Ryan Jeffrey P. Curbano, Ph.D.

Department of Industrial Engineering

 Test on Single Mean
 Test on Single Proportion
 Test on Single Variance
 Hypothesis testing
➢Was introduced by Sir Ronald Fisher, Jerzy Newman,
Karl Pearson and Egon Pearson (Karl Pearson’s son)

➢It is a statistical method that is used in making

statistical decisions using experimental data.

➢Is basically an assumptions that we make about the

population parameter
 Traditional Method
◦ Widely used especially in statistics books
 P- value method
◦ Becomes popular since the advent of modern
computer and high powered statistical software's
 Confidence Interval
◦ Show the relationship of hypothesis testing
 STATISTICAL HYPOTHESIS
◦ Is a estimation about the population parameter. This is may
or may not be true
 Two types of Statistical Hypothesis
◦ Null Hypothesis
 Symbolized by Ho, is a statistical hypothesis testing that
assumes that the observation is due to a chance factor.
The null hypothesis show that there is no difference
between the two population means.
◦ Alternative Hypothesis
 Symbolized by H1 = is the opposite of the null hypothesis
it shows that observations are the result of a real effect. It
states there is a difference between two population
means
 Level of Significance
◦ Refers to the degree of significance in which we
accept or reject the null hypothesis. In hypothesis
testing, 100% accuracy is not possible for accepting
or rejecting a null hypothesis.
◦ Is the maximum probability of committing a Type 1
error, denoted as α (greek Alpha)
 Critical Values
◦ Is the value that separates the critical and non
critical region.
◦ Critical or rejection region – the range of values that
indicates that there is a significant difference and
the null hypothesis should be rejected.
◦ Non Critical region – range of values of the test
value that indicates that the difference was
probably due to chance and that the null hypothesis
should not be rejected
 ONE TAILED TEST
◦ Shows that the null hypothesis be rejected when
test value is in the critical region on one side of the
mean. Either a right tailed test or left tailed test.
 TWO TAILED TEST
◦ Shows that the null hypothesis should be rejected
when the test value is in either of the two critical
regions.
 Statistical Decision Ho = True H1 = False

Accept H0 Correct Decision Type 2 Error = β

Confidence = 1 -α
Reject H0 Type 1 error = α Correct Decision
Power = 1 -β

Type 1 Error – occurs if one reject the null hypothesis when it is True

Type II Error - if one does not reject the null hypothesis when it is
false
1. State the null hypothesis (H0) and alternative
hypothesis (H1 ).
2. Choose the level of significance α and sample size
3. Determine the test statistics and sampling
distribution
4. Determine the critical values that divide the
rejection and non rejection region
5. Collect the data and compute the value of the test
statistics
6. Make a statistical decision
7. State the conclusion
 P- Value or Probability Value
◦ Is the probability of getting a sample statistics or a
mean extreme sample statistics in the direction of
the H1 when the H0 is true.
◦ It is actual area under the standard normal
distribution curve representing the probability of a
particular sample of statistics or a more extreme
sample statistics occurring if the H0 is True.
 State the null hypothesis (Ho) and the alternative (H1 ).
 Choose the level of significance, α and the sample size.

 Determine the test statistics and sampling distribution.

 Compute the test value.

 Determine the P-value

 Make a statistical decision

 State the conclusion.

DECISION RULE
if P- value ≤ α, Reject H0 and if P –value > α, Accept Ho
Decision Rule
When the confidence interval contains the
hypothesized mean, Accept Ho

When the confidence interval does not

contain the hypothesized mean, Reject H
 Decision Rule
if Z computed < Z critical, Do not reject Ho
if Z computed ≥ Z critical, Reject Ho
 It is statistical test for the mean population. It
is used when n ≥ 30 or the population is
normally distributed and population Standard
Deviation is KnowN
 Formula
Where:

X = sample mean
μ = population mean
σ = population standard deviation
s = sample standard deviation
n = number of observation in a
sample
 Subjects are randomly selected
 Population distribution is normal
 The population should be known
 Cases of the samples should be independent.
 Sample size should be greater than or equal
to 30.
 A researcher reports that the average salary of Senior Engineer is
more than P63,000. A sample of 35 Senior Engineers has a mean
salary of P65,700. At α = 0.01, test the claim that the Senior
Engineers earn more than P63,000 a month. The standard deviation
of the population is P5,250
 A random sample of 100 recorded deaths in the United States
during the past year showed an average life span of 80 years.
Assuming a population standard deviation of 8.9 years, does this
seem to indicate that the mean life span today is greater than 70
years? Use a 0.05 level of significance
 A researcher claims that the monthly consumption of coffee per
person is less than 19 cups. In a sample of 35 randomly selected
people, the mean monthly consumption was 17. the standard
deviation of the sample was 4 cups. Find the p-value of the test on
the basis of p-value is the researchers claim valid at α = 0.01.
 It is statistical procedure that is used to know
the mean difference between the sample and
know value of the population mean. The
sample size should be less than 30
 Assumptions in One Sample t- test
◦ The population must be approximately normally
distributed
◦ Samples drawn from the population should be
random
◦ Cases of the samples should be independent
◦ Sample size should be less than 30
◦ The population mean should be known.
 Set up hypothesis
 Set the level of significance, calculate the
degree of freedom (df = n-1) and determine
the critical value of t
 Calculate the sample mean and sample
standard deviation for one sample t- test
 Calculate the value of the one sample t- test
 Statistical decision for hypothesis testing
◦ If t – computed < t critical, do not reject Ho
◦ If t – computed ≥ t critical, reject Ho
 State the conclusion
 X = sample mean
μ= population mean
s = sample standard
deviation
n = number of observation
in the sample
Df = n -1 df= degree of freedom

Confidence Interval
 One of the undersecretary of the Department of Labor and
Employment (DOLE) claims that the average salary of Manager is
P18,000. A sample of 19 Managersalary has a mean of P 17, 350
and standard deviation of P1,230. is there enough evidence to reject
the undersecretary’s claim at α = 0.01?
 The average family size in the Philippines was reported as 4.25. a
random of families in a particular street resulted in the following
family sizes: 5, 6,7,4,3,8,2 and 9. At α = 0.10, does the average
family size more than the national average?
 A researcher claims that 20 year old women on a special diet will
have an average weight of 110 pounds. A sample of 15 women has
an average weight of 112.5 pounds and a standard deviation of 5
pounds. At α = 0.01, can the claim be rejected? Find the 99%
confidence interval of the true mean
 The Edison Electric Institute has published figures on the number of
kilowatt hours used annually by various home appliances. It is
claimed that a vacuum cleaner uses an average of 46 kilowatt hours
per year. If a random sample of 12 homes included in a planned
study indicates that vacuum cleaners use an average of 42 kilowatt
hours per year with a standard deviation of 11.9 kilowatt hours, does
this suggest at the 0.05 level of significance that vacuum cleaners
use, on average, less than 46kilowatt hours annually? Assume the
population of kilowatt hours to be normal.
 A lot of hypothesis testing situations involve
proportions (proportion is the same as the
percentage of the population). This test can
be considered as a binomial experiment when
there are only two outcomes and probability
of success does not change from trial to trial
(the outcomes of each trial are independent)
 Subject are randomly selected
 Population distribution is normal
 Observation are dichotomous
 Set up hypothesis
 Set the level of significance and determine
the critical value of z
 Calculate the sample proportion
 Calculate the value of the one sample z test
for proportion
 Statistical decision for hypothesis testing
 State conclusion
 A recent survey done y Philippine Housing Authority found that 35%
of the population owns their homes. In a random sample of 240
heads of households, 78 responded that they owned their homes. At
the 0.01 level of significance, does that indicate a difference from
the national proportion?
 The professional organization for private colleges and universities professor
reported that more than 17% of professors attended a national convention in
the past year. To test this claim, a researcher surveyed 200 professor and
found that 45 had attended a national convention in the past year. At α =
0.05, test the claim that this figure is correct using P-value method.
 A commonly prescribed drug for relieving nervous tension is
believed to be only 60% effective. Experimental results with a new
drug administered to a random sample of 100 adults who were
suffering from nervous tension show that 70 received relief. Is this
sufficient evidence to conclude that the new drug is superior to the
one commonly prescribed? Use a 0.05 level of significance
 Formula
 A manufacturer of car batteries claims that the life of the company’s
batteries is approximately normally distributed with a standard
deviation equal to 0.9 year. If a random sample of 10 of these
batteries has a standard deviation of 1.2 years, do you think that σ
> 0.9 year? Use a 0.05 level of significance.
 The following are the weights, in decagrams, of 10 packages of
grass seed distributed by a certain company: 46.4, 46.1, 45.8, 47.0,
46.1, 45.9, 45.8, 46.9, 45.2, and 46.0. Find a 95% confidence
interval for the variance of the weights of all such packages of grass
seed distributed by this company, assuming a normal population.