TESTS OF

HYPOTHESIS
Lesson 3: Test on Population Mean (Part 1)
LEARNING COMPETENCIES

At the end of the lesson, the learners should be able to:

 • Formulate appropriate null and alternative hypotheses on the population
mean
 • Identify the appropriate form of the test statistic on the population mean
when the population variance is assumed to be known
 • Identify the appropriate rejection region for a given level of significance
when the population variance is assumed to be known
 • Conduct the test of hypothesis on population mean when the population
variance is assumed to be known
 As a review, recall the steps of hypothesis testing procedure discussed in the
previous lesson. The following are the steps identified in the previous
lesson:

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. Using a simple random sample of observation, compute the value of the test
statistic.
4. Make a decision whether to reject or fail to reject Ho.
5. State the conclusion.
 Formulate the appropriate null and alternative hypotheses in real life problems. Through this,
you will be able to identify the population parameter of interest in the problem
Situation#1.

The father of a senior high school student is lists down the expenses he will incur when he
sends his daughter to the university. At the university where he wants his daughter to study, he hears
that the average tuition fee is at least Php20,000 per semester. He wants to do a test of hypothesis.

In this problem, the parameter of interest is the average tuition fee or the true population mean of
the tuition fee. In symbol, this parameter is denoted as µ. As applied to the problem, the appropriate
null and alternative hypotheses are:

 Ho: The average tuition fee in the targeted university is at least Php20,000. In symbols, Ho: µ ≥
Php20,000
 Ha: The average tuition fee in the targeted university is less than Php20,000. In symbols, Ha: µ
< Php20,000.
Situation #2.

The principal of an elementary school believes that this year, there would be more students from the
school who would pass the National Achievement Test (NAT), so that the proportion of students who
passed the NAT is greater than the proportion obtained in previous year, which is 0.75. What will be the
appropriate null and alternative hypotheses to test this belief?

 In this problem, the parameter of interest is the proportion of students of the school who passed the
NAT this year. In symbol, this parameter is denoted as P. As applied to the problem, the appropriate
null and alternative hypotheses are:

 Ho: The proportion of students of the school who passed the NAT this year is equal to 0.75. In
symbols, Ho: P = 0.75.

 Ha: The proportion of students of the school who passed the NAT this year is greater than 0.75. In
symbols, Ho: P > 0.75.
 The given example is pointing out the following.
• A statistical hypothesis is a statement about a parameter and deals with
evaluating the value of the parameter.

• The null and alternative hypotheses should be complementary and non-

overlapping.

• Generally, the null hypothesis is a statement of equality or includes the

equality condition as in the case of ‘at least’ (greater than or equal) or ‘at most’
(less than or equal).