C4 ESTIMATION PARAMETER

FRANZ RUSSELL
L1: COMPUTING THE POINT ESTIMATE EXAMPLES
OF A POPULATION MEAN
EXAMPLE 1
ESTIMATE Mr. Santiago’s company sells bottled
- An estimate is a value or range of coconut juice. He claims that a bottle
values that approximate a parameter. It contains 500 ml. of such juice. A consumer
is based on a sample statistics group wanted to know if his claim was true.
computer from sample data. They took 6 random samples of 10 such
bottles and obtained the capacity, in ml of
ESTIMATION each bottle. The result is shown as follows:
- G
Is the process of determining
parameter values.
1
500
2
498
3
497
4
503
5
499
6
497
7
497
8
497
9
497
10
495

W POINT ESTIMATE
500 500 495 494 498 500 500 500 500 497
501 497 502 496 497 497 497 497 497 495
502 495 500 497 497 500 500 495 495 497
497 497 497 499 496 497 407 499 499 500
- is a specific numerical value of a
G parameter. The sample
496 497 499 495 497 500 500 500 500 497

population
mean is the best point estimate of the
X (X − X̄)2
population mean. It is the mean of the
499.33 8.2944
means of population mean.
497.33 0.7744
INTERVAL ESTIMATE 498.33 3.5344
- called a confidence interval, is a 497.33 0.7744
range of values that is used to estimate 497.33 0.7744
a parameter. 498.5 4.2025
483.5 167.7025
MEAN 498 2.4025
- among the three values of central 498 2.4025
tendency (mean, median, and mode), 496.83 0.1444
this is the best estimator of the ̄𝐗 = 𝟒𝟗𝟔. 𝟒𝟓 191.0064
population parameter. = 𝒑𝒐𝒊𝒏𝒕 𝒆𝒔𝒕𝒊𝒎𝒂𝒕𝒆: 𝟒𝟗𝟔. 𝟒𝟓
∑(X−X̄)2
STANDARD DEVIATION = 𝑂2 =
𝑛−1
191.0064
- is a measure of variability or dispersion = 𝑂2 = 10−1
191.0064
VARIANCE = 𝑂2 = 9
∑(X − X̄)2 = 𝑶𝟐 = 𝟐𝟏. 𝟐𝟐
𝑂2 =
𝑛−1 = √𝑂2 = √21.22
= 𝑶 = 𝟒. 𝟔𝟏
STANDARD DEVIATION

∑(X − X̄)2
𝑂2 = √
𝑛−1
 C4 ESTIMATION PARAMETER
FRANZ RUSSELL

EXAMPLE 2 X (X − X̄)2
Score in a long test in Science: Find the 349.57 1.4641
point estimate of the population parameter, 348.29 0.0049
variance, and standard deviation for each 349.43 1.1449
of the following sets of data. 347.57 0.6241
347.14 1.4884
1 2 3 4 5 6 7 8
78 75 86 82 70 85 83 86
347.29 1.1449
80 92 82 85 80 80 84 86 348.43 0.0049
90 88 90 78 83 90 86 84 349.14 0.6084

G
75 85 83 88 85 90 85 83
̄𝐗 = 𝟑𝟒𝟖. 𝟑𝟔 6.4846
83 86 77 84 86 92 85 80
76 88 79 84 80 80 80 88 = 𝒑𝒐𝒊𝒏𝒕 𝒆𝒔𝒕𝒊𝒎𝒂𝒕𝒆: 𝟑𝟒𝟖. 𝟑𝟔

WX
∑(X−X̄)2
= 𝑂2 = 𝑛−1
(X − X̄)2 = 𝑂2 =
6.4846

G80.33
8−1
9.6721 6.4846
= 𝑂2 =
85.67 4.9729 7
82.83 0.3721 = 𝑶𝟐 = 𝟎. 𝟗𝟑
83.5 0.0036 = √𝑂2 = √0.93
80.67 7.6729 = 𝑶 = 𝟎. 𝟗𝟔
86.17 7.4529
83.83 0.1521 L2: UNDERSTANDING CONFIDENCE
84.5 1.1236 INTERVAL ESTIMATE FOR THE
̄𝐗 = 𝟖𝟑. 𝟒𝟒 31.4222 POPULATION MEAN
= 𝒑𝒐𝒊𝒏𝒕 𝒆𝒔𝒕𝒊𝒎𝒂𝒕𝒆: 𝟖𝟑. 𝟒𝟒 INTERVAL ESTIMATE
∑(X−X̄)2
= 𝑂2 = - called a CONFIDENCE INTERVAL, is
𝑛−1
= 𝑂2 =
31.4222 a range of values that is used to
8−1
31.4222 estimate a parameter.
= 𝑂2 = 7
= 𝑶𝟐 = 𝟒. 𝟒𝟗 CONFIDENTIAL/CONFIDENCE
LEVEL
= √𝑂2 = √4.49
- The CONFIDENTIAL/CONFIDENCE
= 𝑶 = 𝟐. 𝟏𝟐
LEVEL of an interval estimate of a
parameter is the probability that the
EXAMPLE 3
interval estimate contains the
Weight of packed ground coffee in gram: parameter. It describes what
Find the point estimate of the population percentage of intervals from many
parameter, variance, and standard different samples contain the unknown
deviation for each of the following sets of population parameter.
data.
1 2 3 4 5 6 7 8 CONFIDENCE LEVEL
360 346 360 346 350 348 351 351 85% 80%
340 347 344 340 340 340 345 347
355 348 351 355 347 352 356 352
95% 99%
347 351 347 347 347 347 346 347
348 349 347 348 348 348 348 349 CONFIDENCE INTERVAL
349 349 348 348 349 348 347 349
348 348 349 349 349 348 346 349 85-95 70-89
79-99 45-63
 C4 ESTIMATION PARAMETER
FRANZ RUSSELL
The effect of the level of confidence on the B. 90% confidence
confidence interval is that the higher the 𝒐 5.6
confidence level, the wider the interval
𝒏 40
range of values. ̅
𝑿 32
FORMULA 𝑪𝑳 90% -> 0.90
Alpha 𝑎 = 1 − 𝐶𝐿
Margin of Error 𝑜 Alpha: Margin of Error
𝐸 = 𝑍𝑎⁄ ( ) = 𝑎 = 1 − 𝐶𝐿 𝑜
2 √𝑛 = 𝐸 = 𝑍𝑎⁄ ( 𝑛)
2 √
Interval Estimate ̅
𝑋± 𝐸 = 𝑎 = 1 − 0.90
G
5.6
𝑎 0.1 = 𝐸 = 1.645 ( )
=2= 2 √40
𝒂 Alpha = 𝑬 = 𝟏. 𝟒𝟔

