STATISTICS AND

PROBABILITY
Module 9-12
Prepared by: MRS. MARICRIS A. AMOLOZA
Student: ________________________________ Strand & Section: ______________
Subject Teacher: ________________

GOOD DAY OUR DEAR STUDENTS!

Good day our dear students!
Welcome to Statistics and Probability: Module 9-12 for Grade 11!
This module was created and designed for you to learn and for you to be provided with fun and meaningful
activities which will enhance your skills in independent learning.
Please be reminded of the important activities to be accomplished upon the use of this module:
1. Please do the OPENING PRAYER before proceeding to the entire lessons and activities given for the day.
Please take a moment of silence and proceed to the opening prayer.
Opening Prayer
Heavenly Father, who by the light of the Holy Spirit, did instruct the hearts of the faithful,
grant that by the same spirit that we may be truly wise and ever enjoy His consolation. All of
these we pray in Jesus name. Amen.
2. Please use and answer your module with love, eagerness and care.
3. All the instructions are clearly written on your module. Please read them carefully and make sure to follow
them faithfully.
4. Please read and understand the intended lesson for the day.
5. Please observe honesty and integrity in accomplishing the tasks given.
6. Please practice to have a motivating mood, patience and perseverance in understanding and
accomplishing the self – learning module.
7. You have to finish the tasks at hand before proceeding to the next. Make sure no activities will be neglected.
8. Please be reminded that all the activities and lessons on the module must be finished on the given time
frame.
9. After finishing the module, make sure to submit this on the given schedule.
10. Once all the lesson and activities were accomplished, please do not forget to do the CLOSING PRAYER.
Please take another moment of silence and proceed to the closing prayer.
If you encounter problems or difficulties in answering this module, please do not hesitate to address your
concerns to the responsible teacher. The contact number of the teacher and the consultation hours are
provided in this module. Please bear in mind that you have someone that will guide and will help you in finishing
your module.
It is with a positive mind that this material will really help you to have meaningful learning and gain deep
understanding of the most essential learning competencies intended for this subject. We hope that you will be
fully equipped with the necessary knowledge that will enhance you into a wholesome human being.
TOGETHER EVERYONE ACHIEVES MORE!
Enjoy your module! Thank you and God bless!

Module 9-12 | Statistics and Probability Page 1 of 11

 SENIOR HIGH SCHOOL SELF-LEARNING MODULE

Grade : 11 Semester : First Semester

Core Subject Title : Statistics and Probability No. of Hours/Semester : 80 hours

Core Subject Description: At the end of the course, the students must know how to find the mean and variance of a
random variable, to apply sampling techniques and distributions, to estimate population mean and proportion, to perform
hypothesis testing on population mean and proportion, and to perform correlation and regression analyses on real﹣life
problems.

Introduction
Statistics and Probability for Senior High School is the subject about the development of skills in collecting,
organizing, presenting, understanding, analyzing and interpreting data. It will provide information that will help the students
to master the key mathematics concepts, such as how to find the mean and variance of random variable, to apply sampling
techniques and distributions, to estimate population mean and proportion, to perform hypothesis testing on population mean
and proportion, and to perform correlation and regression analyses on real﹣life problems. Likewise, further understanding
of these concepts may open the opportunity for the students to choose Advance Mathematics as an elective. This module
will help to develop the student’s understanding, critical thinking, problem-solving, reasoning, communicating, and making
connections, representations, and decisions in real life.

MODULE 9
Topic/ Lesson Name TESTS OF HYPOTHESIS
Content Standards The learner demonstrates understanding of key concepts of tests of hypotheses on the
population mean and population proportion.
Performance Standards The learner is able to perform appropriate tests of hypotheses involving the population
mean and population proportion to make inferences in real-life problems in different
disciplines.
Most Essential Learning The learner…
Competencies 1. illustrates (a)null hypothesis; (b) alternative hypothesis; (c) level of significance;
(d) rejection region; and (e) types of errors in hypothesis testing.
2. identifies the parameter to be tested given a real-life problems.
3. formulates the appropriate null and alternative hypotheses on a population mean.
References (Books and other Ocampo, J., Marquez, W. Conceptual Math and Beyond Copyright 2016
learning portals or websites)
Statistics and Probability Teaching Guide

LEARNING OBJECTIVES:
Upon the completion of this module, you will be able to:
1. define hypothesis and its types, types of test, types of errors, decision rules and steps in testing hypothesis;
2. appreciate the importance of hypothesis testing; and
3. formulate hypothesis.

