Module in Statistics and Probability (March 18- 22, 2019)

Chapter 5: TEST OF HYPOTHESIS

Lesson 1: Basic Concepts of Hypothesis Testing

In many cases, we formulate hypotheses or tentative statements to explain facts about a

phenomenon or situation based on available evidences. Suppose that there is a claim that the
average monthly income of Filipino Families who belong to the low income bracket is Php 8000. We
can formulate a hypothesis that the average monthly income is really equal to Php 8000, or less than
Php 8000, or greater than Php 8000. To find out whether our hypothesis is true or false, we can
select a random sample of families and determine their average income. Based on this sample data,
we can determine the average income of Filipino Families. In other words, we can make a
generalization about the population using a sample. This process is called Hypothesis Testing.

A statistical hypothesis is a statement about the numerical value of a population parameter.

It is a statement or tentative assertion which aims to explain facts about a certain phenomenon. A
hypothesis needs to be resolved whether it is true or not because a hypothesis is an educated guess.
If the hypothesis is found to be true, it is accepted; if it is false then it is rejected.

Two kinds of hypothesis:

1. Null Hypothesis- denoted by Ho, is a statement that there is no difference between a

parameter and a specific value.
2. Alternative Hypothesis- denoted by Ha, is the negation of the null hypothesis. It is a
statement that there exists a difference between a parameter and a specific value.

Study the following:

Example 1.

Claim: The average monthly of Filipino Families who belong to low income bracket is Php 8000.

Ho: The average monthly of Filipino Families who belong to low income bracket is Php 8000.

Ha: The average monthly of Filipino Families who belong to low income bracket is not equal Php
8000.

Notice: the null hypothesis is expressed through the use of the “equal” symbol while the
alternative hypothesis is expressed by the “not equal” symbol because the claim does not
specify any direction.

Example 2.

Claim: The average number of hours that it takes a ten year old child to learn a certain task in a
specific subject is less than 0.52 hour.

Ho: The average number of hours that it takes a ten year old child to learn a certain task in a
specific subject is equal to 0.52 hour.

Ha: The average number of hours that it takes a ten year old child to learn a certain task in a
specific subject is less than 0.52 hour.

Notice: Observe that the alternative hypothesis is expressed with < symbol because the claim
specifies to use the “less than” symbol.
TYPE OF TESTS

1. Directional Test – a test of any statistical hypothesis where the alternative hypothesis is
expressed, using less than or greater than is called directional test or one tailed test since
the critical or rejection region lies entirely in one tail of the sampling distribution.
2. Non- directional Test- a test of any statistical hypothesis where the alternative hypothesis is
written with a not equal sign is called a non- directional test or two tailed test since there is
no assertion made on the direction of the difference. The rejection is split into two equal
parts, one in each tail of the sampling distribution.

TYPES OF ERROR

1. Type I error- occurs when we reject the null hypothesis when it is true. It is also called the
alpha error.
2. Type II error- occurs when we accept the null hypothesis when it is false. It is also called the
beta error.

LESSON 2: Comparing the Sample Mean and the Population Mean in a Large Sample Size
In many instances when we are testing hypotheses, we want to find out if the mean
difference is statistically significant or not. Then z- test can be used for this purpose.
Generally, the z- test is used when the following conditions are satisfied.
1. The population standard deviation is known or given.
2. The population standard deviation is unknown but the sample size is sufficiently
large, in this case, we use the sample standard deviation to replace the population
standard deviation.
The z- test of one sample mean
𝑿−𝝁 𝝈
Z= where 𝝈𝒙 =
𝝈𝒙 √𝒏

The formula can be written as:

(𝑿−𝝁)√𝒏
Z= 𝝈

Where:

X= mean of the sample, 𝝁= mean of the population, n= size of the sample, 𝝈= standard
deviation of the population

CRITICAL VALUE OF z
Type of test Level of significance
∝= 0.01 ∝= 0.05
One- tailed ±2.33 ±1.65
Two- tailed ±2.58 ±1.96
Example 1.

A new drug on the market is claimed by its manufacturers to reduce overweight women by
4.55 kg per month with a standard deviation of 0.91 kg. Ten women chosen at random have
reported losing an average of 4.05 kg within a month. Does these data support the claim of the
manufacturer at 0.05 level of significance?

Solution:

Step 1: Ho: The average weight loss per month using new drug is equal to 4.55 kg.

Ha: The average weight loss per month using new drug is not equal to 4.55 kg.

Step 2: Type of test: Two- tailed test or non- directional test.

Critical value: With the use of the Critical Value of z, ∝= 0.05, 2 tailed test, the critical value
is z= ±1.96.

Step 3: Compute the test value using the formula or test statistic.

Given:

X= 4.05, u= 4.55, n= 10, 𝝈 = 𝟎. 𝟗𝟏

Substitute the given values in the formula:

(𝑿−𝝁)√𝒏
Z= 𝝈

(𝟒.𝟎𝟓−𝟒.𝟓𝟓)√𝟏𝟎
= 𝟎.𝟗𝟏

= -1.74
The test value or computed value is z= - 1.74
Step 4: Decision: Since the computed or test value does not fall within the rejection region,
we accept the null hypothesis.
Step 5: Conclusion: There is no significant difference between the sample mean and
population mean. Thus, the manufacturer is correct in claiming that the new drug in the
market can reduce overweight women by 4.55 kg per month.

ASSESSMENT
Activity Sheet
(Please write all your answers in a long bond paper).
A. Identify the type of error (Type I or Type II) if there is any committed in each
following situations.
1. A true null hypothesis is accepted.
2. A false null hypothesis is accepted.
3. A true null hypothesis is rejected.
 4. A false null hypothesis is rejected.
B. TRUE OR FALSE. Write true if the statement is correct and False if it is wrong and
modify the statement to make it correct.
1. If the rejection region lies entirely on the left tail of the sampling distribution,
then the test is a two- tailed test.
2. The probability of committing type I error is called the level of significance.
3. In a test of hypothesis, a test statistic is computed from the sample data.
4. If we rejected the null hypothesis at the alpha is equal to 0.01, then we would
also have rejected it at the alpha is equal TO 0.05.
5. A type I error is committed when we fail to reject the null hypothesis when it is
actually true.
C. Solve the following problems. Specify the details in each step in the solution process.
1. According to the norms established for a history test, grade 8 students should
have an average of 81.7 with a standard deviation of 8.5. If 100 randomly
selected grade 8 students from a certain school district average 79.6 in this test,
can we conclude at the 0.05 level of significance that the grade 8 students from
this school district can be expected to average less than the norm of 81.7?
2. A light bulb manufacturer regularly advertises that his bulbs last 900 hours with a
standard deviation of 75 hours. A random sample is chosen before each
campaign to make sure that the claim is correct. If one such sample of 20 bulbs
show a mean of 925 hours, can the advertising claim be considered an
underestimate at the 0.05 level of significance?
3. A psychologist believes that it will take at least an hour for a certain disturbed
children to learn a task. A random sample of 30 of these children results in a
mean of 50 minutes to learn the task. Should then psychologist modify her belief
at the 0.01 level if the population standard deviation can be assumed to be 15
minutes?
4. A supermarket boasts that the checkout times for customers are never more
than 15 minutes. A random sample of 36 customers reveals a mean checkout
time of 17 minutes with a standard deviation of 3 minutes. What can you
conclude about the supermarket’s boast at the 0.05 level?

***Note: The activity will be submitted on Monday, March 25, 2019.

Prepared by:

JONEL R. ROSETE

Subject Teachers