FOURTH QUARTER MODULE

BRIEF INTRODUCTION:
As we enter the fourth and final quarter of the school year, I would like to congratulate you in
advance. I hope your enthusiasm and passion for learning is still there despite our new mode of
learning amidst this COVID- 19 outbreak. In our Statistic and Probability class, we will focus on
Hypothesis Testing. In our topic, your prior knowledge in your previous lesson will still be used for
you to be able to cope with the given tasks/ activities. The tasks that you will need to accomplish
include problem solving sheets, essays, and brochure which will further enhance your mind. I hope
you will enjoy and learn a lot from our lessons!

WEEK 1: BASIC CONCEPT OF HYPOTHESIS TESTING

UNDERSTANDING HYPOTHESIS TESTING

The learner demonstrates understanding of key concepts of tests of

Content Standard hypotheses on the population mean and proportion
The learner is able to perform appropriate tests of hypotheses involving
Performance Standard the population mean and population proportion to make inferences in
real-life problems in different disciplines.
 Illustrates:
a. Null hypothesis
b. Alternative hypothesis
c. Level of significance
Most Essential Learning
d. Rejection region
Competencies (MELCs)
e. Type of errors in hypothesis testing
 Identifies the parameter to be tested given a real-life problem
 Formulate the appropriate null and alternative hypotheses on a
population mean
21st Century Learning
Critical thinking
Skills
Academically excellent, technologically adept
Core Values

REFERENCES:

A. Printed:
 Bataller, Ramil T., (2016), Math Activated: Engage Yourself and our world:
Statistics and Probability (Senior High School), Antonio Arnaiz cor. Chino Roces
Avenues, Makati City, Philippines, Don Bosco Press.
 Canlapan, Raymond B., (2016), DIWA Senior High School Series: Statistics and
Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.
 Albay, E. M., (2019), DIWA Senior High School Series (Second Edition):
Statistics and Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.

B. Online: https://www.youtube.com/watch?v=VK-rnA3-41c
https://www.youtube.com/watch?v=-FtlH4svqx4

Opening Prayer
Dear God, today we will be having our lesson. Help us remember all
that we have studied and learned. Give us a calm mind so we can be
able to think clearly and strengthen us to the rest. We promise to do our
best for the greater Glory of your Son Jesus Christ. Amen.

1
 TOPIC: UNDERSTANDING HYPOTHESIS TESTING
_________

INTRODUCTION:
One of our ultimate goals of every nation is to produce professions who will contribute to
scientific knowledge through research. In research investigation, hypothesis testing is a vital
procedure. It is making a decision whether to accept or reject a statement or the assumption about
some parameter in any research problem. From the result of the correct decision making, conclusions
are drawn in which facts are generated, and thus can contribution to a particular body of knowledge in
the fields of education, business, medicine, commerce, economics, and many others.

Below is the Learning Targets/ Specific Objective:

1. Understand the idea behind hypothesis testing

2. Define and formulate statistical hypothesis
3. Distinguish null hypothesis from alternative hypothesis
4. Formulate the appropriate null and alternative hypotheses on a population mean
5. Determine whether a hypothesis test is non-directional or directional
6. Determine whether a directional test is left tailed or right tailed

Exploration of Prior Knowledge

Directions: Fill in the K- W- H- L chart below to assess your prior knowledge and
understanding of the topic, Comparing the Sample Mean and the population mean in a
large sample size.

What I know What I Want to Find How can I Learn What I have Learned
Out More

Skills I expect to use:

PROCESS QUESTIONS/ FOCUS QUESTIONS:

Below are the key guide questions that you should remember as you perform all the activities in this
lesson. You should be able to answer them at the end of the week.
1. What is Hypothesis Testing?
2. What are we trying to achieve?
3. Why do we need to perform Hypothesis Testing?

SHORT EXERCISES/ DRILLS:

EXERCISE 1: Match each symbol in Column B with the correct term in Column A.
COLUMN A COLUMN B
1. Population mean a. x
2. Sample standard deviation b. s
3. Population standard deviation c. N
4. Sample size d. µ
5. Population size e. n
6. Sample mean f. σ

2
CONTENT DISCUSSION:
In this lesson, we will study the terminologies related to testing of hypothesis, how to calculate
the probabilities of committing a type I and type II error, hypothesis testing is about a population
mean when the variance is unknown, and hypothesis testing concerning proportions. Hypothesis
testing, the focal point of this unit, brings to light the role of research in discovering new knowledge
and breakthroughs in different fields of discipline.

TOPIC: HYPOTHESIS TESTING

In many cases, we formulate hypotheses or tentative statements to explain facts about a phenomenon
or situation based on available evidences. Suppose that there is a claim that the average monthly
income of Filipino families who belong to the low - income bracket is P8000 or less than P8000, or
greater than P8000. To find out whether our hypothesis is TRUE or FALSE, we can select a random
sample data, we can determine the average income of Filipino families. In other words, we can make
a generalization about the population, using a sample. This process is called HYPOTHESIS
TESTING.
A statistical hypothesis is a statement about the numerical value of a population parameter. It is a
statement or tentative assertion which aims to explain facts about a certain phenomenon. A
hypothesis needs to be resolved whether it is true or false. Thus, it must be subjected to statistical
testing procedure known as TEST OF HYPOTHESIS or HYPOTHESIS TESTING. If the
hypothesis is found to be TRUE, it is accepted, if it is found to be false, it is rejected.
Two kinds of hypothesis:
1. NULL HYPOTHESIS- denoted by Ho; is a statement that there is no difference between a
parameter and a specific value.
2. ALTERNATIVE HYPOTHESIS- denoted by Ha; is the opposite or negation of the null
hypothesis. It is a statement that there exists a difference between a parameter and specific
value.
Note: when we formulate the null or alternative hypothesis, we examine the claim or the conjecture
regarding the population parameter.
Question: How do we formulate the null hypothesis and alternative hypothesis for a given conjecture
or claim?
Example:
CLAIM:
The average monthly income of Filipino families who belong to low income bracket is
P8000
HO: The average monthly income of Filipino families who belong to low income bracket is
P8000 ( µ = 8000 )
Ha: The average monthly income of Filipino families who belong to low income bracket is
NOT P8000 ( µ ≠ 8000 )

***Notice that the null hypothesis is expressed through the use of the “equal” symbol while the
alternative hypothesis ix expressed by “not total” symbol because the claim/conjecture does not
specify any direction.

3
TYPE OF TEST
- A statistical test may either be directional (one-tailed) or non-directional (two-tailed). We can
determine whether a test is directional or non-directional by looking at how the alternative
hypothesis is expressed.

 DIRECTIONAL TEST
o A test of any statistical hypothesis where the alternative hypothesis is expressed, using
less than (<) or greater than (>) is called directional test since the critical or rejection
region lies entirely in one tail of the sampling distribution.
 NONDIRECTIONAL TEST
o A test of any statistical hypothesis where the alternative hypothesis is written with not
equal (≠) is called a nondirectional test or two-tailed test since there is no assertion
made on the direction of the difference. The rejection region is split into two equal
parts, one in each tail of the sampling distribution.

