CO QAH + MELC LW

Course Outline & Quality Assured HANDOUT No. 2

Hand-outs paired with MELC- Based in STATISTICS & PROBABILITY
Learner’s Worksheet

MELC: The learner…

 identifies the appropriate rejection region for a given level of significance when: (M11-IVc-1)
o the population variance is assumed to be known
o the population variance is assumed to be unknown; and
o the Central Limit Theorem is to be used.
 computes for the test-statistic value (population mean) (M11/12SP-IVd-1)
 draws conclusion about the population mean based on the test-statistics value and the rejection
region. (M11/12SP-IVd-2)

Semester: Second Quarter: Fourth Week No. 2

LESSON: TEST OF HYPOTHESIS

Topic 1: Identifying the Appropriate Rejection Region for a Given Level of Significance

The main purpose of statistics is to test theories or results from experiments. This type of statistical
testing is called hypothesis test. The rejection region (also called a critical region) is a part of the
testing process. Specifically, it is an area of probability that tells you if your theory (your “”hypothesis”) is
probably true.

In this lesson, you will identify the appropriate rejection region for a given level of significance when the
population variance is assumed to be known, the population variance is assumed to be unknown and the
Central Limit Theorem is to be used.

For your info……

Critical Value, Significance Level, and Rejection Region

Critical value
 is a point on the test distribution that is compared to the test statistic to determine whether to reject
the null hypothesis.
 Critical values for a test of hypothesis depend upon the test statistic, which is specific to the type of
the test and significance level (𝛼)
Significance level (𝛼)
 which defines the sensitivity of the test.
 A value of 𝛼 = 0.05 implies that the null hypothesis is rejected 5% of the time when it is in fact true
 In practice, the common values of α are 0.1, 0.05, and 0.01.

Critical Value of z-Distribution

 A critical value of z (Z-score) is used when the sampling distribution is normal or close to normal.
Z-scores
 are used when the population standard deviation is known or when you have larger sample sizes.
Table 1: Table of Critical Values (Z-Score)
Level of Significance
Test Type 𝛼 = 0.01 𝛼 = 0.025 𝛼 = 0.05 𝛼 = 0.10

left- tailed test -2.33 -1.96 -1.645 -1.28

right- tailed test 2.33 1.96 1.645 1.28

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 two- tailed test ±2.575 ±2.33 ±1.96 ±1.645

a) Left-tailed test: If the alternative hypothesis 𝐻𝑎 contains the less-than inequality symbol (<), the
hypothesis test is a left-tailed test.
b) Right-tailed test: If the alternative hypothesis 𝐻𝑎 contains the greater-than inequality symbol (>),
the hypothesis test is a right-tailed test.
c) Two-tailed test: If the alternative hypothesis 𝐻𝑎 contains the not-equal-to symbol (≠), the
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hypothesis test is a two-tailed test. In a two-tailed test, each tail has an area of 𝛼.
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Critical Value of t-Distribution

 The t-distribution table values are critical values of the t distribution. The column header is the t-
distribution probabilities (alpha). The row names are the degrees of freedom (df).

t distribution
 while the z-score can also be used to calculate probability for unknown standard deviations and
small samples. Many statisticians prefer using the t distribution to calculate these probabilities.

To find critical values for t-distribution:

1. Identify the level of significance.
2. Identify the degrees of freedom, d.f. = n -1.
3. Find the critical value using t-distribution in the row with n-1 degrees of freedom.

If the hypothesis test is:

a. left-tailed, use “α one tail” column with a negative sign.
b. right-tailed, use “α one tail” column with a positive sign.
c. two-tailed, use “α two tails” column with a negative and a positive sign.