LET’S WARM- UP
Before the start of the lesson proper, answer the questions below.
1. What is mean?
2. What is variance?
3. What is standard deviation?

KEY TAKEAWAY
This part of the module discusses about some key concepts of tests of hypothesis. It includes the null and alternative
hypotheses, level of significance, rejection region, and the types of errors in hypothesis testing.

MODULE CONTENT

Basic Concepts of Hypothesis Testing

Hypothesis testing is a decision-making process of evaluating claims about a population based on the characteristic
of a sample from that population. It decides whether to reject or accept the null hypothesis. Some uses the following
decisions: the null hypothesis is rejected or failed to reject the null hypothesis. Acceptance implies null hypothesis is true.
Failure to reject implies that the data are not sufficient enough to reject the null hypothesis.

Hypothesis
 Hypothesis – tentative statements to explain facts about a phenomenon or a situation based on available evidences.
 In statistics, a hypothesis is an assumption or conjecture about a population parameter which may or may not be true.
 In the scientific method, the hypothesis is constructed before any applicable research has been done.
 Statistical hypothesis – a statement about a numerical value of a population parameter.
 A hypothesis needs to be resolved whether it is true or not. Thus, it may be subjected to statistical testing procedure
known as test of hypothesis or hypothesis testing.

Types of Hypothesis
 Null hypothesis is a statement denoted by Ho , that states that there is no difference, no changes, nothing happened,
no relationship between a parameter and a specific value, or the independent variable has no effect on the dependent
variable.

Module 9-12 | Statistics and Probability Page 2 of 11

 Alternative hypothesis is a statement denoted by H 1, is a statement that states that there is a difference, an effect,
change, relationship between a parameter and a specific value, the independent variable has an effect on the
dependent variable, or something happened.
An alternative hypothesis is a statement that directly contradicts a null hypothesis by stating that that the actual
value of a population parameter is less than, greater than, or not equal to the value stated in the null hypothesis.

Example 1
CLAIM: The average monthly income of Filipino families who belong to low income bracket is Php 8 000
H0: The average monthly income of Filipino families who belong to low income bracket is Php 8 000 (µ = 8 000)
H1: The average monthly income of Filipino families who belong to low income bracket is not equal to Php 8 000 (µ ≠ 8 000)

Example 2
CLAIM: The average number of hours that it takes a ten-year-old to learn a certain task in a specific subject is less than
0.52 hour.
H0: The average number of hours that it takes a ten-year-old to learn a certain task in a specific subject is 0.52 hour (µ =
0.52).
H01: The average number of hours that it takes a ten-year-old to learn a certain task in a specific subject is less than 0.52
hour (µ < 0.52).

Types of Tests
 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.
 Nondirectional test
A test of any statistical hypothesis where the alternative hypothesis is written with a “not equal” sign (≠) is called
nondirectional 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.

Below are the common phrases used in hypothesis testing that will guide you the correct symbol to be used in formulating
alternative hypothesis.

Types of Error
 Type I error (alpha error or 𝜶)
It occurs when we reject the null hypothesis when it is true.
 Type II error (beta error or 𝜷)
It occurs when we accept the null hypothesis when it is false.

An example on how to state these types of errors in a sentence is given below.

Given: The mean number of years a teacher work before retiring is 30.
Type I error: We conclude that the mean number of years a teacher work before retiring is not 30 years, when it really is
30 years.
Type II error: We conclude that the mean number of years a teacher work before retiring is 30 years, when in fact it really
is not 30 years.

Level of Significance
 Level of significance, or significance level, refers to a criterion of judgement upon which a decision is made regarding
the value stated in a null hypothesis. Its value is between 0 to 1 or between 0% to 100%.
 The probability of committing Type I error or (α) is called the level of significance. The choice for the value of the
significance level is determined by the researcher.
 The level of significance, denoted by the Greek letter alpha , is a probability of rejecting a true null hypothesis. In public
health research, alpha is usually 0.01 or 1%. In social science, alpha is usually 0.05 or 5% and 0.10 or 10% in other
studies. This implies that there is 1%, 5%, or 10% probability of rejecting a true null hypothesis. Further, it implies that
the result has 99%, 95%, or 90% chance of being true, respectively.
 In symbol, it is written as:
𝜶 = 𝟎. 𝟎𝟏
𝜶 = 𝟎. 𝟎𝟓 or
𝜶 = 𝟎. 𝟏𝟎

Module 9-12 | Statistics and Probability Page 3 of 11

Steps in Testing the Hypothesis
 STEP 1: Identify the claim and formulate the null (H_o) and alternative (H_a) hypothesis.
 STEP 2: Set the level of significance and determine whether the test is one-tailed or two-tailed by looking at how the
alternative hypothesis is expressed. Decide on the test statistic to be used and find the critical value for the test. Draw
or illustrate the rejection region.
 STEP 3: Compute the test value, using the test statistic or formula for the test.
 STEP 4: Make a decision whether to accept or reject the null hypothesis.
 STEP 5: Formulate a conclusion by answering the research question.