𝒁W
𝑪𝑳 Confidence Level Z-value: Interval Estimate:
𝒂⁄
𝟐
z-value = 𝑎⁄2 = 0.05 𝑋̅ − 𝐸 𝑋̅ + 𝐸
G
𝑬
𝑿̅
Margin of Error
Sample mean
= 𝑎⁄2 = 0.5 − 0.05
= 𝑎⁄2 = 0.4500
32 − 1.46
30.54
32 + 1.46
33.46

𝒏 Sample size = 𝑍𝑎⁄ = 1.645

2
L = 0.44955 -> z = 1.64 Final Answer:
EXAMPLE 1 R = 0.45055 -> z = 1.65 30.54 – 33.46
1.64 + 1.65
Scores on exams are normally distributed 2
with a population standard deviation of 5.6. = 1.645

A random sample of 40 scores on the

exam has a mean of 32. Estimate the EXAMPLE 2
population mean with: A researcher wants to estimate the number
of hours that 5-year-old children spend
A. 80% confidence
watching television. A sample of 50 five-
𝒐 5.6 year-old children was observed to have a
𝒏 40 mean viewing time of 3 hours. The
𝑿̅ 32 population is normally distributed with a
𝑪𝑳 80% -> 0.80 population standard deviation of 0.5 hours.
Find the 95% confidence interval of the
population mean.
Alpha: Margin of Error
𝑜
= 𝑎 = 1 − 𝐶𝐿 = 𝐸 = 𝑍𝑎⁄ ( 𝑛)
2 √ 𝒐 0.5
= 𝑎 = 1 − 0.80 5.6
𝑎 0.2 =𝐸= 1.28 ( 40) 𝒏 50
=2= 2 √
̅
= 𝑬 = 𝟏. 𝟏𝟑 𝑿 3
Z-value: Interval Estimate: 𝑪𝑳 95% -> 0.95
= 𝑎⁄2 = 0.1 𝑋̅ − 𝐸 𝑋̅ + 𝐸
= 𝑎⁄2 = 0.5 − 0.1 32 − 1.13 32 + 1.13
= 𝑎⁄2 = 0.4000
30.87 33.13

= 𝑍𝑎⁄ = 1.28
2
L = 0.39973 -> z = 1.28 Final Answer:
R = 0.401515 -> z = 1.29 30.87 – 33.13
 C4 ESTIMATION PARAMETER
FRANZ RUSSELL
Alpha: Margin of Error L3: CONFIDENCE INTERVAL FOR THE
= 𝑎 = 1 − 𝐶𝐿 𝑜 POPULATION MEAN WHEN
= 𝐸 = 𝑍𝑎⁄ ( 𝑛)
= 𝑎 = 1 − 0.95
2 √ STANDARD DEVIATION IS UNKNOWN
0.5
𝑎 0.05 = 𝐸 = 1.96 ( )
=2= 2 √50 FORMULA
= 𝑬 = 𝟎. 𝟏𝟒
Degree of 𝑑𝑓 = 𝑛 − 1
Z-value: Interval Estimate:
Freedom
= 𝑎⁄2 = 0.025 𝑋̅ − 𝐸 𝑋̅ + 𝐸 t-value 𝑆𝐿 = 100% − 𝐶𝐿
= 𝑎⁄2 = 0.5 − 0.025 3 − 0.14 3 + 0.14 𝑠
Margin of Error 𝐸 =𝑡( )
= 𝑎⁄2 = 0.4750 2.86 3.14
√𝑛
G
= 𝑍𝑎⁄ = 1.96
2
Final Answer:
Interval Estimate 𝑋̅ − 𝐸
𝑪𝑳 Confidence Level
W 2.86 – 3.14

