CHAPTER 4

HYPOTHESIS TESTING
ADVANCED STATISTICS
LESSON 1:
HYPOTHESIS TESTING
NULL AND ALTERNATIVE HYPOTHESIS
ONE-TAILED AND TWO-TAILED TEST
 HYPOTHESIS TESTING
 Hypothesis is a premise or claim that we want to test.
 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.
 HYPOTHESIS TESTING
HYPOTHESIS

Taking Vitamins everyday Will not feel tired

 NULL AND ALTERNATIVE HYPOTHESIS
 The Null Hypothesis
 Denoted by H ̥
 Is what we want to test
 Is a statement that there is no difference between two parameter and a specific
value, or that there is no difference between two parameters.
 Alternative Hypothesis
 Denoted by H₁
 Is a statement that there is a difference between a parameter and a specific
value, or that there is a difference between two parameter.
 NULL AND ALTERNATIVE
HYPOTHESIS
 Suppose the two parameters of interests are denoted by μ1 and μ2, If there
is no difference between the two values, the relationship is written in symbol
as :
μ1- μ2 = 0

 The Null Hypothesis would be written in symbols as:

H0: μ1 = μ2

 The Alternative Hypothesis would be written in symbols as:

H1: μ1 ≠ μ2 , H1: μ1 > μ2, H1: μ1 < μ2
 SYMBOLS KEYWORDS

NULL HYPOTHESIS = - Equal to, the same as, not changed

from, is

ALTERNATIVE ≠ - Not equal, different from, changed

HYPOTHESIS from, not same as
> - Greater than, above, higher than,
longer than, bigger than, increased, at
least
- Less than, below, lower than, shorter
< than, decreased or reduced from, at
most
State the Null and Alternative Hypotheses for each
statement.

1. The average age of a Grade 11 Students is 19 years.

H0: μ1 = 19 years
H1: μ1 ≠ 19 years

2. The average number of calories of a low-calorie meal is at most 300

H0: μ1 = 300
H1: μ1 < 300
 State the Null and Alternative Hypotheses for each
statement.

3. The school record claims that the mean score in Math of the incoming Grade 11
student is 8.1. The teacher wishes to find out if the claim is true. She tests if there
is significant difference between the batch mean score and the mean score of the
students in her class

NULL AND ALTERNATIVE HYPOTHESES NULL AND ALTERNATIVE HYPOTHESES

IN WORDS IN SYMBOL
H0: The mean score of the incoming H0: μ1 = 81
Grade 11 students is 81
H1 : The mean score of the incoming H1: μ1 ≠ 81
Grade 11 is not 81.
 State the Null and Alternative Hypotheses for each
statement.

4. A social worker wants to test (at a = 0.05) whether the average body mass index
(BMI) of the pupils under feeding program is different from 8.2 kg.

NULL AND ALTERNATIVE HYPOTHESES NULL AND ALTERNATIVE HYPOTHESES

IN WORDS IN SYMBOL
H0: The average BMI of the pupils H0: μ1 = 18.2
under feeding program is not different
from 18.2
H1 : The average BMI of the pupils H1: μ1 ≠ 18.2
under feeding program is different
from 18.2
 ALTERNATIVE HYPOTHESIS
 When the Alternative Hypothesis utilizes the ≠ symbol, the test is said to
be NON-DIRECTIONAL.
 When the Alternative Hypothesis utilizes the > or the < symbol, the test is
said to be DIRECTIONAL.
 State the Null and Alternative Hypotheses for each
statement.

4. A Teacher wants to know if listening to popular music affects the

performance of pupils. The class of 50 grade 1 pupil was used in the
experiment. The mean score was 83 and the standard deviation is 5. A
previous study revealed that μ=82 and the standard deviation σ=10
a. State the Null and the Alternative Hypotheses in words and in
symbols
b. State whether the test is directional or non-directional
 State the Null and Alternative Hypotheses for each
statement.