Table 2: Critical Value Table for t – Distribution

α for one – tailed test 0.05 0.025 0.01 0.005
α for two – tailed test 0.10 0.05 0.02 0.01
df = (n – 1)
1 6.311 12.706 31.821 63.657
2 2.920 4.303 6.065 9.925
3 2.353 3.182 4.541 5.841
4 2.132 2.776 3.747 4.604
5 2.025 2.571 3.365 4.032
6 1.943 2.447 3.143 3.707
7 1.895 2.365 2.998 3.499
8 1.860 2.306 2.896 3.355
9 1.833 2.262 2.821 3.250
10 1.812 2.228 2.764 3.169
11 1.796 2.201 2.718 3.106
12 1.782 2.179 2.681 3.055
13 1.771 2.160 2.650 3.012
14 1.761 2.145 2.624 2.977
15 1.753 2.134 2.602 2.947
16 1.746 2.120 2.583 2.921
17 1.740 2.110 2.567 2.898
18 1.734 2.101 2.552 2.878
19 1.729 2.093 2.539 2.861
20 1.725 2.086 2.528 2.845
21 1.721 2.080 2.512 2.831
22 1.717 2.074 2.508 2.819
23 1.714 2.069 2.500 2.807
24 1.711 2.064 2.492 2.797
25 1.708 2.060 2.485 2.787
26 1.706 2.056 2.479 2.779
27 1.703 2.052 2.473 2.771
28 1.701 2.048 2.467 2.763

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 29 1.699 2.045 2.462 2.756
30 1.697 2.042 2.457 2.750

Examples:

A. Find the critical z values. In each case, assume that the normal distribution applies.
Answer
1. left-tailed test with α= 0.01 𝒛 = −𝟐. 𝟑𝟑 (based on the table of critical value of z)
2. two-tailed test with α=0.05 𝒛 = ±𝟏. 𝟗𝟔
3. right-tailed test with α=0.025 𝒛 = 𝟏. 𝟗6

B. Find the critical t-value of the following:

Answer
1. for a left-tailed test with α= 0.05 and n =21 𝒕 = −𝟏.𝟕𝟐𝟓 (based on the table of critical value of t)
2. for a right-tailed test with α=0.01 and n = 17 𝒕 = 𝟐.𝟓𝟖𝟑
3. for a two-tailed test with α=0.05 and n =26 𝒕 = ±𝟐.𝟎𝟔

Critical Regions/Rejection Regions

Critical region

 also known as the rejection region, describes the entire area of values that indicates you reject the
null hypothesis. In other words, the critical region is the area encompassed by the values not
included in the acceptance region.

 It is the area of the “tails” of the distribution. The “tails” of a test are the values outside of the critical
values. In other words, the tails are the ends of the distribution and they begin at the greatest or
least value in the alternative hypothesis (the critical values).

a. Rejection Region If Population Variance Is Known

 To determine the critical region for a normal distribution, we use the table for the standard normal
distribution.

Example:
 If the level of significance is  = 0.10, then for a one-tailed test,
the critical region is below 𝑧 = −1.28 or above 𝑧 = 1.28.

 For a two-tailed test, use  2 = 0.05,

the critical region is below 𝑧 = −1.645 and above 𝑧 = 1.645.

 If the absolute value of the calculated statistics has a value equal to or greater than the critical
value, then the null hypotheses 𝐻𝑜 should be rejected and the alternate hypothesis 𝐻𝑎 is assumed
to be supported.

b. Rejection Region If Population Variance Is Unknown

 To determine the critical region for a t-distribution, we use the table of the t-distribution.

Example:
(Assume that we use a t-distribution with 20 degrees of freedom.)

 If the level of significance is  = .10, then

for a one-tailed test, 𝑡 = −1.325 or 𝑡 = 1.325.

 For a two-tailed test, use /2 = 0.05 and then 𝑡 = −1.725 and 𝑡 = 1.725.

 If the absolute value of the calculated statistics has a value equal to or greater than the critical
value, then the null hypotheses 𝐻𝑜 will be rejected and the alternate hypotheses 𝐻𝑎 is assumed to
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 be correct.

c. The Central Limit Theorem 

 States that if the sample size is sufficiently large then the sampling distribution will be approximately
normally distributed for many frequently tested statistics


Hypothesis Test and Their Tails There are three types of test from a “tails” standpoint:

Examples: Determine the critical value and the appropriate rejection region.

