CHAPTER 8

Hypothesis Testing for

One population
Outline

2
 HYPOTHESIS TESTS
A statement made about a population for testing purpose is
called hypothesis.

A hypothesis test is a process that uses sample statistic to test a

claim about the value of a population parameter.
A verbal statement, or claim, about a population parameter is called a
statistical hypothesis.

A hypothesis which defines the population distribution is called

as simple hypothesis. It specifies all parameter values.

The actual test begins by considering two hypotheses. They are

called the null hypothesis and the alternative hypothesis. These
hypotheses contain opposing viewpoints.
 STATING A HYPOTHESIS
“H subzero” or “H naught”
A null hypothesis H0 is a statistical hypothesis that contains a
statement of equality such as , =, or .
“H sub-a”

A alternative hypothesis Ha is the complement of the null

hypothesis. It is a statement that must be true if H0 is false and
contains a statement of inequality such as >, , or <.

To write the null and alternative hypotheses, translate the claim

made about the population parameter from a verbal statement to a
mathematical statement.
 Stating a hypothesis
Left-tailed Test
1. If the alternative hypothesis contains the less-than inequality
symbol (<), the hypothesis test is a left-tailed test.

H0: μ  k
Ha: μ < k

Rejection area

z
-3 -2 -1 0 1 2 3

Critical
value
 Right-tailed Test
2. If the alternative hypothesis contains the greater-than symbol
(>), the hypothesis test is a right-tailed test.

H0: μ  k
Ha: μ > k

Rejection area

z
-3 -2 -1 0 1 2 3
Critical
value
 Two-tailed Test
3. If the alternative hypothesis contains
1 the not-equal-to symbol
2
(), the hypothesis test is a two-tailed test.

H0: μ = k
Ha: μ  k

Rejection area
Rejection area

z
-3 -2 -1 0 1 2 3
Critical Critical
value value
 Example of STATING A
HYPOTHESIS

Write the claim as a mathematical sentence. State the null and

alternative hypotheses and identify which represents the claim.

A manufacturer claims that its rechargeable batteries have an

average life of at least 1,000 charges.
  1000
Condition of
H0:   1000 (Claim)
equality
Ha:  < 1000
Complement of the
null hypothesis
Left tailed test
 Example of STATING A
HYPOTHESIS

Write the claim as a mathematical sentence. State the null and

alternative hypotheses and identify which represents the claim.

Statesville college claims that 94% of their graduates find

employment within six months of graduation.
p = 0.94
Condition of
H0: p = 0.94 (Claim)
equality
Ha: p  0.94
Complement of the
null hypothesis
Two-tailed test
Activity 1
 ACTIVITY 1
3. Mr Rumpe believes that the mean income
of lawyers is now more than $65 thousand
per year. Which is the correct set of
hypotheses to test this belief?
(A) h0:µ ≥ 65 000; h1: µ < 65 000
(B) h0:µ ≤ 65 000; H1: µ > 65 000
(C) h0:µ = 65 000; H1: µ ≠ 65 000
(D) h0:µ < 65 000; H1: µ ≥ 65 000
 Activity 1
4. For each claim, state H0 and Ha. Then determine whether the
hypothesis test is a left-tailed, right-tailed, or two-tailed test.

a.) A cigarette manufacturer claims that less than one-eighth of the

Malaysian adult population smokes cigarettes.

b.) A local telephone company claims that the average length of

a phone call is 8 minutes.
 Activity 1
5. How would you write the null and alternative hypotheses
for the following cases.

A. You represent a chemical company that is being sued for

paint damage to automobiles. You want to support the claim
that the mean repair cost per automobile is at least $650.

B. You are on a research team that is investigating the mean

temperature of adult humans. The commonly accepted claim
is that the mean temperature is about 98.6°f. You want to
show that this claim is false.
 TYPES OF ERRORS
No matter which hypothesis represents the claim, always begin the
hypothesis test assuming that the null hypothesis is true.