Steps in Accepting or Rejecting the Null hypothesis

 STEP 1: Determine the critical value, using appropriate statistical values.
 STEP 2: Draw the rejection region and the critical value.
 STEP 3: If the test value or the computed value falls in the rejection region, then reject the null hypothesis; otherwise,
accept the null hypothesis.

MODULE 10
Topic/ Lesson Name TESTS OF HYPOTHESIS
Content Standards The learner demonstrates understanding of key concepts of tests of hypotheses on the
population mean and population proportion.
Performance Standards The learner is able to perform appropriate tests of hypotheses involving the population
mean and population proportion to make inferences in real-life problems in different
disciplines.
Most Essential Learning The learner…
Competencies 4. identifies the appropriate form of the test-statistic when: (a) the population
variance is assumed to be known; (b) the population variance is assumed to be
unknown; and (c) the Central Limit Theorem is to be used.
5. identifies the appropriate rejection region for a given level of significance when:
(a) the population variance is assumed to be known; (b) the population variance
is assumed to be unknown; and (c) the Central Limit Theorem is to be used.
References (Books and other Ocampo, J., Marquez, W. Conceptual Math and Beyond Copyright 2016
learning portals or websites)
Statistics and Probability Teaching Guide

LEARNING OBJECTIVES:
Upon the completion of this module, you will be able to:
4. identify test-statistic and rejection region;
5. appreciate the importance of test-statistic and rejection region;
6. compute the test statistic;
7. construct the acceptance and critical region.

LET’S WARM- UP
Read and understand the statements below and identify the term described.
1. It is a value selected from a table for the appropriate test.
2. It is a set of values that indicates that there is a significant difference.
3. This test indicates that the null hypothesis when the inequality in the alternative hypothesis is greater than or less than.
4. It is also known as non-directional test.
5. It is a value used to determine the probability needed in decision making.

KEY TAKEAWAY
This lesson is a continuation on the steps in hypothesis testing. You will learn here when to use the different test
statistics and the possible position of the rejection region. It will be easy because you have learned some illustration and
description of these terms in the previous lesson.

MODULE CONTENT

THE TEST STATISTIC

Test statistic is a value computed from the data. The test statistic is used to assess the evidence in rejecting or
accepting the null hypothesis. Each statistic test is used for a different test. You can use the z-score, t-score, the F-statistic,
or Chi-Square statistic. These will be used for the following tests, z-test, t-test, ANOVA test, and Chi-square test,
respectively. All data must be assumed to be normally distributed. Here, we will consider three conditions in choosing the
appropriate test statistic. These three are when the population variance is assumed to be known, when the population
variance is assumed to be unknown, and when using the Central Limit Theorem.

TEST STATISTIC WHEN THE POPULATION VARIANCE IS ASSUMED TO BE KNOWN

In this condition, the z-score is used. The formula for z-score is given by the formula below.

̅−𝝁𝟎
𝒙
Test Statistic: 𝒛 = ( ) (√𝒏)
𝝈
where

Module 9-12 | Statistics and Probability Page 4 of 11

z is the z-score, 𝑥̅ is the sample mean, 𝜇0 is the population mean, 𝜎 is the population standard deviation, and n is the sample
size.
Examples 1, 2 and 3 will use the z-score.

Example 1
Given: 𝑥̅ = 3 , 𝜇0 = 5, 𝜎 = 2, 𝑛 = 200 and

̅−𝜇0
𝒙 𝟑−𝟓
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟐𝟎𝟎) = −𝟏𝟒. 𝟏𝟒
𝝈 𝟐

Example 2
Given: 𝑥̅ = 4 , 𝜇0 = 10, 𝜎 = 3, 𝑛 = 50 and

̅−𝜇0
𝒙 𝟒−𝟏𝟎
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟓𝟎) = −𝟏𝟒. 𝟏𝟒
𝝈 𝟑

TEST STATISTIC WHEN THE POPULATION VARIANCE IS ASSUMED TO BE UNKNOWN

In this condition, the z-score is inappropriate to use. A different test statistic will be used then. The t-score will be
used in this case. Another condition to observe when using t-score is when the sample size n is less than 30, i.e., (𝑛 < 30)
and the population is normally or approximately normally distributed. The formula for t-score is given by the formula below.