4. A Teacher wants to know if listening to popular music affects the performance of pupils. The class of 50
grade 1 pupil was used in the experiment. The mean score was 83 and the standard deviation is 5. A
previous study revealed that μ=82 and the standard deviation σ=10
a. State the Null and the Alternative Hypotheses in words and in symbols
b. State whether the test is directional or non-directional
NULL AND ALTERNATIVE HYPOTHESES IN WORDS NULL AND ALTERNATIVE
HYPOTHESES IN SYMBOL

H0: The sample comes from a population whose H0: μ = 82

mean μ is 82; or
H1 : The sample comes from a population whose H1: μ ≠ 82
mean is equal to the population mean 82 Test is non directional
DO THIS:
SKETCHES OF DIRECTIONAL AND NON-
DIRECTIONAL TESTS

 A Non-Directional test is also called a two-tailed test.

 A Directional test may either be left-tailed or right-tailed.

H1: μ1 ≠ μ2
 SKETCHES OF DIRECTIONAL AND NON-
DIRECTIONAL TESTS

 A Non-Directional test is also called a two-tailed test.

 A Directional test may either be left-tailed or right-tailed.

H1: μ1 < μ2 H1: μ1 > μ2

DETERMINE IF ONE TAILED OR TWO TAILED TEST. IF IT IS
ONE TAILED, IS IT LEFT-TAILED OR RIGHT-TAILED?
LESSON 2:
TYPE 1 AND TYPE 2 ERROR
CRITICAL VALUES
SIGNIFICANCE LEVEL
 TYPE I AND TYPE II ERRORS

 If the null hypothesis is true and accepted, or if it is false and rejected,

the decision is correct.

WHAT IF THE DECISIONS ARE

INCORRECT?
TYPE I ERROR - If the null
hypothesis is true and rejected.
TYPE II ERROR - If the null
hypothesis is false and accepted.
 UNDERSTANDING ERRORS

1. Maria insists that she is 30 years old when, in fact, she is 32 years old. What error is
Mary committing?
Solution:
Mary is rejecting the truth. She is committing a Type I error.
2. Stephen says that he is not bald. His hairline is just receding. Is he committing an
error? If so, what type of error?
Solution:
Yes. A receding hairline indicates balding. This is a Type I error. Stephen action
may be to find remedial measures to stop falling hair.
 UNDERSTANDING ERRORS

3. A man plans to go hunting the Philippine monkey-eating eagle believing that it is a

proof of his mettle. What type of error is this?
Solution:
Hunting the Philippine eagle is prohibited by law. Thus, it is not a good sport. It
is a type II error. Since hunting the Philippine monkey eating eagle is against the law,
the man may find himself in jail if he goes out of his way hunting endangered species.
 TYPE I AND TYPE II ERRORS

 The probability of committing a Type I error is denoted by the

Greek letter a (alpha) while the probability of committing a
Type II error is denoted by  β (beta).
ERROR IN TYPE PROBABILITY CORRECT DECISION TYPE PROBABILITY
DECISION
Reject a True H0 I a Accept a true H0 A 1- a

Accept a false H0 II β Reject a false H0 B 1-β

TYPE I, TYPE II, or a CORRECT DECISION
 DETERMINING THE
CRITICAL VALUES
 Recall that the critical values are the z-values
associated with the probabilities at the tails of
the normal curve.
 For a 95% Confidence Level
= 0.4750

