LESSON 3: TEST OF

HYPOTHESIS
April 11, 2023
We make decisions all the time,
consciously or not. In studying Statistics,
making decision based on observations
or data that are considered random
variables is an essential concept to learn.
Such procedure of making decision is
called hypothesis testing. It is making a
decision whether to accept or reject a
statement or the assumption about some
parameter in any research problem.
The first thing a researcher should do is
to choose a topic for his research. Next is
to formulate the statement of the
problem. Then he/she should enumerate
the research questions and identify the
target population. Another important
thing a researcher should do is to make
assumptions about the population.
These assumptions which may or may
not be true are called statistical hypotheses.
 Statistical Hypotheses
1. The null hypothesis, denoted by , is a statement
saying that there is no significant difference
between population parameter and the value that
is being claimed. It is the hypothesis to be tested.
2. The alternative hypothesis, denoted by , is a
statement saying that there is a significant
difference between the population parameter and
the value that is being claimed. This is a statement
that will be true once the null hypothesis is
rejected.
𝐸𝑥𝑎𝑚𝑝𝑙𝑒1 :
The Head of the P.E. Department of a certain
high school claims that the mean height of
Grade 7 students is 163 cm. The mean height of
45 randomly selected Grade 7 students is 161
cm. Using 0.01 significance level, can it be
concluded that the mean height of Grade 7
students is different from 163 cm as claimed by
the Head of the P.E. Department? (State the null
and alternative hypotheses).
𝐻 𝑜 :𝜇=163 𝐻 𝑎 : 𝜇≠163
𝐸𝑥𝑎𝑚𝑝𝑙𝑒2 :
Last year the mean number of ladies’ bags produced by GB
Company was 2,500 each day. This year, the manager
claims that there is an increase in the number of bags
produced. A researcher who wants to find out whether
this is true counted the number of bags produced each day
for a period of one month. His computation resulted to a
mean of 2,515 ladies’ bags. At 0.05 significance level, is
there enough evidence to conclude that the mean number
of ladies’ bags produced by GB Company is greater than
2,500?? (State the null and alternative hypotheses).

𝐻 𝑜 :𝜇=2,500 𝐻 𝑎 : 𝜇>2,500
𝐸𝑥𝑎𝑚𝑝𝑙𝑒3 :
The manager of a TV Station claims that the mean
number of people watching their new sitcom in
Manila is each day. A student researcher who
wants statistical evidence on this claim conducted
her own survey. Her survey resulted to a mean of .
Using 0.05 significance level, can it be concluded
that the mean number of people watching the new
sitcom is less than ? (State the null and alternative
hypotheses).
𝐻 𝑜 :𝜇=500,000 𝐻 𝑎 : 𝜇<500,000
𝐸𝑥𝑎𝑚𝑝𝑙𝑒 4 :
The LB Company produces an average of 4%
defective bulbs each day. Recently, some of the
machines were upgraded. Out of 400 bulbs
randomly selected only 14 bulbs were defective.
Does this suggest that there is a decrease in the
number of defective bulbs produced each day? Use
0.05 significance level. (State the null and
alternative hypotheses).
𝐻 𝑜 :𝑝=0.04 𝐻 𝑎 : 𝑝<0.04
 Types of Errors
1. Type I error – is committed when the
researcher reject a null hypothesis when in
fact it is true. The probability of committing
Type I error is also called the level of
significance.
2. Type II Error – is committed when the
researcher fails to reject null hypothesis that is
false. But if the researcher fails to reject a true
hypothesis, then, there is no error committed.
 Decision True State of Nature
The null The null
hypothesis hypothesis is
is true. false.
Reject the Null TYPE I Correct
Hypothesis Error Decision

Accept the Null Correct TYPE II Error

Hypothesis decision
 One –Tailed & Two – Tailed Test

1. One – tailed test (directional): In a one – tailed

test, the alternative hypothesis is of the form
The rejection region is on one side of the
distribution. It I either on the left or the right tail
of the curve depending on how the alternative
hypothesis is stated.
2. Two – tailed test (non – directional): the
rejection region is on both sides of the curve. If
the alternative hypothesis contains the
inequality symbol, then the test is two – tailed.
 Z – test vs. t - test
1. z – test: Use z – test if