At the end of the test, one of two decisions will be made:

1. reject the null hypothesis, or
2. fail to reject the null hypothesis.
A type I error occurs if the null hypothesis is rejected when it is
true.
A type II error occurs if the null hypothesis is not rejected when it
is false.
 TYPES OF ERRORS
Actual Truth of H0
Decision H0 is true H0 is false

Do not reject H0 Correct Decision Type II Error

Reject H0 Type I Error Correct Decision

The probability of making a type I error. It is denoted by  (alpha), the

lowercase Greek letter alpha.

The probability of making a type II error is denoted by  (beta), the

lowercase Greek letter beta.
 Example : TYPES OF ERRORS
Statesville college claims that 94% of their graduates find
employment within six months of graduation. What will a type I
and type II error be?
Solution
H0: p = 0.94 (Claim)
Ha: p  0.94
A type I error is rejecting the null when it is true.
We conclude that the population proportion is not 0.94, when it really
0.94.
A type II error is failing to reject the null when it is false.
We conclude that the population proportion is 0.94, in fact it really is
not 0.94.
Activity 2
3. A type I error is committed if we make:
A. A correct decision when the null hypothesis is
false.
B. A correct decision when the null hypothesis is
true.
C. An incorrect decision when the null hypothesis
is false.
D. An incorrect decision when the null hypothesis
is true.

4. A type II error is defined as:

A. Rejecting a true null hypothesis.
B. Rejecting a false null hypothesis.
C. Not rejecting a true null hypothesis.
D. Not rejecting a false null hypothesis.
 ACTIVITY 2
5. State the type I and type II errors in complete
sentences given the following statements.
a)The mean number of years Malaysian work before
retiring is 34.
b)At most 60% of Malaysian vote in presidential
elections.
c)The mean starting salary for UKM university
graduates is at least $60,000 per year.
 LEVEL OF SIGNIFICANCE
In a hypothesis test, the level of significance () is your maximum
allowable probability of making a type I error.

By setting the level of significance at a small value, you are saying

that you want the probability of rejecting a true null hypothesis to
be small.

Commonly used levels of significance:

 = 0.10  = 0.05  = 0.01

 TEST STATISTIC
The statistic that is compared with the parameter in the null
hypothesis is called the test statistic.

Test statistic provides a basis for testing a Null Hypothesis. A test

statistic is a random variable that is calculated from sample data
and used in a hypothesis test.

Test statistic, z Test statistic, t

x  x μ
z , x  t 
x n s n
 P-VALUES

P-value or probability value is the estimated probability of rejecting

the null hypothesis (Ho) when that hypothesis is true.

The P-value of a hypothesis test depends on the nature of the test.

DECISION TREE DIAGRAM in Hypothesis Testing

The population is normally

distributed

Green marketing is
a practice whereby

Yes No

Z distribution T- distribution
HYPOTHESIS TESTING
FOR THE MEAN (
KNOWN)
 Hypothesis Testing Approach

Two approaches

1. traditional approach (some books use term critical

value approach)

