Hypothesis Testing

Learner’s Module in Statistics and

Probability
Quarter 4 ● Module 1 ● Week 1

MARY JOYCE C. PAGAR

Developer
Department of Education • Cordillera Administrative Region

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 What I Need to Know

Welcome to this module on HYPOTHESIS TESTING!

This module is intended to help you, learners, demonstrates
understanding of key concepts of tests of hypotheses on the population
mean and population proportion.

HOW TO USE THIS MODULE?

This module contains several lessons. To make the most out of them, you
need to do the following:
1. Scan the list of Learning Objectives to get an idea of the knowledge
and skills you are expected to gain and develop as you study the
module. These outcomes are based on the content standards,
performance standards, and learning competencies of the K to 12
Curriculum on Statistics and Probability.
2. Take the What I Know. Your score will determine your knowledge of
the lessons in the module. If you get 100% of the items correctly, you
may proceed to the next module. Otherwise, you must go through the
lessons.
3. Each Lesson aims to develop one of the learning objectives set for
the module. It starts with an activity that will help you understand the
lesson and meet the required competencies.
4. Take your time in reading this module. Write down points for
clarification. You may discuss these points with your teacher.
5. Perform all activities and answer all worksheets on a separate answer
sheet. The activities and assessments are designed to enhance your
understanding of interest. The activities will also give you an idea how
well you understand the lessons. Review the lessons if necessary,
until you have achieved a satisfactory level of understanding.
6. At the end of the module, take the Post-Assessment to evaluate your
overall understanding about the lessons.

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LEARNING OBJECTIVES:
At the end of the module, you should be able to:
1. illustrate: (a) null hypothesis; (b) alternative hypothesis; (c) level of
significance; (d) rejection region; and (e) types of errors in
hypothesis testing, and
2. identify the parameter to be tested given a real-life problem.

What I Know

PRE-ASSESSMENT
Multiple Choice: Choose the letter of the best answer and write it before
the number.
1. This refers to an intelligent guess about a population proportion.
A. Hypothesis C. Decision
B. Test statistic D. Interpretation
2. When the null hypothesis is rejected, which of the following is
TRUE? A. There is sufficient evidence to back up the decision.
B. There is no sufficient evidence to back up the decision.
C. The conclusion is guaranteed.
D. The conclusion is not guaranteed.
3. For the 95% confidence level, _____.
A. C.
B. D.
4. The level of significance is also known as _____.
A. Probability of Type I error C. Probability of Type II error
B. error D. validity error
5. The purpose of hypothesis testing is to reach a conclusion about
_____ by examining the data contained in _____. A. a population, a
sample
B. an experiment, a sample
C. a population, an experiment
D. a sample, a population

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 6. In testing a hypothesis, whenever you fail to reject the null
hypothesis, it means that _____.
A. the null hypothesis may be true
B. the null hypothesis is true
C. an error is committed
D. a error is committed
7. The alternative hypothesis can be _____.
A. one-tailed C. two-tailed
B. neither one nor two-tailed D. one-tailed or two-tailed
8. Which of the following is TRUE?
A. Exactly one of the null or alterative hypothesis must be true.
B. Both the null and alternative hypotheses must be true.
C. It is possible for both the null and alternative hypotheses to be
true.
D. It is possible for neither the null hypothesis nor alternative
hypothesis to be true
9. Which of the following is NOT a typical value assigned to
A. 0.01 C. 0.05
B. 0.10 D. 0.25
10. What do we call the point that separates the rejection and non-
rejection region?
A. level of significance C. intersection
B. critical value D. level of confidence
11. Which symbols are used by the alternative hypothesis in a one-
tailed tests?
A. > or = C. = or
B. < or D. > or <
12. A one-tailed test is called a right-tailed test when the alternative
hypothesis includes the symbol _____.
A. = C. >
B. D. <
For numbers 13-15, refer to the given problem below.
It is claimed that the percentage of viewers tuned to Channel X’s new
sitcom is 30%. Out of the 250 viewers randomly selected, only 29% are
tuned to Channel X’s new sitcom. Can it be concluded that the

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percentage of viewers tuned to Channel X’s new sitcom is less than
30%?
13. What is the parameter in interest?
A. = the average number of viewers of Channel X’s new sitcom
B. = the average number of followers of Channel X’s new sitcom
C. = the proportion of Channel X’s new sitcom viewers
D. = the proportion of Channel X’s new sitcom followers
14. What is the null hypothesis of the situation?
A. H0: B. H0: C. H0: D. H0:
15. What is the alternative hypothesis of the situation?
A. H0: B. H0: C. H0: D. H0:

Lesson 1: Hypothesis Testing

What’s In

In junior high, you were taught that there are two branches of
Statistics. These are descriptive statistics and inferential statistics.
Descriptive statistics describes data (for example, a chart or graph) and
inferential statistics allows you to make predictions (“inferences”) from
that data.

