Z-Test

Presentors: Cueto, Cristine Mae

Juacalla, Ralj Ivan
Quizana, Lovely Jane
Z-Test is used if:
The objective of the study is to identify if there
is a significant difference between the sample
mean and hypothesized mean.
The sample size is greater than or equal to 30

The data is parametric

The data assumes a normal distribution.

 Formula:
z = (x̄ - μ) /σ/ n √
Where:
x̄ = sample mean
σ = population standard deviation
μ = hypothesized mean
n =sample size
example:
Past records showed that the average final
examination grade in Basic Accounting is 80 with
a standard deviation of 7.0. A random sample of
100 students was taken and found to have a
mean final exam of 81.8.

Is there a significant difference between the

sample mean and the population mean?
Test at a = 0.05 level.
Step 1
Ho : μ1=μ2
There is no significant difference between the
sample mean and population mean among the past
record of final examination grade in Basic Accounting
≠
Ha: μ1 μ2
There is a significant difference between the
sample mean and the population mean.
Step 2
The level of significance is 0.05 using the two
tailed or two directional test. Separating the rejection
and acceptance regions, the critical value/tabular =
± 1.96 from z table.
Step 3
Reject the Ho when computed test statistic (z) >
critical value which means reject Ho when T test > ±
1.96. z = (x̄ - μ) /σ/√n = 1.8/7/10
= (81.8-80)/7/√100 = 2.57
Step 4
Since the computed test statistic is 2.57 and the
critical value is ± 1.96, then 2.57 > ± 1.96. Thus reject
the Ho (Type I Error). There is a significant difference
between the sample mean and the population mean
Step 5
This concluded that the past record of the student
and in this recent record of the student have a
different level of performance in the final examination
in Basic Accounting
EXERCISE:
Past records showed that the average final
examination grade in Basic Accounting is 80 with a
standard deviation of 7.0. A random sample of 100
students was taken and found to have a mean final
exam of 81.8.

Is this an indication that the sample is better than the

population mean of the students? Testat a =0.05 level
Thank you!