COMPUTING THE POINT

ESTIMATE OF A POPULATION
MEAN
Recall:
Standard deviation: where:
():

‘sum of’
Variance (): column/row mean
overall mean
number of cases
EXAMPLES: FIND THE MARGIN ERROR:

• 1. Confidence level = 99%; Standard deviation = 7.5;

Sample size = 100
• 2. Confidence level = 95%; Variance = 16; Sample size
= 35
• 3. 75.80 < μ < 90.75
• 4. 9,920.80 < μ < 11, 007.34
EXAMPLES: FIND THE LOWER/ UPPER CONFIDENCE
LIMITS

• 1. Margin of error = 5.75; upper confidence limit

= 350.25
• 2. Margin of error = 0.35; lower confidence limit
= 15.50
CONFIDENCE INTERVALS FOR THE POPULATION MEAN WHEN IS UNKNOWN
SOLVE FOR THE MARGIN OF ERROR FOR THE
FOLLOWING:

•1. n = 6, s = 2, 90% confidence

•2. n = 9, s = 4.5, 95% confidence
•3. n = 16, s = 3.1, 99%
confidence
 POINT ESTIMATE FOR THE POPULATION
PROPORTION

• Proportion – is a fraction expression where the

favourable response is in the numerator and the
total number of respondent is in the denominator.

•.
• Proportions can be obtained from samples or populations.
• To facilitate our discussions, we shall use the following symbols.
• number of observations in a simple random sample
• sample proportion (read as “p hat”)
• population proportion

• For a sample proportion,

• where is the number of sample elements that possess the

desired characteristics; and is the sample size
EXAMPLE

• A random selection of school children was asked

whether they Like (1), Do not like (0), or Cannot decide
(2) whether they like or not, a new kind of snack served
by the school cafeteriaa. The responses are shown as
follows:
 1 0 1 1 2 1 1 2 0 1
1 1 0 0 1 1 1 0 1 1
1 2 1 1 1 1 1 1 1 1
0 1 0 1 0 1 1 0 0 0
2 1 2 2 1 2 1 2 2 0
2 1 2 2 0 2 1 2 0 2

1. What is the proportion of respondents who like the new snack?

2. What is the proportion of respondents who do not like the new snack?
3. What is the proportion of respondents who cannot decide?
COMPUTING INTERVAL ESTIMATES OF
POPULATION PROPORTIONS
EXAMPLE

• Example 1: Trust the President?

• A survey of 1200 citizens showed that 715 trust
the president. Compute a 95% confidence interval
for the proportion of all citizens who trust the
president.
CONFIDENCE LEVEL AND SAMPLE
SIZE
SOLVING MARGIN OF ERROR WHEN IS
KNOWN
THE MARGIN ERROR E FOR THE CONFIDENCE
INTERVAL OF A POPULATION IS
Example 2: Mean Age of Entering Math Majors
In a survey of 458 random households, people take pride
in discussing their methods of environmental protection.
236 manage their trash by separating biodegradables
from non-biodegradables. Biodegradables are converted
into fertilizers while non-biodegradables are disposed of
properly. Use a 95% confidence to estimate the
proportion of all households who have good practices of
trash management.
TESTS OF HYPOTHESIS
UNDERSTANDING HYPOTHESIS TESTING
• 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.
The null hypothesis, denoted by , is a statement that there is no
difference between a parameter and a specific value, or that there is no
difference between two parameters.
The alternative hypothesis, denoted by , is a statement that there is a
difference between a parameter and a specific value, or that there is a
difference between two parameters.
Example 1: Bottled Fruit Juice Content
The owner of a factory that sells a particular bottled
fruit juice claims that the average capacity of a bottle
of their product is 250 mL.

Thus, the two hypotheses would be:

: The bottled drinks contain 250 mL per bottle.
: The bottled drinks do not contain 250 mL per bottle.
 Example 2: Music and Studies
A teacher wants to know if listening to popular music affects the
performance of pupils. A class of 50 grade 1 pupils was used in the
experiment. The mean score was 83 and the standard deviation is
5. A previous study revealed that and the standard deviation .