̅−𝜇0
𝒙
Test Statistic: 𝒕 = ( ) (√𝒏) and the degrees of freedom 𝒅𝒇 = 𝒏 − 𝟏
𝒔
where
t is the t-score, 𝑥̅ is the sample mean, 𝜇 is the population mean, 𝑠 is the sample standard deviation, and n is the sample
size.

Examples 1, 2 and 3 will use the t-score.

Example 1
Given: 𝑥̅ = 6 ,𝜇0 = 5, 𝑠 = 2, 𝑛 = 15, 𝑑𝑓 = 15 − 1 = 1 and

̅−𝜇0
𝒙 𝟔−𝟓
Test Statistic: 𝒕 = ( ) (√𝒏) = ( ) (√𝟏𝟓) = 𝟏. 𝟗𝟒
𝒔 𝟐

Example 2
Given: 𝑥̅ = 5 , 𝜇0 = 7, 𝑠 = 1.5, 𝑛 = 25, 𝑑𝑓 = 25 − 1 = 24 and

̅−𝜇0
𝒙 𝟓−𝟕
Test Statistic: 𝒕 = ( ) (√𝒏) = ( 𝟏.𝟓 ) (√𝟐𝟓) = −𝟔. 𝟔𝟕
𝒔

TEST STATISTIC USING CENTRAL LIMIT THEOREM

The Central Limit Theorem states that if a random samples of size n are drawn from a large or infinite population
with finite mean 𝜇 and variance 𝜎 2 , then the sampling distribution of the sample mean is approximately normally distributed
𝝈 √𝒏(𝒙
̅−𝝁)
with mean 𝝁𝒙̅ = 𝝁 and a standard deviation of 𝝈𝒙̅ = . Hence, 𝒁 = ̅~𝑵(𝝁, 𝝈𝟐 /𝒏).
or equivalently, 𝒙
√𝒏 𝝈

In other words, the sampling distribution of the sample means approaches a normal distribution as the sample
size gets larger — no matter what the shape of the population distribution. This fact holds especially true for sample sizes
over 30. All this is saying is that as you take more samples, especially large ones, your graph of the sample means will look
more like a normal distribution.
Example 1
San Miguel Corporation gives a monthly benefit to their employees during the COVID19 pandemic. They claimed
that the average monthly benefit of their employees is at least Php 5, 000.00. A random sample of 35 employees were taken
as samples to verify the said claim and found that their average monthly benefit is Php 6, 000.00 with a standard deviation
of Php 600.00. Is the company’s claim correct at 0.05 level of significance? Assume that the population is approximately
normally distributed.

̅ = 𝟔, 𝟎𝟎𝟎 , 𝒔 = 𝟔𝟎𝟎 𝛼 = 0.05

Given: 𝑛 = 35 , 𝝁𝟎 = 𝟓, 𝟎𝟎𝟎, 𝒙
Solution:
𝜎 𝑠 600
According to Central Limit Theorem, 𝜎𝑥̅ = ≈ = = 101.42
√𝑛 √𝑛 √35
Hence,
̅−𝝁𝟎
𝒙 𝟔𝟎𝟎𝟎−𝟓𝟎𝟎𝟎
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟑𝟓) = 𝟓𝟖. 𝟑𝟑.
𝝈𝒙̅ 𝟏𝟎𝟏.𝟒𝟐

Example 2
GMA-ABS claimed that their employees had a mean monthly salary of Php12,500.00. A reporter wants to verify this
claim by asking 30 employees. The result showed that these employees had an average monthly salary of Php10,000.00
with a standard deviation of Php 2,000.00. Test the claim at 10% level of significance assume that the population is
approximately normally distributed.
.

̅ = 𝟏𝟎, 𝟎𝟎𝟎 , 𝒔 = 𝟐𝟎𝟎𝟎 𝛼 = 10% = 0.10

Given: 𝑛 = 30 , 𝝁𝟎 = 𝟏𝟐, 𝟓𝟎𝟎, 𝒙
Solution:
Module 9-12 | Statistics and Probability Page 5 of 11
 𝜎 𝑠 2000
According to Central Limit Theorem, 𝜎𝑥̅ = ≈ = = 365.15
√𝑛 √𝑛 √30

Hence,
̅−𝝁𝟎
𝒙 𝟏𝟎𝟎𝟎𝟎−𝟏𝟐𝟓𝟎𝟎
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟑𝟎) = −𝟑𝟕. 𝟓𝟎.
𝝈̅𝒙 𝟑𝟔𝟓.𝟏𝟓

REJECTION REGION WHEN THE POPULATION VARIANCE IS ASSUMED TO BE KNOWN

Below is the summary of the possible alternative hypothesis and its corresponding critical region for testing
population mean when the population variance is assumed to be known.

