Statistics and Probability

Joselito O. Jayme

Calicanan High School

Pamplona II
Tanjay City Division
Poblacion, Pamplona, Negros Oriental, Philippines

Senior High School

SY 2018-2019

Joselito O. Jayme Statistics and Probability

HYPOTHESIS TESTING

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Learning Competencies
The learner. . .
1 illustrates: (a) null hypothesis; (b) alternative hypothesis;
(c) level of significance; (d) rejection region; and (e) types
of errors in hypothesis testing.
2 calculates the probabilities of committing a Type I and
Type II error.
3 identifies the parameter to be tested given a real-life
problem.
4 formulates the appropriate null and alternative hypotheses
on a population mean.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Learning Objectives
1 Define hypothesis testing

2 Identify type I and type II errors and discuss how they

conflict with each other.
3 Interpret the confidence level, the significance level, and
critical region.
4 Create null hypothesis and alternative hypothesis
5 Use templates for p-value computations and critical values
6 Identifies the appropriate form of the test-statistic

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Definition
Hypothesis testing is the process of determining whether or
not a given hypothesis is true.

Definition
A null hypothesis (Ho ) is an assertion about the value of a
population parameter. It is an assertion that we hold as true
unless we have sufficient statistical evidence to conclude
otherwise.

Definition
The alternative hypothesis (Ha ) is the negation of the null
hypothesis.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Example 1
A null hypothesis might assert that the population mean is
equal to 100.

Ho : µ = 100
Ha : µ 6= 100

Example 2
The null hypothesis may assert that the population proportion
p is at least 40%

Ho : p ≥ 40%
Ha : p < 40%

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Example 3
The null hypothesis asserts that the population variance is at
most 50.

Ho : σ 2 ≤ 50
Ha : σ 2 > 50

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Summary of Forms for Null and Alternative Hypothesis

Ho : µ = µo Ho : µ ≤ µo Ho : µ ≥ µo
Ha : µ 6= µo Ha : µ > µo Ha : µ < µo

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Summary of Forms for Null and Alternative Hypothesis:

Two-tailed test
Ho : µ = µo
Ha : µ 6= µo

Summary of Forms for Null and Alternative Hypothesis:

One-tailed test
Ho : µ ≤ µo
Ha : µ > µo

Ho : µ ≥ µo
Ha : µ < µo

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Practice Problem 1
A vendor claims that his company fills any accepted order, on
the average, in at most six working days. You suspect that the
average is greater than six working days and want to test the
claim. How will you set up the null and alternative hypotheses?

Practice Problem 2
A manufacturer of golf balls claims that the variance of the
weights of the companys golf balls is controlled to within
0.0028oz 2 . If you wish to test this claim, how will you set up
the null and alternative hypotheses?

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Practice Problem 3
At least 20% of the visitors to a particular commercial Web site
where an electronic product is sold are said to end up ordering
the product. If you wish to test this claim, how will you set up
the null and alternative hypotheses?

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Answer for Practice Problem 1

Ho : µ ≤ 6
Ha : µ > 6

Answer for Practice Problem 2

Ho : σ 2 ≤ 0.0028 oz 2
Ha : σ 2 > 0.0028 oz 2

Answer for Practice Problem 3

Ho : p ≥ 0.20
Ha : p < 0.20

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Practice Problem 4
The mean number of sick days used per year nationally is
reported to be 5.5 days. A study is undertaken to determine if
the mean number of sick days used for nonunion members in
Kansas differs from the national mean. Give the null and
alternative hypothesis for this scenario.

Practice Problem 5
A study in 1992 established the mean commuting distance for
workers in a certain city to be 15 miles. Because of the
westward spread of the city, it is hypothesized that the current
mean commuting distance exceeds 15 miles. A traffic engineer
wishes to test the hypothesis that the mean commuting
distance for workers in this city is not equal to 15 miles. Give
the null and alternative hypothesis for this scenario.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Answer for Practice Problem 4

Ho : µ = 5.5
Ha : µ 6= 5.5

Answer for Practice Problem 5

Ho : µ = 15
Ha : µ 6= 15

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Assignment 1
A pharmaceutical company claims that four out of five doctors
prescribe the pain medicine it produces. If you wish to test this
claim, how would you set up the null and alternative
hypotheses?