 In the Normal Curve Table, the area 0.4750

corresponds to z= 1.96
 Thus the Critical values for the 95% confidence
level are -1.96 and +1.96
 DETERMINING THE
CRITICAL VALUES
 Recall that the critical values are the z-values
associated with the probabilities at the tails of
the normal curve.
 For a 99% Confidence Level
= 0.4950
 In the Normal Curve Table, there are two areas
close to this value: 0.4949 that corresponds to
2.57 and 0.4951 that corresponds to z= 2.58.
 Getting the average of 2.57 and 2.58 we get z=
2.575. In practice we use ±2.58
 Thus, for 99% level of confidence, the critical
values are -2.575 and +2.575
 LEVEL OF SIGNIFICANCE
 It is denoted by alpha or a refers to the degree of significance in
which we accept or reject the null hypothesis.
 100% accuracy is not possible in accepting or rejecting a hypothesis.
 The significance level is also the probability of making the wrong
decision when the null hypothesis is true.
 In Public research alpha is usually 0.01 or 1%. In Social Science,
alpha is usually 0.05 or 5% and 0.10 or 10% in other studies.
 In Symbol it is written EXAMPLE: Determine the value of a or based on the
as: alternative hypothesis in decimal form
 a= 0.01 1. In 2015, it was recorded that around 34% of the
 a= 0.05 or population in 2015 were not married. A researcher
 a= 0.10 surveyed a random sample of 500 couples. He found
out that 18% of them were living together but
unmarried. Test at 5% significance level if the
 If the alternative current percentage of unmarried couples is different
hypothesis used ≠ , from 34%.
then the alpha will be
divided by 2.
= = 0.025
 = 0.025
 = 0.05
 In Symbol it is written EXAMPLE: Determine the value of a or based on the
as: alternative hypothesis in decimal form
 a= 0.01 2. An average construction worker hourly rate pay in
 a= 0.05 or the Philippines is Php 62.50 with a standard
 a= 0.10 deviation of Php 6.01. A random sample of 20
manufacturing workers were asked on their hourly
rate and found out that they had an average of Php
 If the alternative 50 hourly rate pay with a standard deviation of Php
hypothesis used ≠ , 5.00. Construct a 90% confidence interval that the
then the alpha will be average hourly rate for construction workers is
divided by 2. higher than the average hourly rate for
= manufacturing workers
 = 0.025
 = 0.05 a = 0.10
LESSON 3
TEST STATISTIC Z
HYPOTHESIS TEST USING TRADITIONAL METHOD
STEPS IN HYPOTHESIS TESTING
 LARGE SAMPLE TEST CONCERNING THE MEAN μ OF A
POPULATION

 A one population test is a test conducted on one sample purportedly coming from a
population with mean μ. It is sometimes called significance test for a single mean.
There are two cases to consider for testing the mean of a single population:
1. The sample is large (n ≥ 30). Thus, we can apply the Central Limit Theorem (CLT)
and we use the normal curve as a model
2. When the CLT is applied, the sample standard deviation s may be used as an
estimate of the population standard deviation σ when the value σ is unknown.
 When the sample is large, that is, n ≥ 30, the test statistic is the z. The z statistic
measures the number of standard deviations between the observed value of and the
hypothesized value of μ.
 LARGE SAMPLE TEST CONCERNING THE MEAN μ OF A
POPULATION

 We consider two case when conducting a significance test for a single mean:
Case 1: The population mean μ and the population standard deviation σ are known

Z = where:

Case 2: The population mean is known but not the population standard deviation
Test Statistics Z = where:

Note that in the case 2 statistic, sample standard deviation s is used as an estimate for the
population standard deviation
 LARGE SAMPLE TEST CONCERNING THE MEAN μ OF A
POPULATION
Example 1: Computing z
Given: = 90, =88, = 6, n = 100
Z = where:
Find the value of z
STEPS SOLUTION

1. Write the computing formula Z = that simplifies to Z =

2. Replace the terms in the formula by the Z=

given value Z=
Z = 3.33
 LARGE SAMPLE TEST CONCERNING THE MEAN μ OF A
POPULATION
Example 2: Computing z
Given: = 80, =83, , n = 100
Z = where:
Find the value of z
STEPS SOLUTION

1. Write the computing formula Z = that simplifies to Z =

2. Replace the terms in the formula by the Z=

given value Z=
Z = -7.5
 We can conduct hypothesis test in two ways:

1. Traditional or Classical method; and

2. P value method

WHY IS IT IMPORTANT TO LEARN BOTH? The traditional method has been used since
the hypothesis testing procedure was formulated. The P Value method has become
popular with easy access to computer software and high-powered statistical
calculators. However we should know how the probabilities are determined. For each
method, there is a corresponding decision rule that guide us in making conclusions and
interpretations
 STEPS IN HYPOTHESIS TESTING
STEP 1 Describe the population parameter of interest (e.g., mean, proportion)

STEP 2 Formulate the hypotheses; the null hypothesis and the alternative hypothesis . That is, state a null
hypothesis, H0, in such a way that a type I error can be calculated.
STEP 3 Check the assumption.
* Is the sample size large enough to apply the Central Limit theorem (CLT)?
* Do small samples come from the normally distributed populations?
* Are the samples selected randomly?