TYPES OF ERROR
In decision making, we sometimes make a wrong decision. Likewise, when we test a hypothesis,
there is a possibility that we shall also commit an error of accepting or rejecting the hypothesis. There
are two types of errors: TYPE I error and the TYPE II error
 TYPE I error- occurs when we reject the null hypothesis when it is true, it is also called
alpha error (α error ¿
 TYPE II error- occurs when we accept the null hypothesis when it is false. It is also called
the beta error ( β error ¿

4
LEVEL OF SIGNIFICANCE
The probability of committing Type I error is called the level of significance. It is denoted by the
Greek letterα . Thus, the value of α tells us the probability of making an error in rejecting the null
hypothesis when it is actually true. The choice for the value of the significance level is determined by
the researcher. This depends on the risk or degree of confidence the researcher is willing to take in
committing Type I error. The commonly used levels of significance are 0.05 and 0.01. The level of
significance should be set before testing the hypothesis.

Example:
A 0.01 level of significance means the researcher is willing to take 1% error in making a
decision. It also implies that he is 99% confident that he will make the right decision. Likewise a 0.05
level of confidence means that the researcher is willing to take 5% error in making a decision. It also
implies that he is 95% confident that he will make a right decision.

STEPS IN TESTING THE HYPOTHESIS

Whenever we test hypotheses, we follow these steps.
1. Identify the claim and formulate the null (H0) and the alternative (Ha) hypothesis
2. Set the level of significance and determine whether the test is one-tailed or two-tailed by
looking at how the alternative is expressed. Decide on the test statistic to be used and find the
critical value for the test. Draw or illustrate the rejection region.
3. Compute the test value, using the test statistic or formula for the test.
4. Make a decision whether to accept or reject the null hypothesis.
5. Formulate a conclusion by answering the research question.

ACCEPTING OR REJECTING THE NULL HYPOTHESIS

How do we decide on accepting or rejecting the null hypothesis? Follow these steps.
1. Determine the critical value, use the appropriate statistical tables.
2. Draw the rejection region and the critical value.
3. If the test value or the computed value falls in the rejection region, then reject the null
hypothesis; otherwise accept the null hypothesis.

Example 1:
Claim: The average weekly allowance of college students is less than P 1500.
Ho: The average weekly allowance of college students is P 1500.
Ha: The average weekly allowance of college students is less than P 1500.
This is directional test or one-tailed test. More specifically, this is a left-tailed test because the less
than symbol was used in expressing the alternative hypothesis. Thus the critical region or the
rejection region lies entirely in the left tail of the sampling distribution.

Example 2:
Claim: The average weekly allowance of college students is greater than P 1500.
Ho: The average weekly allowance of college students is P 1500.

5
Ha: The average weekly allowance of college students is greater than P 1500.
This is also a directional test or one-tailed test. More specifically, this is a right-tailed test because
the “greater than” symbol was used in expressing the alternative hypothesis. Thus the critical region
or the rejection region lies entirely at the right tail of the sampling distribution.

REVISED KNOWLEDGE: Actual answer to the process questions/ focus questions

1. What is Hypothesis Testing?

Hypothesis testing is a statistical tool or procedure that verifies a claim about a population.
2. What are we trying to achieve?
In hypothesis testing, it will help you to understand how hypothesis tests work by focusing on
concepts and graphs rather than equations and numbers.

3. Why do we need to perform Hypothesis Testing?

We need to perform hypothesis testing because it is one of the most important concepts in
statistics. It determines whether there is enough statistical evidence in favor of a certain belief, or
hypothesis, about a parameter.

FINAL KNOWLEDGE: Generalization/Synthesis/Summary

 DIRECTIONAL TEST
o A test of any statistical hypothesis where the alternative hypothesis is expressed, using
less than (<) or greater than (>) is called directional test since the critical or rejection
region lies entirely in one tail of the sampling distribution.
 NONDIRECTIONAL TEST
o A test of any statistical hypothesis where the alternative hypothesis is written with not
equal (≠) is called a nondirectional test or two-tailed test since there is no assertion
made on the direction of the difference. The rejection region is split into two equal
parts, one in each tail of the sampling distribution.

Closing Prayer
Dear God, thank you for the lesson today, it’s great to find out new things about your world.
It’s fun trying new skills and learning to read and write. Help us remember all we have learnt
today. We look forward to tomorrow and all the wonderful things we will be taught. Amen.

6
 WEEK 2: COMPARING THE SAMPLE MEAN AND THE POPULATION MEAN

The learner demonstrates understanding of key concepts of tests of

Content Standard hypotheses on the population mean and proportion
The learner is able to perform appropriate tests of hypotheses
Performance Standard involving the population mean and population proportion to make
inferences in real-life problems in different disciplines.
 Identifies the appropriate form of test statistic when:
o Population variance is assumed to be known
Most Essential Learning o Population variance is assumed to be unknown
Competencies (MELCs)
o The Central Limit is to be used

21st Century Learning Skills Critical thinking

Core Values Academically excellent, technologically adept

REFERENCES:

A. Printed:
 Bataller, Ramil T., (2016), Math Activated: Engage Yourself and our world:
Statistics and Probability (Senior High School), Antonio Arnaiz cor. Chino Roces
Avenues, Makati City, Philippines, Don Bosco Press.
 Canlapan, Raymond B., (2016), DIWA Senior High School Series: Statistics and
Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.
 Albay, E. M., (2019), DIWA Senior High School Series (Second Edition):
Statistics and Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.

B. Online: https://www.youtube.com/watch?v=mpkizZxqvM0

Opening Prayer

Lord God, bless our family today, keep us free from this COVID 19 virus. Stay with us always
Lord.

Below is the Learning Targets/ Specific Objectives:

1. Identifies the appropriate form of test statistic in a large sample size

2. Computes the test statistic in a large sample size with greater accuracy
3. Identifies the appropriate form of test statistic in a small sample size
4. Identifies the appropriate form of test statistic in a small sample size

Exploration of Prior Knowledge

Directions: Fill in the K- W- H- L chart below to assess your prior knowledge and
understanding of the topic, Comparing the Sample Mean and the population mean in
a large sample size.

What I know What I Want to Find How can I Learn What I have Learned
Out More

Skills I expect to use:

7
PROCESS QUESTIONS/ FOCUS QUESTIONS:

Below are the key guide questions that you should remember as you perform all the activities in this
lesson. You should be able to answer them at the end of the week.
1. How do you compare mean of the sample means and the mean of the population in a large
sample size?
2. How do you find the population mean from the sample mean?
3. What test can be used to test the difference between two sample means when the population
variance is known?

CONTENT DISCUSSION:
Population mean is the mean of sample values collected. Population mean is the mean of all the
values in the population. If the sample is random and sample size is large then the sample mean
would be a good estimate of the population mean.