Assignment 2
It is found that Web surfers will lose interest in a Web page if
downloading takes more than 12 seconds at 28K baud rate. If
you wish to test the effectiveness of a newly designed Web page
in regard to its download time, how will you set up the null and
alternative hypotheses?

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Assignment 3
During the sharp increase in gasoline prices in the summer of
the year 2006, oil companies claimed that the average price of
unleaded gasoline with minimum octane rating of 89 in the
Midwest was not more than $3.75. If you want to test this
claim, how would you set up the null and alternative
hypotheses?

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Answer for Assignment 1

Ho : p = 0.8
Ha : p 6= 0.8

Answer for Assignment 2

Ho : µ ≤ 12
Ha : µ > 12

Answer for Assignment 3

Ho : µ ≤ 3.75
Ha : µ > 3.75

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Type I and Type II Errors

Type I → rejecting a true null hypothesis (we reject Ho when
it is true).

Type II → accepting/not rejecting a false null hypothesis (we

accept Ho when it is false).

Type I and Type II Errors

Ho True Ho False
Accept Ho No Error Type II Error
Reject Ho Type I Error No Error

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Level of Significance
The level of significance is the probability of making a Type
I error when the null hypothesis is true as an equality. The
Greek symbol α (alpha) is used to denote the level of
significance. The common choices of α are 0.05 and 0.01.

p-value
A p-value is a probability that provides measure of the
evidence agaist the null hypothesis provided by the sample.
Smaller p-value indicate more evidence against Ho .

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Critical value
It is the critical value of the test statistic that corresponds to an
area of α in the lower tail of the sampling distribution of the
statistic. In other words, the critical value is the largest value of
the test statistic that will result in the rejection of the null
hypothesis denoted by za .

Critical Values of z (za )

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Critical region
The set of z scores outside the range −1.96 to 1.96 constitutes
what is called the critical region or region of rejection of the
hypothesis or the region of significance. The set of z scores
inside the range −1.96 to 1.96 could then be called the region of
acceptance of the hypothesis or the region of nonsignificance.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Joselito O. Jayme Statistics and Probability

Hypothesis Testing
STEPS OF HYPOTHESIS TESTING
1. Develop the null and alternative hypothesis.
2. Specify the level of significance.
3. Collect the sample data and compute the value of the test
statistic.
p-value Approach
4. Use the value of the test statistic to compute the p-value.
5. Reject Ho if p-value ≤ α.
Critical Value approach
4. Use the level of significance to determine the critical value
and rejection rule.
5. Use the value of the test statistic and the rejection rule to
determine whether to reject Ho .

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Example 1
An automatic bottling machine fills cola into 2-liter (2000 mL)
bottles. A consumer advocate wants to test the null hypothesis
that the average amount filled by the machine into a bottle is at
least 2000 mL. A random sample of 40 bottles coming out of
the machine was selected and the exact contents of the selected
bottles are recorded. The sample mean was 1999.6 mL. The
population standard deviation is known from past experience to
be 1.30 mL. Test the null hypothesis at an α of 5%.

Solution.
1.)

Ho : µ ≥ 2000
Ha : µ < 2000

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

2.) The level of significance is set at α = 0.05

3.) x = 1999.6; µ0 = 2000; σ = 1.30; n = 40.
Test statistic:
x − µ0
z= √
σ/ n
1999.6 − 2000
= √
1.30/ 40
−0.4
=
0.20554804791
= −1.94601702164 ≈ −1.95

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

p-value Approach
4.) p-value = 0.5 − 0.4744 = 0.0256
p-value = 0.0256 ≤ α = 0.05. Reject H0 .
5.) Therefore, we find sufficient statistical evidence to reject
the null hypothesis.

