WELCOME TO THE

HYPOTHESIS TESTING ABOUT A POPULATION MEAN

WHEN THE VARIANCE IS KNOWN
Objectives
1. Identify the parameter to be tested given a real-life problem.
2. Given that the population variance is assumed to be known:
a. formulate the appropriate null and alternative hypotheses
on a population mean.
b. identify the appropriate form of the test-statistic;
c. identify the appropriate rejection region for a given level of
significance;
d. compute for the test-statistic value (population mean);
e. draw conclusion about the population mean based on the
test-statistic value and the rejection region.
Hypothesis testing
- is a procedure used by statisticians to
determine whether or not to reject a
statement about a population.
Steps for a hypothesis test for a population mean when
the variance is known and
the population is assumed to follow normal distribution.
Step 1. State the null & the alternative hypotheses.
Step 2. Choose the level of significance & tailed test.
Step 3. Identify & compute the test-statistic.
Step 4. Determine the critical value (z-value).
Step 5. Make decision.
Step 6. Draw a conclusion.
The appropriate test statistic for testing a claim about a
population mean when the population variance is known
and n ≥ 30 is

Where:
= sample mean
= population mean
= population standard deviation
n = sample size
Example 1
 Example 1
• The leader of the association of tricycle drivers claims that the
average daily take home pay of all tricycle drivers in Kid City
is P400.00. A random sample of 100 tricycle drivers in Kid
City was interviewed and the average daily take home pay of
these drivers is found to be P425. Use a 0.05 significance
level to find out if the average daily take home pay of all
tricycle drivers in Kid` City is different from P400.00.
Assume that the population variance is P8,464.00.
 Given: Step 4. Find the critical value of z.
Computed z
Solution:
Non-rejection
Step 1. Formulate the null & alternative hypotheses region
Ho : Rejection region Rejection region

H a: -1.96 1.96 2.72

Step 2. Find the & tailed-test

= 0.05, two-tailed test Step 5. Make decision and give a reason.
Reject Ho, since the computed z = 2.72 falls in the
Step3. Identify & compute for test statistic. rejection region.
Since the population variance is known
& n>30, the test statistic is z-test. Step 6. Conclusion
There is a significant difference in the average
take home pay of the tricycle drivers in
Kidapawan.
The average take home pay of tricycle drivers in
Kidapawan is not equal to 400.
Steps for a hypothesis test for a population mean when
the variance is known and
the population is assumed to follow normal distribution.
Step 1. State the null & the alternative hypotheses.
Step 2. Choose the level of significance & tailed test.
Step 3. Identify & compute the test-statistic.
Step 4. Determine the critical value (z-value).
Step 5. Make decision.
Step 6. Draw a conclusion.
The appropriate test statistic for testing a claim about a
population mean when the population variance is known
and n ≥ 30 is

Where:
= sample mean
= population mean
= population standard deviation
n = sample size
 Rules for using the p-Value Method

a.If p-value ≤ a, reject Ho.

b.If p-value > a, do not reject Ho.
 Activity 1
According to a study done last year, the average monthly
expenses for mobile phone loads of G11 ABM students at
KCNHS was P350.00. A Statistics student believes that this
amount has increased since January of this year. Is there a
reason to believe that this amount has really increased if a
random sample of 32 students has an average monthly
expenses for mobile phone loads of P380.00? Use a 0.05 level
of significance. Assume that the population standard deviation
is P105.00.
RUBRIC for Rating the OUTPUT
 Evaluation
• The Head of the MATH Department announced that the
mean score of Grade 11 ABM students in the first
periodic examination in Mathematics was 89 and the
standard deviation was 12. One student who believed
that the mean score was less than this, randomly
selected 34 students and computed their mean score.
She obtained a mean score of 85. At 0.01 level of
significance, test the student’s belief.
 Given: Step 4. Find the critical value of z.
Computed z
Solution:

Step 1. Formulate the null & alternative hypotheses Non-rejection region

Rejection region
Ho :
H a:
-
-1.94
2.325
Step 2. Find the & tailed-test
= 0.01, one-tailed test Step 5. Make decision and give a reason.
Do not reject Ho, since the computed z lies in the
Step3. Identify & compute for test statistic. non-rejection region.
Since the population variance is known
& n>30, the test statistic is z-test. Step 6. Conclusion
There is no significant decrease in the mean
score of Grade 11 ABM students in Math.
The student’s belief is incorrect.
Test each of the following hypothesis using the given information
1. Ho: u = 84
Ha: u ≠ 84
= 87, = 10, n = 35, = 0.05
2. Ho: u = 45
Ha: u > 45
= 40, = 12, n = 32, = 0.01
 Evaluation
• It is claimed that the average weight of babies at birth
is 3.4 kg. The average weight of a random sample of 30
newly born babies was determined. It was found out
that the average weight was 3.1 kg. Is there a reason to
believe that the average weight of babies at birth is not
3.4 kg? Assume that the population standard deviation
is 1.1 kg. Use 0.05 level of significance
 quiz
A. It is claimed that the mean annual salary of call center customer service
representatives is P188,584.00. A researcher randomly selected 45 call
center agents. He computed the mean of their annual salaries and obtained
a mean of P188,600.00. Does this show that the mean salary of all call
center customer service representatives is greater than P188,584.00? Use
0.05 level of significance and assume that the population sd is P39.50.

B. A company which produces batteries claims that the life expectancy of

their batteries is 90 hours. In order to test the claim, a consumer interest
group tested a random sample of 40 batteries. The test resulted to a mean
life expectancy of 87 hours. Using 0.05 level of significance, can it be
concluded that the life expectancy of their batteries is less than 90 hours?
Assume that the population standard deviation is known to be 10 hours.