2. t – test: Use t – test if

Comes with degrees of freedom:

Recall:
Common confidence levels and their critical values
Confidence Level Critical Value (
Z-score or )

90% or 0.90 1.645

91% or 0.91 1.70
92% or 0.92 1.75
93% or 0.93 1.81
94% or 0.94 1.88
95% or 0.95 1.96
96% or 0.96 2.05
97% or 0.97 2.17
98% or 0.98 2.33
99% or 0.99 2.575
 LESSON 3.1: Hypothesis
Testing About a Population
Mean When the Variance
is Known
April 12, 2023
 Steps for Hypothesis Test
1. State the null and alternative hypotheses.
2. Choose the level of significance.
3. Compute the test statistics.
4. Determine the critical value or the p –
value.
5. Draw a conclusion.
Rejection Region
The range of values that leads the researcher to
reject the null hypothesis and choose the alternative
hypothesis.
The following shows the rejection region of common
values of level of significance .
𝐸𝑥𝑎𝑚𝑝𝑙𝑒5 :
The leader of the association of jeepney drivers
claims that the average daily take home pay of all
jeepney drivers in Pasay City is Php400.00. A
random sample of 100 jeepney drivers in Pasay City
was interviewed and the average daily take home
pay of these drivers is found to be Php425. Use a
0.05 significance level to find out if the average
daily take home pay of all jeepney drivers in Pasay
City is different from Php.400.00. Assume that the
population variance is Php.8, 464.00
Step 1: State the null and alternative hypothesis.

Step 2: Choose the level of significance.

Step 3: Compute the test statistics.
Since n>30, use the z – test

Step 4: Determine the critical value.

Since it is non – directional, divide the by
(Draw the normal curve)
Step 4: Determine the critical value.
Since it is non – directional, divide the
by 2
(Draw the normal curve)
Two-tailed
Rejection Region:
or

Reject
Accept
Step 5: Draw a conclusion.
Because the computed statistics falls within
the rejection region, reject the null hypothesis
and accept the alternative hypothesis.

Interpretation: The average daily take home

pay of jeepney drivers is not equal to 400
pesos.
𝐸𝑥𝑎𝑚𝑝𝑙𝑒6 :
According to a study done last year, the
average monthly expenses for mobile phone
loads of high school students in Manila was
350 pesos. A statistics students believes that
this amount has really increased if a random
sample of 60 students has an average
monthly expenses for mobile phone loads of
380 pesos? Use 0.05 level of significance.
Assume that the population standard
deviation is 77 pesos.
Step 1: State the null and alternative hypothesis.

Step 2: Choose the level of significance.

Step 3: Compute the test statistics.
Since n>30, use the z – test

Step 4: Determine the critical value

Since it is directional, don’t divide the
(Draw the normal curve)
Step 4: Determine the critical value.
Since it is non – directional, divide the
by 2
(Draw the normal curve)
One-tailed
Rejection Region:

Reject
Accept
Step 5: Draw a conclusion.
Because the computed test statistics
z = 3.02 falls within the rejection
region, reject the null hypothesis and accept
the alternative hypothesis.

Interpretation: The average monthly expenses

for mobile phone loads of high school students
in Manila is more than 350 pesos. This result is
considered to be significant at level.
𝐸𝑥𝑎𝑚𝑝𝑙𝑒
𝐸𝑥𝑎𝑚𝑝𝑙𝑒77::
A random sample of 100 recorded deaths in the
United States during the past year showed an
average life span of 71.8 years, with a standard
deviation of 8.9 years. Does this seem to
indicate that the average life span today is
greater than 70 years? Use a 0.05 level of
significance.
Step 1: State the null and alternative hypothesis.

Step 2: Choose the level of significance.

Step 3: Compute the test statistics.
Since n>30, use the z – test

Step 4: Determine the critical value

(Draw the normal curve)
Step 4: Determine the critical value.
Since it is non – directional, divide the
by 2
(Draw the normal curve)
One-tailed
Rejection Region:

Reject
Accept
Step 5: Draw a conclusion.
Because the computed test statistics
z = 2.02 falls within the rejection
region, reject the null hypothesis and
accept the alternative hypothesis.
Interpretation: The average life span
today is greater than 70 years. This result
is considered to be significant at level.