TOPIC: COMPARING THE SAMPLE MEAN AND THE POPULATION MEAN IN A

LARGE SAMPLE SIZE

INTRODUCTION:
In many instances when we are testing the hypotheses, we want to find out if the mean
difference is statistically significant or not. The z-test can be used for this purpose. Generally, the z-
test is used when the following conditions are satisfied.
1. The population standard deviation is known or given.
2. The population standard deviation is unknown but the sample size is sufficiently large,(greater
than or equal to 30). In this case, we use the sample standard deviation (s) to replace the
population standard deviation.
The z-test of One-Sample Mean
- The z test of one sample mean is used when we want to test if the sample mean x differs
significantly from a population mean or the hypothesized mean µ. To illustrate, suppose that
the mean of the population is known to be µ0. If we take a random sample size n from this
population and obtain a sample x which is somewhat different from µ 0 , so there is a reason to
believe that there is significant difference between µ0 and x .
- The z-test of one sample mean is used to compare sample mean and population mean. We use
the z-score formula for the sample means because we are dealing with sample means. Thus ,
by the Central Limit Theorem we have
x−μ
z=
σx

σ
Where σ x =
√n
The formula can be written as
(x−μ) √ n
z=
σ
Where
x=mean of the sample
µ= mean of the population
n=sample size
σ = standard deviation of the population

8
Afterwards, we compare the test value of z against the critical value z by drawing the rejection region
in the sampling distribution. The table shows the critical values of z for the given type of test and
level of significance.

TYPE OF TEST LEVEL OF SIGNIFICANCE

α=0.01 α=0.05
ONE-TAILED ± 2.33 ± 1.65
TWO-TAILED ± 2.58 ± 1.96

EXAMPLE:
A new drug on the market is claimed by its manufacturer to reduce overweight women by 4.70 kg
per month with standard deviation of 0.91kg. Thirty - women chosen at random have reported losing
an average of 4.55 kg within a month. Does this data support the claim of manufacturer at 0.05 level
of significance?
Solution:
Step 1: Ho: The average weight loss per month using a new drug is 4.55 kg ( μ=4.55 ¿
Ha: The average weight loss per month using a new drug is not 4.55 kg μ ≠ 4.55 ¿
Step 2: Type of test
Two-tailed or non-directional test
α =0.05
Critical value is z= ± 1.96
Step 3: Compute the test value, using the formula or test statistic
Given:
x=4.55
μ=4.70
n=30
σ =0.91
Substitute the given values in the formula.

(x−μ) √ n
z=
σ

( 4.55−4.70) √ 30
z=
0.91

The test value or computed value is z= -0.90

TOPIC: COMPARING THE SAMPLE MEAN AND THE POPULAION MEAN IN A SMALL
SAMPLE SIZE
In using the z-test of one sample mean, we have made an assumption that the population
standard deviation is known or given. However, if σ is not known, we can still use the z-test by
replacing σ by s(sample standard deviation) provided that n≥ 30. What if σ is not known and n< 30?
We shall use the t-test of one sample mean for this situation. In chapter 4, we have already discussed
the t-distribution and how to get the critical values in the t-table.
When sample size is less than 30 and the population standard population is unknown, we use the
following formula to compare the sample mean and the population mean and the population mean.

x−μ ( x−μ ) √ n
z= ∨t=
s s
√n

9
Example:
The director of secretarial school believes that its graduates can type more than 75 words per minute.
A random sample of 12 graduates has been found to have an average of 77.2 words per minute with
standard deviation of 7.9 words per minute in a typing test. Using the 0.05 level of significance, test
the claim of the director.
Step 1: Formulate the null and alternative hypotheses
Ho: The average number of words that graduates can type is 75 words per minute
( μ=75¿
Ha: The average number of words that graduates can type is greater than 75 words
per minute(μ>75)
Step 2: Type of test
One -tailed or directional test
α =0.05
df=12-1=11 is t=1.796
Step 3: Compute the test value, using the formula or test statistic
Given:
x=77.2
μ=75
n=12
s=7.9

Substitute the given values in the formula.

( x−μ ) √ n
t=
s
(77.2−75) √ 12
z=
7.9

The test value or computed value is z= 0.96

REVISED KNOWLEDGE: Actual answer to the process questions/ focus questions

1. How do you compare mean of the sample means and the mean of the population in a large sample
size?
The sample mean is mainly used to estimate the population mean when population mean is
not known as they have the same expected value. Sample mean implies the mean of the sample
derived from the whole population randomly. Population mean is nothing but the average of the
entire group.

2. How do you find the population mean from the sample mean?
With a sample mean you can get an estimate of the population mean. According to the central
limit theorem, the sample means of random samples of size n approximately follow a normal
distribution.

3. What test can be used to test the difference between two sample means when the population
variance is known?
Z- Test can be used to test the difference between two sample means when the population
variance is known?

FINAL KNOWLEDGE: Generalization/Synthesis/Summary

10
When sample size is less than 30 and the population standard population is unknown, we use the
following formula to compare the sample mean and the population mean and the population mean.

x−μ ( x−μ ) √ n
z= ∨t=
s s
√n

Closing Prayer

We thank you for setting us at tasks which demand our best efforts, and for leading us to
accomplishments which satisfy and delight us.

11
 WEEK 3: TESTING A MEAN WHEN POPULATION VARIOUS IS KNOWN AND UNKNOWN

The learner demonstrates understanding of key concepts of tests of

Content Standard hypotheses on the population mean and proportion
The learner is able to perform appropriate tests of hypotheses involving
Performance Standard the population mean and population proportion to make inferences in
real-life problems in different disciplines.
 Identifies the appropriate rejection region for a given level of
significance when
Most Essential Learning o Population variance is assumed to be known
Competencies (MELCs) o Population variance is assumed to be unknown
o The Central Limit is to be used.

21st Century Learning

Critical thinking
Skills

Core Values Academically excellent, technologically adept

REFERENCES:

A. Printed:
 Bataller, Ramil T., (2016), Math Activated: Engage Yourself and our world:
Statistics and Probability (Senior High School), Antonio Arnaiz cor. Chino Roces
Avenues, Makati City, Philippines, Don Bosco Press.
 Canlapan, Raymond B., (2016), DIWA Senior High School Series: Statistics and
Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.
 Albay, E. M., (2019), DIWA Senior High School Series (Second Edition):
Statistics and Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.

B. Online: https://www.youtube.com/watch?v=BdeuCflLPQI

Opening Prayer

Lord, you shaped my life from nothing! You created me and saved me, and now I give You all
my trust and praise today. Continue to shape my life today according to your will! Amen.

TOPIC: TESTING A MEAN WHEN POPULATION VARIOUS IS KNOWN

INTRODUCTION:
Hypothesis testing is a procedure used by statisticians to determine whether or not to reject a
statement about a population.
Suppose that we are taking samples from a population that is normally distributed with respect
to some random variable X. What can we say about the sampling distribution of the sample mean?