Alternative Hypothesis Critical Region/s

𝜇 < 𝜇0 𝑧 < −𝑧𝛼
𝜇 > 𝜇0 𝑧 > 𝑧𝛼
𝜇 ≠ 𝜇0 𝑧 < −𝑧𝛼⁄2 or 𝑧 > 𝑧𝛼⁄2

Where 𝜇 is the population mean, 𝜇0 is the possible value of the population mean, 𝑧 is the value of test statistic and −𝑧𝛼 ,
𝑧𝛼 , −𝑍𝛼⁄2 and 𝑍𝛼⁄2 are the critical values.

Let us determine the given, formulate the null and alternative hypothesis, compute the test statistic and construct the
acceptance and critical regions of examples 2.1.1, 2.1.2, and 2.1.3.

Example 1
Given: 𝑥̅ = 3 ,𝜇0 = 5, 𝜎 = 2, 𝑛 = 200 𝛼 = 0.05

Null and alternative hypotheses

𝐻0 : The average reduction of production expenses of the new packaging design of ethyl alcohol is Php 5.00.
𝐻0 : 𝜇 = 5
𝐻1 : The average reduction of production expenses of the new packaging design of ethyl alcohol is less than Php 5.00.
𝐻1 : 𝜇 < 5
Note: we use less than because the sample mean 3 is less than 5 which is the possible value of the population mean.
𝟑−𝟓
test statistic: 𝒛 = ( ) (√𝟐𝟎𝟎) = −𝟏𝟒. 𝟏𝟒
𝟐
Critical region
Since < is use in 𝐻1 , 𝑧 < −𝑧𝛼 will be used. Now using the z-table, the value of −𝑧𝛼 is

−𝑧𝛼 = −𝑧0.05 = −1.645

Now, we construct the critical and acceptance regions.

Example 2
Given: 𝑥̅ = 4, 𝜇0 = 10, 𝜎 = 3, 𝑛 = 50 𝛼 = 10% = 0.10
Null and alternative hypotheses
𝐻0 : The average profit increase of the new face mask design is 10%
𝐻0 : 𝜇 = 10
𝐻1 : The average profit increase of the new face mask design is not 10%.
𝐻1 : 𝜇 ≠ 10
Note: we use not equal because it was indicated to test the hypothesis that the new face mask design average profit increase
is not 10%.

𝟒−𝟏𝟎 0.10
Test Statistic: 𝒛 = ( ) (√𝟓𝟎) = −𝟏𝟒. 𝟏𝟒 and 𝛼⁄2 = = 0.05
𝟑 2

Critical region

Since ≠ is use in 𝐻1 , 𝑧 < −𝑧𝛼⁄2 or 𝑧 > 𝑧𝛼⁄2 will be used. Now using the z-table, the values of −𝑧𝛼⁄2 and 𝑧𝛼⁄2 are the following
−𝑧𝛼⁄2 = −𝑧0.05 = −1.645 or 𝑧𝛼⁄2 = 𝑧0.05 = 1.645
Now, we construct the critical and acceptance regions.

Module 9-12 | Statistics and Probability Page 6 of 11

THE REJECTION REGION WHEN THE POPULATION VARIANCE IS ASSUMED TO BE UNKNOWN

In this case, the student t-distribution table will be used in determining the critical value/s. This will be used when
the sample size is less than 30. When the sample size is greater than 30 and the variance is unknown, the Central Limit
Theorem will be used. This case will be discussed in the next lesson
41
Alternative Hypothesis Critical Region/s
𝜇 < 𝜇0 𝑡 < −𝑡𝛼,𝑣
𝜇 > 𝜇0 𝑡 > 𝑡𝛼,𝑣
𝜇 ≠ 𝜇0 𝑡 < −𝑡𝛼⁄2,𝑣 or 𝑡 > 𝑡𝛼⁄2,𝑣