𝑬
𝒕 t-value
Margin of Error
EXAMPLE 3
G selection of 32 entering
A random
𝒏
𝑿̅
Random sample
Sample mean
mathematics majors has the following
GPAs. Assume that o = 0.46.
4 2.5 3 3.3 3.1 4 3.9 3.5 EXAMPLE 1
3.2 3 3.5 3.2 3.2 3 3.4 3
2 2.8 5.6 3 3.5 2.8 3.3 3
Assuming that the samples come from
3.2 2.9 3 2.8 3.7 3.3 3.2 2.8 distributions, find the margin of error (E),
Estimate the mean GPA with 99% and the interval of the population mean.
confidence. a. 𝒏 = 𝟏𝟎, 𝑿̅ = 𝟐𝟖, 𝒔 = 𝟒 and 90% CL
𝒐 0.46
𝒏 32 𝒏 10
𝑿̅ 3.24 (mean of all samples) 𝑿̅ 28
𝑪𝑳 99% -> 0.99 s 4
𝑪𝑳 90%
Alpha: Margin of Error
= 𝑎 = 1 − 𝐶𝐿 𝑜
= 𝐸 = 𝑍𝑎⁄ ( ) Degree of Margin of Error:
2 √𝑛 𝑠
= 𝑎 = 1 − 0.99 0.46 Freedom: = 𝐸 = 𝑡 ( 𝑛)
𝑎 0.01 =𝐸= 2.575 ( 32 ) = 𝑑𝑓 = 𝑛 − 1
√
= = √
= 𝐸 = 1.833(
4
)
2 2
= 𝑬 = 𝟎. 𝟐𝟏 = 𝑑𝑓 = 10 − 1 √10
Z-value: Interval Estimate: = 𝑑𝑓 = 9 = 𝑬 = 𝟐. 𝟑𝟐
= 𝑎⁄2 = 0.005 𝑋̅ − 𝐸 𝑋̅ + 𝐸
T-value: Interval Estimate:
= 𝑎⁄2 = 0.5 − 0.005 3.24 − 0.21 3.24 + 0.21 = 𝑆𝐿 = 100% − 𝐶𝐿 𝑋̅ − 𝐸 𝑋̅ + 𝐸
= 𝑎⁄2 = 0.4950 3.03 3.45 = 𝑆𝐿 = 100% − 90% 28 − 2.32 28 + 2.32
= 𝑆𝐿 = 10% 25.68 30.32
= 𝑍𝑎⁄ 2.575
2
Final Answer: = 𝑡𝑣𝑎𝑙𝑢𝑒 = 1.833
L = 0.49491 -> z = 2.57
R = 0.49511 -> z = 2.58 3.03 – 3.45 Final Answer:
2.57 + 2.58
25.68 – 30.32
2
= 2.575
 C4 ESTIMATION PARAMETER
FRANZ RUSSELL
̅ = 𝟓𝟎, 𝒔 = 𝟒. 𝟐 and 95% CL
b. 𝒏 = 𝟏𝟔, 𝑿 Degree of Margin of Error:
𝑠
𝒏 16 Freedom: = 𝐸 = 𝑡 ( 𝑛)
√
𝑿̅ 50 = 𝑑𝑓 = 𝑛 − 1 3.2
= 𝑑𝑓 = 23 − 1 = 𝐸 = 2.074( )
√23
s 4.2
= 𝑑𝑓 = 22 = 𝑬 = 𝟏. 𝟑𝟖
𝑪𝑳 95%
T-value: Interval Estimate:
= 𝑆𝐿 = 100% − 𝐶𝐿 𝑋̅ − 𝐸 𝑋̅ + 𝐸
Degree of Margin of Error:
𝑠 = 𝑆𝐿 = 100% − 95%
Freedom: = 𝐸 = 𝑡 ( 𝑛) 80.6 − 1.38 80.6 + 1.38
√ = 𝑆𝐿 = 5% 79.22 81.98
= 𝑑𝑓 = 𝑛 − 1 4.2
= 𝑡𝑣𝑎𝑙𝑢𝑒 = 2.074
G
= 𝑑𝑓 = 16 − 1
= 𝑑𝑓 = 15
= 𝐸 = 2.131(
= 𝑬 = 𝟐. 𝟐𝟒
√16
)
Final Answer:
79.22 – 81.98
W
T-value:
= 𝑆𝐿 = 100% − 𝐶𝐿
Interval Estimate:
𝑋̅ − 𝐸 𝑋̅ + 𝐸
= 𝑆𝐿 = 100% − 95% EXAMPLE 2
G
50 − 2.42 50 + 2.42
= 𝑆𝐿 = 5% 47.76 52.24 An admission officer of an educational
= 𝑡𝑣𝑎𝑙𝑢𝑒 = 2.131 institution wants to know the mean age of
Final Answer: all entering mathematics majors. He
47.76 – 52.24 computed a mean age of 18 years and a
standard deviation of 1.2 years on a
̅ = 𝟔𝟖. 𝟐, 𝒔 = 𝟐. 𝟓 and 90% CL
c. 𝒏 = 𝟐𝟎, 𝑿 random sample of 25 entering
𝒏 20 mathematics majors purportedly coming
̅ from a normally distributed population.
𝑿 68.2
With 99% confidence, find the point
s 2.5
estimate of the population mean.
𝑪𝑳 90%
𝒏 25
̅
𝑿 18
Degree of Margin of Error:
𝑠 s 1.2
Freedom: = 𝐸 = 𝑡 ( 𝑛)
√ 𝑪𝑳 99%
= 𝑑𝑓 = 𝑛 − 1 2.5
= 𝑑𝑓 = 20 − 1 = 𝐸 = 1.729( ) Point estimate: 18 years
√20
= 𝑑𝑓 = 19 = 𝑬 = 𝟎. 𝟗𝟕
Degree of Margin of Error:
T-value: Interval Estimate: 𝑠
Freedom: = 𝐸 = 𝑡 ( 𝑛)
= 𝑆𝐿 = 100% − 𝐶𝐿 𝑋̅ − 𝐸 𝑋̅ + 𝐸 √
= 𝑑𝑓 = 𝑛 − 1
= 𝑆𝐿 = 100% − 90% 68.2 − 0.97 68.2 + 0.97 = 𝐸 = 2.797(
1.2
)
= 𝑑𝑓 = 25 − 1 √25
= 𝑆𝐿 = 10% 67.23 69.17
= 𝑑𝑓 = 24 = 𝑬 = 𝟎. 𝟔𝟕
= 𝑡𝑣𝑎𝑙𝑢𝑒 = 1.729
T-value: Interval Estimate:
Final Answer: = 𝑆𝐿 = 100% − 𝐶𝐿
67.23 – 69.17 𝑋̅ − 𝐸 𝑋̅ + 𝐸
= 𝑆𝐿 = 100% − 99% 18 − 0.67 18 + 0.67
= 𝑆𝐿 = 1% 17.33 18.67
̅ = 𝟖𝟎. 𝟔, 𝒔 = 𝟑. 𝟐 and 95% CL
d. 𝒏 = 𝟐𝟑, 𝑿 = 𝑡𝑣𝑎𝑙𝑢𝑒 = 2.797
𝒏 23
̅ Final Answer:
𝑿 80.6
17.33 – 18.67
s 3.2
𝑪𝑳 95%
 C4 ESTIMATION PARAMETER
FRANZ RUSSELL
L4&5: POINT ESTIMATE FOR THE Alpha: 0.60 − 0.0277 0.60 + 0.0277
0.5723 0.6277
POPULATION PROPORTION (P) AND = 𝑎 = 1 − 𝐶𝐿
57.23% 62.77%
COMPUTING INTERVAL ESTIMATE OF = 𝑎 = 1 − 0.95
POPULATION PROPORTION 𝑎
=2= 2
0.05