Below is the Learning Targets/ Specific Objective:

1. Identifies the appropriate rejection region for a given level of significance
- Population variance is assumed to be known
2. Identifies the appropriate rejection region for a given level of significance
- Population variance is assumed to be unknown
12
 Exploration of Prior Knowledge
Directions: Fill in the K- W- H- L chart below to assess your prior knowledge and
understanding of the topic, Comparing the Sample Mean and the population mean in a
large sample size.

What I know What I Want to Find How can I Learn What I have Learned
Out More

Skills I expect to use:

PROCESS QUESTIONS/ FOCUS QUESTIONS:

Below are the key guide questions that you should remember as you perform all the activities in this
lesson. You should be able to answer them at the end of the week.

1. What test is used when a population variance is known?

2. When a hypothesis test is to be conducted regarding a population variance the test statistic will be?

SHORT EXERCISES/ DRILLS:

EXERCISE 1.
Directions: State the null and the alternative hypothesis of the given problem.
1. The Head of the P. E. Department of a certain high school claims that the mean height of
Grade 7 students is 163 cm. The mean height of 50 randomly selected grade 7 students is
161cm. Using 0.01 significance level, can it be concluded that the mean height of Grade 7
students is different from 163 cm as claimed by the Head of P.E department?
A.
B.

CONTENT DISCUSSION:
In this “Hypothesis Test for a Population Mean,” we will look at the four steps of hypothesis test
as they relate to a claim about a population mean. In this lesson, the value of the population means is
not the focus of inference. Instead, it develops tools for determining the relationship between known
and unknown population means.

The z-test of One-Sample Mean

- The z test of one sample mean is used when we want to test if the sample mean x differs
significantly from a population mean or the hypothesized mean µ. To illustrate, suppose that
the mean of the population is known to be µ0. If we take a random sample size n from this
population and obtain a sample x which is somewhat different from µ 0 , so there is a reason to
believe that there is significant difference between µ0 and x .
- The z-test of one sample mean is used to compare sample mean and population mean. We use
the z-score formula for the sample means because we are dealing with sample means. Thus ,
by the Central Limit Theorem we have
x−μ
z=
σx
13
 σ
Where σ x =
√n

The formula can be written as

(x−μ) √ n
z=
σ
Where
x=mean of the sample
µ= mean of the population
n=sample size
σ = standard deviation of the population

Afterwards, we compare the test value of z against the critical value z by drawing the rejection region
in the sampling distribution. The table shows the critical values of z for the given type of test and
level of significance.

Table A:
TYPE OF TEST LEVEL OF SIGNIFICANCE
α=0.01 α=0.05
ONE-TAILED ± 2.33 ± 1.65
TWO-TAILED ± 2.58 ± 1.96

EXAMPLE:
A new drug on the market is claimed by its manufacturer to reduce overweight women by 4.70 kg
per month with standard deviation of 0.91kg. Thirty - women chosen at random have reported losing
an average of 4.55 kg within a month. Does this data support the claim of manufacturer at 0.05 level
of significance?
Solution:
Step 1: Ho: The average weight loss per month using a new drug is 4.55 kg ( μ=4.55 ¿
Ha: The average weight loss per month using a new drug is not 4.55 kg μ ≠ 4.55 ¿
Step 2: Type of test
Two-tailed or non-directional test
α =0.05
Critical value is z= ± 1.96
Step 3: Compute the test value, using the formula or test statistic
Given:
x=4.55
μ=4.70
n=30
σ =0.91
Substitute the given values in the formula.

(x−μ) √ n
z=
σ

( 4.55−4.70) √ 30
z=
0.91

The test value or computed value is z= -0.90

14
TOPIC: COMPARING THE SAMPLE MEAN AND THE POPULATION MEAN IN A
SMALL SAMPLE SIZE
In using the z-test of one sample mean, we have made an assumption that the population
standard deviation is known or given. However, if σ is not known, we can still use the z-test by
replacing σ by s(sample standard deviation) provided that n≥ 30. What if σ is not known and n< 30?
We shall use the t-test of one sample mean for this situation. In chapter 4, we have already discussed
the t-distribution and how to get the critical values in the t-table.
When sample size is less than 30 and the population standard population is unknown, we use the
following formula to compare the sample mean and the population mean and the population mean.

x−μ ( x−μ ) √ n
z= ∨t=
s s
√n
Example:
The director of secretarial school believes that its graduates can type more than 75 words per minute.
A random sample of 12 graduates has been found to have an average of 77.2 words per minute with
standard deviation of 7.9 words per minute in a typing test. Using the 0.05 level of significance, test
the claim of the director.
Step 1: Formulate the null and alternative hypotheses
Ho: The average number of words that graduates can type is 75 words per minute
( μ=75¿
Ha: The average number of words that graduates can type is greater than 75 words
per minute( μ>75)
Step 2: Type of test
One -tailed or directional test
α =0.05
df=12-1=11 is t=1.796
Step 3: Compute the test value, using the formula or test statistic
Given:
x=77.2
μ=75
n=12
s=7.9

Substitute the given values in the formula.

( x−μ ) √ n
t=
s
(77.2−75) √ 12
z=
7.9

The test value or computed value is z= 0.96

REVISED KNOWLEDGE: Actual answer to the process questions/ focus questions

1. What test is used when a population variance is known?
Z Test is a statistical test to determine whether two population means ar different when the
variances are known. It also assumed the standard deviation is known.

2. When a hypothesis test is to be conducted regarding a population variance the test statistic will be?

15
 When a hypothesis test is to be conducted regarding a population variance, the test statistic
will be: X2 value from the chi- square distribution. If we are interested in performing a one- tailed,
upper- tail hypothesis test about a population variance where the level of significance.

FINAL KNOWLEDGE: Generalization/Synthesis/Summary

Table A:
TYPE OF TEST LEVEL OF SIGNIFICANCE
α=0.01 α=0.05
ONE-TAILED ± 2.33 ± 1.65
TWO-TAILED ± 2.58 ± 1.96

Closing Prayer
Father of Justice, you gifted us with your creation so that we can participate with it through
the works of our hands, heart, feet and intellect. Guide us as you did with your son Jesus
Christ, in our vocation may we build community and not hinder it. Amen.

16
 WEEK 4: TEST POPULATION MEAN

The learner demonstrates understanding of key concepts of tests of

Content Standard hypotheses on the population mean and proportion
The learner is able to perform appropriate tests of hypotheses involving
Performance Standard the population mean and population proportion to make inferences in
real-life problems in different disciplines.
 Computes for the test statistic value ( population mean)
 Draws conclusion about the population mean based on the test-
Most Essential Learning
statistic value and the rejection region
Competencies (MELCs)
 Solves problems involving test of hypothesis on the population
mean
21st Century Learning
Critical thinking
Skills

Core Values Academically excellent, technologically adept

REFERENCES:

A. Printed:
 Bataller, Ramil T., (2016), Math Activated: Engage Yourself and our world:
Statistics and Probability (Senior High School), Antonio Arnaiz cor. Chino Roces
Avenues, Makati City, Philippines, Don Bosco Press.
 Canlapan, Raymond B., (2016), DIWA Senior High School Series: Statistics and
Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.
 Albay, E. M., (2019), DIWA Senior High School Series (Second Edition):
Statistics and Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.

