has a sample mean = 84.1, s= 3.1, n= 25 and α =0.01.
A. Fail to reject Ho C. Reject Ho
B. Reject Ha D. Fail to reject Ha

3. A one sample t-test is conducted on Ho: µ = 81.6. The sample

has a sample mean = 84.1, s= 3.1, n= 25 and α =0.01.
A. there is enough evidence to reject C. There is not enough
the claim evidence to reject the claim.
B. There is enough evidence to D. There is enough evidence
Support the claim. to support the claim.
4. A restaurant claims that the mean waiting time in line is less than
 3.5 minutes. A random sample of 20 customers has a mean of 3.7
minutes with a standard deviation of 0.8 minute. If α =0.05, test the
restaurant’s claim.
A. Fail to reject Ho C. Reject Ho
B. Reject Ha D. Fail to reject Ha

5. A used car dealer says that the mean price of a 2010 Toyota car
Is at least $ 20,500. You suspect this claim is incorrect and find that
A random sample of 14 similar vehicles has a mean price of $19,850
And a standard deviation of $1084. Is there enough evidence to reject
The dealer’s claim at α = 0.05? Assume the population is normally
distributed. What is the value of the critical region?
A. Critical region = -1.771 C. Critical region = 1.771
B. Critical region = - 2.160 D. Critical region = 2.160

WRAP–UP

How do we determine the appropriate rejection region?

The significance level and the rejected region are crucial in the process of
hypothesis testing. The level of significance conducts the accuracy of prediction.
The rejection region helps us decide whether to reject the null hypothesis.

VALUING

“A hero is an ordinary individual who finds the strength to persevere and

endure in spite of overwhelming obstacles.”
- Christopher Reeve

“Your level of success is determined by your level of discipline and

perseverance.” - Anonymous
 In our lesson, it involves making decisions and conclusions. The
decisions we need to do in life are often times hard. As we grow older, our
problems become more complicated so that decisions must be made with
careful weighing of things. What do you think are the important things to
consider first in judging a situation? How will you apply this in your life as a
student?

POSTTEST

Direction: Choose the letter of the correct answer.

1. Suppose you want to test Ho: p = 0.4 versus Ha: p > 0.40 at the 0.05 level of
significance. What would your conclusion be?
A. Reject Ho. C. Accept Ha.
B. Accept Ho D. Fail to reject Ho.

2. Suppose you conduct a significance test for the population proportion and
your
p-value is 0.184. Given α = 0.10, which of the following should
be your conclusion?
A accept HO C. Fail to reject HA
B. accept HA D. Fail to reject HO
3. A null hypothesis was rejected at level α =0.10. What will be the result of the
test at level alpha=0.05?
A. Reject Ho C. No conclusion can be made
B. Fail to Reject Ho D. Reject H

4. For a test with the null hypothesis Ho: p = 0.5 vs. the alternative Ha: p > 0.5,
the null hypothesis was not rejected at level alpha=.05. Das wants to perform the
same test at level alpha=.025. What will be his conclusion?
A. Reject H0. C. No conclusion can be made.
B. Fail to Reject H0 D. Reject Ha.

5. The null hypothesis Ho: p=.5 against the alternative Ha: p>.5 was rejected at
level alpha=0.01. Nate wants to know what the test will result at level alpha=0.10.
What will be his conclusion?
A. Reject H0. C. No conclusion can be made.
B. Fail to Reject H0 D. Reject Ha.