Critical Value approach

4.) zα = −1.645

−1.95 = z ≤ zα = −1.645

Reject H0 .
5.) Therefore, we find sufficient statistical evidence to reject
the null hypothesis.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Example 2
Consider the following hypothesis test:
Ho : µ ≤ 25
Ha : µ > 25
A sample of 40 provided a sample mean of 26.4. The population
standard deviation is 6 with α = 0.01. What is your conclusion?

Solution.
1.)

Ho : µ ≤ 25
Ha : µ > 25

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

2.) The level of significance is set at α = 0.01

3.) x = 26.4; µ0 = 25; σ = 6; n = 40.
Test statistic:
x − µ0
z= √
σ/ n
26.4 − 25
= √
6/ 40
1.4
=
0.94868329805
= 1.47572957475 ≈ 1.48

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

p-value Approach
4.) p-value = 0.5 − 0.4306 = 0.0694
p-value = 0.0694 ≥ α = 0.01. Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.

Critical Value approach

4.) zα = 2.33
1.48 = z ≤ zα = 2.33
Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Example 3
Capehan Sa Calicanan states that the mean filling weight of
their product is at least 3 grams per can. The Department of
Trade and Industry (DTI) periodically conducts studies to test
the claims of the Capehan Sa Calicanan. Previous test shows
that the value of σ = 0.18. The DTI gets a sample of 36 cans of
coffee of Capehan Sa Calicanan and measure the sample mean
x = 2.92 grams with the level of significance of 0.01. What will
be the DTI’s conclusion after the study.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Example 4
A teacher gives his class a test, which as he knows from years of
teaching, yields a mean of 80. His present class of 40 students
obtains a mean of 85 and a standard deviation of 8. Can he
claim that his present class is a superior class? Use α = 0.01.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Assignment 5
An electrical firm manufactures light bulbs that have a length
of life that is approximately normally distributed with a mean
of 800 hours, and a standard deviation of 40 hours. Test the
null hypothesis that µ = 800 hours against the alternative
µ 6= 800 if a random sample of 30 bulbs have an average of 700
hours. Use the α = 0.05 level of significance.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Assignment 6

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Solution.
1.)

Ho : µ = 150
Ha : µ 6= 150

2.) The level of significance is set at α = 0.05

3.) x = 146; µ0 = 150; σ = 12; n = 40.
Test statistic:
x − µ0
z= √
σ/ n
146 − 150
= √
12/ 40
−4
=
1.8973665961
= −2.10818510678 ≈ −2.11

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Solution.
p-value Approach
4.) p-value = 2(0.5 − 0.4826) = 2(0.0174) = 0.0348
p-value = 0.0348 < α = 0.05. Reject H0 .
5.) Therefore, we find sufficient statistical evidence to reject
the null hypothesis.

Critical Value approach

4.) −zα = −1.96

−2.11 = z < −zα = −1.96

Reject H0 .
5.) Therefore, we find sufficient statistical evidence to reject
the null hypothesis.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Assignment 6

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Solution.
1.)

Ho : µ = 50
Ha : µ 6= 50

2.) The level of significance is set at α = 0.1

3.) x = 48.8; µ0 = 50; s = 7; n = 18.
Test statistic:
x − µ0
t= √
s/ n
48.8 − 50
= √
7/ 18
−4
=
1.8973665961
= −0.72730983208 ≈ −0.73

Joselito O. Jayme Statistics and Probability

Hypothesis Testing

Solution.
Critical Value approach
4.)

t < tα/2
< t0.1/2,v=n−1
< t0.05,v=18−1
< t0.05/2,v=17 = 1.740

0.73 = | − 0.73| = t < tα/2 = 1.740

or
−0.73 = t > tα/2 = −1.740
Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.
Joselito O. Jayme Statistics and Probability
HYPOTHESIS TESTING

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (OBJECTIVES)

