Hypothesis Testing

• Hypothesis testing is a procedure used by statisticians to

determine whether or not to reject a statement about a
population.
• The ff. are steps for a hypothesis test for a population mean
when the variance is known and the population is assumed
to follow normal distribution.
• Step 1. State the null and the alternative hypothesis
• Step 2. Choose the level of significance
• Step 3. compute the test statistic
• Step 4. Determine the critical value or the p- value
• Step 5. Draw a conclusion
• The appropriate test statistic for testing a claim about a
population mean when the population variance is known and
n≥ 30 𝑖𝑠

𝑥−𝜇
• 𝑧= 𝜎
𝑛

• Where
• x= sample mean
• 𝜇 = Population Mean
• 𝜎 = Population Standard Deviation
• n= sample size
 Example 1
• The leader of the association of jeepney drivers claims that
the average daily is php. 400.00. A random sample of 100
jeepney drivers in pasay city was interviewed and the
average daily take home pay of these drivers id found to be
Php. 425 use a 0.05 significance level to find out if the
average daily take home pay of all jeepney drivers in pasay
city is different from Php. 400 assume that the population
variance is Php. 8464
 A. By critical Value Method
• Step 1. State the null and the alternative hypothesis
• Step 2. Choose the level of significance
• Step 3. compute the test statistic
• Step 4. Determine the critical value
• Step 5. Draw a conclusion
 B. By p-value method

• Step 1. State the null and the alternative hypothesis

• Step 2. Choose the level of significance
• Step 3. compute the test statistic
• Step 4. Determine the p value
• Step 5. Draw a conclusion