B. Online: https://www.youtube.com/watch?v=Hag0GW9B6EY

Opening Prayer

TALK with God, no breath is lost. WALK with God, no strength is lost. WAIT for God, no time
is lost. TRUST in God, you will never be lost. Amen.

TOPIC: TEST STATISTIC VALUE (POPULATION MEAN)

INTRODUCTION:
In this section, we discuss statistical tests concerning means: the z- test. The following is the
general formula used for the computation of the test statistic.

Computation of Test Statistic

Statistic −Parameter
Test Statistic=
Standard Error
17
 When doing a hypothesis testing for a mean, the observed value refers to the sample mean
while the expected value is the value of the population mean when the null hypothesis is assumed to
be true.

Below is the Learning Targets/ Specific Objective:

1. Computes for the test statistic value (population mean)

2. Draws conclusion about the population mean based on the test-statistic value and the rejection
region
3. Solves problems involving test of hypothesis on the population mean

Exploration of Prior Knowledge

Directions: Fill in the K- W- H- L chart below to assess your prior knowledge and
understanding of the topic, Comparing the Sample Mean and the population mean in a
large sample size.

What I know What I Want to Find How can I Learn What I have Learned
Out More

Skills I expect to use:

PROCESS QUESTIONS/ FOCUS QUESTIONS:

Below are the key guide questions that you should remember as you perform all the activities in this
lesson. You should be able to answer them at the end of the week.

1. How do you find the value of a test statistic?

2. What is the test statistic for testing?
3. What is the value of the test statistic explain in context?

CONTENT DISCUSSION:
This lesson encompasses the most essential learning competencies for Test Population
Mean- Computes for the test statistic value (population mean), draws conclusion about the
population mean based on the test-statistic value and the rejection region, solves problems
involving test of hypothesis on the population mean. It is designed to develop and enhance your
knowledge, skills and abilities in solving mathematical problem.

Example:

1. A researcher reports that the average salary of company managers is more than P 63 000. A sample
of 35 company managers has a mean salary of P 65 700. At α =0.01 , test the claim that the company
managers earn more than P 63 000 a month. The standard deviation of the population is P 5,250.

Solution:

18
Given:
x=P 65 700
μ=P 63 000
σ =P 5250
n=35

Step 1: State the hypotheses and identify the claim

Ho: μ=P 63 000
Ha: μ> P 63 000 (claim)
Step 2: The level of significance

α = 0.01
Step 3: The critical z value is 2.326
One-tailed test

Compute the one sample z test value

(x−μ) √ n
z=
σ

(65 700−63000) √ 35
¿
5250
z= 3.043

Step 4: Decision Rule:

Reject the null hypothesis at α = 0.01 since 3.043 > 2.326

Step 5: Conclusion:

Since we reject the null hypothesis, we can conclude that there is enough evidence
to support the claim that the monthly salary of company managers is more than P
63 000.

Example:

1. A sociologist believes that it cost more than P 90 000 to raise a child from birth to age one. A
random sample of 49 families, each with a child is selected to see if this figure is correct. The
average expenses for these families reveal a mean of P 92, 000 with standard deviation of P 4500.
Based on these sample data, can it be concluded that the sociologist is correct in his claim? Use 0.05
level of significance

Solution:

Step 1: State the hypotheses and identify the claim

Ho: μ=P 90 000
Ha: μ> P 90 000 (claim)
Step 2: The level of significance

19
 α = 0.05
Critical value z= ± 1.65
One tailed test
Step 3: The critical z value is 2.326
One-tailed test

Compute the one sample z test value

(x−μ) √ n
z=
σ

(92 000−90 000) √ 49

¿
4500
z= 3.11

Step 4: Decision Rule:

Reject the null hypothesis since it falls within the rejection region, therefore accept
the alternative hypothesis.

Step 5: Conclusion:

There is a significant difference between the sample mean and the population
mean. Thus, the sociologist is correct in claiming that the cost of raising a child
from birth to age one is more than P 90 000.

REVISED KNOWLEDGE: Actual answer to the process questions/ focus questions

Below are the key guide questions that you should remember as you perform all the activities in this
lesson. You should be able to answer them at the end of the week.

1. How do you find the value of a test statistic?

Generally, the test statistic is calculated as the pattern in your data, the correlation between
variables or difference groups divided by the variance in the data (i.e. the standard deviation)

2. What is the test statistic for testing?

A test statistic is selected or defined in such a way as to quantify, within observed data,
behaviors that would distinguish the null from the alternative hypothesis, where such an alternative is
prescribed, or that would characterize the null hypothesis if there is no explicitly stated alternative
hypothesis.

3. What is the value of the test statistic explain in context?

It provides a mechanism for making quantitative decisions about a process. It will determine
whether there is enough evidence to “reject” a conjecture or hypothesis about the process.

FINAL KNOWLEDGE: Generalization/Synthesis/Summary

Computation of Test Statistic

Statistic −Parameter
Test Statistic=
Standard Error

Closing Prayer
20
Lord, give us the courage to shout out from the mountaintops against those who violate your
goodness by exploiting the work of others. Let us work to be signs of hope for those who seek
decency and fairness. Amen.
 MODULE 5: HYPOTHESIS TESTING CONCERNING PROPORTIONS
The learner demonstrates understanding of key concepts of tests of
Content Standard hypotheses on the population mean and proportion
The learner is able to perform appropriate tests of hypotheses involving
Performance Standard the population mean and population proportion to make inferences in
real-life problems in different disciplines.
 Formulates the appropriate null and alternative hypotheses on
Most Essential Learning the population proportion
Competencies (MELCs)  Identifies the appropriate form of the test-statistic when the
Central Limit Theorem is to be used.
21st Century Learning
Critical Thinking
Skills

Core Values Academically excellent, technologically adept

REFERENCES:

A. Printed:
 Bataller, Ramil T., (2016), Math Activated: Engage Yourself and our world:
Statistics and Probability (Senior High School), Antonio Arnaiz cor. Chino Roces
Avenues, Makati City, Philippines, Don Bosco Press.
 Canlapan, Raymond B., (2016), DIWA Senior High School Series: Statistics and
Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.
 Albay, E. M., (2019), DIWA Senior High School Series (Second Edition):
Statistics and Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.

B. Online: https://courses.lumenlearning.com/wmopen-concepts-statistics/chapter/
hypothesis-test-for-a-population-proportion-3-of-3/

Opening Prayer

I pray because I believe in the power of prayer. I pray because I have no doubt that God has
answered my prayers. I pray because God woke me up and allowed me to see another day. No
matter what others think or say, I will pray. Amen.

TOPIC: COMPARING SAMPLE PROPORTION AND POPULATION PROPORTION

INTRODUCTION:
Now that some general concepts of hypothesis testing have been introduced, we are ready to
turn our attention to the development of procedures using sample information to decide between the
null and the alternative hypotheses.