STEP 4 Choose a significance level size for a. Make a small when the consequences of rejecting a true H0 is
severe.
* Is the test two tailed or one tailed?
* get the Critical values from the test statistic table
* Establish the critical regions.
(Optional: Draw a normal curve, draw vertical lines through the critical values, and shade the rejection
region)

STEP 5 Select the appropriate test statistics

* Compute the test statistic using the appropriate formula.
 STEPS IN HYPOTHESIS TESTING
STEP 6 State the decision rule for rejecting or not rejecting the null hypothesis.
For a two-tailed test:
* Reject H0 if the computed test statistic ≤ negative critical value or if the computed test
statistic ≥ positive critical value
* Do not reject (that is, accept) if the computed test statistic > negative critical value or if the
computed test statistic < positive critical value
In symbols, we write rule as follows:
* Reject H0 if the computed z ≤ – critical value or if the computed z ≥ - critical value
* Do not reject (that is, accept) H0 if the computed z > - critical value or if the computed z <+
critical value.
For a one-tailed test:
* Reject H0 if the computed z ≤ -z critical value or if the computed z ≥ +z critical value
* Do not reject (that is, accept) H0 if the computed z > -z critical value or if the computed z <
+ critical value

STEP 7 Compare the computed test statistics and the critical value. Then based on the decision rule, decide
whether to reject or not to reject (accept) H0 . Interpret the result.
(Optional: take a course of action)
 APPLYING HYPOTHESIS TESTING IN PROBLEM
SOLVING

 A researcher used a developed problem solving test to test randomly

select 50 grade 6 pupils. In this sample, = 80 and s = 10. The mean μ and
the standard deviation of the population used in the standardization of the
test were 75 and 15, respectively. Use the 95% confidence level to answer
of the following questions
1. Does the sample mean differ significantly from the population mean?
2. Can it be said that the sample is above average?
 A researcher used a developed problem solving test to test randomly select 50 grade 6 pupils.
In this sample, = 80 and s= 10. The mean μ and the standard deviation of the population used
in the standardization of the test were 75 and 15, respectively. Use the 95% confidence level to
the answer of the following questions
1. Does the sample mean differ significantly from the population mean?
2. Can it be said that the sample is above average
STEPS ANSWER
1. Describe the population parameter of interest The parameter of interest is the mean μ of the population
where the sample comes from.
2. Formulate the hypotheses; the null hypothesis and the _______
alternative hypothesis . That is, state a null hypothesis, H0, in H0: μ = 75
such a way that a type I error can be calculated. H1: μ ≠ 75
3. Check the assumption. Since n =
* Is the sample size large enough to apply the Central 50, by the Central Limit Theorem, the distribution is
Limit theorem (CLT)? normally distributed
* Do small samples come from the normally distributed (This assumption need not to be addressed)
populations?
* Are the samples selected randomly? Yes
 A researcher used a developed problem solving test to test randomly select 50 grade 6 pupils.
In this sample, = 80 and s= 10. The mean μ and the standard deviation of the population used
in the standardization of the test were 75 and 15, respectively. Use the 95% confidence level to
the answer of the following questions
1. Does the sample mean differ significantly from the population mean?
2. Can it be said that the sample is above average
STEPS ANSWER

4. Choose a significance level size for a. Make a small when the a = 1- 0.95 = 0.05
consequences of rejecting a true H0 is severe.
* Is the test two tailed or one tailed? Two tailed
* get the Critical values from the test statistic table
* Establish the critical regions. Z Critical Values: ±
 DETERMINING THE
CRITICAL VALUES
 Recall that the critical values are the z-values
associated with the probabilities at the tails of
the normal curve.
 For a 95% Confidence Level
= 0.4750