2. p-value approach

24
 Critical Value Approach (CVA)
Decision Rule Based on Rejection Region
To use a rejection region to conduct a hypothesis test, calculate the
standardized test statistic, z. If the standardized test statistic
1. is in the rejection region, then reject H0.
2. is in the non-rejection region, then fail to reject H0.
Non-rejection area
Non-rejection area
(Failed to reject Ho).
(Failed to reject Ho).
Rejection region
Rejection region
(Reject Ho.)
(Reject Ho.)
z Non-rejection area
z
z < z0 z0 0 0 z0 z > z0
(Failed to reject Ho).
Left-Tailed Test Right-Tailed Test
Rejection region Rejection region
(Reject Ho.) (Reject Ho.)
z
z < z0 z0 0 z0 z > z0
Two-Tailed Test
 Step for Hypothesis Testing Using CVA
In Words In Symbols
1. State the claim mathematically and
verbally. Identify the null and State H0 and Ha.
alternative hypotheses.
2. Specify the level of significance. Identify .
3. Determine the critical value(s) and the Decide whether the test is
rejection regions left, right or two tailed
x 
4. Find the standardized test statistic. z , x 
x n
5. Make a decision to reject or fail to
reject the null hypothesis. If z is in the rejection
region, reject H0.
6. Interpret the decision/ make a
conclusion Otherwise, fail to reject
H0.
 Example :Hypothesis Testing(critical
value approach)
A local telephone company claims that the average length of a phone call is 8
minutes. In a random sample of 58 phone calls, the sample mean was 7.8 minutes.
Previous history show that the standard deviation length was 0.5 minutes. Is there
enough evidence to support this claim at  = 0.05?

Solution
Given μ = 8, n = 58, xbar = 7.8 , σ = 0.5
STEP 1 H0:  = 8 (Claim) Ha:   8
STEP 2  = 0.05.

STEP 3 Critical Value Z0.025 = ± 1.96

Reject H0 if test statistic,z >1.96
Or test statistic, z < -1.96
0.025 0.025
z
z0 = 1.96 0 z0 = 1.96 Continued.
 Example continued…
A local telephone company claims that the average length of a phone call is 8
minutes. In a random sample of 58 phone calls, the sample mean was 7.8 minutes.
Previous history show that the standard deviation length was 0.5 minutes. Is there
enough evidence to support this claim at  = 0.05?

STEP 5 Since the test

STEP 4 Calculate Test Statistic, z statistic , z = -3.05 <
x μ 7.8  8 -1.96 or other words, it
z   falls in the rejection
σ n 0.5 58
region, so H0 is rejected.
 3.05.

z
z0 = 1.96 0 z0 = 1.96

STEP 6 At the 5% level of significance, there is NOT enough evidence to

support the claim that the average length of a phone call is 8 minutes.
 Hypothesis Testing (p value approach)
 Decision Rule Based on P-value
 To use a P-value to make a conclusion in a hypothesis test,
compare the P-value with .

1. If P  , then reject H0.

2. If P > , then fail to reject H0.

29
 Example : Make a Decision with p
Value
The P-value for a hypothesis test is P = 0.0256. What is your
decision if the level of significance is
a.) 0.05,

b.) 0.01?

a.) Because 0.0256 is < 0.05, you should reject the null
hypothesis.

b.) Because 0.0256 is > 0.01, you should fail to reject the null
hypothesis.
 Determine of P-VALUE
After determining the hypothesis test’s standardized test statistic and
the test statistic’s corresponding area, do one of the following to find
the P-value.
a. For a left-tailed test, P = (Area in left tail).
b. For a right-tailed test, P = (Area in right tail).
c. For a two-tailed test, P = 2(Area in tail of test statistic).
 FIND THE P-VALUE
Example:
The test statistic for a two-tailed test is z = 2.63. Find the P-value.

0.0043
z
2.63 0
The area to the left of z = 2.63 is 0.0043.
The P-value is 2(0.0043) = 0.0086

Example:
The test statistic for a right-tailed test is z = 1.56. Find the P-value.

P-value = 0.0594
The area to the right of z = 1.56
z
0 1.56 is 0.0594.
 Step for Hypothesis Testing
Using P-Value
In Words In Symbols
1. State the claim mathematically and
State H0 and Ha.
verbally. Identify the null and
alternative hypotheses.
2. Specify the level of significance. Identify .
3. Determine the standardized test x μ
z 
statistic. σ n
4. Find the area (p value) that
corresponds to z.
5. Make a decision to reject or fail to p value < , reject H0
reject the null hypothesis.
6. Interpret the decision in the context of
Continued.
the original claim.
 Example : Hypothesis Testing using P-values

A manufacturer claims that its rechargeable batteries are good for an average
of more than 1,000 charges. A random sample of 100 batteries has a mean
life of 1002 charges. Given that  = 14. Is there enough evidence to support
this claim at  = 0.01?

