Fundamentals of Hypothesis Testing

and
tests for a population mean
(one sample)
Learning objectives
At the end of this session, you should be able to:
1. understand the definitions used in hypothesis testing;
2. state the null and alternative hypotheses;
3. state the five steps used in hypothesis testing using the critical value or
traditional method;
4. state the five steps used in hypothesis testing using the p-value method;
4. test means when the population standard deviation is known, using the z-test;
5. test means when the population standard deviation is unknown, using the t-
test.
Statistical hypothesis testing
A hypothesis is a claim, assumption or conjecture about a population parameter.
It may or may not be true.
*population mean

Example: The mean monthly allowance of students in this

university is 𝜇 = 𝑃ℎ𝑃 7,500.
*population proportion
Example: The proportion of adults who own a car in this city is
𝑝 = 55%.
Hypothesis testing is a decision-making process for evaluating claims about a
population.
 Types of statistical hypotheses: The
Null Hypothesis, H0
➢ This states that there is no difference between a parameter and a
specific value or that there is no difference between two
parameters.
➢ Always contains “=“, “” or “” sign.
Example: The mean monthly allowance of students in this
university is 𝑃ℎ𝑃 7,500.
𝐻0 : 𝜇 = 𝑃ℎ𝑃 7,500

➢ It is always about a population parameter, not about a sample

statistic.
Example:
𝐻0 : 𝜇 = 𝑃ℎ𝑃 7,500 𝐻0 : 𝑋ത = 𝑃ℎ𝑃 7,500

➢ It may or may not be rejected.

 Types of statistical hypotheses: The
Alternative Hypothesis, H1
➢ This states the opposite of the null hypothesis.
➢ Never contains “=“, “” or “” sign.

Example: The mean monthly allowance of students in this

university is not 𝑃ℎ𝑃 7,500.

𝐻0 : 𝜇 ≠ 𝑃ℎ𝑃 7,500
➢ It may or may not be proven.
Common phrases for hypotheses
“=“ “≠“
Is equal to Is not equal to
Is the same as Is different from
Is not different from Has changed from
Has not changed from Is not the same as

“>“
Is greater than
Is above
““
Is higher than
Is at least
Is larger than
Is increased
Is better than

“<“
Is less than
Is below
““
Is lower than
Is at most
Is smaller than
Is decreased
State the null and alternative hypotheses.

 The average age of taxi drivers in Manila is 36.3 years.

 The average monthly income of nurses in the US is PhP
155,000.
 The average score of students in IACC Quiz 1 is at least 73.
 The average pulse rate of female joggers is less than 72
beats per minute.
 The average bowling score of people who enrolled in a basic
bowling class is less than 100.
 The average cost of a basic smartphone is P4,500.
 The average number of calories of brand A’s low-calorie
meals is at most 300.
 The average weight loss of people who use brand A’s low-
calorie meals for six weeks is at least 3.6 pounds.
State the null and alternative
hypotheses:
 A statistician learned that at most 77% of the populations
oppose replacing P5 bills with P5 coins. To see if this claim is
valid, the statistician selected a sample of 80 people and
found that 55 people were opposed to replacing P5 bills.
What can be concluded?
 Twenty Accountancy majors were administered with a test on
self-image. Their scores have a mean of 89 and a standard
deviation of 23. If in general, student scores on this test are
approximately normal with a mean of 81, can we conclude
that the Accountancy majors have a better self image than
other students?
Hypothesis testing

 We assume that the null hypothesis is true.

 If the null hypothesis is rejected, we have proven the

alternative hypothesis.

 If the null hypothesis is not rejected, we have proven nothing as

the sample size may have been too small.
Hypothesis testing process - mean

 State the hypotheses about the population mean.