Where 𝜇 is the population mean, 𝜇0 is the possible value of the population mean, t is the value of test statistic, −𝑡𝛼,𝑣 ,
𝑡𝛼,𝑣 , −𝑡𝛼⁄2,𝑣 and 𝑡𝛼⁄2,𝑣 are the critical values and 𝑣 is the degrees of freedom
Determine the given, formulate the null and alternative hypothesis, compute the test statistic and construct the acceptance
and critical regions for examples 2.2.1, 2.2.2, and 2.2.3

Example 1
Solution:
Given: 𝑥̅ = 6 , 𝜇0 = 5, 𝑠 = 2, 𝑛 = 15, 𝑣 = 𝑑𝑓 = 15 − 1 = 14 and 𝛼 = 0.05
Null and alternative hypotheses
𝐻0 : The mean number of hours of students to finish answering the Statistics module is 5 hours.
𝐻0 : 𝜇 = 5

𝐻1 : The mean number of hours of students to finish answering the Statistics module is greater than 5 hours.
𝐻1 : 𝜇 > 5
Test Statistic:
̅−𝝁
𝒙 𝟔−𝟓
𝒕=( ) (√𝒏) = ( ) (√𝟏𝟓) = 𝟏. 𝟗𝟒
𝒔 𝟐
Critical region
Since > is use in 𝐻1 , 𝑡 > 𝑡𝛼,𝑣 will be used. Now using the student t-distribution table, the value of 𝑡𝛼,𝑣 is 𝑡𝛼,𝑣 = 𝑡0.05,14 =
1.761

42

Module 9-12 | Statistics and Probability Page 7 of 11

Now, we construct the critical and acceptance regions.

REJECTION REGION USING CENTRAL LIMIT THEOREM

This case happened when the population is not normally distributed or approximately normally distributed and the
sample size is 30 or more. Let us consider examples 3.3.1 and 3.3.2. We will determine the given, formulate the null and
alternative hypotheses, compute the test statistic, and construct the acceptance and critical region of these examples.

Example 1

Given: 𝑛 = 35 , 𝜇0 = 5,000, 𝑥̅ = 6,000 , 𝑠 = 600 𝛼 = 0.05

Null and alternative hypotheses
𝐻0 : The average monthly benefit of San Miguel Corporation employees is Php5.000.00.
𝐻0 : 𝜇 = 5000
𝐻1 : The average monthly benefit of San Miguel Corporation employees is greater than Php5.000.00.
𝐻1 : 𝜇 > 5000

𝜎 𝑠 600
According to Central Limit Theorem, 𝜎𝑥̅ = ≈ = = 101.42
√𝑛 √𝑛 √35
̅−𝝁𝟎
𝒙 𝟔𝟎𝟎𝟎−𝟓𝟎𝟎𝟎
Test Statistic: 𝒛 = ( ) (√𝒏) = ( ) (√𝟑𝟓) = 𝟓𝟖. 𝟑𝟑.
𝝈𝒙̅ 𝟏𝟎𝟏.𝟒𝟐
Critical region/s: 𝑧 > 𝑧0.05
𝑧0.05 = 1.645

MODULES 11 and 12
Topic/ Lesson Name TESTS OF HYPOTHESIS
Content Standards The learner demonstrates understanding of key concepts of tests of hypotheses on the
population mean and population proportion.
Performance Standards The learner is able to perform appropriate tests of hypotheses involving the population
mean and population proportion to make inferences in real-life problems in different
disciplines.
Most Essential Learning The learner…
Competencies 6. computes for the test-statistic value (population mean).
7. draws conclusion about the population mean based on the test statistic value and
the rejection region.
8. solves problems involving test of hypothesis on the population mean.
9. formulates the appropriate null and alternative hypotheses on a population
proportion.
References (Books and other Ocampo, J., Marquez, W. Conceptual Math and Beyond Copyright 2016
learning portals or websites)
Statistics and Probability Teaching Guide

LEARNING OBJECTIVES:
Upon the completion of this module, you will be able to:
8. identify the appropriate test statistics;
9. appreciate the importance of test-statistic and formulation of hypotheses;
10. formulate hypotheses on the population mean and proportion; and
11. solve problems involving test of hypothesis on the population mean.

LET’S WARM- UP
Read and understand the statement below and identify the term described in each number.

Module 9-12 | Statistics and Probability Page 8 of 11

1. It is the decision when the value of the test statistic lies within the critical region.
2. It is the decision when the value of the test statistic lies outside the critical region.
3. It is the position of the value of test statistic when 𝐻0 is rejected in a right-tailed test.
4. It is the position of the value of test statistic when 𝐻0 is accepted in a right-tailed test.
5. It is the position of the value of test statistic when 𝐻0 is rejected in a left-tailed test.