Solution
Given μ=1000, n = 100, xbar=1002, σ=14

1.H0:   1000 Ha:  > 1000 (Claim)

2. The level of significance is  = 0.01.
3. The standardized test statistic is
x  μ 1002  1000
z  
σ n 14 100
 1.43
Continued.
 Example continued…

A manufacturer claims that its rechargeable batteries are good for an average
of more than 1,000 charges. A random sample of 100 batteries has a mean
life of 1002 charges. Given that  = 14. Is there enough evidence to support
this claim at  = 0.01?

4. Find p-value with z=1.43

The area to the right of 5. P-value = 0.0764 >  =

z = 1.43 is P = 0.0764. 0.01, fail to reject H0.
0 1.43 z

6. At the 1% level of significance, there is not enough evidence to support

the claim that the rechargeable battery has an average life of more than
1000 charges.
HYPOTHESIS TESTING
FOR POPULATION
MEAN ( UNKNOWN)

36
 Critical Values in a t-Distribution
Finding Critical Values in a t-Distribution
1. Identify the level of significance .
2. Identify the degrees of freedom d.f. = n – 1.
3. Find the critical value(s) using Table 5 in Appendix B in the row
with n – 1 degrees of freedom. If the hypothesis test is
a. left-tailed, use “One Tail,  ” column with a negative sign,
b. right-tailed, use “One Tail,  ” column with a positive sign,
c. two-tailed, use “Two Tails,  ” column with a negative and a
positive sign.
 FINDING CRITICAL VALUES
FOR t
Example:
Find the critical value t0 for a right-tailed test given  = 0.01 and n =
24.

The degrees of freedom are d.f. = n – 1 = 24 – 1 = 23.

Use t-table with d.f. = 23 and  = 0.01 . Because the test is a right-
tail test, the critical value is positive.

t0 = 2.500
 FINDING CRITICAL VALUES
FOR t
Example:
Find the critical values t0 and t0 for a two-tailed test given  = 0.10
and n = 12.

The degrees of freedom are d.f. = n – 1 = 12 – 1 = 11.

Use t-table with d.f. = 11 and =0.1. Because the test is a two-tail
test, one critical value is negative and one is positive.

t0 =  1.796 and t0 = 1.796

 Hypothesis Testing using CVA

In Words In Symbols
1. State the claim mathematically and State H0 and Ha.
verbally. Identify the null and alternative
hypotheses.
2. Specify the level of significance and Identify .
identify the degrees of freedom .
d.f. = n – 1.
3. Determine a critical values rejection
region(s). x μ
t 
s
4. Find the standardized test statistic. n
5. Make a decision.
6. Interpret the decision in the context of the
original claim Continued.
 Example

A local telephone company claims that the average length of a phone call is 8
minutes. In a random sample of 18 phone calls, the sample mean was 7.8
minutes and the standard deviation was 0.5 minutes. Is there enough
evidence to support this claim at  = 0.05?

Solution
Given μ=8, n=18, xbar = 7.8, s = 0.5
1. H0:  = 8 (Claim) Ha :   8

2. The level of significance is  = 0.05.

The test is a two-tailed test.

Degrees of freedom are d.f. = 18 – 1 = 17.

3. The critical values are t0 = 2.110 and t0 = 2.110

Continued.
 Example continued…

A local telephone company claims that the average length of a phone call is 8
minutes. In a random sample of 18 phone calls, the sample mean was 7.8
minutes and the standard deviation was 0.5 minutes. Is there enough
evidence to support this claim at  = 0.05?