In the previous module, you were already introduced to one of the

main areas of inferential statistics which was estimation of parameter. In
this module, we will discuss the second main area of inferential statistics
which is hypothesis testing.

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 Figure 1: Branches of Statistics
Statistics

Descriptive Inferential

Estimation of
Parameter
Hypothesis
Testing

What’s New
Activity: Weighing Decisions
The decisions we need to do in life are oftentimes hard. As we grow
older, our problems become more complicated so that decisions must be
made with careful weighing of things. In weighing our choices in life, our
skill of discernment will be put to the test. Discernment is the ability to
judge which things of a particular kind are good and which are bad.
Discernment is a time-honored practice in the Christian tradition. In
essence, discernment is a decision-making process that honors the place
of God's will in our lives. It is an interior search that seeks to align our
own will with the will of God in order to learn what God is calling us to.
Every choice we make is an opportunity to align ourselves to the will of
God.
So in your next big or small decision in life, what do you think are
the important things to consider before taking action?

What Is It

A statistical hypothesis is a conjecture or supposition

about a population parameter. This conjecture may or may not be true.
There are two types of hypothesis:

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 1. Null Hypothesis (H0) – is a statement saying that there is no
significant difference between population parameter and the specific
value being claimed.
2. Alternative Hypothesis (H1) – is a statement saying that there is a
significant difference between population parameter and the specific
value being claimed. This is a statement that will be true once the
null hypothesis is rejected.

Example #1
The Mathematics teacher claims that the mean IQ of Statistics students
is 110. The mean IQ of the 32 randomly selected Statistics is 112 which
is more than what the mathematics teacher claims. Can it be concluded
that the mean IQ of Statistics students is not 110?
In the given scenario, we are concerned with the population mean
since our topic focuses on mean IQ of Statistics students. Therefore, our
parameter is…
= the mean IQ of Statistic students
Now, the claim of the Mathematics teachers is that the population
mean is 110. Then our null hypothesis is…
H0: The mean IQ of Statistics students is 110 or .
However, from a sample of 32 students, the computed sample mean
is 112 which is not equal to the claim of the mathematics teacher.
Thus, our alternative hypothesis is… H1: The mean IQ of Statistic
students is not 110 or
Example #2
The LB Company produces an average of 4% defective bulbs each day.
Recently, some of the machines were upgraded. Out of the 400 bulbs
randomly selected, only 14 bulbs were found defective. Does this
suggest that there is a decrease in the number of defective bulbs
produced each day?
= the proportion of defective bulbs produced per day
H0: The proportion of defective bulbs produced per day is 4% or
.
H1: The proportion of defective bulbs produced per day is less than 4%
or .
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 It is note-worthy to remember that the null and alternative hypothesis
cannot be true at the same time. A statistical test will be conducted to the
data from the sample in order to make a decision on whether the null
hypothesis should be rejected or not. In doing hypothesis testing, there
are four possibilities that could take place. They are illustrated in the table
below.

Figure 2: Types of Error

Decision True State of
Nature
The null The null hypothesis is
hypothesis is true. false.
Reject the Type I error Correct Decision
null
hypothesis or
H0.
Do not reject Correct Decision Type II error
the null
hypothesis or
H0.

The table shows the two types of error that could occur when the
decision made does not align with the true state of nature. The two types
of error are:
1. Type I error – is committed when the researcher rejects a null
hypothesis when in fact it is true. The probability of committing Type
I error is called the level of significance. Alpha is used to represent
the probability of a Type I error.
2. Type II error – is committed when the researcher fails to reject a
null hypothesis that is false. Beta is used to represent the
probability of a Type II error.

Error in Type Probability

Decision
Reject a I
true H0
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 Retain a II
false H0

In our inference, we base our decision from only one sample. Thus,
there is a possibility that we may commit an error. However, to minimize
the probability of committing a type I error, we can decrease the value of
also called the level of significance.
The level of significance, alpha , corresponds to the rejection
region and the difference of one and the alpha ( ) corresponds to the
area of the curve occupied by the non-rejection region. The most
commonly used values for alpha are 0.01, 0.05, and 0.10. When the
study deals with life and death situations, it is advisable to use 0.01 or
less but when it is on social research, it can simply use 5% or 10%. For
each level of significance, there corresponds a level of confidence (
). For example, a level of significance of 5% corresponds to a 95% level
of confidence.
Figure 3: Rejection and Non-Rejection Region

The rejection region (or critical region) is the range of values of the
test value that indicates that there is a significant difference between the
actual value of the parameter and its hypothesized value. This means
that the null hypothesis should be rejected.
The non-rejection area (or non-critical region or acceptance
region) is the range of values of the test value that indicates that the
difference was probably due to chance and that the null hypothesis
should be rejected.
To identify the rejection and non-rejection area, which will be our
basis in accepting or rejecting the null hypothesis H0, we need to identify
the nature of our hypothesis first. The two types of test are one-tailed test
(or directional test) and two-tailed test (or non-directional test).