 Gather data from a sample of the population.
 Use the data obtained from a sample to make a decision
about whether the null hypothesis should be rejected. This
is called a statistical test.
 The numerical value computed from a statistical test is
called the test value or the test statistic.
The test statistic and critical values

 If the sample mean is close to the hypothesized value of

the population mean, the null hypothesis is not
rejected.
 If the sample mean is far from the assumed population
mean, the null hypothesis is rejected.
 How far is “far enough” to reject the null hypothesis is
determined by the level of significance, .
Level of significance, 

 It defines the unlikely values of the sample statistic

if the null hypothesis is true.
 It defines the rejection or critical region of the
sampling distribution.
 Typical values used are 0.01, 0.05 and 0.10.
 It is selected by the researcher before sampling.
 It also provides the critical value of the test.
Possible outcomes of a hypothesis test

 We reject the null hypothesis when it is true. This would

be an incorrect decision and would result to a Type I
error.
 We reject the null hypothesis when it is false. This would
be a correct decision.
 We do not reject the null hypothesis when it is true. This
would be a correct decision.
 We do not reject the null hypothesis when it is false. This
would be an incorrect decision and would result to a Type
II error.
Errors in decision making

 A Type I error occurs when we reject the null hypothesis when it is true.
 A Type II error occurs when we do not reject the null hypothesis when it is
false.

The level of significance, , is the maximum probability of

committing a Type I error. That is, P Type I error = α.

The probability of committing a Type II error is denoted by .

That is, P Type II error = .

Type I and Type II errors can not happen at the same time.
Level of significance and critical region
 The critical or rejection region is the range of test
values that indicates that there is a significant difference
and that the null hypothesis should be rejected.
 The noncritical or non-rejection region is the range of
test values that indicates that the difference was
probably due to chance and that the null hypothesis
should not be rejected.
 The critical value separates the rejection region from
the non-rejection region. This value is determined based
on the level of significance, .
Hypotheses and type of test

The alternative hypothesis determines the type of test

(two-tailed, left-tailed or right-tailed) as well as the rejection
region.

Hypotheses Two-tailed Left-tailed Right-tailed

𝐻0  = 𝑜  ≥ 𝑜  ≤ 𝑜
or or
 = 𝑜  = 𝑜
𝐻1  ≠ 𝑜  < 𝑜  > 𝑜

where 𝑜 is the hypothesized value of the population mean.

Level of significance, type of test and
rejection region
Type of test Critical value 𝐶𝑟𝑖𝑡𝑖𝑐𝑎𝑙 𝑅𝑒𝑔𝑖𝑜𝑛

Two-tailed −𝑧𝛼 and +𝑧𝛼

2 2

Left-tailed −𝑧𝛼

Right-tailed +𝑧𝛼
Hypothesis tests for the Mean

Hypothesis tests
for 

 Is known  Is unknown
-use z-test -use t-test
-use normal distribution -use Student’s t-distribution
Hypothesis tests for :  is known

➢ If the population standard deviation is known, use the z-test.

➢ The z-test is a statistical test which can be used when
➢ the population standard deviation  is known.
➢ the sample size is n  30.
➢ The population is normally distributed even if n < 30.
Hypothesis tests for :  is known

➢ The formula for the z-test is:

𝑋ത − 𝜇
𝑍=
𝜎Τ 𝑛

where: 𝑋ത is the sample mean

 is the hypothesized value of the population
mean
 is the population standard deviation
𝑛 is the sample size
Hypothesis test : Traditional method or critical
value approach
1. State the hypotheses and identify the claim. The hypotheses can be
structured in one of three ways:

2. Compute the test value or test statistic.

𝑋ത − 𝜇
𝑍=
𝜎Τ 𝑛
Hypothesis test : Traditional method
3. Find the critical value (refer to Area under normal curve table). Identify the
critical or rejection region.

4. Make the decision.

5. Summarize the results/make the conclusion.

Hypothesis test : Traditional method
How to find critical values for specific values of :
1. Draw the figure and indicate the appropriate area.
a. If the test is left-tailed, the rejection region, with an area equal to , will
be at the left tail of a normal curve.
b. If the test if right-tailed, the rejection region, with an area equal to ,
will be at the right tail of a normal curve.
c. If the test is two-tailed, divide  by 2; one half of  will be at the right
tail while the other half will be at the left tail of curve.
Hypothesis test : Traditional method
How to find critical values for specific values of :
2. Obtain the z-value from the table “Area under the normal curve”.
a. For a left-tailed test, use the z-value that corresponds to the area
equivalent to . Affix a negative sign to the z-value.
b. For a right-tailed test, use the z-value that corresponds to the area
equivalent to .
c. For a two-tailed test, use that z-value that corresponds to /2. Affix a
negative sign to the z-value at the left tail.
Find the critical values given in each
situation.
Draw the figure and shade the rejection region. Then, find the area of the
rejection region.
1. A right-tailed test with =0.05.
2. A two-tailed test with =0.10.
3. A left-tailed test with =0.001.
Find the critical values given in each
situation.
1. A right-tailed test with =0.05.
Find the critical values given in each
situation.
2. A two-tailed test with =0.10.
Find the critical values given in each
situation.
3. A left-tailed test with =0.001.
Example 1 using the traditional method
In a certain year, the mean math reasoning score in a national
achievement test was 515 with a standard deviation of 114. An
educator believes that students who take at least 4 years of English
courses in high school score better in the math reasoning test. She
obtains a random sample of 40 high school students who completed
at least 4 years of English courses in high school and finds that their
mean math reasoning in the test is 540. Is the educator’s belief
supported by the data? Use 0.05 level of significance.