 In the Normal Curve Table, the area 0.4750

corresponds to z= 1.96
 Thus the Critical values for the 95% confidence
level are -1.96 and +1.96
 A researcher used a developed problem solving test to test randomly select 50 grade 6 pupils.
In this sample, = 80 and s= 10. The mean μ and the standard deviation of the population used
in the standardization of the test were 75 and 15, respectively. Use the 95% confidence level to
the answer of the following questions
1. Does the sample mean differ significantly from the population mean?
2. Can it be said that the sample is above average
STEPS ANSWER
5. Select the appropriate test statistics Test statistics: z and σ = 15
* Compute the test statistic using the appropriate Z=
formula.
Z=
Z=
z= 2.36

6. State the decision rule Reject H0 if the computed test statistic ≤ negative critical value
or if the computed test statistic ≥ positive critical value.
Otherwise accept H0
 A researcher used a developed problem solving test to test randomly select 50 grade 6 pupils.
In this sample, = 80 and s= 10. The mean μ and the standard deviation of the population used
in the standardization of the test were 75 and 15, respectively. Use the 95% confidence level to
the answer of the following questions
STEPS ANSWER
7. Compare the test statistic and the critical value. Decision making:
* based on the decision rule, decide whether to reject or 2.36 > 1.96
to accept H0 The null hypothesis is ________
rejected
* Interpret the result Interpretation:
* Take a course of action (optional) * There is enough evidence to reject the null hypothesis.
* There is a significant difference between the sample
mean and the population mean

In the graph of the normal curve, The computed z-value is located outside the acceptance region. So the
null hypothesis has to be rejected.
 A researcher used a developed problem solving test to test randomly select 50 grade 6 pupils.
In this sample, = 80 and s= 10. The mean μ and the standard deviation of the population used
in the standardization of the test were 75 and 15, respectively. Use the 95% confidence level to
the answer of the following questions
In the graph of the normal curve, The computed z-value is located outside the acceptance region. So the
null hypothesis has to be rejected.

SOLUTION FOR QUESTION NO.2:

The decision is: Reject the null hypothesis because there is enough evidence to reject it. This implies that
there is a significant difference between the means. According to the test, we can say that the sample
belongs to a population that is above average, which is 75.
 FORMATIVE:
 The owner of a factory that sells a particular bottled fruit juice
claims that the average capacity of their product is 250 ml. To
test the claim, the consumer group gets a sample of 100 such
bottles, calculate the capacity of each bottle, and then find the
mean capacity to be 248 ml. The standard deviation s is 5 ml. Is
the claim true?
 The owner of a factory that sells a particular bottled fruit juice claims that the average
capacity of their product is 250 ml. To test the claim, the consumer group gets a sample of
100 such bottles, calculate the capacity of each bottle, and then find the mean capacity to be
248 ml. The standard deviation s is 5 ml. Is the claim true?

STEPS ANSWER
1. Describe the population parameter of interest The parameter of interest is the mean μ of the population
where the sample comes from.
2. Formulate the hypotheses; the null hypothesis and the
alternative hypothesis . That is, state a null hypothesis, H0, in H0: μ = 250
such a way that a type I error can be calculated. H1: μ < 250
3. Check the assumption. Since n =
* Is the sample size large enough to apply the Central 100, by the Central Limit Theorem, the distribution is
Limit theorem (CLT)? normally distributed
* Are the samples selected randomly? Yes
 The owner of a factory that sells a particular bottled fruit juice claims that the average
capacity of their product is 250 ml. To test the claim, the consumer group gets a sample of
100 such bottles, calculate the capacity of each bottle, and then find the mean capacity to be
248 ml. The standard deviation s is 5 ml. Is the claim true?
STEPS ANSWER

4. Choose a significance level a = 0.05

size for a. Make a small when
the consequences of
rejecting a true H0 is severe.
* Is the test two tailed
or one tailed? One tailed
* get the Critical values Z Critical Values:
from the test statistic table -1.645
* Establish the critical
regions.
 The owner of a factory that sells a particular bottled fruit juice claims that the average
capacity of their product is 250 ml. To test the claim, the consumer group gets a sample of
100 such bottles, calculate the capacity of each bottle, and then find the mean capacity to be
248 ml. The standard deviation s is 5 ml. Is the claim true?
STEPS ANSWER
5. Select the appropriate test statistics Test statistics: z and σ = 15
* Compute the test statistic using the Z=
appropriate formula.