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1. One-tailed test (or directional test)- the rejection region is on one
side of the mean. If the alternative hypothesis has the inequality
symbol >, then it is a right-tailed test. When the alternative
hypothesis has the inequality symbol <, then it is a left-tailed test.

Figure 4: One-tailed Test

2. Two-tailed test (or non-directional test)- the rejection region is on

both sides of the curve. If the alternative hypothesis contains the
inequality ( ) symbol, then the test is two-tailed. Alpha which
corresponds to the rejection region is divided equally between the
two tails.
Figure 5: Two-tailed Test

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 The point that separates the rejection and non-rejection area is
called the critical value, which is derived from the level of significance.
In a hypothesis testing, the following are the most common critical values
based on the level of significance and type of test.
Table 2: Critical Values
Level of Level of One-tailed Test Two-
Significance Confidence Left- Right- tailed
tailed (<) tailed (>) Test
10% 90% -1.28 +1.28
5% 95% -1.645 +1.645
1% 99% -2.33 +2.33

Example #3
A popcorn company says that at least 95% of their kernels will pop when
microwaved. A critic says this is too high of a claim for a 90% level of
confidence.
The critic says that the claim is too high. Thus, he is pertaining that
the proportion should be less than 95%. Therefore, the alternative
hypothesis denotes a < symbol which makes it a one-tailed test
specifically left-tailed test.
= the proportion of kernels that will pop when microwaved
H0: The proportion of kernels that will pop when microwaved is 95% or
.
H1: The proportion of kernels that will pop when microwaved is less than
95% or .
The level of significance is 0.10 because of the 90% level of
confidence. Therefore, the critical value is -1.28 (see Figure 6.)

Figure 6; Rejection Region for Example 3

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Example #4
The Green Boat company claims they are able to sell 200 boats per year.
In the year 2018, it was recorded that they sold 250 boats. With 99%
confidence level, is it enough to prove that the average sold Green Boat
Company is not 200?
= the average number of boats sold per year by Green Boat Company
H0: The average number of boats sold per year by Green Boat Company
is 200 or . H1: The number of boats sold per year by Green Boat
Company is not 200 or .
Since the alternative hypothesis denotes a symbol, then this is a
two-tailed test. The level of significance is 0.01 because of the 99%
level of confidence. Therefore, the critical values are (see Figure
7).
Figure 7: Rejection Region for Example 4

What’s More

Activity 1: Null and Alternate Hypothesis

Instruction: Write the null and alternative hypotheses in words and in
symbols for each situation.
1. A pharmaceutical company claims that their pain reliever capsule is
70% effective but a clinical test on this capsule showed 65 out of
100 effectiveness.
2. A politician believes that he is favored by 85% of voters. An
opponent says this is too high for him to claim.

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 3. An electric company says that the average consumption of residents
in a certain town is 300 kWh per month. However, the town’s mayor
says their town’s residents consume less.
4. A barangay official claims that the mean family income of his
constituents is Php 30,000 but some group of residents believe that
this is not true.
5. A fitness club claims that their routines can elevate heart rates of up
to 200 bpm on the average. A critic says this is an overestimate of
the actual average.
Activity 2: One-tailed or Two-tailed Test
Instruction: Determine whether the test is one-tailed test or two-tailed
test.
1. A researcher claims that a method of teaching affects learning.
2. A food additive enhances food flavor.
3. A study habit improves the memory.
4. Health is related to lifestyle.

5. People’s culture affects tourism.

What I Have Learned

Activity: Missing Piece

Instruction: Write word/s on the blanks that will complete the following
sentences.
1. The statement “There is a difference between a parameter and a
specific value.” is called _________.
2. When the value of the test statistics lies on the rejection region, we
will __________ the null hypothesis.
3. In hypothesis testing, the maximum allowable probability of
committing a type I error is symbolized by __________.
4. A 99% confidence level corresponds to a/an __________ level of
significance.
5. The __________ separates the rejection region from the non-
rejection region.
6. A one-tailed test is called a/an __________ if the alternative
hypothesis has the inequality symbol <.
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 7. There is a rejection region on both sides of the curve in a/an
__________,
8. The decision-making process of evaluating claims about the
population based on the characteristics of a sample is called
__________.

