Week 14

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 unknown.
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.
Let’s try it!
A health expert believes that the average cholesterol level of adults
in a certain country is less than 200 mg/dL. A sample of 80 adults has
a mean cholesterol level of 190 mg/dL with a population standard
deviation of 20 mg/dL. Test the expert's claim at a 2.5% level of
significance.

Hypotheses:
Let’s try it!
Continuation…
n= 𝑋ത = 𝜎= 𝜇0 =
Hypotheses: Critical z-value:
H0 : 𝛼=
Ha :

Compute the test statistic…

t-TEST FOR A MEAN
WHEN 𝝈 IS
UNKNOWN
t-TEST WHEN 𝝈 IS UNKNOWN
● The t-test is a statistical test for the mean of a population.

Assumptions:
● The sample is a random sample.
● 𝜎 is unknown but the 𝑛 ≥ 30
● 𝜎 is unknown, the population is approximately normal even if n <30
t-TEST WHEN 𝝈 IS UNKNOWN
● The formula for the t-test is
𝑥ҧ − 𝜇
𝑡= , 𝑑𝑓 = 𝑛 − 1
𝑠/ 𝑛
where: 𝑋=
ത sample mean
𝜇 = population mean
s = sample standard deviation
n = sample size
df = degrees of freedom
A. Decision Rule Using Critical t-Value
For every given level of significance 𝛼:
Hypothesis t-Test Statistic
ҧ 𝜇0
𝑥−
t=
𝑠Τ 𝑛

Ho Ha Decision rule: Reject Ho if

𝜇 = 𝜇𝑜 𝜇 ≠ 𝜇𝑜 𝒕 > 𝒕𝜶Τ𝟐 ( 𝒄𝒐𝒎𝒑𝒖𝒕𝒆𝒅 𝒗𝒂𝒍𝒖𝒆 > critical t value)
two-tailed test
𝜇 ≤ 𝜇𝑜 𝜇 > 𝜇𝑜 𝐭 > 𝒕𝜶 (computed value > critical t value)
right-tailed test
𝜇 ≥ 𝜇𝑜 𝜇 < 𝜇𝑜 𝐭 < −𝒕𝜶 (computed value < critical t value)
left-tailed test
Otherwise, fail to reject 𝑯𝒐
ONE POPULATION MEAN: Example 1
A psychologist claims that the mean age at which children start walking is 12.5 months.
Carol wanted to check if this claim is true. She took a random sample of 18 children and
found that the mean age at which these children started walking was 12.9 months with a
standard deviation of 0.80 month. It is known that the ages at which all children start
walking are approximately normally distributed. What will your conclusion be if the
significance level is 1%?

Step 1: Hypotheses:

Step 2: Critical value:

ONE POPULATION MEAN: Example 1
ONE POPULATION MEAN: Example 1
n= 𝑋ത = s= 𝜇0 =
Hypotheses: Critical t-value:
H0 : 𝛼=
Ha :
Step 3: Calculate the test statistics.

Step 4: Decision

Step 5: Conclusion
ONE POPULATION MEAN: Example 2
A city government claims that the average commute time
for residents is less than 45 minutes. A sample of 29
residents has a mean commute time of 42 minutes with a
standard deviation of 8 minutes. Test the claim at a 2.5%
level of significance.

Step 1: Hypotheses: Step 2: Critical value:

ONE POPULATION MEAN: Example 2
ONE POPULATION MEAN: Example 2
n= 𝑋ത = s= 𝜇0 =
Hypotheses: Critical t-value:
H0 : 𝛼=
Ha :
Step 3: Calculate the test statistics.

Step 4: Decision

Step 5: Conclusion
ONE POPULATION MEAN: Example 3
The management at Massachusetts Savings Bank is always concerned about the quality of
service provided to its customers. With the old computer system, a teller at this bank
could serve, on average at least 22 customers per hour. The management noticed that
with this service rate, the waiting time for customers was too long. Recently the
management of the bank installed a new computer system, expecting that it would
increase the service rate and consequently make the customers happier by reducing the
waiting time. To check if the new computer system is more efficient than the old system,
the management of the bank took a random sample of 70 hours and found that during
these hours the mean number of customers served by tellers was 27 per hour with a
standard deviation of 2.5 customers. Testing at a 1% significance level, would you conclude
that the new computer system is more efficient than the old computer system?

Step 1: Hypotheses: Step 2: Critical value:

ONE POPULATION MEAN: Example 3
ONE POPULATION MEAN: Example 3
n= 𝑋ത = s= 𝜇0 =
Hypotheses: Critical t-value:
H0 : 𝛼=
Ha :
Step 3: Calculate the test statistics.

Step 4: Decision

Step 5: Conclusion