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Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES


Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

GROUP NO. 7 WRITTEN REPORT

Hypothesis Testing (Two Populations)

In partial fulfillment for the requirements in

STAT 203 Statistical Analysis with Software Application

SUBMITTED BY:
Sherinah Mae P. Abarilles

Kyla Joy M. Agustin

Jhana B. Juan

SUBMITTED TO:

MR. JAYSON B. DE LEON

Second Term A.Y. 2023-2024

1|Page
Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

LEARNING OBJECTIVES:

After the end of this lesson, students will be able to:

● Give the meaning of hypothesis.


● Explain why there is a need for hypothesis.
● Define the important terms in hypothesis testing.
● Conduct and interpret hypothesis test for two populations.

2|Page
Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

PRETEST
Encircle the letter of the correct answer.

1. Statement 1: If confidence interval contains only negative values, then we can conclude
that 𝑝₁ −𝑝₂ <0 and 𝑝₁ <𝑝₂ (with confidence c)
Statement 2: If confidence interval contains only positive values, then we can conclude
that 𝑝₁ −𝑝₂ >0 and 𝑝₁ >𝑝₂ (with confidence c)
Statement 3: If confidence interval for 𝑝₁ −𝑝₂ contains zero, then we cannot say which is
larger.
A. Statement 1 true; Statement 2 false: Statement 3 true
B. Statement 1 false, Statement 2 true: Statement 3 false
C. All statements are correct
D. All statements are incorrect

2. Statement 1: The commonly used levels of confidence are 80%, 85%, and 99%.
Statement 2: A higher confidence level implies a wider interval because it necessitates
accounting for a greater proportion of the potential sampling variability.
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

3. A company wants to compare the proportion of customers who prefer Product A versus
Product B. They sampled 200 customers who have purchased Product A and find that 140
prefer it. They also sampled 250 customers who have purchased Product B and find that
180 prefer it. Construct a 95% confidence interval for the difference in proportions.
A. (-0.1156, 0.0756)
B. (0.3452, 0.7490)
C. (-0.3556, 0.2436)
D. (0.1232, 0.7485)

4. All are procedures for testing hypothesis EXCEPT:


A. Set the level of significance.
B. Draw Conclusion
C. State the null and alternative hypothesis.
D. None of the above

3|Page
Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

5. Statement 1: A hypothesis is a statement or claim regarding a characteristic of one or


more populations.
Statement 2: Hypothesis testing is a procedure on sample evidence and probability, used
to test claims regarding a characteristic of one or more populations.
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

6. It enables us to make estimates of population values called parameters and to make


statements about computed statistics acceptable to some degree of confidence.
A. Descriptive
B. Inferential
C. Hypothesis
D. Estimation

7. Statement 1: Hypothesis testing is a crucial concept in statistics, especially when


comparing two population means, denoted as 𝜇₁ and 𝜇₂.
Statement 2: When conducting hypothesis tests for small samples, it’s essential to
understand the difference between one-tailed and two-tailed tests.
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

8. Statement 1: The decision to reject the null hypothesis is based on the rejection rule, which
states that if the calculated t-value is more than the critical value -𝑡a, we reject the null
hypothesis in favor of the alternative hypothesis.
Statement 2: For a two-tailed test, if the absolute value of the t-value is less than 𝑡a/2, we
reject the null hypothesis.
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

9. Statement 1: In a one-tailed test of large sample hypotheses, the rejection rule is ,


where is the critical value corresponding to the chosen level of significance. In a two-
tailed test, the rejection rule is .
Statement 2: In small sample hypotheses, the mean of the sampling distribution of (𝑝̂₁ −
𝑝̂₂) serves as an unbiased estimator of (𝑝₁ − 𝑝₂).

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Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

A. Statement 1 true; Statement 2 false


B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

10. Statement 1: In a one-tailed test, the null hypothesis (Ho) states that the difference
between the population means, (𝜇₁ − 𝜇₂), is greater than or equal to 0, while the alternative
hypothesis (Ha) suggests that the difference is less than 0.
Statement 2: In a two-tailed test, the null hypothesis states that the difference between the
population means is equal to 0, and the alternative hypothesis suggests that the difference
is not equal to 0.
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

5|Page
Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

Reporter: Sherinah Mae P. Abarilles

HYPOTHESIS TESTING

Inferential Statistics enables us to make estimates of population values called parameters and to
make statements about computed statistics acceptable to some degree of confidence.