21
Below is the Learning Targets/ Specific Objective:
1. Formulates the appropriate null and alternative hypotheses on the population proportion
2. Identifies the appropriate form of the test-statistic when the Central Limit Theorem is to be
used.

Exploration of Prior Knowledge

Directions: Fill in the K- W- H- L chart below to assess your prior knowledge and understanding of
the topic, Comparing the Sample Mean and the population mean in a large sample size.

What I know What I Want to Find How can I Learn What I have Learned
Out More

Skills I expect to use:

PROCESS QUESTION/ FOCUS QUESTIONS:

Below are the key guide questions that you should remember as you perform all the activities in this
lesson. You should be able to answer them at the end of the week.

1. How do you test a hypothesis for a proportion?

2. What are the four steps of a hypothesis test as they relate to a claim about a population proportion?

CONTENT DISCUSSION:
This lesson was made in order for us to learn how to determine if a proportion from a sample
differs significantly from a proportion from a population. We will show you in this lesson how to
compare sample proportion and population proportion using a test.

In our previous lesson, you have compared sample mean and population. There are some
instances wherein we want to compare are proportions. In this lesson we shall learn how to determine
if a proportion from a sample differs significantly from a proportion from a population.
To compare sample proportion and population proportion, we use the z-test for one-sample
mean proportion. The test statistic for this test is
p− p o
z=

√ p0 (1−p 0)
n
Where
p= sample proportion
p0= population proportion
n=sample size
x
p=
n
x= number of successes

Table A:
TYPE OF TEST LEVEL OF SIGNIFICANCE
α=0.01 α=0.05
ONE-TAILED ± 2.33 ± 1.65
TWO-TAILED ± 2.58 ± 1.96

Example:
22
It has been claimed that less than 60% of all purchases of a certain kind of computer program will call
the manufacturer’s hotline with a month purchase. If 55 out of 100 software purchasers selected at
random call the hotline within a month of purchase, test the claim at 0.05 level of significance.

Solution:
Step 1: Formulate the null and alternative hypotheses
Ho: The proportion of purchasers that will call the manufacturer’s hotline within one
month of purchase is 60% or 0.60 ( po= 0.60)
Ha: The proportion of purchasers that will call the manufacturer’s hotline within one
month of purchase is less than 60% or 0.60 ( po < 0.60)

TOPIC: TEST STATISTIC OR FORMULA TO COMPUTE THE Z-TEST SAMPLE

PROPORTION

To compare sample proportion and population proportion, we use the z-test for one-sample mean
proportion. The test statistic for this test is
p− p o
z=

√ p0 (1−p 0)
n
Where:
p= sample proportion
p0= population proportion
n=sample size
x
p=
n
x= number of successes

Example:

It has been claimed that less than 60% of all purchases of a certain kind of computer program will call
the manufacturer’s hotline with a month purchase. If 55 out of 100 software purchasers selected at
random call the hotline within a month of purchase, test the claim at 0.05 level of significance.

Solution:
Step 1: Formulate the null and alternative hypotheses
Ho: The proportion of purchasers that will call the manufacturer’s hotline within one
month of purchase is 60% or 0.60 ( po= 0.60)
Ha: The proportion of purchasers that will call the manufacturer’s hotline within one
month of purchase is less than 60% or 0.60 ( po < 0.60)
Step 2: Type of test:
The test is one tailed (left-tailed)
Critical value: with the use of Table A value of z at 0.05 level, one-tailed test is z=-
1.65

Rejection region:

23
Step 3: Compute the test value
Given:
po=0.60
n=100
55
p= =0.55
100

Substitute the given values in the formula below

p− p o
z=

√ p0 (1−p 0)
n
0.55−0.60
z=

√
0.60(1−0.60)

z=-1.02
100

Step 4: Decision:
Accept the null hypothesis because the computed value or the test value falls outside
the rejection region.

Step 5: Conclusion:
There is no sufficient evidence to conclude that the proportion of purchasers that will
call the manufacturer’s hotline within one month of purchase is less than 60%. Thus
the claim is false or incorrect.

Example:

A recent survey done by the 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, that that indicate a difference from the national
proportion?

Solution:

Given: x=78 n=240 p=35%= 0.35

Step 1: Formulate the null and alternative hypotheses

Ho: The proportion of the population who owns their homes is 0.35. (p0=0.35)

Ha: The proportion of the population who owns their homes is not 0.35. (p0 ≠ 0.35)

Step 2: Type of test: two tailed test

α=0.01
24
 critical values is ± 2.58

Step 3: Compute the test value

p− p o
z=

√ p0 (1−p 0)
n

0.325−0.35
z=

√ 0.35(1−0.35)
240

z= -0.812

Draw the rejection region

Step 4: Decision

Do not reject the null hypothesis, since the test value falls outside the critical region,
as shown in the figure above.

Step 5: Conclusion:

Since we fail to reject the null hypothesis, we can conclude that there is not enough
evidence to reject the claim that 35% of the Filipinos owned their homes

Let’s Summarize

In this section, we looked at the four steps of a hypothesis test as they relate to a claim about a
population proportion.

Step 1: Determine the hypotheses.

 The hypotheses are claims about the population proportion, p.

 The null hypothesis is a hypothesis that the proportion equals a specific value, p0.
 The alternative hypothesis is the competing claim that the parameter is less than, greater than,
or not equal to p0.

25
Step 2: Collect the data.

Since the hypothesis test is based on probability, random selection or assignment is essential in data
production. Additionally, we need to check whether the sample proportion can be np ≥ 10 and n(1
− p) ≥ 10.

Step 3: Assess the evidence.

 Determine the test statistic which is the z-score for the sample proportion.
 Use the test statistic, together with the alternative hypothesis to determine the P-value. You can
use a standard normal table (or Z-table) or technology (such as the simulations on the second
page of this topic) to find the P-value.
 If the alternative hypothesis is greater than, the P-value is the area to the right of the test
statistic. If the alternative hypothesis is less than, the P-value is the area to the left of the test
statistic. If the alternative hypothesis is not equal to, the P-value is equal to double the tail area
beyond the test statistic.

Step 4: Give the conclusion.

 A small P-value says the data is unlikely to occur if the null is true. If the P-value is less than or
equal to the significance level, we reject the null hypothesis and accept the alternative
hypothesis instead.
 If the P-value is greater than the significance level, we say we “fail to reject” the null
hypothesis. We never say that we “accept” the null hypothesis. We just say that we don’t have
enough evidence to reject it. This is equivalent to saying we don’t have enough evidence to
support the alternative hypothesis.
 We write the conclusion in the context of the research question. Our conclusion is usually a
statement about the alternative hypothesis (we accept Ha or fail to accept Ha) and should
include the P-value.
REVISED KNOWLEDGE: Actual answer to the process questions/ focus questions

Below are the key guide questions that you should remember as you perform all the activities in this
lesson. You should be able to answer them at the end of the week.