FORMULA Final Answer: 57.23% – 62.77%

P HAT 𝑥
𝑝̂ =
𝑛 EXAMPLE 2
Q HAT 𝑞̂ = 1 − 𝑝̂ In a survey of 458 random households,
Population 𝑝̂ = 𝑝̂ people take pride in discussing their
G
Proportion
Alpha 𝑎 = 1 − 𝐶𝐿
methods of environmental protection. 236
manage their trash by separating
W
Interval Estimate
𝑝̂ ± 𝑍𝑎⁄ √
𝑝̂𝑞̂ biodegradable from non-biodegradable.
Use a 95% confidence to estimate the
2 𝑛
G
𝒙 Number of elements that pass
proportion of all households who have
good practices trash managements.
the desired characteristics 𝒏 458
𝒏 Sample Size 𝒙 236
𝒑 Sample Proportion 𝑪𝑳 95% -> 0.95
𝒑 Population Proportion
P Hat: Z-value:
EXAMPLE 1
𝑥
= 𝑝̂ = 𝑛 = 𝑎⁄2 = 0.025
A survey of 1200 citizens showed that 715 236
= 𝑝̂ = 458 = 𝑎⁄2 = 0.5 − 0.0250
trust the president. Compute a 95% = 𝑎⁄2 = 0.4750
= 𝒑 = 𝟎. 𝟓𝟐
confidence interval for the proportions of all Point Estimate: 52% = 𝒁𝒂⁄ = 𝟏. 𝟗𝟔
𝟐
citizens who trust the president. Q Hat: Interval Estimate:
𝒏 1200 = 𝑞̂ = 1 − 𝑝̂ 𝑝̂𝑞̂
𝒙 715 = 𝑝̂ ± 𝑍𝑎⁄ √ 𝑛
= 𝑞̂ = 1 − 0.52 2
𝑪𝑳 95% -> 0.95 =𝒒̂ = 𝟎. 𝟒𝟖 𝑝̂𝑞̂
= 𝑍𝑎⁄ √ 𝑛
2
P Hat: Z-value: (0.52)(0.48)
𝑥
= 𝑝̂ = 𝑛 = 𝑎⁄2 = 0.025 = 1.96√ 458
715 = 𝑎⁄2 = 0.5 − 0.0250 = 0.0458
= 𝑝̂ = 1200
= 𝑎⁄2 = 0.4750 Population Proportion: Interval Estimate:
= 𝒑 = 𝟎. 𝟔𝟎 = 𝑝̂ = 𝑝̂
= 𝒁𝒂⁄ = 𝟏. 𝟗𝟔 𝑝̂ ± 0.0458
Point Estimate: 60% 𝟐 = 𝒑 = 𝟎. 𝟓𝟐
Q Hat: Interval Estimate: Alpha: 0.52 − 0.0458 0.52 + 0.0458
= 𝑞̂ = 1 − 𝑝̂ 𝑝̂𝑞̂ = 𝑎 = 1 − 𝐶𝐿 0.4742 0.5658
= 𝑝̂ ± 𝑍𝑎⁄ √ 𝑛 47.42% 56.58%
= 𝑞̂ = 1 − 0.60 2 = 𝑎 = 1 − 0.95
=𝒒̂ = 𝟎. 𝟒𝟎 𝑝̂𝑞̂ 𝑎 0.05
= 𝑍𝑎⁄ √ 𝑛 =2= 2
2
Final Answer: 47.42% – 56.58%
(0.60)(0.40)
= 1.96√ 1200
= 0.0277
Population Proportion: Interval Estimate:
= 𝑝̂ = 𝑝̂ 𝑝̂ ± 0.0277
= 𝒑 = 𝟎. 𝟔𝟎
 C4 ESTIMATION PARAMETER
FRANZ RUSSELL
L6: CONFIDENCE LEVEL AND SAMPLE
EXAMPLE 3
SIZE
Ismail conducted a poll survey in which
320 of 600 randomly selected voters FORMULA
indicated their preference for a certain Population Mean (minimum sample
candidate using a 90% confidence interval, size)
what is the true population proportion (p) of 𝑍𝑎⁄ ∙ 𝑜
voters who prefer the candidate? 𝑛 = ( 2 )2
𝐸
𝒏 600 𝑅 =𝐻−𝐿
𝒙 320 𝑅
G
𝑪𝑳 90% -> 0.90 𝑜=
4
Population Proportion (minimum