Given:
𝜇 = 515,  = 114
𝑋ത = 540, 𝑛 = 40, 𝛼 = 0.05
Example 1

Solution:
1. H0 : 𝜇 = 515
H1 : 𝜇 > 515 (claim)
2. The z-test will be used since the population standard deviation is known.
Computed value of z:
540 − 515
𝑧𝑐𝑜𝑚𝑝𝑢𝑡𝑒𝑑 = = 1.39
114Τ 40
Example 1 using critical value approach

3. From the table, when  = 0.05, right-tailed, the critical value is 1.645. The
shaded region which corresponds to the rejection region is shown.

4. Decision: Since 𝑍𝑐𝑜𝑚𝑝 < 𝑍𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 , the null hypothesis is

not rejected.
Example 1 using critical value approach

5. Conclusion:
There is no sufficient evidence that students who take at least 4 years of English
courses in high school score better in the math reasoning test. The educator’s
belief is not supported.
Example 2 using the traditional method

A researcher claims that the yearly consumption of soft drinks

per person is 52 gallons. In a sample of 50 randomly selected
people, the mean of the yearly consumption was 53.3 gallons.
The standard deviation of the population consumption is 3.5
gallons. At the 0.05 level of significance, has the yearly
consumption changed?
Given:
𝜇 = 52 gals.,  = 3.5 gals.
𝑋ത = 53.3 gals, 𝑛 = 50, 𝛼 = 0.05
Example 2

Solution:
1. H0 : 𝜇 = 52
H1 : 𝜇 ≠ 52 (claim)

2. The z-test will be used since the population standard

deviation is known.
Computed value of z:
53.3 − 52
𝑧𝑐𝑜𝑚𝑝𝑢𝑡𝑒𝑑 = = 2.63
3.5Τ 50
Example 2

3. From the table, when  = 0.05, two-tailed, the critical value is 1.96. The
shaded region which corresponds to the rejection region is shown.

4. Decision: Since 𝑍𝑐𝑜𝑚𝑝 > +𝑍𝑐𝑟𝑖𝑡𝑖𝑐𝑎𝑙 , the null hypothesis is

rejected.
Example 2

5. Conclusion:
There is sufficient evidence that the yearly consumption of soft drinks per
person has changed.
Hypothesis test : p-value method

1. State the hypotheses and identify the claim. The hypotheses can be
structured in one of three ways:

2. Compute the test value or test statistic.

𝑋ത − 𝜇
𝑍=
𝜎Τ 𝑛
Hypothesis test : p-value approach
3. Use the Area under normal curve table to determine the probability or p-
value that corresponds to the computed value obtained in step 2.

The sum of the area in the The area at the left of the The area at the right of the
tails is the p-value. computed z is the p-value. computed z is the p-value.

−|𝑍𝑐𝑜𝑚𝑝 | |𝑍𝑐𝑜𝑚𝑝 | 𝑍𝑐𝑜𝑚𝑝 𝑍𝑐𝑜𝑚𝑝

4. Make the decision. If p-value < , reject 𝐻𝑜 .

5. Summarize the results/make the conclusion.
Hypothesis test : P-value approach
The P-value (or probability value) is the probability of getting a sample statistic
(such as the sample mean) or a more extreme sample statistic in the direction of
the null hypothesis when the null hypothesis is true.