1. How do you test a hypothesis for a proportion?

To test a hypothesis for a proportion, you need to follow the four steps of a hypothesis test as
they relate to a claim about a population proportion (determine the hypotheses, collect the data, assess
the evidence, and give the conclusion.

2. What are the four steps of a hypothesis test as they relate to a claim about a population proportion?
The four steps of a hypothesis test as they relate to a claim about a population proportion
1. Collect the data, assess the evidence
2. Give the conclusion
3. Assess the evidence,
4. Give the conclusion.

FINAL KNOWLEDGE: Generalization/Synthesis/Summary

To compare sample proportion and population proportion, we use the z-test for one-sample
mean proportion. The test statistic for this test is

26
 p− p o
z=

√ p0 (1−p 0)
n
Where
p= sample proportion
p0= population proportion
n=sample size
x
p=
n
x= number of successes

Closing Prayer

Thank you, Lord for this day, protect and guide us always Lord. Make us worthy of you’re
your blessings Lord. Amen.

WEEK 6: UNDERSTANDING CORRELATION ANALYSIS

The learner demonstrates understanding of key concepts of correlation and

Content Standard regression analyses.
The learner is able to perform correlation and regression analyses on
Performance Standard
real-life problems in different disciplines.
 Illustrates the nature of bivariate data.
Most Essential Learning  Construct a scatter plot
Competencies (MELCs)  Describe the shape (form, trend (direction) and variation
(strength) based on scatter plot.
21st Century Learning
Critical Thinking
Skills

Core Values Academically excellent, technologically adept

REFERENCES:

A. Printed:
 Bataller, Ramil T., (2016), Math Activated: Engage Yourself and our world:
Statistics and Probability (Senior High School), Antonio Arnaiz cor. Chino Roces
Avenues, Makati City, Philippines, Don Bosco Press.
 Canlapan, Raymond B., (2016), DIWA Senior High School Series: Statistics and
Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.
 Albay, E. M., (2019), DIWA Senior High School Series (Second Edition):
Statistics and Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.

B. Online: https://www.youtube.com/watch?v=qC9_mohleao

Opening Prayer

Father, Lord of new beginnings, thank you for letting me wake up and breathe in the
common air, I offer you all my works and my plans, all what my hands will make and
27
do. Protect me, Lord, from all danger, as well as my loved ones who will also pursue
their own thing today. Keep me Lord, under your care. Be with me today, Lord
TOPIC: UNDERSTANDING CORRELATION ANALYSIS

Why do most students who are good in Mathematics also perform well in physics? Why does blood
pressure go with age? Why do students with high IQ have good academics performances? These
questions have something to do with relationships between two variables.
Analyze and Explore

So far, we have analyzed data involving only a single variable---for instance, the grades of students,
the weights of grocery products and the length of rods. These data are called UNIVARIATE DATA
because they involve a single variable only. In this lesson you shall analyze data involving two
variables. Data that involve two variables are called BIVARIATE DATA.

The analysis of bivariate data involves describing the relationship between two variables. The process
or procedure of describing the relationship between two variables is called CORRELATION
ANALYSIS.

Below is the Learning Targets/ Specific Objective:

1. Illustrates the nature of bivariate data.
2. Construct a scatter plot
3. Describe the shape (form), trend (direction) and variation (strength) based on scatter plot.

Exploration of Prior Knowledge

Directions: Fill in the K- W- H- L chart below to assess your prior knowledge and
understanding of the topic, Comparing the Sample Mean and the population mean in a
large sample size.

What I know What I Want to Find How can I Learn What I have Learned
Out More

Skills I expect to use:

PROCESS QUESTION/ FOCUS QUESTIONS:

Below are the key guide questions that you should remember as you perform all the activities in this
lesson. You should be able to answer them at the end of the week.

1. What is correlation analysis?

2. What is correlation analysis with example?
3. How do you analyze correlation?

CONTENT DISCUSSION:

In this section we will first discuss correlation analysis, which is used to quantify the association
between two continuous variables (e.g. between an independent and a dependent variable or between
two independent variables). in correlation analysis, we estimate a sample correlation coefficient, more
specifically the Pearson Product Moment correlation coefficient.

DESCRIBING RELATIONSHIP USING A SCATTER PLOT

28
The relationship between two variables can be described by constructing a scatter plot. A scatter plot
is a graphical representation of the relationship between two variables.

Example:

A company with six branches provides free coffee to its employees. A manager is interested to find
out if there is a relationship between the number of cups of coffee provided and the number of
employees in the offices. The table below shows that data needed. Determine if there is a relationship
between the number of employees and the number of cups of coffee.

Number of Employees (X) Number of Cups (Y)

11 18
13 36
15 40
18 50
21 58
24 74

Notice that the points on the scatter plot do not lie on the one line. However, the points closely follow
a straight line. This line is called TREND LINE.

The relationship between two variables is described in terms of strength and direction.

TYPES OF CORRELATION ACCORDING TO DIRECTION

In terms of direction, the relationship between two variables may be positive, negative or zero.

29
The next illutration show the different types of relationship described in terms of direction and
strength.

30
REVISED KNOWLEDGE: Actual answer to the process questions/ focus questions
31
1. What is correlation analysis?
Correlation analysis is statistical method that is used to discover if there is a relationship
between two variables/ datasets, and how strong that relationship maybe.

FINAL KNOWLEDGE: Generalization/Synthesis/Summary

A correlation of r= 0.9 suggests a strong, positive association between two variables, whereas
correlation of r=-0.2 suggest a weak, negative association. A correlation close to zero suggests no
linear association between two continuous variables.

Closing Prayer

Thank You Lord for the gift of life to serve and love you Lord. Keep us away from harm.
Amen.

WEEK 7: PEARSON’S SAMPLE CORRELATION COEFFICIENT

32
 The learner demonstrates understanding of key concepts of correlation and
Content Standard regression analyses.
The learner is able to perform correlation and regression analyses on
Performance Standard
real-life problems in different disciplines.
Most Essential Learning  Calculates the Pearson’s sample correlation coefficient.
Competencies (MELCs)  Solves problems involving correlation analysis
21st Century Learning
Critical Thinking
Skills

Core Values Academically excellent, technologically adept

REFERENCES:

A. Printed:
 Bataller, Ramil T., (2016), Math Activated: Engage Yourself and our world:
Statistics and Probability (Senior High School), Antonio Arnaiz cor. Chino Roces
Avenues, Makati City, Philippines, Don Bosco Press.
 Canlapan, Raymond B., (2016), DIWA Senior High School Series: Statistics and
Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.
 Albay, E. M., (2019), DIWA Senior High School Series (Second Edition):
Statistics and Probability, 4/F SEDCCO 1 Bldg.DIWA Learning Systems, Inc.

B. Online: https://www.youtube.com/watch?v=atLZNGsTN6k
https://www.youtube.com/watch?v=BXXtkYOqAfM

C. Offline: Pearson Product Correalation. Mp4

Opening Prayer

God of grace, we open our hearts, minds and souls to worship you. Thank you that
today we dwell in your kingdom and live in your presence. Thank you that as we
gather together, we join with all Christians across the world to glorify your holy name.
Amen.