What I Can Do
Activity: Which Tail?
Instruction: Given the null and alternative hypotheses, determine the
hypothesis test used (left-tailed, right-tailed, or two-tailed) then sketch the
graph of each to present the rejection and non-rejection region.

Post-Assessment
To test if you have really understood the lessons contained in this
module answer the given post-assessment. Write the letter of the answer
before the number.
1. The purpose of hypothesis testing is to reach a conclusion about
_____ by examining the data contained in _____. A. a population, a
sample
B. an experiment, a sample
C. a population, an experiment
D. a sample, a population
2. Which of the following is TRUE?
A. Exactly one of the null or alterative hypothesis must be true.
B. Both the null and alternative hypotheses must be true.

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 C. It is possible for both the null and alternative hypotheses to be
true.
D. It is possible for neither the null hypothesis nor alternative
hypothesis to be true
3. In testing a hypothesis, whenever you fail to reject the null
hypothesis, it means that _____.
A. the null hypothesis may be true
B. the null hypothesis is true
C. an error is committed
D. a error is committed
4. Which of the following is NOT a typical value assigned to
A. 0.01 C. 0.05
B. 0.10 D. 0.25
5. What do we call the point that separates the rejection and non-
rejection region?
A. level of significance C. intersection
B. critical value D. level of confidence
6. The alternative hypothesis can be _____.
A. one-tailed C. two-tailed
B. neither one nor two-tailed D. one-tailed or two-tail
7. This refers to an intelligent guess about a population proportion.
A. Hypothesis C. Decision
B. Test statistic D. Interpretation
8. When the null hypothesis is rejected, which of the following is
TRUE? A. There is sufficient evidence to back up the decision.
B. There is no sufficient evidence to back up the decision.
C. The conclusion is guaranteed.
D. The conclusion is not guaranteed.
9. For the 95% confidence level,
A. C.
B. D.
10. The level of significance is also known as _____.
A. Probability of Type I error C. Probability of Type II error
B. error D. validity error

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 11. Which symbols is used by the alternative hypothesis in a one-tailed
test?
A. > or = C. = or
B. < or D. > or <
12. A one-tailed test is called a right-tailed test when the alternative
hypothesis includes the symbol _____.
A. = C. >
B. D. <
For numbers 13-15, refer to the given problem below.
A trainer says his team athletes have an average of 92 physical fitness
rating, but someone in the crowd think they still have to work harder in
order to reach this rate.
13. What is the parameter in interest? A. = the average of physical
fitness rating
B. = the average number of crowd in a sport event
C. = the proportion physically fit athletes
D. = the proportion audience who loves sports
14. What is the null hypothesis of the situation?
A. H0: C. H0:
B. H0: D. H0:
15. What is the alternative hypothesis of the situation?
A. H0: C. H0:
B. H0: D. H0:

Additional Activity

Activity: Reject or Retain?

Instruction: Identify the null hypothesis, alternate hypothesis, level of
significance and level of confidence of the following. Afterwards, sketch
the graph of each item to show the rejection, non-rejection region, and
critical value. (left-tailed, right-tailed, or two-tailed)
1. A librarian of a school claims that all their grade 8 students read an
average of 10 storybooks a month with a standard deviation of 2
books. A random sample of grade 8 students read an average of
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 12 books a month and a standard deviation of 1 book. The
confidence statement is 95%.
=
H0: H1:
level of significance ( = level
of confidence ( )=

2.A government agency is investigating a complaint from some

concerned citizens who said that there is short-weight selling of
rice in a certain town. An agent manufacturer took a random
sample of 20 sacks of “50-kilo” sacks of rice from a large shipment
and finds that the mean weight is 49.7 kilogram with a standard
deviation of 0.35 kilogram. The level of significance is 0.01.
=
H0: H1:
level of significance ( =
level of confidence ( )=

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ANSWER KEY

REFERENCES
Belecina, R.; Baccay, E.; & Mateo, E. (2016). Statistics and Probability. Sampaloc,
Manila: Rex Book Store
Lim, Y.; Nocon, R.; Nocon, E.; & Ruivivar, L. (2016). Statistics and Probability
Senior High School K to 12. Quezon City: Sibs Publishing House, Inc.
Mercado, J. (2016). Next Century Mathematics Statistics & Probability. Quezon City:
Phoenix Publishing House
Paprocki, J. (n.a) Discernment: Making Inspired Choices. Retrieved on April 26,
2021 at https://www.loyolapress.com/catholic-
resources/ignatianspirituality/discernment/discernment-making-inspired-
choices/
Stephanie Glen. (n.a). Inferential Statistics: Definition, Uses. Retrieved on April
24, 2021 at https://www.statisticshowto.com/probability-and-
statistics/statisticsdefinitions/inferential-statistics/

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