Two main methods used in inferential statistics:


1. Estimation. Estimating or predicting the value of the parameter
2. Hypothesis Testing. Deciding about the value of a parameter based on some
preconceived idea.

Example: A consumer wants to estimate the average price of similar homes in his city
before putting his home on the market.

Estimation: Estimate the average home price

Example: A manufacturer wants to know if a new type of steel is more resistant to high
temperatures than an old type was.

Hypothesis Test: Is the new average resistance, µN greater than the old average
resistance, µ0?

What is Hypothesis?
A hypothesis is a statement or claim regarding a characteristic of one or more populations.
A preconceived idea, assumed to be true but must be tested for its truth or falsity.

What is hypothesis testing?


Hypothesis testing evaluates a conjecture about some characteristic of the parent
population based upon the information contained in the random sample. Usually, the conjecture
concerns one of the unknown parameters of the population, μ (mean), σ2 (variance), σ (standard
deviation). Examples of parameters are population mean and population proportion.

Procedures for Testing Hypothesis


1. State the null and alternative hypothesis.
2. Set the level of significance.
3. Determine the test distribution to use.
4. Calculate test statistic or p - value.
5. Make statistical Decision.
6. Draw Conclusion

6|Page
Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

Null and Alternative Hypothesis.

Null (H0) Alternative (HA)


▪ State the hypothesized value of ▪ All possible alternatives other than the
the parameter before sampling. null hypothesis.

Population mean µ = 20
µ ≠ 20

µ ≥ 20
µ > 20

µ ≤ 20
µ < 20
▪ Ex: There is no difference
between Coke and Diet Coke ▪ Ex: There is a difference between
Coke and Diet Coke

Note: If you are conducting a research study and you want to use a hypothesis test to support your
claim, the claim must be stated in such a way that it becomes the alternative hypothesis, so it
cannot contain the condition of equality.

Two Types of Alternative Test


1. One - tailed test.
• Left-tailed: If primarily concerned with deciding whether the true value of a parameter
is less than a specified value, then the test should be left-tailed.
• Right-tailed: If primarily concerned with deciding whether the true value of a
parameter is greater than a specified value, then we should use the right-tailed test.

2. Two - tailed test. If we are primarily concerned with deciding whether the true value of a
population parameter is different from a specified value, then the test should be two-tailed.

Significance level refers to the percentage of sample means that it's outside certain
prescribed limits.
▪ A test of significance is a problem of deciding between the null and the alternative hypotheses
based on the information contained in a random sample.
▪ The goal will be to reject Ho in favor of H A, because the alternative is the hypothesis that the
researcher believes to be true. If we are successful in rejecting H o, we then declare the
results to be “significant”.

Note: It is important to note that we want to set (α) before we start our study because the Type I
error is the more ‘grievous’ error to make. The smaller (α) is, the smaller the region of rejection.

7|Page
Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

Types of Error
Decision Ho is actually
TRUE
FALSE
Retain Ho Type I Error
(false positive)
Correct

Reject Ho
Type II Error
Correct
(false negative)

P-Value is the smallest level of significance at which Ho will be rejected based on the
information contained in the sample. It is commonly generated by statistical software.

Decision rule: Reject Ho if the p-value is less than or equal to the level of significance (α)

Example of Making Decisions Using The P-Value


▪ If the level of significance α = 0.05 and p-value is 0.01, reject Ho.
▪ If the level of significance α = 0.05 and p-value is 0.05, reject Ho.
▪ If the level of significance α = 0.05 and p-value is 0.10, do not reject Ho.