INTRODUCTION:
The Pearson correlation coefficient is used to measure the strength of a linear association
between two variables, where the value r =1 means a perfect positive correlation and the value r = -1
means a perfect negative correlation.

Below is the Learning Targets/ Specific Objective:

1. Calculates the Pearson’s sample correlation coefficient.
2. Solves problems involving correlation analysis

Exploration of Prior Knowledge

Directions: Fill in the K- W- H- L chart below to assess your prior knowledge and understanding of
the topic, Comparing the Sample Mean and the population mean in a large sample size.

What I know What I Want to Find How can I Learn What I have Learned
Out More

33
Skills I expect to use:

PROCESS QUESTION/ FOCUS QUESTIONS:

Below are the key guide questions that you should remember as you perform all the activities in this
lesson. You should be able to answer them at the end of the week.

1. What does Pearson’s correlation coefficient tell you?

2. How do you find the sample correlation coefficient?

CONTENT DISCUSSION:

To describe the relationship between two variables, we can compute the correlation coefficient
(r ). The correlation coefficient is a number between -1 and 1 that describes both the strength and the
direction of correlation. In symbol we write -1 ≤ r ≤ 1.

If the value of r is 1 , 0 or -1, we interpret as follows.

Value of r Interpretation
r=1 Perfect positive correlation
r=0 No correlation/ zero correlation
r=-1 Perfect negative correlation

The following scale is used to interpret the values of r.

Correlation Scale
Value of r Interpretation
±1.00 Perfect correlation; perfect relationship
±0.81 to ±0.99 Very high correlation
±0.61 to ±0.80 High correlation
±0.41 to ±0.60 Moderately high correlation
±0.21 to ±0.40 Low correlation
±0.01 to ±0.20 Negligible correlation
0.00 No correlation, no relationship

Notice that the correlation scales gives only strength of correlation. The direction of correlation is
determined by the sign of the correlation coefficient?

Value or r Interpretation
-0.45 Moderately high negative correlation
0.66 High positive correlation
0.83 Very high positive correlation
-0.35 low negative correlation
0.58 Moderately high positive correlation

PEARSON PRODUCT-MOMENT CORRELATION COEFFICIENT

34
To compute the correlation coefficient, we use the Pearson Product-Moment Correlation (PPMC)
coefficient. The following formula gives the Pearson Product-Moment Correlation (PPMC)
coefficient.

r=
∑ (x−x )( y− y )
√ ∑ ( x−x)2 ∑ ( y − y)2
Where X=value of the variable X
Y= value of the variable Y
X = mean of the variable X
Y = mean of the variable Y

The following examples illustrate the computation of the Pearson Product- Moment Correlation
(PPMC) coefficient.

Example:
A store manager wishes to find out whether there is a relationship between the age of the
employees and the number of sick days they incur each year. The data for the sample are shown.
Calculate the correlation coefficient ( r ) and describe the relationship in terms of strength and
direction.

Employee A B C D E F
Age (X) 18 26 39 48 53 58
Days (Y) 16 12 9 5 6 2

Step 1:

Compute the mean of X and mean of Y

Employee X Y
A 18 16
B 26 12
C 39 9
D 48 5
E 53 6
F 58 2
∑ X=242 ∑ Y =50

X=
∑ X = 242 =40.33
n 6

Y=
∑ y = 50 =8.33
n 6

Step 2:

Subtract X from each value of X. Label this as −X . Subtract Y from each value of Y. Label this as
Y −Y

Employee X Y X −X Y −Y
A 18 16 -22.33 7.67
B 26 12 -14.33 3.67
C 39 9 -1.33 0.67
D 48 5 7.67 -3.33
E 53 6 12.67 -2.33
F 58 2 17.67 -6.33
∑ X=242 ∑ Y =50

35
Step 3

1. Square each value of −X . Label this as ( X −X )2

2. Get the sum of the values of ( X −X )2. This is ∑ (X −X )2
3. Square each value of Y −Y . Label this as as (Y −Y )2
4. Get the sum of the values of (Y −Y )2. This is ∑ (Y −Y )2

Employee X Y X −X Y −Y (X −X )
2
(Y −Y )
2

A 18 16 -22.33 7.67 498.63 58.83

B 26 12 -14.33 3.67 205.35 13.47
C 39 9 -1.33 0.67 1.77 0.45
D 48 5 7.67 -3.33 58.83 11.09
E 53 6 12.67 -2.33 160.53 5.43
F 58 2 17.67 -6.33 312.23 40.07
∑ X=242 ∑ Y =50 ∑( X −X )2= 1236.84 ∑(Y −Y )2=129.34

Step 4

1. Multiply X −X and Y −Y label this as (X −X )( Y −Y )

2. Get the sum of the values (X −X )( Y −Y ). This is ∑ (X −X )( Y −Y ).

Employee X Y X −X Y −Y ( X −X )2 (Y −Y )2 ( X −X )( Y −Y
)
A 18 16 -22.33 7.67 498.63 58.83 -171.27
B 26 12 -14.33 3.67 205.35 13.47 -52.59
C 39 9 -1.33 0.67 1.77 0.45 -0.09
D 48 5 7.67 -3.33 58.83 11.09 -25.54
E 53 6 12.67 -2.33 160.53 5.43 -29.52
F 58 2 17.67 -6.33 312.23 40.07 -111.85
∑ X=242 ∑ Y =50 ∑(X −X )2= ∑
2
∑ (X −X )(
1236.84 (Y −Y ) =129.34 Y −Y ) = -390.56

Step 5:

Compute the correlation coefficient by substituting the values in the formula.

r=
∑ (x−x )( y− y )
√ ∑ (x−x)2 ∑ ( y − y)2
−390.56
r=
√ ∑ 1236.84∗129.34
r =−0.98

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Step 6:

Using the correlation scale, we interpret the obtained value r = -0.98 as very high negative
correlation. This implies that there is a very high negative correlation between the age of employees
and the number of sick days. This means that older employees tend to have more number of sick
days.

REVISED KNOWLEDGE: Actual answer to the process questions/ focus questions

If the value of r is 1 , 0 or -1, we interpret as follows.

Value of r Interpretation
r=1 Perfect positive correlation
r=0 No correlation/ zero correlation
r=-1 Perfect negative correlation

FINAL KNOWLEDGE: Generalization/Synthesis/Summary

PEARSON PRODUCT-MOMENT CORRELATION COEFFICIENT

To compute the correlation coefficient, we use the Pearson Product-Moment Correlation (PPMC)
coefficient. The following formula gives the Pearson Product-Moment Correlation (PPMC)
coefficient.

r=
∑ (x−x )( y− y )
√ ∑ ( x−x)2 ∑ ( y − y)2
Where X=value of the variable X
Y= value of the variable Y
X = mean of the variable X
Y = mean of the variable Y

Closing Prayer

Without a dream, we reach nothing. Without love, we feel nothing, And, without God, we are
nothing. Amen.

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