TESTS ON HYPOTHESES

Test on Population Proportion

Time Frame: 60 minutes

LEARNING COMPETENCIES

At the end of the lesson, the learners should be able to:

• Formulate appropriate null and alternative hypotheses on the population proportion
• Identify the appropriate form of the test statistic on the population proportion when the
sample size is large enough to invoke the Central Limit Theorem
• Identify the appropriate rejection region for a given level of significance when the
sample size is large enough to invoke the Central Limit Theorem
• Conduct the test of hypothesis on population proportion when the sample size is large
enough to invoke the Central Limit Theorem

LESSON OUTLINE

a. Introduction of the possible null and alternative hypotheses on population proportion

b. Steps in hypothesis testing on population proportion when the sample size is large
enough to invoke the Central Limit Theorem

c. Illustration of the test of hypothesis on the population proportion when the sample
size is large enough to invoke the Central Limit Theorem

DEVELOPMENT OF THE LESSON

INTRODUCTION
As in the previous lesson, the teacher will start the lesson by reviewing the steps
of hypothesis testing procedure:
1. Formulate the null and alternative hypotheses.
2. Identify the test statistic to use. With the given level of significance and the
distribution of the test statistics, state the decision rule and specify the rejection region.
3. Using a simple random sample of observation, compute the value of the test statistic.
4. Make a decision on whether to reject or fail to reject (accept) Ho.
5. State the conclusion.

MOTIVATION
As a motivational activity, the teacher may use a problem in previous lesson, which is
stated as follows:
The principal of an elementary school believes that this year there would
be more students from the school who would pass the National Achievement
Test (NAT), so that the proportion of students who passed the NAT is greater
 than the so that the proportion of students who passed the NAT is greater than
the proportion obtained in previous year, which is 0.75. What will be the
appropriate null and alternative hypotheses to test this belief?
(In this portion the teacher ask questions to generate the following ideas below –
Socratic Method)

INSTRUCTION/DELIVERY

In this problem, the parameter of interest is the proportion of students of the

school who will pass the NAT this year. In symbol, this parameter is denoted as P. As
applied to the problem, the appropriate null and alternative hypotheses are:
Ho: The proportion of students of the school who will pass the NAT this year is
equal to 0.75. In symbols, Ho: P = 0.75.
Ha: The proportion of students of the school who will pass the NAT this year is
greater than 0.75. In symbols, Ho: P > 0.75.
The variable as to whether a student passes the NAT this year or not is said to
follow a Bernoulli distribution with parameter P. If we further say that out of n students,
the number of students who will pass the NAT this year as the variable of interest, then
this variable is distributed as binomial with parameters n and P. With the assumption of
large sample to be able to invoke the Central Limit Theorem, the appropriate test
ṕ−p
statistic, denoted as z is computed as 𝑧 = 𝑝 (1−𝑝) where is the sample
√
𝑛
proportion computed from a simple random sample of n observations; and P is the
hypothesized value in of the parameter. The test statistic follows the standard normal
distribution which means the tabular value in the Z-table will be used as critical or
tabular value. With this, the decision rule can be one of the following possibilities:
1. Reject the null hypothesis (Ho) if ZC < -Z α . Otherwise, we fail to reject Ho.
2. Reject the null hypothesis (Ho) if ZC > Z α . Otherwise, we fail to reject Ho.
3. Reject the null hypothesis (Ho) if |ZC|> Z α /2. Otherwise, we fail to reject Ho.

For the problem, the second option is the appropriate decision rule. Suppose the level
of significance (α) is set at 0.05, then the decision rule for the problem can be stated as
“Reject Ho if ZC > Z 0.05 = 1.645. Otherwise, we fail to reject Ho.” Note that this test
procedure is referred to as “one-tail Z-test for population proportion” and the rejection
region is illustrated as follows:
• The third step is to compute for the value of the test statistic using a random sample of
observations gathered or collected for the purpose of the test of hypothesis. Suppose
from a simple random sample of 100 students of the school, 78 students were able to
pass the NAT. Hence, the computed test statistic is 0.6928
• With the computed value of the test statistic equal to 0.6928, the next step is to use
the decision rule to make a decision: not to reject or fail to reject Ho.
• Lastly, as a consequence of the decision conclusions are made which are in relation to
the purpose of the test of hypothesis. With the non-rejection of the null hypothesis, then
Z 0.05=1.645
It can be concluded that it is not true that more students of the school did perform better
in NAT this year at 5% level of significance.
PRACTICE (Gallery Walk)

The teacher will group the class into the desired number of groupings. Each
should go to each station inside the classroom to answer the problems in each station.
There will be 5 stations. The group with more number of stations and correct answer will
have the highest point/score.
There will be 5 problems, one problem is posted in each station. Here is a
sample of one problem:

Carry out a test of hypothesis to draw conclusions in relation to this problem.

PROBLEM: Previous evidences show that majority of the students are happy and
contented with the univesity’s policies. This year, a random sample of 100 students was
drawn. They were asked if they were happy and contented with the univesity’s policies.
Out of 100 students, 65 said so. What conclusions could be made at 10% level of
significance?

(Expected Answer from the learners)

ENRICHMENT (Think – Pair – Share)

The teacher will pair the learners then give another set of problem for them to work on.

PROBLEM: An independent research group is interested to show that the percentage of

babies delivered through Ceasarian Section is decreasing. For the past years, 20% of
the babies were delivered through Ceasarian Section. The research group randomly
inspects the medical records of 144 births and finds that 25 of the births were by
Ceasarian Section. Can the research group conclude that the percent of births by
Ceasarian Section has decreased at 5% level of significance?

Note: After they answered the teacher will randomly select pairs to present their work to
the class.

EVALUATION(Individual work)

The teacher will ask the student to answer each item in a sheet of paper.

Carry out a test of hypothesis to draw conclusions in relation to these problem.

1. A politician believes that he is favored by 85% of voters. His opponent says that
his claim is too high. A commissioned researcher conducted a survey of 1500
randomly selected voters and finds that 750 were favor of the said politician. Is
the opponent claims true at 5% level of significance?
2. Suppose the previous the CEO claims that at least 80% of the company’s 1, 000,
000 customers are very satisfied. Again, 100 customers are surveyed using
simple random sampling. The result: 73% are very satisfied. Based on these
results, should we accept or reject the CEO’s hypothesis? Use α=0.05.
3. According to the Government Accountability Office, 80% of all college students
(ages 18 to 23) had health insurance in 2006. The Patient Protection and
Affordable Care Act of 2010 allowed young people under age 26 to stay on their
parents’ health insurance policy. Has the proportion of college students (ages 18
to 23) who have health insurance increased since 2006?A survey of 800
randomly selected college students indicated that 83% of them had health
insurance.Use 0.05 level of significance.
Prepared by:

FRANKLIN B. MAYO (OLGA)

DANILO A. ROBLICO JR. (CST-R)
MARY GRACE A. VICENTE (SJA)
LOIRYL KAE FERMARIN (HI)
JAN AMADEO L. UGHAYON (CCEI)
JOSE REY H. GIMENEZ (OLPMSI)
NESTOR VALIAO, JR. (SC)