W
P Hat:
= 𝑝̂ =
𝑥
𝑛
Z-value:
= 𝑎⁄2 = 0.05
sample size)
𝑍𝑎⁄
𝑛 = 𝑝̂𝑞̂ ( 2 )2
= 𝑎⁄2 = 0.5 − 0.05
G
= 𝑝̂ =
320
600
= 𝒑 = 𝟎. 𝟓𝟑
= 𝑎⁄2 = 0.4500
𝐸

= 𝒁𝒂⁄ = 𝟏. 𝟔𝟒𝟓 EXAMPLE 1

Point Estimate: 53% 𝟐
L = 0.44955 -> z = 1.64 In a certain village, Leony wants to
R = 0.45055 -> z = 1.65 estimate the mean weight (m), in kg, of all-
1.64 + 1.65
six-year-old children to be included in a
2
= 1.645 feeding program. She wants to be 99%
Q Hat: Interval Estimate: confident that the estimate of m is accurate
= 𝑞̂ = 1 − 𝑝̂ 𝑝̂𝑞̂ to within 0.06 kg. Suppose from a previous
= 𝑝̂ ± 𝑍𝑎⁄ √ 𝑛 study, the standard deviation of the
= 𝑞̂ = 1 − 0.53 2
=𝒒̂ = 𝟎. 𝟒𝟕 𝑝̂𝑞̂ weights of the target population was 0.5
= 𝑍𝑎⁄ √ kg, what is the sample size?
2 𝑛
(0.53)(0.47)
= 1.645√ 𝑪𝑳 99% -> 0.99
600
𝑬 0.06
= 0.0335
Population Proportion:
𝒐 0.5
Interval Estimate:
= 𝑝̂ = 𝑝̂ 𝑝̂ ± 0.0335
= 𝒑 = 𝟎. 𝟓𝟑 Alpha: Z-value:
Alpha: 0.53 − 0.0335 0.53 + 0.0335 = 𝑎 = 1 − 𝐶𝐿 = 𝑎⁄2 = 0.005
0.4965 0.5658 = 𝑎 = 1 − 0.99 = 𝑎⁄2 = 0.5 − 0.005
= 𝑎 = 1 − 𝐶𝐿
47.42% 56.58% 𝑎 0.01
= 𝑎 = 1 − 0.90 =2= 2 = 𝑎⁄2 = 0.4950
𝑎 0.1
=2= 2 = 𝒁𝒂⁄ = 𝟐. 𝟓𝟕𝟓
𝟐
Final Answer: 47.42% – 56.58% L = 0.49491 -> z = 2.57
R = 0.49511 -> z = 2.58
2.57 + 2.58
2
= 2.575
Population Mean:
𝑍𝑎⁄ ∙𝑜
=𝑛=( 2
)2
𝐸
2.575 𝑥 0.5
=𝑛= ( 0.06 )2
= 𝑛 = 460.46 𝑜𝑟 𝟒𝟔𝟏
 C4 ESTIMATION PARAMETER
FRANZ RUSSELL

EXAMPLE 2 Q Hat:
Joshua wants to replicate a study where = 𝑞̂ = 1 − 𝑝̂
the lowest observed value is 12.4 while the = 𝑞̂ = 1 − 0.42
highest is 12.8. He wants to estimate the =𝒒̂ = 𝟎. 𝟓𝟖
population mean to within an error of 0.025 Alpha: Z-value:
of its true value using 99% confidence = 𝑎 = 1 − 𝐶𝐿 = 𝑎⁄2 = 0.025
level. Find the sample size that he needs. = 𝑎 = 1 − 0.95 = 𝑎⁄2 = 0.5 − 0.0250
𝑎 0.05
=2= 2 = 𝑎⁄2 = 0.4750
𝑪𝑳 99% -> 0.99
= 𝒁𝒂⁄ = 𝟏. 𝟗𝟔
G𝑬
𝑳
0.025
12.4 Population Proportion:
𝑍𝑎⁄
𝟐

𝑹 12.8 = 𝑛 = 𝑝̂𝑞̂ ( )2
W
2
𝐸
1.96
= 𝑛 = (0.42)(0.58) (0.02)2
Alpha: Z-value:
G
= 𝑎 = 1 − 𝐶𝐿
= 𝑎 = 1 − 0.99
= 𝑎⁄2 = 0.005
= 𝑎⁄2 = 0.5 − 0.005
= 𝑛 = 𝟐𝟑𝟒𝟎

=
𝑎
=
0.01
= 𝑎⁄2 = 0.4950 EXAMPLE 4
2 2
= 𝒁𝒂⁄ = 𝟐. 𝟓𝟕𝟓 The college dean wants to use the
𝟐 proportion to determine the sample size
L = 0.49491 -> z = 2.57
R = 0.49511 -> z = 2.58 needed to interview regarding their
2.57 + 2.58 thoughts about the new school structure.
2
= 2.575 She wants to be able to assert with a
Range: Standard Deviation: probability 0.95 that her error will be at
=𝑅 =𝐻−𝐿 =𝑜=
𝑅 most 0.05. similar polls in the past showed
4 that 65% approved the new structure. How
= 𝑅 = 12.8 − 12.4 0.4
= 𝑹 = 𝟎. 𝟒 =𝑜= large a sample size does the dean need?
4
= 𝒐 = 𝟎. 𝟏
𝑪𝑳 95% -> 0.95
Population Mean:
𝑍𝑎⁄ ∙𝑜 𝒑 65% -> 0.65
=𝑛=( 2
)2 𝑬 0.05
𝐸
2.575 𝑥 0.1 2
=𝑛= ( )
0.025
= 𝑛 = 𝟏𝟎𝟕 Q Hat:
= 𝑞̂ = 1 − 𝑝̂
= 𝑞̂ = 1 − 0.65
EXAMPLE 3
=𝒒̂ = 𝟎. 𝟑𝟓
Mary wants to know, with 95% confidence,
Alpha: Z-value:
who likes to use detergent X. A previous
= 𝑎 = 1 − 𝐶𝐿 = 𝑎⁄2 = 0.025
survey showed that 42% like to use
= 𝑎 = 1 − 0.95 = 𝑎⁄2 = 0.5 − 0.0250
detergent X Mary likes to be accurate 𝑎 0.05
within 2% of the true proportion. What =2= 2 = 𝑎⁄2 = 0.4750
sample size does Mary need? = 𝒁𝒂⁄ = 𝟏. 𝟗𝟔
𝟐

