LET’S

HAVE A
REVIEW
 WHAT IS A
PARAMETER?
Parameter is used to
describe the entire
population being studied.
 WHAT IS A
POPULATION?
A population is a set of all
people, objects, events, or
ideas wish to investigate.
 WHAT IS A
SAMPLE
MEAN?
A sample mean is an estimate
of the population mean. It is
the average of a set of data.
 WHAT IS A
POPULATION MEAN?
Population mean is an
average of a group
characteristic.
WHAT ARE THE TWO
TYPES OF
HYPOTHESIS?
Null and Alternative
Hypothesis
LET’S
PLAY
FOUR PICS ONE WORD
The objective of the game is to
recognize the words that the
pictures in this game correspond
to after the teacher flashes a set
of images on the screen (four
images each round).
 ESTT

ANSWER: TEST
 TREECJ

ANSWER: REJECT
PPN O O U ITAL

ANSWER: POPULATION
AFLOURM

ANSWER: FORMULA
 S C I TATT S I

ANSWER: STATISTIC
CONDUCTING
HYPOTHESIS
TEST BY
TRADITIONAL
METHOD
TEST STATISTIC
Test statistic is a statistic used in
statistical hypothesis testing,
provides a basis for testing a Null
Hypothesis. A test statistic is
random variable that is calculated
from sample data and used in a
hypothesis test.
TEST STATISTIC
The sample statistic is use
to either reject (null
hypothesis) or not to reject
(alternative hypothesis).
TYPES OF
TESTS
 Z - TEST
Use when the sample size is
greater than 30(n ≥30), or
when the population is
normally distributed and α is
known.
where:
z = z - test
= sample mean
µ = population mean
= population standard
deviation
n = sample size
T - TEST
t-tests are used when the
sample size is below 30 and
the population standard
deviation is unknown.
where:
t = t test
µ = population mean
= sample mean
s = standard deviation of the
sample
n = sample size
 EXAMPLE 1: DETERMINE THE TEST
STATISTIC TO BE USED AND IDENTIFY
WHETHER THE CENTRAL LIMIT THEOREM
IS APPLICABLE OR NOT GIVEN THE
FOLLOWING INFORMATION:

HO: μ = 250 HA: μ < 250 = 0.05

= 100 = 14

Since n=100, the Central Limit Theorem is

applicable, the distribution is normally
distributed. The appropriate test statistic is the z-
test statistic.
EXAMPLE 2: GIVEN THE FOLLOWING
DATA:
HO: μ = 400 HA: μ ≠ 400 = 0.01
=15 S = 21.5 = 390.
DETERMINE THE TEST STATISTIC.

Answer:
Since the population standard deviation is
unknown, and
n<30, the appropriate test statistic is the t-test.
STEPS IN CONDUCTING
HYPOTHESIS TEST
USING THE
TRADITIONAL METHOD

1. STATE THE NULL AND

ALTERNATIVE
HYPOTHESIS.
STEPS IN CONDUCTING
HYPOTHESIS TEST
USING THE
TRADITIONAL METHOD

2. SPECIFY THE LEVEL

OF SIGNIFICANCE.
STEPS IN CONDUCTING
HYPOTHESIS TEST
USING THE
TRADITIONAL METHOD

3. DETERMINE THE
CRITICAL VALUE.
STEPS IN CONDUCTING
HYPOTHESIS TEST
USING THE
TRADITIONAL METHOD

4. COMPUTE THE TEST

STATISTICS.
STEPS IN CONDUCTING
HYPOTHESIS TEST
USING THE
TRADITIONAL METHOD

5. DECISION RULE
STEPS IN CONDUCTING
HYPOTHESIS TEST
USING THE
TRADITIONAL METHOD

6. DRAW
A CONCLUSION.
 Rejecting the null hypothesis
doesn’t mean that it is incorrect or
the alternative hypothesis is
correct. The collected data
suggest a sufficient evidence to
disprove the null hypothesis,
hence we reject it.
 Similarly, a failure to reject the
null hypothesis does not mean
that it is true-only that the test did
not prove it to be false. There is
insufficient evidence to disprove
the null hypothesis; hence we do
not reject it.
EXAMPLE 1
A manufacturer claims that the
average lifetime of his light bulbs is 3
years or 36 months. The standard
deviation is 8 months. 50 bulbs are
selected, and the average lifetime is
found to be 32 months. Should the
manufacturer’s statement be rejected
at α = 0.01?
STEP 1
STATE THE NULL HYPOTHESIS

: μ = 36 months
: μ ≠ 36 months
STEP 2
LEVEL OF SIGNIFICANCE

α = 0.01
Thus
STEP 3
DETERMINE THE CRITICAL VALUES

Since α = 0.01, and it is two-

tailed, the critical values are
CV of z = 2. 575
 STEP 4
COMPUTE THE TEST-STATISTIC

Given: = 32, μ = 36 σ = 8 n= 50
STEP 5
DECISION RULE: REJECT THE
STEP 6
Conclusion:
Since -3.54 < -2.575, which falls
in the rejection region in the left
tail. Therefore, the average
lifetime of light bulbs of the
manufacturer is not 36 months.
 EXAMPLE 2
A researcher reports that the average
salary of College Deans is more than P
63,000. A sample of 35 College Deans
has a mean salary of P 65,700. At α=
0.01, test the claim that the College
Deans earn more than P63,000 a
month. The standard deviation is P
5,250.
STEP 1
STATE THE NULL HYPOTHESIS

μ ≤ P 63,000
μ > P 63,000
STEP 2
LEVEL OF SIGNIFICANCE

α= 0.01
STEP 3
DETERMINE THE CRITICAL VALUES

The critical value of z is 2.33 (it

is a one-tailed test, since it does
mention about the direction of the
distribution.
 STEP 4
COMPUTE THE TEST-STATISTIC

Given: = P 65,700, μ = P 63,000

σ = P 5,250 n= 35
STEP 5
DECISION RULE: REJECT THE
STEP 6
Conclusion:
Since we reject the null
hypothesis, we can conclude that
there is enough evidence to
support the claim that the monthly
salary of College Deans is more
than P 63,000.
 EXAMPLE 3
A water-treatment plant has a target pH
of 8.0. Based on 16 random water
samples, the mean is 7.6 with the
standard deviation of 0.4. Does the
sample come from a population whose
mean is the same as the target pH of 8.0?
Use 0.05 as the level of significance, two-
tailed test.
STEP 1
STATE THE NULL HYPOTHESIS

μ = 8.0
μ ≠ 8.0
STEP 2
LEVEL OF SIGNIFICANCE

α= 0.05
STEP 3
DETERMINE THE CRITICAL VALUES

The critical value of t is ±2.131.

 STEP 4
COMPUTE THE TEST-STATISTIC

Given: = 7.6 , μ = 8.0

s = 0.4 n= 16

t
STEP 5
DECISION RULE: REJECT THE

-4
-2.131 2.131
STEP 6
Conclusion:
Since we reject the null hypothesis,
we can conclude that the sample does
not belong to the population whose
mean is 8.0. Indeed, there is a
significant difference between the
means.