1. Right - tailed test where σ is known,  = 0.05, and n = 34

Population z-value
Number Level of Test
Standard Test Type Inequality or
of Sample Significance Statistic
Symbol t - value
σ is known One - tailed n = 34  = 0.05 z - test ≥ + 1.645

Therefore: The rejection region for the given one – tailed test is z ≥ 1.645

2. Two – tailed test where σ is unknown,  = 0.05, and n = 10

Population z-value
Number Test
Standard Test Type Level of Significance Inequality or
of Sample Statistic
Symbol t - value
1 1
σ is Two - n = 10  = (0.05) =
2 2 t- test ≤t≥ ±2.262
unknown tailed df = n - 1 = 9
0.025

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 Therefore: The rejection region is - 2.262 ≤ t ≥ 2.262

3. Left – tailed test where σ is known,  = 0.01, and n = 40

Population z-value
Number Test
Standard Test Type Level of Significance Inequality or
of Sample Statistic
Symbol t - value
Left - n = 40
σ is known  = 0.01 z- test ≤ - 2.326
tailed

Therefore: The rejection region is z ≤ - 2.326

TOPIC 2: Computing for the Test-Statistics Value (Population Mean)

There are two specific test statistics used for hypothesis testing concerning means: z-test and t-test.

1. If the sample size is large, where 𝑛 ≥ 30 and the population standard deviation (𝜎) is known,
use z-test.

In finding the z-value, use the formula below:

x−u
z=
σ
√n
Where: x = sample mean μ = population mean
n = sample size σ = population standard deviation

2. On the other hand, t-test is used when n < 30, the population is normal or nearly normal, and
sample standard deviation (s) is unknown.

The formula for the t-value is:

x−u
t=
s
√n

DECISION RULE (For critical value method):

If zcomputed ≥ zcritical REJECT HO If tcomputed ≥ tcritical REJECT HO

zcomputed < zcritical DO NOT REJECT HO tcomputed < tcritical DO NOT REJECT HO

Example 1: Compute the z-value given the following information. Use one-tailed test and 0.05 level of

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significance.

x = 70 μ =71.5 σ= 8 n = 100

Solution:
x−u
z=
Find: z-value (Since σ is known and n ≥ 30, we will use z-test.) σ
√n
71.5−70
¿
8
√100
1.5
¿
8
10
1.5
¿
0.8
z = 1.875 Therefore, the computed z-value is 1.875

Note:

In Central Limit Theorem, the sample standard deviation (s) may be used as an estimate of the population
standard deviation (σ ¿ when the value of σ is unknown.

Consider the given examples below:

Example 2: In the past, the average length of an outgoing call from a business office has been 140
seconds. A manager wishes to check whether that average has decrease after the introduction of policy
changes. A sample of 150 telephone calls produced a mean of 135 second, with a standard deviation of 30
seconds. Perform the relevant test at 1% level of significance.

Solution:

Given: x = 135 μ = 140 s = 30 n = 150

Since n ≥ 30, we will use z-test by replacing σ with its estimate s.

Find: z-value

x−u
z=
s
√n
135−140
¿
30
√150
−5
¿
30
12.25

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 −5
¿
2.45
z = -2.041 Therefore, the computed z-value is -2.041

Example 3: Compute the t-value given the following information.

x = 129.5 μ = 127 s= 5 n = 12
Solution:

Find: t-value (Since σ is unknown and n < 30, we will use t-test.)

x−u
t=
s
√n
129.5−127
¿
5
√12
2.5
¿
5
3.44
2.5
¿
1.44
t = 1.736 Therefore, the computed t-value is 1.736

TOPIC 3: Drawing Conclusion about the Population Mean Based on the Test-Statistics Value
and the Rejection Region.
After obtaining the computed value of the test statistic, it is being compared to the critical values.
You will use the following tables on z- and t- critical value.

In general, if the absolute value of the computed value is greater than the absolute value of the
critical value, we reject the null hypothesis and support the alternative hypothesis. But if the absolute
value of the computed value is less than the absolute value of the critical value, we do not reject, or we
fail to reject the null hypothesis and the alternative hypothesis is not supported.

In a right-tailed test, if the computed value is greater than the critical value, we reject the null
hypothesis and support the alternative hypothesis. But if the computed value is less than the critical value,
we do not reject, or we fail to reject the null hypothesis and the alternative hypothesis is not supported.