: The sample comes from a population whose mean is 82.

: The sample does not come from a population whose mean is 82.
Example 3: Organic Fertilizers
A farmer believes that using organic fertilizers on his

from the past was ₱200,000.00 per year

plants will yield greater income. His average income

. The phrase greater income is associated with the

greater than direction. So, .
Definition.
When the alternative hypothesis utilizes the
symbol, the test is said to be non-directional.
When the alternative hypothesis utilizes the
or symbol, the test is said to be directional.
Write the null hypothesis and the alternative hypothesis in words and in
symbols for each of the following:
1. The net weight of a packet of a snack brand is 130 g. A sample of 80
packets yielded a sample mean weight of 112 g with a standard
deviation of 15 g.
2. In a graduate college, the average length of registration time during a
semester is 120 minutes with a standard deviation of 25 minutes.
With introduction of a new registration procedure, a random sample
of 50 student’s system took an average 0f 80 minutes with a standard
deviation of 12 minutes.
Example 1: Maria’s Age
Maria insists that she is 30 years old when, in fact, she is 32 years old.
What error is Mary committing?

Example 2: Stephen’s Hairline

Stephen says that he is not bald. His hairline is just receding. Is he
committing an error? If so, what type of error?

Example 3: Monkey-Eating Eagle Hunt

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?
CONDUCTING HYPOTHESIS TESTING USING THE
TRADITIONAL METHOD

A one sample z test is a statistical test for the mean of a population

and applicable to interval and ratio scale. It is used when , or when the
population is normally distributed, and population standard
deviation is known. The formula for the test is
 Example 1: Computing
Given , , , . Find the value of .

Example 2: Computing the value given

Given , , , . Find the value of .
 The following are the steps in conducting hypothesis testing:
1. State the null hypothesis () and the alternative hypothesis ().
Set up the hypotheses:
: specified value : , , specified value
2. Choose the level of significance, , and the sample size.
3. Determine the test statistic and sampling distribution.
4. Determine the critical values that divide the rejection and non-rejection regions.
5. Collect the data and compute the value of the test statistic.
Calculate the value of the one sample test, by using the first formula if is known, otherwise use the
second formula .

6. Make a statistical decision.

Statistical decision for hypothesis testing:
If , do not reject .
If , reject .

7. State the conclusion.

Example 2: Bottled Fruit Juice
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, a consumer group gets a sample of 100
such bottles, calculates the capacity of each bottle, and then
finds the mean capacity to be 248 mL. The standard deviation
is 5 mL. Is the claim true? Conduct a hypothesis test using .
Formulate the appropriate null and alternative hypotheses and identify
situations where Type I and Type II errors are committed. State the
possible consequences.
1. A manufacturer of IT gadgets recently announced they had
developed a new battery for a tablet and claimed that it has an
average life of at least 24 hours. Would you buy this battery?
2. A teenager who wanted to lose weight is contemplating on following
a diet she read about in the Facebook. She wants to adopt it but,
unfortunately, following the diet requires buying nutritious, low
calorie yet expensive food. Help her decide.
3.Alden is exclusively dating Maine. He remembers that on their first date, Maine
told him that her birthday was this month. However, he forgot the exact date.
Ashamed to admit that he did not remember, he decides to use hypothesis testing to
make an educated guess that today is Maine’s birthday. Help Alden do it.

4. After senior high school, Lilifut is pondering whether or not to pursue a degree in
Statistics. She was told that id she graduates with a degree in Statistics, a life of
fulfillment and happiness awaits her. Assist her in making a decision.