KEY TAKEAWAY
Test of hypothesis is one of the most popular tools used in scientific investigations. This process is a rule on deciding
to reject null hypothesis. Two methods will be considered in this module.

MODULE CONTENT
Population Mean
In this lesson, several test of hypotheses problems will be given and answered. This time most of the examples
from previous lessons will be completely answered.

Example 1. A manufacturer of ethyl alcohol has developed a new packaging design. He claims that the new
packaging design has an average reduction of production expenses of Php 5.00 per bottle with a standard deviation
of Php 2.00. A manager of one of their satellite production branch claims that the 200 samples of this new packaging
design has an average reduction of production expenses of Php 3.00. Test the difference of the population and
sample means at 0.05 level of significance.

Given: 𝑛 = 200, 𝜇 = 5, 𝜎 = 2, 𝑥̅ = 5, 𝛼 = 0.05

1. Formulation of null and alternative hypotheses:
𝐻0 : 𝜇 = 5
𝐻1 : 𝜇 < 5
2. Specify the level of significance to be used: 𝛼 = 0.05
3. Select the appropriate and compute test statistic
̅−𝝁
𝒙 𝟑−𝟓
𝒛=( ) (√𝒏) = ( ) (√𝟐𝟎𝟎) = −𝟏𝟒. 𝟏𝟒
𝝈 𝟐
4. Establish the critical region/s: Based on 𝐻1 , this is a one-tailed test (left-tailed test) with critical regions 𝑧 < −𝑧𝛼
where −𝑧𝛼 = −𝑧0.05 = −1.645. The critical region (shaded part) is illustrated below.

55

5. Make a statistical Decision

Since −14.14 < −1.645 is TRUE, 𝐻0 is rejected. From the illustration below, −14.14 lies within the critical region
(shaded part).
6. Draw the appropriate conclusion: There is enough evidence to conclude that the average reduction of production
expenses per bottle is less than Php 5.00.

Example 2. The mean number of hours of student to finish answering the Statistics Module is 5 hours. A random
sample of 15 students was asked and found that their mean number of hours to finish answering the Statistics
module is 6 hours with a standard deviation of 2 hours. Test the hypothesis at 5% level of significance.

Given: 𝑥̅ = 6 , 𝜇0 = 5, 𝑠 = 2, 𝑛 = 15, 𝑣 = 𝑑𝑓 = 15 − 1 = 14 and 𝛼 = 0.05

1. Hypotheses: 𝐻0 : 𝜇 = 5 and 𝐻1 : 𝜇 > 5

2. Significance level: 𝜶 = 0.05 and 𝑣 = 14
̅−𝝁
𝒙 𝟔−𝟓
3. Test Statistic: 𝒕 = ( 𝒔
) (√𝒏) = ( 𝟐
) (√𝟏𝟓) = 𝟏. 𝟗𝟒
4. Critical region:
5. Since > is use in 𝐻1 , 𝑡 > 𝑡𝛼,𝑣 will be used. Now using the student t-distribution table, the value of 𝑡𝛼,𝑣 is 𝑡𝛼,𝑣 = 𝑡0.05,14 =
1.761
6. The critical region (shaded region) is constructed below.

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7. Decision: Since 1.94 > 1.761is TRUE 𝐻0 is rejected. From the illustration above, 1.94 lies within the critical region.
8. Conclusion: There is sufficient evidence to conclude mean number of hours to finish answering the Statistics module is
greater than 5 hours.

Example 3. A rural health unit conducted a survey on the heights of the male aged 18 to 24 years old. It was found out that
the mean height of male aged 18 to 24 years old was 70 inches. Test the hypothesis that the mean height of the male aged
18 to 24 years old is not 70 inches if a random sample of 20 male aged 18 to 24 years old had a mean height of 65 inches
with a standard deviation of 3. Use 1% level of significance.

Given: 𝑥̅ = 65 , 𝜇0 = 70, 𝑠 = 32, 𝑛 = 20, and 𝛼 = 1% = 0.01

1. Hypotheses: 𝐻0 : 𝜇 = 70 and 𝐻1 : 𝜇 ≠ 70
𝛼 0.01
2. Significance level: 2
= 2
= 0.005
̅−𝝁
𝒙 𝟔𝟓−𝟕𝟎
3. Test statistic: 𝒕 = ( ) (√𝒏) = ( ) (√𝟐𝟎) = −𝟎. 𝟕𝟎 and 𝑣 = 19
𝒔 𝟑𝟐
4. Critical region: Since ≠ is use in 𝐻1 , 𝑡 < −𝑡𝛼⁄2,𝑣 or 𝑡 > 𝑡𝛼⁄2,𝑣 will be used. Now using the student t-distribution table, the
value of −𝑡𝛼⁄2,𝑣 is
−𝑡𝛼⁄2,𝑣 = −𝑡0.005, 19 = −2.861 and 𝑡0.005, 19 = 2.861.The critical regions are illustrated below.