Z=
Z=
z= -4
6. State the decision rule Reject H0 if the computed test statistic ≤ negative critical value or if the
computed test statistic ≥ positive critical value. Otherwise, accept H0
7. Compare the test statistic and the critical value. Decision making:
* based on the decision rule, decide whether -4 < -1.645
to reject or to accept H0 The null hypothesis is
* Interpret the result Interpretation:
* Take a course of action (optional) * There is enough evidence to warrant the rejection null hypothesis.
rejected
* There is a significant difference between the sample mean and the
population mean. Therefore, claim is not true
 The owner of a factory that sells a particular bottled fruit juice claims that the average
capacity of their product is 250 ml. To test the claim, the consumer group gets a sample of
100 such bottles, calculate the capacity of each bottle, and then find the mean capacity to be
248 ml. The standard deviation s is 5 ml. Is the claim true?

-4 is way below -1.645. Clearly, the computed value of the z- statistics lies in the rejection region. We
can be 95% confident about our decision of rejecting the null hypothesis.
 FORMATIVE:

 A sample of five measurements, randomly selected from a

approximately, normally distributed population, resulted in the
summary statistics: = 4.6, s= 1.5
a. Test the null hypothesis that the mean of the population is
6 against the alternative hypothesis μ < 6. Use a=0.05
b. Test the null hypothesis that the mean of the population is
6 against the alternative hypothesis μ ≠ 6. Use a=0.05
LESSON 4:
PROBABILITY VALUE APPROACH
 DEALING WITH PROBABILITY

 Recall the risk of making Type I error is denoted by a. That is, P value (or p for short) =
probability of committing a Type I error
Or a = P (Type I error)
Meaning a = P ( Rejecting the H0 when in fact H0 is true)
 In the process, we evaluate the null hypothesis by assuming it to be true and test the
reasonableness of this assumption by calculating the probability of getting the results
if chance alone is operating. The obtained probability is called the p-value. This
method of arriving at a decision is sometimes called the p-approach.
 DEALING WITH PROBABILITY

 DECISION RULE
 If the obtained probability is less than or equal to a critical probability level, called the alpha (a)
level, then we reject the null hypothesis.
 If the obtained probability level is greater than the alpha level, we do not reject H0 . In other
words, we do not reject (accept) H0.
 Briefly, the decision rule is stated:
Decision Rule for the p-value approach:
Reject H0 if p ≤ a
Do not reject H0 if p > a

 So, if a = 0.05, the decision rule is modified into:

Reject H0 if p ≤ 0.05
Do not reject H0 if p > 0.05
 STEPS IN HYPOTHESIS TESTING: p-value METHOD
Step 1 Describe the population parameter of interest
Step 2 Formulate the hypotheses; the null hypothesis and the alternative hypothesis .
State a null hypothesis, H0, in such a way that a type I error can be calculated.
Step 3 Check the assumption.
* Is the sample size large enough for the Central Limit theorem (CLT) to
apply?
* Do small samples come from the normally distributed populations?
* Are the samples selected randomly?

Step 4 Choose a significance level size for a. Make a small when the consequences of
rejecting a true H0 is severe.
* Is the test two tailed or one tailed?
Step 5 Select the appropriate test statistics
* Compute the test statistic
* Compute the probability value (p-value)
STEPS IN HYPOTHESIS TESTING: p-value METHOD
Step 6 State the decision rule for rejecting or not rejecting the null hypothesis.
* Reject H0 if the computed probability value ≤ a
* Do not reject (or accept) H0 if the computed probability value > a
Step 7 • Compare the computed probability value and a
• Based on the decision rule, decide whether to reject or not to reject H0.
• Interpret the result
• Take a course or action (optional)