Hypothesis Testing on Two Populations


The point estimator of the difference between the means of the populations 1 and 2 is 𝑥̅₁ − 𝑥̅₂
Let 𝜇₁ be the mean of population 1 and 𝜇₂ be the mean of population 2

To estimate 𝜇₁ − 𝜇₂ we select two random and independent samples:


a sample of size 𝑛₁ from population 1 and a sample of size 𝑛₂ from population 2
Let 𝑥̅₁ be the mean of sample 1 and 𝑥̅₂ be the mean of sample 2

Inference based on CI for 𝜇₁ − 𝜇₂


▪ If confidence interval contains only negative values, then we can conclude that 𝜇₁ − 𝜇₂ < 0
and 𝜇₁ < 𝜇₂ (with confidence c)
▪ If confidence interval contains only positive values, then we can conclude that 𝜇₁ − 𝜇₂ > 0
and 𝜇₁ > 𝜇₂ (with confidence c)
▪ If confidence interval for 𝜇₁ − 𝜇₂ contains zero, then we cannot say which is larger.

The (1 – 𝛼) • 100% confidence interval for the difference of two means:

Independent sampling allows the following substitution:

8|Page
Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

Example:
You’re a financial analyst for an investment firm. You want to find out if there is a difference in
dividend yield between stocks listed in NYSE and NASDAQ. You collect the following data:

Provide 95% confidence interval for the difference in yield.

Solution:
95% Confidence Interval:

Reporter: Jhana B. Juan

Large sample hypotheses tests for 𝜇₁ − 𝜇₂

Hypothesis testing is a crucial concept in statistics, especially when comparing two


population means, denoted as 𝜇₁ and 𝜇₂. When conducting hypothesis tests for large samples, it’s
essential to understand the difference between one-tailed and two-tailed tests.

In a one-tailed test, the null hypothesis (Ho) states that the difference between the population
means, (𝜇₁ − 𝜇₂), is greater than or equal to 0, while the alternative hypothesis (Ha) suggests that
the difference is less than 0. On the other hand, in a two-tailed test, the null hypothesis states that
the difference between the population means is equal to 0, and the alternative hypothesis suggests
that the difference is not equal to 0.

To perform these tests, using a test statistic, denoted as z, which is calculated using

the formula , where x̄₁ and x̄₂ are the sample means, and 𝜎(x̄ ₁ − x̄ ₂) is the standard
deviation of the sampling distribution of the difference between sample means.

In a one-tailed test, the rejection rule is , where is the critical value corresponding to
the chosen level of significance. In a two-tailed test, the rejection rule is .

9|Page
Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

Example:
You’re a financial analyst for an investment firm. You want to find out if there is a difference in
dividend yield between stocks listed in NYSE and NASDAQ. You collect the following data:

Is there a significant difference in average yield?

Test Statistic:

Decision:
Reject Ho at 𝛼 = 0.05

Conclusion:
There is an evidence of a difference in average dividend
Yield between stocks listed on NYSE & NASDAQ

Small sample hypotheses tests for 𝜇₁ − 𝜇₂ (equal variances)

In comparing the means of two independent populations, a common scenario is testing the
difference between two population means, 𝜇₁ and 𝜇₂, assuming equal variances.

In the context of a one-tailed test, we set up the null hypothesis Ho :(𝜇₁ − 𝜇₂) ≥ 0 and the
alternative hypothesis Ha :(𝜇₁ − 𝜇₂) < 0 . This indicates our interest in determining if the mean of the
first population is significantly less than the mean of the second population.

To conduct this hypothesis test, we calculate the test statistic using the

formula .Here, x̄₁ and x̄₂ represent the sample means,


is the pooled variance, and n₁ and n₂ are the sample sizes.

The decision to reject the null hypothesis is based on the rejection rule, which states that if
the calculated t-value is less than the critical value -𝑡a, we reject the null hypothesis in favor of the
alternative hypothesis. Alternatively, for a two-tailed test, if the absolute value of the t-value is less
than 𝑡a/2, we reject the null hypothesis.

Example:
As a director of training for your company, you are interested in determining whether different
training methods have an effect on productivity. You randomly assign 42 newly hired employees
into two groups of 21. The first group received a computer-assisted, individual-based training. The
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Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

other group received a face-to-face team-based training. Upon completion of the training the
employees were evaluated on their performance (measured in time to perform a task).

Assuming equal variances, is there evidence of a difference in performance between employees


trained in a computer-assisted program and those trained in a team-based program?