5. An airline company regularly does quality control check on airplanes. Tire

inspection is included since tires are sensitive to the heat produced when the
airplane passes through the airport’s runway. The company, since its operation,
uses a particular type of tire which is guaranteed to perform even at a maximum
surface temperature of C. However, the tire cannot be used and need to be replaced
when surface temperature exceeds a mean of C. Help the company decide whether
or not to do a complete tire replacement.
 One sample -test is a statistical procedure that is used
to know the mean difference between the sample and
the known value of the population mean based on an
interval or ratio scale. We draw a random sample from
the population and then compare the sample mean
with the population mean and make a statistical
decision as to whether or not the sample mean is
different from a population. The sample size should be
less than 30.
Procedure for One Sample-test:
1. Set up the hypotheses:
2. Set the level of significance, calculate the degrees of freedom and
determine the critical value of .
3. Calculate the sample mean and sample standard deviation for
one sample -test by using
4. Calculate the value of the one sample-test, by using
5. Statistical decision for hypothesis testing:
If , do not reject .
If , reject .

6. State the conclusion.

Example 1: Drinking Water
Drinking water has become an important concern among people. The
quality of drinking water must be monitored as often as possible
during the day for possible contamination. Another variable of concern
is the pH level, which measures the alkalinity or the acidity of the
water. A pH below 7.0 is acidic while a pH above 7.0 is alkaline. A pH of
7.0 is neutral. A water treatment plant has a target pH of 8.0. Based on
16 random water samples, the mean and the standard deviation were
found to be: and .
Does the sample mean provide enough evidence that it differs
significantly from the target mean? In other words, does the sample
come from a population whose mean is the same as the target pH of
8.0? Use , two-tailed test.
Example 2: Five Random Measurements
A sample of five measurements, randomly selected from
an approximately normally distributed population,
resulted in the summary statistics: and .
a. Test the null hypothesis that the mean of the population is 6 against
the alternate hypothesis . Use .

b. Test the null hypothesis that the mean of the population is 6 against
the alternate hypothesis . Use .
Answer the following:
1. A random sample of ten measurements were obtained from a normally
distributed population with mean . The sample values are and .
a. Test the null hypothesis that the mean of the population against the
alternative hypothesis, . Use .
b. Test the null hypothesis that the mean of the population against the
alternative hypothesis, . Use .

2. Conduct a -test for the null hypothesis : against the alternative hypothesis :
based on 15 random observations. The sample mean is 110 and the sample
standard deviation is 8. Use.
CONDUCTING SIGNIFICANT TESTS USING
THE PROBABILITY APPROACH VALUE

Use the normal curve to compute the following probabilities.

Compare each of the computed values with 0.05 and 0.01.
A random sample of 200 school managers were
administered a developed Leadership Skills Test.
The sample mean and the standard deviation
were 78 and 4.2, respectively. In the
standardization of the test, the mean was 73 and
the standard deviation was 8. Test the significant
difference using utilizing the -value method.
ACTIVITY 37: Hypothesis Testing
Answer the following:
1. A researcher claims that the monthly consumption of coffee per person is
more than 19 cups. In a sample of 60 randomly selected people, the mean
monthly consumption was 20. The standard deviation of the sample was 4
cups. Find the-value of the test. On the basis of the -value, is the researchers
claim valid at?

2. A fitness center claims that its members lose an average of 15 pounds or more
the first month after joining the center. An independent agency that wanted to
check this claim took a sample of 45 members and found that they lost an
average of 13 pounds within the first month with standard deviation of 3
pounds. Find the -value for this test. What will your decision be if ?
TESTING HYPOTHESIS INVOLVING
POPULATION PROPORTION
 Procedure for test for a Proportion:
1. Set up the hypotheses:
: specified value : , , specified value
2. Set the level of significance and determine the critical value of .
3. Calculate the sample proportion
4. Calculate the value of the one sample test for proportion, by using
5. Statistical decision for hypothesis testing:
If , do not reject .
If , reject .

6. State the conclusion.

Example 1:
Using the 0.05 level of significance, run a test given the following:

Example 2: Defective Bulbs

Mr. Sy asserts that fewer than 5% of the bulbs that 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 and the -value approach.
Example 2: Defective Bulbs
Mr. Sy asserts that fewer than 5% of the bulbs that 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 and the -value approach.
Example 3: Examining Cafeteria Service
A school administrator claims that less than 50% of the students of the
school are dissatisfied by the community cafeteria service. Test this
claim by using sample data obtained from a survey of 500 students at
the school where 54% indicated their dissatisfaction of the community
cafeteria service. Use .