In a left-tailed test, if the computed value is less than the critical value, we reject the null
hypothesis and support the alternative hypothesis. But if the computed value is greater than the critical
value, we do not reject, or we fail to reject the null hypothesis and the alternative hypothesis is not
supported.

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 an insufficient evidence to disprove the null hypothesis; hence we do not reject

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it.

STEPS IN TESTING HYPOTHESIS:

1) Determine Null Hypothesis (Ho) and Alternative Hypothesis (Ho)

2) Identify the Statistical Test to be used, the value of α, and the critical value of the test statistic.
3) Computation
4) Decision ( reject or not to reject)
5) Conclusion ( in non – technical terms)

Study the example below.

Example 1: Compute for its value given the following information. Use a = 0.05. Interpret the result.

Solution:

Step 1
Null Hypothesis (Ho) and H0: μ = 70
Alternative Hypothesis (Ha) Ha: μ > 70

one-tailed test (since it does mention about the direction of the distribution)

Step 2 Identify the Statistical z – test (Since σ is known and n ≥ 30)

Test to be used
x=71.5 μ = 70
σ =8 n = 100
a = 0.05, zcritical = 1.645 (see Table 1)

Step 3 Computation x−u

z=
σ
√n
71.5−70
¿
8
√100
1.5
¿
8
10
1.5
¿
0.8
z = 1.875

Step 4 Decision Reject the null hypothesis.

Step 5 Conclusion The computed z-value is 1.875 which is greater than the critical value of
1.645)

Example 2: Compute for its value given the following information. Use 𝛼=0.01. Interpret the result.

H0: μ = 127 x=124.5 μ = 127

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 Ha: μ < 127 s=5 n = 12
Solution:

Step 1
Null Hypothesis (Ho) and H0: μ = 127
Alternative Hypothesis (Ha) Ha: μ > 127

one-tailed test (since it does mention about the direction of the distribution)

Step 2 Identify the Statistical t – test (Since σ is known and n ≥ 30)

Test to be used
x=124.5 μ = 127
s=5 n = 12
a = 0.01, tcritical = 2.718 (see Table 2)

Step 3 Computation x−u

t=
σ
√n
−124.5−127
¿
5
√12
−2.5
¿
5
3.46
−2.5
¿
1.44
t = -1.736

Step 4 Decision Fail to reject the null hypothesis.

Step 5 Conclusion the computed t-value is greater than the t-critical value at 𝛼=0.01 (i. e.
−1.736>−2.718. Since we have a left-tailed test

Example 3: The government claims that P10,000 is the monthly expenses of a Filipino family with four
members. A sample of 26 families has mean monthly expenses of P10,900 and a standard deviation of
P1,250. Is there enough evidence to reject the government’s claim at 𝛼 = 2.5%?

Solution:

Step 1
Null Hypothesis (Ho) and H0: μ = 10,000
Alternative Hypothesis (Ha) Ha: μ > 10,000

one-tailed test (since it does mention about the direction of the distribution)

Step 2 Identify the Statistical t – test (Since σ is known and n ≥ 30)

Test to be used
x=10,900 μ = 10,000
s = 1,250 n = 26

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 a = 0.025, tcritical = 2.485 (see Table 2)

Step 3 Computation x−u

t=
σ
√n
10,900−10,00
¿
1,250
√26
900
¿
1,250
5.10
900
¿
245.10
t = 3.671

Step 4 Decision Reject the null hypothesis.

Step 5 Conclusion the absolute value of the computed t-value is greater than the absolute of
the critical t-value at 𝛼=0.025 (i.e. |3.671|> |2.485|

REFERENCES
ADM-Statistics & Probability,DepEd
Banigon, Ricardo, Maita G. Camilon, and Catalina B. Manalo. Statistics and Probability for Senior High School. Quezon City:
Educational Resources Corporation.
Belecina, R., Mean and Variance of the discrete random variable, Statistics and Probability, Rex Publishing: Manila
Belecina, Rene R., Baccay Elisa S.. Mateo, Efren B. Statistics and Probability: Rex Book Store First Edition.
https://www.khanacademy.org/

https://stattrek.com/probability-distribution/

www.//statisticshowto.com

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