Test Statistic:
t = 2.14

Decision:
Reject Ho at 𝛼 = 0.05

Conclusion:
There is evidence of difference in performance between employees
trained in a computer-assisted program and those trained in a team
based program.

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Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

Comparing two population proportions

When comparing two population proportions, it is essential to consider various statistical


measures to draw meaningful conclusions. The mean of the sampling distribution of (𝑝̂₁ − 𝑝̂₂)
serves as an unbiased estimator of (𝑝₁ − 𝑝₂). This calculation provides insight into the difference
between the two population proportions, allowing for a comparative analysis.

Moreover, the standard deviation of the sampling distribution of (𝑝̂₁ − 𝑝̂₂) is determined by the

formula , where 𝑝₁ and 𝑝₂ represent the proportions of the populations, q₁ and


q₂ are the complementary probabilities, and n₁ and n₂ denote the sample sizes.

This normality assumption is crucial for conducting hypothesis tests and making inferences
about the population proportions accurately.

Therefore, by understanding the statistical concepts and calculations involved in comparing


two population proportions, researchers and analysts can make informed decisions based on
reliable and factual data, ensuring the validity and significance of their findings.

Reporter: Kyla Joy M. Agustin

Confidence intervals are a useful statistical tool for estimating population parameters from
sample data. When dealing with proportions or percentages, such as the success rate in two
different groups, confidence intervals for the difference in proportions (p1 - p2) are frequently used.
These intervals define a range of values within which the true difference in proportions between
two populations is most likely to occur.

In this narrative report, we will look at confidence intervals for the difference between two
population proportions, denoted p1 - p2. We'll talk about confidence intervals and how they're
interpreted.

A confidence interval is a set of values that represent the expected range of values for the
true population parameter. The confidence interval for p1 - p2 estimates the likely range of the
proportional difference between two populations. The interval is typically expressed as "p1 - p2 ±
(Z * SE)", where Z represents the critical value for the selected level of confidence.
For example, if we construct a 95% confidence interval for p1 - p2, it means that if we
collect samples repeatedly and construct intervals in the same way, approximately 95% of those
intervals will contain the true difference between the proportions.

The sample sizes (n1 and n2) are critical in determining confidence intervals for p1 - p2. A
larger sample size generally results in a narrower confidence interval, which improves precision in
estimating the difference between population proportions. It is critical to ensure an adequate
sample size in order to obtain reliable and accurate estimates. In general, a larger sample size is
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Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

required when the expected difference between proportions is small or a higher level of confidence
is desired.

The level of confidence used determines the degree of certainty associated with the
estimated confidence interval. The commonly used levels of confidence are 90%, 95%, and 99%.
A higher confidence level implies a wider interval because it necessitates accounting for a greater
proportion of the potential sampling variability. It is critical to strike a balance between the desired
degree of confidence and the practical implications of interval width. A narrower interval provides
more precise estimates, but it may result in decreased confidence.

When comparing two confidence intervals for p1 - p2, overlapping intervals indicate that the
difference in sample proportions is not statistically significant. Non-overlapping intervals, on the
other hand, show that the two population proportions differ statistically significantly. It is important
to understand that statistical significance does not always imply practical significance. When
interpreting the results, it is important to consider the magnitude of the difference as well as the
context of the study.

When constructing confidence intervals for p1 - p2, the samples are assumed to be
independent and representative of their respective populations. Furthermore, it assumes that the
sampling distribution of the proportional difference can be approximated by a normal distribution,
which is true under certain conditions (for example, large sample sizes or proportions close to 0 or
1). It is critical to be aware of the assumptions and their potential impact on the reliability of the
confidence interval.

The formula for calculating the confidence interval is:

To calculate the sample proportions (p̂1 and p̂2), you need to determine the number of successes
in each sample and divide it by the corresponding sample size.

Here's the calculation process:


- Determine the number of successes in each sample:
Let's say you have a sample from Population 1 and Population 2. Count the number of

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

successes (events of interest) in each sample. Denote the number of successes in


Population 1 as x1 and in Population 2 as x2.