𝑪𝑳 95% -> 0.95 Population Proportion:

𝑍𝑎⁄
𝒑 42% -> 0.42 = 𝑛 = 𝑝̂𝑞̂ ( 2
)2
𝐸
𝑬 2% -> 0.02 = 𝑛 = (0.65)(0.35) (0.05)2
1.96

= 𝑛 = 𝟑𝟓𝟎
 C5 CONDUCTING HYPOTHESIS TESTING
FRANZ RUSSELL
L1: UNDERSTANDING HYPOTHESIS The average TV viewing of all five-year-
TESTING olds is not 4 hours daily.
HYPOTHESIS TESTING Alternative Hypothesis:
- It is another area of Inferential Ha: m ≠ 4 hours
Statistics.
- Estimation (previous chapter) is EXAMPLE 2
concerned with determining specific
A college librarian claims that 20
parameter values while testing
storybooks on average are borrowed daily.
hypotheses is hypothesizing about the
G
population parameter and subjecting
this hypothesis to a test.
Null Hypothesis:
H0: m = 20 storybooks
-
W
It is a decision-making process for
evaluating claims about a population
A college librarian doesn’t claim that 20
storybooks on average are borrowed daily.
based on a characteristic of a sample
G
taken from the population. The decision
is whether the characteristic is
Alternative Hypothesis:
Ha: m ≠ 20 storybooks
acceptable or not.
EXAMPLE 3
2 TYPES OF HYPOTHESES
The owner of a factory that sells a
NULL HYPOTHESIS particular bottled fruit juice claims that the
- It is what we want to test. It states the average capacity of a bottle of their
exact value of the parameter. product is 250 ml.
- It is denoted by H0, it is a statement Null Hypothesis:
that there is no difference between a H0: m = 250 ml
parameter and a specific value, or that The owner of a factory that sells a
there is no difference between two particular bottled fruit juice claims that the
parameters. average capacity of a bottle of their
ALTERNATIVE HYPOTHESIS product is not 250 ml.
- It is a statement that directly Alternative Hypothesis:
contradicts the null hypothesis. It Ha: m ≠ 250 ml
allows for the possibility of many
values. NOTE:
- It is denoted by Ha or H1, it is a When the alternative hypothesis is utilizes
statement that there is no difference the ≠ symbol, the test is said to be non-
between a parameter and a specific directional. It is also called two-tailed
value, or that there is a difference test.
between two parameters.
EXAMPLES
EXAMPLE 1
The average TV viewing of all five-year-old
children is 4 hours daily.
Null Hypothesis:
H0: m = 4 hours
 C5 CONDUCTING HYPOTHESIS TESTING
FRANZ RUSSELL
When the alternative hypothesis utilizes L2: CONDUCTING HYPOTHESIS TEST
the > or < symbol, the test is said to be USING Z-TEST AND T-TEST FOR MEAN
directional. It is also called a one-tailed Steps:
test (right or left tail). 1. State the hypotheses.
o Words like greater, efficient, 2. Level of significance (show it using
improve, effective, increases and a normal curve)
so on suggest a right-tailed 3. Critical values z or t
direction. 4. Test statistic (z-score/t-score)
o Words like decrease, less than,
G smaller, and the like suggest a left-
tailed direction.
Z-score:
𝒛= 𝒐
̅−𝒎
𝒙
T-score
𝒕=
̅−𝒎
𝒙
𝒔
W √𝒏
5. Decision
√𝒏

G 6. Conclusion

EXAMPLE 4
A teacher wants to know if listening to
popular music affects the performance of
pupils. A class of 50 grade 1 pupils was
used in the experiment. The mean score
was 83. State the hypotheses in symbol.
Null Hypothesis:
H0: m = 83
Alternative Hypothesis:
Ha: m ≠ 83 (non-directional, two-
tailed test)

EXAMPLE 5
A farmer believes that using organic
fertilizers on his plants will yield greater
income. His average income from the past
was P200,000 per year. State the
hypotheses in symbol.
Null Hypothesis:
H0: m = P200,000 per year
Alternative Hypothesis:
Ha: m > P200,000 per year
(directional, one-tailed test: right
tail)
 C5 CONDUCTING HYPOTHESIS TESTING
FRANZ RUSSELL

EXAMPLE 1 EXAMPLE 2
In recent years, the mean age of all college students In recent years, the mean age of all college students
in Pampanga has been 23. A random sample of 42 in Pampanga has been 23. A random sample of 42
students revealed a mean age of 23.8. suppose their students revealed a mean age of 23.8. suppose their
ages are normally distributed with a population ages are normally distributed with a population
standard deviation of 2.4. can we infer at a=0.05 that standard deviation of 2.4. can we infer at a=0.02 that
the population mean has changed? the population mean has changed?
𝑚 23 𝑜 2.4 𝑚 23 𝑜 2.4
𝑥̅ 23.8 𝑎 0.05 𝑥̅ 23.8 𝑎 0.02
𝑛 42 𝑛 42

G
Step 1: State the Hypotheses: Step 1: State the Hypotheses:
The mean age of all college students in The mean age of all college students in
WNullisHypothesis:
Pampanga 23. Pampanga is 23.
Null Hypothesis:

TheG
H m = 83
0: H0: m = 23
mean age of all college students in The mean age of all college students in
Pampanga is not 23. Pampanga is not 23.
Alternative Hypothesis: Alternative Hypothesis:
Ha: m ≠ 23 (non-directional, two- Ha: m ≠ 23 (non-directional, two-
tailed test) tailed test)
Step 2: Level of Significance: Step 2: Level of Significance:
𝑎 0.05 𝑎 0.02
=2= 2 =2= 2
𝑎 𝑎
= 2 = 0.025 = 2 = 0.01
= 𝑎⁄2 = 0.5 − 0.0250 = 𝑎⁄2 = 0.5 − 0.0100
= 𝑎⁄2 = 0.4750 = 𝑎⁄2 = 0.4900
= 𝒁 𝒂⁄𝟐 = ±𝟏. 𝟗𝟔 = 𝒁 𝒂⁄𝟐 = ±𝟐. 𝟑𝟑

Step 3: Critical values of z: Step 3: Critical values of z:

Reject H0 if z > 1.96 or z < -1.96 Reject H0 if z > 2.33 or z < -2.33
Step 4: Test Statistic: Step 4: Test Statistic:
𝑥̅ −𝑚 𝑥̅ −𝑚
=𝑧= 𝑜 =𝑧= 𝑜
√𝑛 √𝑛
23.8−23 23.8−23
=𝑧= 2.4 =𝑧= 2.4
√42 √42
= 𝑧 = 𝟐. 𝟏𝟔 = 𝑧 = 𝟐. 𝟏𝟔
Step 5: Decision: Step 5: Decision:
= 𝑧 = 2.16 = 𝑧 = 2.16
= 𝑧 = 1.96 = 𝑧 = 2.33
= 𝟐. 𝟏𝟔 > 𝟏. 𝟗𝟔 Reject H0 = 𝟐. 𝟏𝟔 < 𝟐. 𝟑𝟑 Fail to Reject H0
Step 6: Conclusion: Step 6: Conclusion:
There is enough evidence that the mean There is not enough evidence that the
age of all college students in Pampanga mean age of all college students in
has changed at a=0.05. Pampanga has changed at a=0.02.
 C5 CONDUCTING HYPOTHESIS TESTING
FRANZ RUSSELL

EXAMPLE 3 EXAMPLE 4
A random sample of 27 observations from The average weight of all residents in town is 168
lbs. A nutritionist believes that the true mean to be
a large population has a mean of 22 and a
different. She measured the weight of 36 individuals
standard deviation of 4.8. Can we and found the mean to be 169.5 lbs. with a standard
conclude at a=0.01 that the population deviation of 3.9. at 95% confidence level, is there
mean is significantly below 24? enough evidence to discard the null hypothesis?
𝑚 168 𝑜 3.9
𝑛 27 𝑚 24 𝑥̅ 169.5 𝐶𝐿 95% -> 0.95
𝑥̅ 22 𝑎 0.01 𝑛 36

G
𝑠 4.8
Step 1: State the Hypotheses:
The average of all residents in town is 168
Step 1: State the Hypotheses:

WNull Hypothesis:
The population mean is 24. lbs.
Null Hypothesis:
H0: m = 168
G H m = 240:
The population mean is less than 24. The average of all residents in town is not
168 lbs.
Alternative Hypothesis:
Alternative Hypothesis:
Ha: m < 24 (directional, one- Ha: m ≠ 168 (non-directional, two-
tailed test, left tail) tailed test)
Step 2: Level of Significance: Step 2: Level of Significance:
= 𝑎 = 0.01 → 1% = 𝐶𝐿 = 0.95
= 𝑑𝑓 = 𝑛 − 1 = 𝑎 = 1 − 0.95
𝑎 0.05
= 𝑑𝑓 = 27 − 1 =2= 2
𝑎
= 𝑑𝑓 = 26 = 2
= 0.025
= 𝒕 = −𝟐. 𝟒𝟕𝟗 = 𝑎⁄2 = 0.5 − 0.0250
Step 3: Critical values of z: = 𝑎⁄2 = 0.4750
Reject H0 if t < -2.479 = 𝒁 𝒂⁄𝟐 = ±𝟏. 𝟗𝟔
Step 4: Test Statistic:
𝑥̅ −𝑚
=𝑡= 𝑠
√𝑛
22−24
=𝑡= 4.8
√27
= 𝑡 = −𝟐. 𝟏𝟕
Step 5: Decision:
Step 3: Critical values of z:
= 𝑡 = 2.16
= 𝑡 = 1.96 Reject H0 if z > 1.96 or z < -1.96
Step 4: Test Statistic:
= −𝟐. 𝟏𝟕 > −𝟐. 𝟒𝟕𝟗 Fail to Reject H0 𝑥̅ −𝑚
=𝑧= 𝑜
√𝑛
169.5−168
=𝑧= 3.9
√36
= 𝑧 = 𝟐. 𝟑𝟏
Step 5: Decision:
= 𝑧 = 2.31
Step 6: Conclusion: = 𝑧 = 1.96
There is enough evidence that the = 𝟐. 𝟑𝟏 > 𝟏. 𝟗𝟔 Reject H0
population is less than 24 at a=0.01. Step 6: Conclusion:
There is enough evidence that the
average weight of all residents in town is
168 lbs. at a 95% confidence level.
 C5 CONDUCTING HYPOTHESIS TESTING
FRANZ RUSSELL