P-VALUE INTERPRETATION

Less than 0.01 Highly statistically significant

There is very strong evidence against H0
0.01 to 0.05 Statistically significant
Adequate evidence against H0
Greater than 0.05 Insufficient evidence against H0
 TRADITIONAL METHOD P-VALUE METHOD
1. Parameter value of interest Parameter value of interest
2. Hypotheses Hypotheses
3. Assumptions (CLT, normally, randomness) Assumptions (CLT, normally, randomness)
4. A level (two-tailed; one-tailed) A level (two-tailed; one-tailed)
5. test statistic (z, t, etc.) test statistic (z, t, etc.)
* Computation of the test statistic * Computation of the test statistic
6. DECISION RULE DECISION RULE
* Reject H0 if the computed test statistic ≤ negative * Reject H0 if the computed probability value ≤ a
critical value or if the computed test statistic ≥ positive * Do not reject (or accept) H0 if the computed
critical value. probability value > a
* Do not reject (that is, accept) H0 if the computed test
statistic > negative critical value or if the computed test
statistic < positive critical value.

7. * Comparison between computed statistic and critical • Comparison between p-value and a
value/s • Decision
* Decision • Interpretation
* Interpretation
 APPLYING THE P-VALUE METHOD
1. Bryan administered a Mathematics achievement test to a random
sample of 50 graduating pupils. In this sample, = 90 and s = 10. The
population parameters are μ = 82 and σ = 15.
1. Does the sample come from the average
population?
2. Is the performance of the sample above average
Use a = 0.05 and the p-value method.
 Bryan administered a Mathematics achievement test to a random sample of 50
graduating pupils. In this sample, = 90 and s = 10. The population parameters are μ
= 82 and σ = 15.

STEPS SOLUTION
1. Describe the population parameter of interest The parameter of interest is the population mean μ, the
mean performance of all pupils in the test
2. Formulate the hypotheses; the null hypothesis and the H0: μ = 83
alternative hypothesis . State a null hypothesis, H0, in H1: μ ≠ 83
such a way that a type I error can be calculated.
3. Check the assumption. With n = 50, the Central Limit Theorem applies
* Is the sample size large enough for the Central
Limit theorem (CLT) to apply?
4. Choose a significance level size for a. Make a small A = 0.05
when the consequences of rejecting a true H0 is severe.
* Is the test two tailed or one tailed? Two tailed
 Bryan administered a Mathematics achievement test to a random sample of 50
graduating pupils. In this sample, = 90 and s = 10. The population parameters are μ
= 82 and σ = 15.
STEPS SOLUTION
5. Select the appropriate test Z statistic, σ = 15
statistics Z==
* Compute the Z=
probability value (p-value) z= 3.30
P-value = P(z < negative computed z or the z > positive
computed z)
So, the p-value = P(z < -3.30) or P(z > 3.30)
The area between z = 0 and z = 3.30(or -3.30) is 0.4995
So, p-value = 0,5000 – 0.4995 = 0.0005
Final p-value = 2(0.0005) = 0.0010
 1-a

P-Value P-Value

Reject H0 μ Reject

-3.30 3.30
 Bryan administered a Mathematics achievement test to a random sample of 50
graduating pupils. In this sample, = 90 and s = 10. The population parameters are μ
= 82 and σ = 15.
STEPS SOLUTION
6. State the decision rule for rejecting or not rejecting * Reject H0 if the computed probability value ≤
the null hypothesis. 0.05
* Do not reject (or accept) H0 if the computed
probability value > 0.05
7. Compare the computed probability value and a We know that 0.0010 < 0.50
• Based on the decision rule, decide whether to reject Thus based on the evidence at hand, we reject the null
or not to reject H0. hypothesis
• Interpret the result (We reject that the sample comes from a population
• Take a course or action (optional) whose mean μ = 83)
There is a significant difference between the sample
mean and population mean.
Interpretation: The result implies that the sample
belongs to another population and that the population is
above the average
 Bryan administered a Mathematics achievement test to a random sample of 50
graduating pupils. In this sample, = 90 and s = 10. The population parameters are μ
= 82 and σ = 15.
STEPS SOLUTION
6. State the decision rule for rejecting or not rejecting * Reject H0 if the computed probability value ≤
the null hypothesis. 0.05
* Do not reject (or accept) H0 if the computed
probability value > 0.05
7. Compare the computed probability value and a We know that 0.0020 < 0.50
• Based on the decision rule, decide whether to reject Thus based on the evidence at hand, we reject the null
or not to reject H0. hypothesis
• Interpret the result (We reject that the sample comes from a population
• Take a course or action (optional) whose mean μ = 83)
There is a significant difference between the sample
mean and population mean.
Interpretation: The result implies that the sample
belongs to another population and that the population is
above the average
 Bryan administered a Mathematics achievement test to a random sample of 50
graduating pupils. In this sample, = 90 and s = 10. The population parameters are μ
= 82 and σ = 15.