- Determine the sample sizes for each population: Identify the total number of individuals or
observations in each sample. Denote the sample size of Population 1 as n1 and of
Population 2 as n2.

- Calculate the sample proportions:


Divide the number of successes in each sample by the respective sample size.

The sample proportion for Population 1, denoted as p̂1, is calculated as:


p̂1 = x1 / n1
The sample proportion for Population 2, denoted as p̂2, is calculated as:
p̂2 = x2 / n2

By performing these calculations, you obtain the sample proportions (p̂1 and p̂2) for the two
populations.

On the other hand, to calculate the standard error (SE) for the difference between two sample
proportions (p1 - p2), you can use the following formula:

Here's a step-by-step explanation of how to calculate the standard error:


- Calculate the sample proportions (p̂1 and p̂2) as described earlier:
p̂1 = x1 / n1
p̂2 = x2 / n2

- Calculate the individual variances for each sample proportion:


Variance of p̂1 = (p̂1 * (1 - p̂1)) / n1
Variance of p̂2 = (p̂2 * (1 - p̂2)) / n2

- Sum up the variances of the sample proportions:


Sum of variances = Variance of p̂1 + Variance of p̂2
Take the square root of the sum of variances to obtain the standard error:

The standard error (SE) represents the standard deviation of the sampling distribution of
the difference between the two sample proportions.

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Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

Example:
Suppose you want to compare the proportions of male and female customers who made a
purchase on an online shopping platform. You collected data from a random sample of customers
and obtained the following results:
For males:
Sample size (n1): 200
Number of customers who made a purchase (x1): 140

For females:
Sample size (n2): 150
Number of customers who made a purchase (x2): 110

To calculate the confidence interval:


Calculate the sample proportions:
p̂1 = x1 / n1 = 140 / 200 = 0.7
p̂2 = x2 / n2 = 110 / 150 = 0.733

Calculate the standard error (SE):


SE = sqrt[(p̂1 * (1 - p̂1) / n1) + (p̂2 * (1 - p̂2) / n2)]
SE = sqrt[(0.7 * (1 - 0.7) / 200) + (0.733 * (1 - 0.733) / 150)]
SE ≈ 0.041

Determine the critical value (Z) for the desired confidence level. Let's assume a 95% confidence
level, corresponding to a Z-value of 1.96.

Calculate the margin of error (ME):


ME = Z * SE = 1.96 * 0.041 ≈ 0.08

Calculate the confidence interval:


Lower Bound: p1 - p2 - ME = 0.7 - 0.733 - 0.08 = -0.113
Upper Bound: p1 - p2 + ME = 0.7 - 0.733 + 0.08 = 0.047

Conclusion:
The resulting confidence interval is approximately (-0.113, 0.047). This means that, with
95% confidence, we estimate that the true difference in proportions between males and females
who made a purchase lies within this range.

Analyzing Confidence Intervals for p1 - p2


- If confidence interval contains only negative values, then we can conclude that 𝑝₁ −𝑝₂ <0
and 𝑝₁ <𝑝₂ (with confidence c)

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Office of the Vice President for Branches and Satellite Campuses
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- If confidence interval contains only positive values, then we can conclude that 𝑝₁ −𝑝₂ >0
and 𝑝₁ >𝑝₂ (with confidence c)
- If confidence interval for 𝑝₁ −𝑝₂ contains zero, then we cannot say which is larger.

Importance of Confidence Intervals for p1 - p2 in statistical analysis

Confidence intervals for the difference between two population proportions (p1 - p2) play a
crucial role in statistical analysis for several reasons

Estimating the True Difference: Confidence intervals provide an estimate of the range
within which the true difference in proportions between two populations is likely to fall.

Assessing Statistical Significance: Confidence intervals allow us to assess the statistical


significance of the observed difference between two proportions. If the confidence interval does not
include zero, it suggests that the observed difference is statistically significant, indicating that there
is strong evidence to support a true difference between the populations.

Comparing Hypotheses: Confidence intervals help in comparing hypotheses and making


informed decisions. By comparing the confidence interval to a null value (e.g., zero), we can
evaluate whether the observed difference is statistically different from the null hypothesis.