In other words, the P-value is the actual area under the standard normal
distribution curve associated with the computed value of the test statistic.
Find the P-value given in each situation.
Draw the figure and shade the rejection region. Mark the position of the
computed value of z. Then, find the area associated with the computed value of
z.
1. Computed z = 3.18, right-tailed test with =0.05.
2. Computed z = 2.95, two-tailed test with =0.01.
3. Computed z = -1.25, left-tailed test with =0.01.
Example 3 using the p-value approach

In a previous study conducted years ago, a man owned

an average of 15 polo shirts. The standard deviation of
the population is 3. A researcher wishes to see if that
average has changed. He selected a ransom sample of
42 men and found that the average number of polo shirts
that they owned was 13.8. At the 0.05 level, is there
enough evidence to support the claim that the average
has changed?
Given:
𝜇 = 15 shirts.,  = 3 shirts
𝑋ത = 13.8 shirts, 𝑛 = 42, 𝛼 = 0.05
Example 3 using p-value approach

Solution:
1. H0 : 𝜇 = 15
H1 : 𝜇 ≠ 15 (claim)
2. The z-test will be used since the population standard deviation is known.
Computed value of z:
13.8 − 15
𝑧𝑐𝑜𝑚𝑝𝑢𝑡𝑒𝑑 = = −2.59
3Τ 42
Example 3 using p-value approach
3. In the table we are using, when the computed value is 𝑧 = −2.59, the
area is 0.4952. This value is subtracted from 0.50. Also, since this is a two-
tailed test, we will multiply the difference of 0.0048 by 2. The p-value is
(2)(.0048)=0.0096.
Example 3 using p-value approach

4. Decision: Since 𝑝 < , the null hypothesis is not rejected.

5. Conclusion:
There is sufficient evidence to support the claim that the average number of
polo shirts a man owns has changed.
Example 4 using the p-value approach

The mean salary of federal government employees on

the General Schedule is $59,593. The average salary of
30 randomly selected state employees who do similar
work is $59,886. The population standard deviation is
$1500. At the 0.01 level of significance, can it be
concluded that the state employees earn on average less
than federal employees?

Given:
𝜇 = $59,593,  = $1500
𝑋ത = $59,886, 𝑛 = 30, 𝛼 = 0.01
Example 4 using p-value approach

Solution:
1. H0 : 𝜇 = $59,593
H1 : 𝜇 < $59,886 (claim)
2. The z-test will be used since the population standard deviation is known.
Computed value of z:
59,886 − 59,593
𝑧𝑐𝑜𝑚𝑝𝑢𝑡𝑒𝑑 = = 1.07
1500Τ 30
Example 4 using the p-value approach
3. From the table, when the computed value is z = 1.07, the area is 0.3577.
Since this is a left-tailed test, this area will be subtracted from 0.50. We
obtain 0.1423. The p-value is 0.1423.
The shaded region which corresponds to the rejection region is shown.

P=0.1423

Z=1.07
Example 4 using the p-value approach

4. Decision: Since 𝑝 > , the null hypothesis is not rejected.

5. Conclusion:
There is no sufficient evidence that state employees earn, on the average, less
than the federal employees.
Hypothesis tests for :  is unknown

➢ If the population standard deviation is unknown, the sample

standard deviation, s, instead of the population standard deviation .
➢ As a results, the student’s t-distribution is used instead of the standard
normal distribution to hypothesis for a population mean.
➢ The t-test is a statistical test which can be used when
➢ the population standard deviation  is unknown.
➢ n < 30 and the population is normally distributed
Hypothesis tests for :  is unknown

➢ The formula for the t-test is:

𝑋ത − 𝜇
𝑡= , df = n − 1
𝑠Τ 𝑛
where: 𝑋ത is the sample mean
 is the hypothesized value of the population
mean
s is the sample standard deviation
𝑛 is the sample size
df is the degree of freedom
Hypothesis tests for :  is unknown

Assumptions:
➢ The sample statistic comes from a random sample
from a normal distribution.
➢ If the sample size is less than 30, use a box and
whisker plot or a normal probability plot to assess
whether the assumption of normality is valid.
➢ If the sample size is at least 30, the central limit
theorem applies and the sampling distribution of
the mean will be normal.
Bibliography:

 Fundamentals of Statistics 3rd Edition

Michael Sullivan III © 2011by Pearson Education Inc.

 Statistical Analysis with Software Applications

create®, © 2019 by McGraw-Hill Education