Reminders For COPS 3 Part 3

• Please disregard the phrase "Perform hypothesis testing..." You

just have to state the null and alternative hypotheses in words
and in symbols for these items.

• In creating Ho and Ha, please use the values and keywords for
population, not sample.

• For items that involve "before" and "after" values, please use
the "after values" and indicate in your word hypotheses that
you used "final" or "after" values.
Hypothesis Testing:
One Population
Mean
OBJECTIVES
At the end of this lesson, I will be able to:

➢ Identify the appropriate test statistic when the population

variance is assumed to be known and unknown.
Introduction: Formulate a null and alternative hypothesis
The mayor of a large city claims that the average net worth of families
living in this city is at least $300,000. A random sample of 25 families
selected from this city produced a mean net worth of $288,000. Assume
that the net worths of all families in this city have an approximate normal
distribution with the population standard deviation of $80,000.
Introduction: Formulate a null and alternative hypothesis
The TIV Telephone Company provides long-distance telephone service in
an area. According to the company’s records, the average length of all
long-distance calls placed through this company in 2015 was 12.44
minutes. The company’s management wanted to check if the mean
length of the current long-distance calls is different from 12.44 minutes.
A sample of 150 such calls placed through this company produced a
mean length of 13.71 minutes.
Steps in Hypothesis Testing

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. Compute the test-statistic
4. Make a decision whether to reject or fail to reject H0
5. State the conclusion.
z-TEST FOR A MEAN
WHEN 𝝈 IS KNOWN
z-TEST WHEN 𝝈 IS KNOWN
● The z test is a statistical test for the mean of a population.
● It can be used when n ≥ 30 or when the population is normally
distributed and 𝜎 is known.

Assumptions:
1. The sample is a random sample.
2. Either n ≥ 30 or the population is normally distributed when n < 30.
z-TEST WHEN 𝝈 IS KNOWN
● The formula for the z test is
𝑋ത − 𝜇𝑜
𝑧=
𝜎/ 𝑛
where: 𝑋=
ത sample mean
𝜇𝑜 = hypothesized population mean
𝜎 = population standard deviation
n = sample size

● The decision can be made based on the critical z-value

A. Decision Rule Using Critical z-Value
For every given level of significance 𝛼 :
Hypothesis z-Test Statistic
𝑥ҧ − 𝜇0
𝑧=
𝜎Τ 𝑛
Ho Ha Decision rule: Reject Ho if
𝜇 = 𝜇𝑜 𝜇 ≠ 𝜇𝑜 𝑧 > 𝑧𝛼Τ2 /critical z value
two-tailed test
𝜇 ≤ 𝜇𝑜 𝜇 > 𝜇𝑜 𝑧 > 𝑧𝛼 /critical z value
right-tailed test
𝜇 ≥ 𝜇𝑜 𝜇 < 𝜇𝑜 𝑧 < −𝑧𝛼 /critical z value
left-tailed test
Otherwise, fail to reject 𝑯𝒐
ONE POPULATION MEAN: Example 1
Automotive engineers tested the gas mileage (in km/L) of a passenger car model
from a certain car company. A random sample of 35 cars resulted to a mean gas
mileage of 15 km/L and a population standard deviation of 2.5 km/L. The car
company claims that the passenger car model has an average gas mileage of 16
km/L. Test if this claim is valid at 5% level of significance.

Hypotheses: Critical z-value:

ONE POPULATION MEAN: Example 1
ONE POPULATION MEAN: Example 1
Continuation…
n = 35 ത
𝑋=15 km/L 𝜎 = 2.5 km/L 𝜇𝑜 =16 km/L
Hypotheses: Critical z-value:
H0 : μ=16 𝛼=0.05
Ha : μ≠16 𝑧0.05=±1.96
(two-tailed)
Compute the test statistic…
Solution: Example 1 Using Critical z-value

Step 1: Formulate the null and alternative hypotheses:

H0 : The passenger car has an average gas mileage of 16 km/L.
μ = 16 (claim)
Ha : The average gas mileage of the passenger car is significantly
different from 16 km/L.
μ ≠ 16
Non-directional Ha, so the test should be two-tailed.
Solution: Example 1 Using Critical z-value

Step 2: Since 𝑛 ≥ 30 and sigma can be estimated using z value, use z-test (two-tailed)
The level of significance (𝛼) = 0.05.
Since it is two- tailed, divide it by 2.
So, use 𝛼/2 = 0.05/2 = 0.025
Using the z-table, find the z-value for 0.025
𝑧 𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑖𝑠 ± 1.96

Decision Rule:
Reject H0 if 𝑧 > 1.96
Otherwise, fail to reject H0
Solution: Example 1 Using Critical z-value

Step 3: Compute the test statistic

15 − 16
𝑧= = −2.37
2.5Τ 35

Step 4: Decision:
Since −2.37 > 1.96, Reject H0

Step 5: Conclusion
Therefore, there is sufficient evidence at the 5% level of significance that the average
gas mileage of the car is significantly different from 16 km/L (𝜇 ≠ 16). Hence, the claim of
the manufacturer is not valid.
ONE POPULATION MEAN: Example 2
Suppose that an airline company claims that the average weight of checked
baggage is less than 15 pounds with a population standard deviation of 6.5
pounds. To support the claim, the airline company conducts a random sample
of 150 passengers and finds that the average weight of checked baggage is 14.2
pounds. Do these data support the airline company’s claim at the 5% level of
significance?

Hypotheses: Critical z-value:

ONE POPULATION MEAN: Example 2
ONE POPULATION MEAN: Example 2
Continuation…
n = 150 𝑋ത = 14.2 𝜎 = 6.5 𝜇0 = 15
Hypotheses: Critical z-value:
H0 : μ ≥ 15 𝛼 = 0.05
Ha : μ < 15 𝑧0.05 = −1.645
(left-tailed)
Compute the test statistic…
Solution: Example 2 Using Critical z-value
1. State the null and alternative hypotheses:
H0 : The average weight of checked baggage is grater than or equal to 15 pounds.
μ ≥ 15
Ha : The average weight of checked baggage is less than 15 pounds.
μ < 15 (claim)
Directional Ha, one-tailed (left-tailed)

2. Test statistics, decision rule, and rejection region:

Since 𝑛 ≥ 30, use z-test (left-tailed)

Decision Rule:
𝛼 = 0.05, so, z-critical is -1.645
Reject H0 if 𝑧 < 𝑧0.05 = −1.645
Otherwise, fail to reject H0
Rejection region (see figure on the right)
Solution: Example 2 Using Critical z-value

3. Computation of test statistic

14.2 − 15
𝑧= = −1.5074
6.5Τ 150

4. Decision:
Since −1.5074 > −1.645, fail to reject H0

5. Conclusion:
Therefore, at 5% significance level, the average checked baggage allowance is
not significantly different from15 pounds. The claim is invalid.
ONE POPULATION MEAN: Example 3
The average “moviegoer” sees 8.5 movies a year. A random sample of 40
moviegoers from a large university revealed that the average number of
movies seen per person was 9.6. The population standard deviation is 3.2
movies. At the 0.05 level of significance, can it be concluded that this
represents a difference from the national average?

Hypotheses: Critical z-value:

ONE POPULATION MEAN: Example 3
Continuation…
n= 𝑋ത = 𝜎= 𝜇0 =
Hypotheses: Critical z-value:
H0 : 𝛼=
Ha :

Compute the test statistic…