Assessing Precision: The width of the confidence interval reflects the precision of our
estimate. A narrower interval indicates more precise estimation, while a wider interval suggests
greater uncertainty.

Communicating Results: Confidence intervals provide a concise and informative way to


communicate the uncertainty associated with the estimated difference in proportions.

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POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
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POSTTEST
Encircle the letter of the correct answer.

1. Statement 1: Estimating and interpreting the difference between two population


proportions (p1 - p2) enables comparative analysis, hypothesis testing, informed decision-
making, and contributes to research and theory development.
Statement 2: It provides valuable insights into population differences and helps to make
data-driven conclusions and informed choices in various fields.
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

2. Suppose you want to compare the proportion of customers who prefer Product A (p1) to the
proportion of customers who prefer Product B (p2). You collect a random sample of 200
customers who have tried both products and find that 120 of them prefer Product A and 80
prefer Product B. Construct a 95% confidence interval for the difference in proportions.
A. (0.464, 0.374)
B. (0.113, 0.287)
C. (0.345, 0.768)
D. (0.729, 0.876)

3. Suppose you compare the effectiveness of two different treatments (Treatment A and
Treatment B) for a medical condition. You randomly assign 500 patients to receive
Treatment A and another 500 patients to receive Treatment B. After the treatments, you
observe that 150 patients in Treatment A group show improvement, while 120 patients in
Treatment B group show improvement. Construct a 90% confidence interval for the
difference in proportions.
A. (0.012, 0.108)
B. (0.985, 0.753)
C. (0.348, 0.862)
D. (0.372, 0.753)

4. Statement 1: A null hypothesis states the hypothesized value of the parameter before
sampling.
Statement 2: An alternative has all possible alternatives other than the null hypothesis.
A. Statement 1 false; Statement 2 true
B. Statement 1 true, Statement 2 false
C. Both statements are incorrect
D. Both statements are correct

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Office of the Vice President for Branches and Satellite Campuses
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5. An example of making decisions using the P-Value EXCEPT:


A. If the level of significance α = 0.05 and p-value is 0.01, reject Ho.
B. If the level of significance α = 0.05 and p-value is 0.05, reject Ho.
C. If the level of significance α = 0.05 and p-value is 0.10, do not reject Ho.
D. None of the above

6. The refers to the percentage of sample means that it's outside certain
prescribed limits.
A. Significance Level
B. Point estimator
C. Error
D. P-Value

7. Statement 1: In a one-tailed test, the null hypothesis (Ho) states that the difference
between the population means, (𝜇₁ − 𝜇₂), is less than or equal to 0, while the alternative
hypothesis (Ha) suggests that the difference is more than 0.
Statement 2: In a two-tailed test, the null hypothesis states that the difference between the
population means is equal to 0, and the alternative hypothesis suggests that the difference
is not equal to 0.
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

8. Statement 1: In a one-tailed test of large sample hypotheses, the rejection rule is ,


where is the critical value corresponding to the chosen level of significance. In a two-
tailed test, the rejection rule is .
Statement 2: In small sample hypotheses, the mean of the sampling distribution of (𝑝̂₁ −
𝑝̂₂) serves as an unbiased estimator of (𝑝₁ − 𝑝₂).
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

9. Statement 1: Hypothesis testing is a crucial concept in statistics, especially when


comparing two population means, denoted as 𝜇₁ and 𝜇₂.
Statement 2: When conducting hypothesis tests for large samples, it’s essential to
understand the difference between one-tailed and two-tailed tests.
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

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Republic of the Philippines
POLYTECHNIC UNIVERSITY OF THE PHILIPPINES
Office of the Vice President for Branches and Satellite Campuses
SANTA MARIA BULACAN CAMPUS

10. Statement 1: The decision to reject the null hypothesis is based on the rejection rule, which
states that if the calculated t-value is more than the critical value -𝑡a, we reject the null
hypothesis in favor of the alternative hypothesis.
Statement 2: For a two-tailed test, if the absolute value of the t-value is more than 𝑡a/2, we
reject the null hypothesis.
A. Statement 1 true; Statement 2 false
B. Statement 1 false, Statement 2 true
C. Both statements are correct
D. Both statements are incorrect

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