−0.70
5. Decision: Since −0.70 < −2.861 is FALSE and −0.70 > 2.861 is also FALSE, 𝐻0 is rejected. From the illustration
above, −0.70 lies between the two critical regions.
6. Conclusion: There is no sufficient evidence to conclude that the mean height of male aged 18 to 24 years old was 70
inches.

Population Proportion
There are certain situations when the data to be analyzed involve population proportions or percentages. For
example, a politician may want to know the percentage of his constituents who approve of his policy on educational reform.
A manufacturer may want to know the proportions of defective products in the assembly line.
When testing about a proportion, the following assumptions must be made:
1. The conditions for a binomial experiment are met. That is, there is a fixed number of independent trials with constant
probabilities and each trial has two outcomes that we usually classify as “success” and “failure”.
2. The condition 𝑛𝑝 ≥ 5 and 𝑛𝑞 ≥ 5are both satisfied so that the binomial distribution with 𝜇 = 𝑛𝑝 and 𝜎 = √𝑛𝑝𝑞.

* If all the above conditions are met the test statistic is the z-test statistic for proportions. The formula for computing
this value is:

𝑆𝑎𝑚𝑝𝑙𝑒 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛−𝑁𝑢𝑙𝑙 𝐻𝑦𝑝𝑜𝑡ℎ𝑒𝑠𝑖𝑧𝑒𝑑 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛

Test statistic: 𝑧 = 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑑𝑒𝑣𝑖𝑎𝑡𝑖𝑜𝑛 𝑜𝑓 𝑠𝑎𝑚𝑝𝑙𝑒 𝑝𝑟𝑜𝑝𝑜𝑟𝑡𝑖𝑜𝑛

𝑝̂ − 𝑝0
𝑧=
𝜎𝑝̂

𝑋
Where: 𝑝̂ = 𝑛,

𝑝0 = is the hypothesized population proportion p,

Module 9-12 | Statistics and Probability Page 10 of 11

 𝑝𝑞
𝜎𝑝̂ = √ 𝑛 is the standard deviation of the sampling distribution of 𝑝̂ .

𝑝0 𝑞0
However, we use 𝜎𝑝̂ = √ in computing the value of the test statistic z because we are going to use the
𝑛
hypothesized value 𝑝0 .

Note: 𝑞0 = 1 − 𝑝0 .

Test statistics z for proportions is:

𝑝̂ − 𝑝0
𝑧=
𝑝 𝑞
√ 0𝑛 0

Read and understand the problem below. Formulate the null and alternative hypotheses.
Example 1. 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 𝜶 = 𝟎. 𝟎𝟏.

Solution:
Formulation of null and alternative hypotheses.
𝐻0 : The proportion of sale of defective bulbs is 5%.
In symbol, 𝐻0 : 𝑝0 = 0.05
𝐻1 : The proportion of sale of defective bulbs is fewer than 5%
In symbol, 𝐻1 : 𝑝0 < 0.05

Example 2. It has been claimed that less than 60% of all purchases of a certain kind of computer program will
call the manufacturer’s hotline with one month purchases. If 55 out of 100 software purchasers selected at
random call the hotline within a month of purchase, test the claim at 0.05 level of significance.

Solution:
Formulation of null and alternative hypotheses.
𝐻0 : The proportion of purchasers that will call the manufacturer’s hotline within one month of purchase is 60% or
0.60.
In symbol, 𝐻0 : 𝑝0 = 0.60
𝐻1 : The proportion of purchasers that will call the manufacturer’s hotline within one month of purchase is less than
60% or 0.60.
In symbol, 𝐻1 : 𝑝0 < 0.60

Closing Prayer
We give you thanks Almighty Father through your son Jesus Christ for all the benefits you have given us to you who live
and reign forever and ever. Amen.

Well done! So you have successfully completed the activities and tasks for this module. It is expected that you have gained
insights and meaningful experiences. What a great achievement! Again, CONGRATULATIONS , KEEP SAFE AND GOD
BLESS!

“Your EDUCATION is your Life. Guard it well.”

-Proverbs 4:13b-

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