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Critical Value 1

The document reviews the formulas for Z-test and T-test, outlining the rejection region and critical values for hypothesis testing. It explains the significance level, types of errors (Type 1 and Type 2), and the concept of P-value. Additionally, it includes examples and activities to apply these concepts in real-world scenarios.

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Rea Aguirre
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24 views42 pages

Critical Value 1

The document reviews the formulas for Z-test and T-test, outlining the rejection region and critical values for hypothesis testing. It explains the significance level, types of errors (Type 1 and Type 2), and the concept of P-value. Additionally, it includes examples and activities to apply these concepts in real-world scenarios.

Uploaded by

Rea Aguirre
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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REVIEW

FORMULA FOR Z- FORMULA FOR T-TEST


TEST
REVIEW

FORMULA FOR Z- FORMULA FOR T-TEST


TEST
REVIEW

FORMULA FOR Z- FORMULA FOR T-TEST


TEST
IDENTIFIES THE
REJECTION REGION
FOR A GIVEN LEVEL
OF SIGNIFICANCE
OBJECTIVES

• identify the • determine the


appropriate rejection • find the
test statistic, region for a critical
given level of value.
significance
through a
normal curve,
Critical Value
The number that divides the normal
distribution into region where we will
reject the null hypothesis and the
region where we fail to reject the null
hypothesis. For normal distribution z at
5% level of significance (z= plus-minus
1.96) is often referred to as the critical
value (or critical region).
Significance Level
Types of Errors
• Type 1 Error: If the null hypothesis is true
and rejected, the decision is incorrect.
• Type 2 Error: If the null hypothesis is false
and accepted, the decision is incorrect.
What is P-value?
It is a measure of the strength of the evidence that
must be present in your sample before you will reject
the null hypothesis and conclude that the effect is
statistically significant.
Activity:
Identify the term that is being described in the given
statements.
___________ 1. Accepting a false null hypothesis.
___________ 2. Rejecting a true null hypothesis.
___________ 3. The region where the value of the test
statistic lies for which we will reject the null hypothesis.
___________ 4. It is a measure of the strength of the
evidence that must be present in your sample before you
will reject the null hypothesis and conclude that the effect
is statistically significant.
___________ 5. It refers to the probability of committing a
type 1 error.
Activity:
Example 3
A company claims its new lightbulb lasts an
average of 1000 hours. A sample of 50
lightbulbs is tested, yielding an average lifespan
of 980 hours with a standard deviation of 50
hours. Does this data support the company’s
claim at 0.01 significance level?
 The test value or computed t-value is -2.83.
d. Since, the critical value is -2.576 > the
computed z value -2.83 and the computed z value
2.83 > 2.576 which falls within the rejection region.
Therefore, the null hypothesis is rejected.

e. There is a significant difference between the


sample mean and population mean. Thus, the
company is incorrect in claiming the average lifespan
of lightbulbs is 1000 hours.
Example 4
A farmer claims his new fertilizer increases
the average yield of corn by 10 bushels per
acre. A sample of 20 acres treated with the
fertilizer shows an average of 8 bushels per
acre with a standard deviation of 3 bushels.
Does this data support the farmer’s claim at a
0.05 significance level?
ACTIVITY
A teacher claims that students who use a new
learning method score higher on average on a
standardized test. A sample of 25 students using the
new method scores an average of 85 with a standard
deviation of 5, while the population average is 80.
Does this data support the teacher’s claim at a 0.05
significance level?
ACTIVITY
A researcher claims that the average
temperature of a specific region is 25 degrees
Celsius. A sample of 50 days shows an average
temperature of 24.5 degrees Celsius with a standard
deviation of 1 degree. Does this data support the
researcher’s claim at a 0.01 significance level?

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