STATISTICS and

PROBABILITY

Tests of
Hypothesis
Session Objectives:
At the end of the session, the participants
should be able to:
1.illustrate (a) null hypothesis, (b) alternative
hypothesis, (c) level of significance, (d)
rejection region, and
(e) types of errors in hypothesis testing
2. calculate the probabilities of committing a
Type I and Type II error
3. identify the parameters to be tested given
a real-life problem
Session Objectives:
4. formulate the appropriate null and
alternative hypotheses on a population
mean
5. identifies the appropriate form of test-
statistic when:
(a)the population variance is assumed to be
known
(b)the population variance is assumed to be
unknown
(c)the Central Limit Theorem is to be used
Session Objectives:
6. identifies appropriate rejection region for a
given level of significance when:
(a)the population variance is assumed to be
known
(b)the population variance is assumed to be
unknown
(c)the Central Limit Theorem is to be used
7. compute for the test-statistic value
8. draw conclusion about the population mean
based on the test-statistic value and the
rejection region
 Activity:
“Error Free Ka Ba?,
Test Ko Nga!”
Directions: Identify the error in each
question and write the appropriate one to
make the statement correct.
1.

Answer: Equate first to 0 before factoring.

x = 4, x = 1
3.
4.
5.
Answer: 0.10
Hypothesis Testing is a decision-
making process for evaluating
claims about a population based on
the characteristics of a sample
purportedly coming from that
population. The decision is whether
the characteristics is acceptable or
not.
P800,000

P800,000.
P800,000
P800,000
1.49
 THINK_PAIR_SHARE
Make your own statement where you

Null
can draw your

hypothesis and
Alternative hypothesis
More Examples:
1.The mean annual income of workers who
are college graduates is greater than
P100,000 a year.
2.The percentage of women who watches
sports on TV is not 40% as claimed by a
researcher.
3.A random sample of 60 working students
was taken in order to determine whether the
average age of working students different
from 19 years.
Answer:
DECISION RULE
-is a guide in making conclusions and
interpretations
Example 1: Person is judged as guilty when the
person actually did not commit the crime
(convicting an innocent person)
Answer: Type I
Example 2:Stephen’s Hairline
Stephen says that he is not bald. His hairline is just
receding. Is he committing an error? What type?
Answer: Yes. Type I error.
Example 3: Monkey-Eating Eagle Hunt
A man plans to go hunting the Philippine monkey-
eating eagle believing that it is a proof of his
mettle. What type of error is this?
Answer:
Hunting the Philippine eagle is prohibited by law.
Thus, it is not a good sport. It is a type II error.
One-tailed and Two-tailed Tests
 Critical value

Rejection region Acceptance region

Critical value

Rejection region
Acceptance region
Rejection region Rejection region

Acceptance region
Under the normal curve, the rejection region
refers to the region where the value of the test
statistic lies for which we will reject the null
hypothesis. This region is called critical region.
Table of Critical Values
For each of the given, do the following:
First, draw the normal curve.
Second, locate the z-value.
Third, indicate if the z-value is in the
rejection region or in the acceptance region.
1.Z = 2, 95%, 2-tailed
2.Z = -2.68, 95%, 2-tailed
3.Z = -1.8, 95%, one-tailed
4.Z = 1.33, 99%, one-tailed
5.Z = -4.0, 99%, 2-tailed
MAIKLING
PAGSUSUL
IT MUNA
1. An intelligent guess about the
characteristic of a population is
called:
A.Mean
B.Proportion
C.Hypothesis
D.Test statistics

Answer: C
2. The important numerical value in
hypothesis testing is:
A.parameter
B.Sample value
C.conclusion
D.interpretation

Answer: A
3. Under the normal curve, the
middle part represents:
A.Confidence level
B.Confidence interval
C.Acceptance region
D.All of these

Answer: C
4. When the confidence level is
95%, α is equal to:
A.0.01
B.0.10
C.0.05
D.0.5

Answer: C
5. Which of the following serves as a
guide in deciding whether to reject or
accept the null hypothesis?
A.Confidence Level
B.Decision Rule
C.Acceptance Region
D.Interpretation