4. The standardized test statistic is 5. The test statistic falls in

x μ 7.8  8 the nonrejection region,
t  
s n 0.5 18 so H0 is not rejected.
 1.70.

z
z0 = 2.110 0 z0 = 2.110

6. At the 5% level of significance, there is enough evidence to support the claim

that the average length of a phone call is 8 minutes.
 Example: Using p-value
A manufacturer claims that its rechargeable batteries have an
average life greater than 1,000 charges. A random sample of 10
batteries has a mean life of 1002 charges and a standard
deviation of 14. Is there enough evidence to support this claim
at  = 0.01?
Solution H0:   1000 Ha:  > 1000 (Claim)
The level of significance is  = 0.01.
The degrees of freedom are d.f. = n – 1 = 10 – 1 = 9.
The standardized test statistic is
x  μ 1002  1000
t  
s n 14 10
 0.45 Continued.
 Example Continued…
A manufacturer claims that its rechargeable batteries have a mean life
greater than 1,000 charges. A random sample of 10 batteries has a mean
life of 1002 charges and a standard deviation of 14. Is there enough
evidence to support this claim at  = 0.01?

Using the d.f. = 9 row, you can determine that p > 0.1
and therefore fail to reject to H0.
t  0.45

0 0.45 z
At the 1% level of significance, there is not enough evidence to support the claim
that the rechargeable battery has a mean life of greater than 1000 charges.
Hypothesis Testing for
Proportions
Z-TEST FOR A POPULATION PROPORTION
The z-test for a population is a statistical test for a population
proportion. The z-test can be used when a binomial distribution is
given such that np  5 and nq  5.

The test statistic is the sample proportion and p̂

the standardized test
statistic is z.

pˆ  μ pˆ pp
z   ˆ
σ pˆ pq n
 HYPOTHESIS TEST FOR
PROPORTIONS
Verify that np  5 and nq  5.
In Words In Symbols
1. State the claim mathematically and
verbally. Identify the null and alternative State H0 and Ha.
hypotheses.
2. Specify the level of significance. Identify .
3. Determine any critical values.
p̂  p
4. Find the standardized test statistic. z 
pq n
5. Make a decision to reject or fail to reject
the null hypothesis.
6. Interpret the decision in the context of the
original claim.
Continued.
Example Hypothesis Test For Proportions
Statesville college claims that more than 94% of their graduates find
employment within six months of graduation. In a sample of 500 randomly
selected graduates, 475 of them were employed. Is there enough evidence to
support the college’s claim at a 1% level of significance?

Solution
Verify that the products np and nq are at least 5.
np = (500)(0.94) = 470 and nq = (500)(0.06) = 30

H0: p  0.94 Ha: p > 0.94 (Claim)

Continued.
 Example continued…
Southville college claims that more than 94% of their graduates find
employment within six months of graduation. In a sample of 500 randomly
selected graduates, 475 of them were employed. Is there enough evidence to
support the college’s claim at a 1% level of significance?

Because the test is a right-tailed test and  = 0.01, the critical value is
2.33.
p̂  p 0.95  0.94
z  
pq n (0.94)(0.06) 500
 0.94 Test statistic
0 2.33 z
The test statistic falls in
the nonrejection region, At the 1% level of significance, there is
so H0 is not rejected. not enough evidence to support the
college’s claim.
Example Hypothesis Test For Proportions (p-
value approach)
A cigarette manufacturer claims that one-eighth of the Malaysian adult
population smokes cigarettes. In a random sample of 100 adults, 5 are
cigarette smokers. Test the manufacturer's claim at  = 0.05.

Verify that the products np and nq are at least 5.

np = (100)(0.125) = 12.5 and nq = (100)(0.875) = 87.5
H0: p = 0.125 (Claim) Ha: p  0.125

Continued.
 Example continued:

A cigarette manufacturer claims that one-eighth of the Malaysian adult

population smokes cigarettes. In a random sample of 100 adults, 5 are
cigarettes smokers. Test the manufacturer's claim at  = 0.05.