 The maximum z-value in the table is 3 with a corresponding area of 0.4995. If

another table provides an area nearer to z = 3.30, then take that area as there
quired probability value
 APPLYING THE P-VALUE METHOD
1. Bryan administered a Mathematics achievement test to a random
sample of 50 graduating pupils. In this sample, = 90 and s = 10. The
population parameters are μ = 82 and σ = 15.
1. Does the sample come from the average population?
2. Is the performance of the sample above average
Use a = 0.05 and the p-value method.
 Bryan administered a Mathematics achievement test to a random sample of 50
graduating pupils. In this sample, = 90 and s = 10. The population parameters are μ
= 82 and σ = 15.

STEPS SOLUTION
1. Describe the population parameter of interest The parameter of interest is the population mean μ, the
mean performance of all pupils in the test
2. Formulate the hypotheses; the null hypothesis and the H0: μ = 83
alternative hypothesis . State a null hypothesis, H0, in H1: μ > 83
such a way that a type I error can be calculated.
3. Check the assumption. With n = 50, the Central Limit Theorem applies.
* Is the sample size large enough for the Central
Limit theorem (CLT) to apply?
4. Choose a significance level size for a. Make a small A = 0.05
when the consequences of rejecting a true H0 is severe.
* Is the test two tailed or one tailed? One-Tailed
 Bryan administered a Mathematics achievement test to a random sample of 50
graduating pupils. In this sample, = 90 and s = 10. The population parameters are μ
= 82 and σ = 15.
STEPS SOLUTION
5. Select the appropriate test Z statistic, σ = 15
statistics Z==
* Compute the Z=
probability value (p-value) z= 3.30
P-value = P(z < negative computed z or the z > positive
computed z)
So, the p-value = P(z < -3.30) or P(z > 3.30)
The area between z = 0 and z = 3.30(or -3.30) is 0.4995
So, p-value = 0,5000 – 0.4995 = 0.0005
 Bryan administered a Mathematics achievement test to a random sample of 50
graduating pupils. In this sample, = 90 and s = 10. The population parameters are μ
= 82 and σ = 15.
STEPS SOLUTION
6. State the decision rule for rejecting or not rejecting * Reject H0 if the computed probability value ≤
the null hypothesis. 0.05
* Do not reject (or accept) H0 if the computed
probability value > 0.05
7. Compare the computed probability value and a We know that 0.0010 < 0.50
• Based on the decision rule, decide whether to reject Thus based on the evidence at hand, we reject the null
or not to reject H0. hypothesis
• Interpret the result (We reject that the sample comes from a population
whose mean μ = 83)
• Take a course or action (optional) There is a significant difference between the sample
mean and population mean.
Interpretation: The result implies that the sample
belongs to another population and that the population is
above the average
 FORMATIVE:
 Mr Sy asserts that fewer than 5% of the bulbs he sells are defective. Suppose 300 bulbs
are randomly selected, each are tested and 10 defective bulbs are found. Does this
provide sufficient evidence for Mr. Sy to conclude that the fraction of defective bulbs is
less than 0.05? Use a = 0.01 and the p-value approach.
 In a test of H0: μ = 100 against H0: μ >100, the sample data yielded the sample statistic z
= 2.15. Find the p-value for the test.
 1-a

Reject H0 μ Reject

-3.30 3.30