EXAMPLE 5 L3: TESTING HYPOTHESIS INVOLVING

A factory manufactures cars with a warranty of 5 years on POPULATION PROPORTIONS
the engine and transmission. An engineer believes that the Steps:
engine or transmission will malfunction in less than 5 years.
He tests a sample of 40 cars and finds the average time to
be 4.8 years with a standard deviation of 0.50. At a 2%
1. State the hypotheses.
significance level, is there enough evidence to support the 2. Level of significance (show it using
idea that the warranty should be revised? a normal curve)
𝑚 5 𝑜 0.50 3. Critical values of z
𝑥̅ 4.8 𝐶𝐿 2% -> 0.02 4. Test statistic (z-score)
𝑛 40
G
Step 1: State the Hypotheses:
Z-score:
𝒛=
̂ − 𝒑𝒐
𝒑
A factory manufactures cars with a warranty
WNull Hypothesis:
of 5 years on the engine and transmission. √
𝒑𝒐 𝒒𝒐
𝒏
5. Decision
GH m=5 0:
An engineer believes that the engine or
6. Conclusion
transmission will malfunction in less than 5 years.
Alternative Hypothesis:
Ha: m < 5 (directional, one-tailed
test, left tail)
Step 2: Level of Significance:
= 𝑆𝐿 = 0.02
= 𝑆𝐿 = 0.5 − 0.02
= 𝑎 = 0.4800
= 𝒁𝒂 = −𝟐. 𝟎𝟓

Step 3: Critical values of z:

Reject H0 if z < -2.05
Step 4: Test Statistic:
𝑥̅ −𝑚
=𝑧= 𝑜
√𝑛
4.8−5
=𝑧= 0.50
√40
= 𝑧 = −𝟐. 𝟓𝟑
Step 5: Decision:
= 𝑧 = −2.33
= 𝑧 = −2.53
= −𝟐. 𝟎𝟓 > −𝟐. 𝟓𝟑 Reject H0
Step 6: Conclusion:
There is enough evidence that the engine or
transmission will not malfunction in less than
5 years. at a 2% significance level.
 C5 CONDUCTING HYPOTHESIS TESTING
FRANZ RUSSELL

EXAMPLE 1 EXAMPLE 2
A tech company believes that the percentage of A car company believes that the percentage of
residents in Angeles City that own a cellphone is residents in Mabalacat City who own a vehicle is
70%. A marketing manager believes this value to be 60% or less. A sales manager disagrees with this.
different. He surveyed 200 individuals and found that He conducted a hypothesis test surveying 250
130 responded yes to owning a cell phone. At a 95% residents and found that 170 responded yes to
confidence level, is there enough evidence to reject owning a vehicle. At a 10% significance level, is
the null hypothesis? there enough evidence to support the idea that
vehicle ownership in Mabalacat City is 60% or less?
𝑝̂𝑜 5 𝑞𝑜 1 − 0.70 = 𝟎. 𝟑𝟎
𝐶𝐿 0.95 𝑝̂ 𝑥 130 𝑝̂𝑜 ≤ 0.60 𝑞𝑜 1 − 0.60 = 𝟎. 𝟒𝟎

𝑥 G130 𝑛
𝑛
=
200
200
= 𝟎. 𝟔𝟓
𝑆𝐿 0.10 𝑝̂ 𝑥
𝑛
=
170
250
= 𝟎. 𝟔𝟖
𝑥 170 𝑛 250
W
Step 1: State the Hypotheses:
The percentage of residents in A.C. that own a Step 1: State the Hypotheses:

G
cellphone is 70% or 0.70. The percentage of residents in M.C. that own a
Null Hypothesis: vehicle is 60% or less.
H0: p0 = 0.70 Null Hypothesis:
The percentage of residents in A.C. that own a H0: p0 ≤ 0.60
cellphone is not 70% or 0.70. The percentage of residents in M.C. that own a
Alternative Hypothesis: vehicle is greater than 60%.
Ha: p0 ≠ 0.70 (non-directional, two-tailed Alternative Hypothesis:
test) Ha: p0 > 0.60 (directional, one-tailed test,
Step 2: Level of Significance: right tail)
= 𝐶𝐿 = 0.95 Step 2: Level of Significance:
= 𝑎 = 1 − 0.95 = 𝑆𝐿 = 0.10
𝑎 0.05 = 𝑆𝐿 = 0.5 − 0.10
=2= 2
𝑎 = 𝑎 = 0.4000
= = 0.025
2 = 𝒁𝒂 = 𝟏. 𝟐𝟖
= 𝑎⁄2 = 0.5 − 0.0250
= 𝑎⁄2 = 0.4750
= 𝒁 𝒂⁄𝟐 = ±𝟏. 𝟗𝟔

Step 3: Critical values of z:

Reject H0 if z > 1.28
Step 4: Test Statistic:
𝑝̂̂−𝑝̂𝑜
Step 3: Critical values of z: =𝑧= 𝑝 𝑞
Reject H0 if z > 1.96 or z < -1.96 √ 𝑜 𝑜
𝑛
Step 4: Test Statistic: 0.68−0.60
𝑝̂̂−𝑝̂𝑜
=𝑧=
=𝑧= √(0.60)(0.40)
𝑝 𝑞 250
√ 𝑜 𝑜
𝑛
0.65−0.70
= 𝑧 = 𝟐. 𝟓𝟖
=𝑧= Step 5: Decision:
√(0.70)(0.30) = 𝑧 = 1.28
200

= 𝑧 = −𝟏. 𝟓𝟒 = 𝑧 = 2.58
Step 5: Decision: = 𝟐. 𝟓𝟖 > 𝟏. 𝟐𝟖 Reject H0
= 𝑧 = −1.96 Step 6: Conclusion:
= 𝑧 = −1.54 There is enough evidence to reject the null
= −1. 𝟓𝟒 > −𝟏. 𝟗𝟔 Fail to Reject H0 hypothesis.
Step 6: Conclusion:
There is not enough evidence to reject the
null hypothesis.