Answer: B
6. Under the normal curve, when
lines are drawn through these
values, they separate the rejection
region from the acceptance region.
A.Confidence Coefficients
B.Computed Statistics
C.z-values
D.t-values

Answer: A
7. In a left-tailed test, α = .05, the
critical value of z is?
A.-1.645
B.-1.96
C.2.33
D.-2.58

Answer: B
8. In hypothesis testing, the
probability of committing an error in
rejecting a null hypothesis that is
true is denoted by:
A.α
B.β
C.z
D.t

Answer: A
9. When the confidence level is
99%, α is:
A.0.1
B.0.01
C.0.05
D.0.5

Answer: B
10. Which of the following best
represents a set of numerical data?
A.mean
B.proportion
C.variance
D.range

Answer: A
Hypothesis Testing About a Population
Mean When the Variance in Known
Hypothesis testing is a procedure
used by statisticians to determine
whether or not to reject a statement
about a population.
The following 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 alternative
hypotheses.
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.
Example 1: The leader of the association of
jeepney drivers claims that the average daily
take home pay of all jeepney drivers in Pasay
City is P400. A random sample of 100 jeepney
drivers in Pasay City was interviewed and the
average daily take home pay of all jeepney
drivers is found to be P425. 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 P400. Assume that the
population standard deviation is P92.
 Rejection region Rejection region
Acceptance region

½ p = 0.0033 ½ p = 0.0033

Therefore, p-value = 0.0066.

From z = 2.72 in the z-table (Areas under Normal Curve)
Is .4967 p-value = 2(.5000 – .4967) = 0.0066
Example 2: According to a study done last
year, the average monthly expenses for cell
phone loads of high school students in Manila
was P350. A Statistics student believes that
this amount has increased since January this
year. Is there a reason to believe that this
amount has really increased if a random
sample of 60 students has an average
monthly expenses for cell phone loads of
P380? Use a 0.05 level of significance.
Assume that the population standard is P77.
Z=3.02 has .4987
p=.5000-.4987
Example 3: The Head of the Math
Department announced that the mean score
of Grade 9 students in the first periodic
examination in Mathematics was 89 and the
standard deviation was 12. One student who
believed that the mean score was less than
this, randomly selected 34 students and
computed their mean score. She obtained a
mean score of 85. At 0.01 level of
significance, test the student’s belief?
Hypothesis Testing About a Population
Mean When the Variance in Unknown

where: x̄ = sample mean

𝜇 = population mean
s = standard deviation
n = sample size
Example: It was announced over the radio
that the average price of a kilogram of pork
liempo in Metro Manila is P195. However, a
sample of 15 prices randomly collected from
different markets in Metro Manila showed an
average of P200 and a standard deviation of
P9.50. Using a 0.05 level of significance, is
there sufficient evidence to conclude that the
average price of pork liempo in metro Manila
is more than P195? Normality is assumed
over the population.
Step 4: p-value
df = n – 1 = 15 – 1 = 14

Acceptance region

The computed t-value 2.038 with

df = 14 is between 1.761 and 2.145 under
The column headed 0.05(90%confidence coefficient) and
0.025(95%confidence coefficient), respectively.
This mean that 0.05>p>0.025
Step 5: Decision
Since the p-value < 0.05, reject the null
hypothesis. Using a 0.05 level of
significance, there is sufficient evidence to
conclude that the average price of pork
liempo in Metro Manila is more than P195.
 Test Concerning Proportion
The Central Limit Theorem states that if the
sample size is sufficiently large, then the
mean of the random sample from a
population has a sampling distribution that is
approximately normal, even when the
original population is not normally
distributed.
The CLT is not limited to sample means. It
can also be applied to sample proportion.
Example: It is believed that in the coming
election, 65% of the voters in the province of
Pampanga will vote for the administration
candidate for governor. Suppose 713 out of
the 1,150 randomly selected voters indicate
that they would vote for the administration
candidate. At 0.10 significance level, find out
whether the percentage of voters for the
administration candidate is different from
65%.