The test statistic is

p̂  p  0.05  0.125
z 
pq n (0.125)(0.875) 100
 2.27

Since p-value = 2(0.0116)=0.0232 < 0.05, Reject H0.

At the 5% level of significance, there is not enough evidence to support the claim
that one-eighth of the Malaysian adult population smokes cigarettes.
 Exercises
1. State the null hypothesis, h0 , and the alternative
hypothesis. Ha , in terms of the appropriate parameter (μ or
p) .
I.Fewer than 5% of adults ride the bus to work in bangi.

II.The mean number of cars a person owns in her lifetime is not more than ten.

III.About half of Malaysian prefer to live away from cities, given the choice.

IV.The chance of developing breast cancer is under 11% for women.

V.Private universities' mean tuition cost is more than $20,000 per year.

52
 2. The national institute of mental health published an article stating that in any one-year period, approximately 9.5 percent of
american adults suffer from depression or a depressive illness. Suppose that in a survey of 100 people in a certain town, seven of
them suffered from depression or a depressive illness. Conduct a hypothesis test to determine if the true proportion of people in that
town suffering from depression or a depressive illness is lower than the percent in the general adult american population.

Is this a test of one mean or proportion?

State the null and alternative hypotheses.

H0 : ___p>=0.095_________________ ha : ______p<0.095__________

Is this a right-tailed, left-tailed, or two-tailed test?

What symbol represents the random variable for this test?

In words, define the random variable for this test.

Calculate the following:

X= ______7__________

n= ____100____________

Phat= _____0.07________

Calculate σx= ___sqrt(pq/n)_______. show the formula set-up.

State the distribution to use for the hypothesis test.

Find the p-value .

At α=0.05 , what is your:

Decision:
53
Reason for the decision:

Conclusion (write out in a complete sentence):

 2. The national institute of mental health published an article stating that in any
one-year period, approximately 9.5 percent of American adults suffer from
depression or a depressive illness. Suppose that in a survey of 100 people in a
certain town, seven of them suffered from depression or a depressive illness.
Conduct a hypothesis test to determine if the true proportion of people in that town
suffering from depression or a depressive illness is lower than the percent in the
general adult American population.

Find the following:

x= ________________

n= ________________

phat= _____________

Calculate σx= __________. show the formula set-up.

State the distribution to use for the hypothesis test.

Find the p-value . At α=0.05 , what is your decision? Reason for the decision:
54

Conclusion (write out in a complete sentence):

3. A particular brand of tires claims that its deluxe tire averages at least
50,000 miles before it needs to be replaced. From past studies of this tire,
the standard deviation is known to be 8,000. A survey of owners of that tire
design is conducted. From the 28 tires surveyed, the mean lifespan was
46,500 miles with a standard deviation of 9,800 miles. Using α=0.05 , is the
data highly inconsistent with the claim? Using p-value approach.

Solution

I . H0:

Ha:

Ii. Alpha=_______.

Iii. Test statistic (if a t test is used, also report the df):

Iv. P-value:

V. Conclusion (both statistical conclusion and conclusion in the context of the problem)

55
4. A researcher wishes to test the claim that for a particular
manufacturer of cereal, the mean weight in its boxes of cereal is less
than 18 ounces. A sample of 36 boxes yields a sample mean weight
of 17.88 ounces. Assume that the population standard deviation is .
28 ounces. Let alpha=.05.

a)Conduct a test of hypotheses using p-value approach.

b)Conduct a test of hypotheses using critical value approach.

56
5. A study was done on 31 female patients following a new treatment for
cardio-vascular disease (cvd). Doctors measured the increase in exercise
capacity (in minutes) over a 6-week period. The conventional treatment
had produced an average increase of 2 minutes. Researchers wish to
claim that the new treatment will increase the mean exercise capacity
more than the conventional treatment. The data yielded and s=1.05. Let
 =.05.

Conduct a test of hypotheses using p-value approach.

Conduct a test of hypotheses using critical value approach.

57