TEST ON

POPULATION
MEAN
OBJECTIVES

Correctly identify the appropriate form of

test statistic to be used in hypothesis
testing when:
- the population variance is assumed to be
known
- the population variance is assumed to be
unknown
- the Central Limit Theorem is to be used
Hypothesis testing is composed of a series of
steps that begins with the formulation of the null
and alternative hypothesis and ends with the
conclusion.
Three Basic Approaches to Hypothesis Testing

1. The test statistic approach

In this approach, we obtain the critical value from the table
and compute the test statistic. We reject or accept the null
hypothesis depending upon the comparison between the
tabulated value (critical value) and the computed value.
Three Basic Approaches to Hypothesis Testing

2. The probability value approach

Here, we compute the test statistic and the probability
value (p-value). We reject the null hypothesis if the p-value
is less than or equal to the significance level α. If the p-
value is greater than α, then the null hypothesis is not
rejected.
Three Basic Approaches to Hypothesis Testing

3. The confidence interval approach

In this approach, we determine the hypothesized value and
construct the confidence interval. We reject the null
hypothesis if the hypothesized value is not within the range
of the confidence interval.
Steps in testing the hypothesis when we test hypotheses, we follow
these steps.
Step 1: Formulate the null and alternative hypotheses.
Step 2: Identify the test statistic to use, level of significance, state
the decision rule and specify the rejection region.
Step 3: Using a simple random sample of observation, compute the
value of the test statistic.
Step 4: Make a decision whether to reject or not to reject (accept)
the null hypothesis.
Step 5: State the conclusion.
Accepting or Rejecting the Null Hypothesis
In accepting or rejecting the null hypothesis, the
following steps should be considered.
1. Determine the critical value using the appropriate
statistical table.
2. Compare the computed statistic with the critical value
3. If the computed value falls on the rejection region, then
reject the null hypothesis. If it does not fall on the rejection
region, accept the null hypothesis.
DECISION RULE:
Comparing the Sample Mean and the
Population Mean for Large Sample
Size

To determine if a significant difference exists between

the population mean and the sample mean, the z-test
for one sample mean will be used.
Example1. A pharmaceutical company claimed that a new
drug introduced in the market could help women reduce
weight by 4.5 kg per month with a standard deviation of
0.8 kg. A sample of 30 women were randomly chosen and
found to have reduced their weight at an average of 4.12
kg in a span of one month. Does this data make the claim
of the manufacturer valid at 0.05 level of significance?
Example1. A pharmaceutical
company claimed that a new
drug introduced in the market
could help women reduce
weight by 4.5 kg per month
with a standard deviation of 0.8
kg. A sample of 30 women
were randomly chosen and
found to have reduced their
weight at an average of 4.12 kg
in a span of one month. Does
this data make the claim of the
manufacturer valid at 0.05 level
of significance?
 Given: Solution

3. Compute the z-statistic

The computed value of z = -2.60

4. Decision: Compare the is less than the critical value -
computed value of z with the 1.96, so the statistic lies on the
critical value. rejection region, the null
hypothesis is rejected.
There is significant difference
5. Conclusion between the sample mean and
the population mean. Thus, the
company is not correct in its claim
that the new drug introduced in
the market can reduce women’s
Example 2. A senior high school researcher believes that
it costs more than Php60,000 a year to send a child to
college. To test this claim, a random sample of 50
families having college students were selected. It was
found that the average expenses for these families reveal
a mean of Php62,000 with a standard deviation of
Php3,400. Test whether the senior high school
researcher’s claim is valid using a 0.05 level of
significance.
 STEPS SOLUTION
Example 2. A senior high school 1. Formulate the Ho: The average cost
researcher believes that it costs hypotheses: per year in sending a
more than Php60,000 a year to The null and alternative child to college is at
send a child to college. To test hypothesis most Php60,000.
this claim, a random sample of 50
Ha: Ho: The average
families having college students cost per year in sending
were selected. It was found that a child to college is
the average expenses for these more than Php60,000.
families reveal a mean of
In symbols:
Php62,000 with a standard Ho:
deviation of Php3,400. Test Ha:
whether the senior high school
2. Set the significance
researcher’s claim is valid using a level One-tailed (right-tailed)
0.05 level of significance. Type of test Zcritical = 1.64
Critical values of z
s

1.64
Comparing the Sample Mean and the
Population Mean for Small Sample Size

if σ is not given and the sample size is small

(nthe t-test for one sample mean shall be used
instead of the z-test.
Example: A printer manufacturing company claims
that their new printer in the market is ink efficient. It
can print an average of 1400 pages of text
documents. To check this claim, a random sample of
28 printers has been tested and revealed a mean of
1450 pages with a standard deviation of 50. Does this
result support the company’s claim? Test the validity
of the claim at 5% significance level.
2.052, -
2.052
2.052
GMA-ABS claimed that their employees had a
mean monthly salary of Php12,500. A reporter
wants to verify this claim by asking 30
employees. The result showed that these
employees had an average monthly salary of
Php10,000 with a standard deviation of
Php2,000. Test the claim at 10% level of
significance assume that the population is
approximately normally distributed.