The learner:
1 identifies the appropriate form of the test-statistic when:

the population variance is assumed to be known

the population variance is assumed to be unknown
2 identifies the appropriate rejection region for a given level
of significance when:
the population variance is assumed to be known
the population variance is assumed to be unknown
3 computes for the test-statistic value (population mean).
4 draws conclusion about the population mean based on the
test-statistic value and the rejection region.
5 solves problems involving test of hypothesis on the
population mean.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (REVIEW)
1 null and alternative hypothesis
2 level of significance
3 rejection region
4 types of errors in hypothesis testing
5 when to used t-test and z-test

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (EXAMPLE)

1 Consider the following hypothesis test:

H0 : µ = 15
Ha : µ 6= 15
A sample of 50 provided a sample mean of 14.15. The
population standard deviation is 3. What is your
conclusion at α = 0.05.
2 Consider the following hypothesis test:
H0 : µ ≤ 25
Ha : µ > 25
A sample of 40 provided a sample mean of 26.4. The
population standard deviation is 6. What is your
conclusion at α = 0.01.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (EXAMPLE)

1 Consider the following hypothesis test:

H0 : µ = 15
Ha : µ 6= 15
A sample of 50 provided a sample mean of 14.15. The
population standard deviation is 3. What is your
conclusion at α = 0.05.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution:
1.)

H0 : µ = 15
Ha : µ 6= 15

2.) The level of significance is set at α = 0.05

3.) x = 14.15; µ0 = 15; σ = 3; n = 50.
Test statistic:
x − µ0
z= √
σ/ n
14.15 − 15
= √
3/ 50
= −2.00346921336 ≈ −2.00

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution: p-value Approach

4.)
A(−2 ≤ z ≤ 0) = 0.4772
A(z ≤ −2) = 0.5 − 0.4772 = 0.0228
p-value = 2(0.0228) = 0.0456
p-value = 0.0456 < α = 0.05. Reject H0 .
5.) Therefore, we find sufficient statistical evidence to reject
the null hypothesis.

Critical Value approach

4.) −zα = −1.96 and zα = 1.96
−2.00 = z < −zα = −1.96
Reject H0 .
5.) Therefore, we find sufficient statistical evidence to reject
the null hypothesis.
Joselito O. Jayme Statistics and Probability
Hypothesis Testing (EXAMPLE)

2 Consider the following hypothesis test:

H0 : µ ≤ 25
Ha : µ > 25
A sample of 40 provided a sample mean of 26.4. The
population standard deviation is 6. What is your
conclusion at α = 0.01.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution:
1.)

H0 : µ ≤ 25
Ha : µ > 25

2.) The level of significance is set at α = 0.01

3.) x = 26.4; µ0 = 25; σ = 6; n = 40.
Test statistic:
x − µ0
z= √
σ/ n
26.4 − 25
= √
6/ 40
= 1.47572957475 ≈ 1.48

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution: p-value Approach

4.)
A(0 ≤ z ≤ 1.48) = 0.4306
A(z ≥ 1.48) = 0.5 − 0.4306 = 0.0694
p-value = 0.0694
p-value = 0.0694 > α = 0.01. Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.

Critical Value approach

4.) −zα = −2.33 and zα = 2.33
1.48 = z < zα = 2.33
Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.
Joselito O. Jayme Statistics and Probability
Hypothesis Testing (EXAMPLE)

1 Consider the following hypothesis test:

H0 : µ = 18
Ha : µ 6= 18
A sample of 48 provided a sample mean of 17 and the
sample standard deviation is 4.5. What is your conclusion
at α = 0.05.
2 Consider the following hypothesis test:
H0 : µ ≤ 7
Ha : µ > 7
A sample of 60 provided a sample mean of 7.25 and the
sample standard deviation is 1.052. What is your
conclusion at α = 0.05.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (EXAMPLE)

1 Consider the following hypothesis test:

H0 : µ = 18
Ha : µ 6= 18
A sample of 48 provided a sample mean of 17 and the
sample standard deviation is 4.5. What is your conclusion
at α = 0.05.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution:
1.)

H0 : µ = 18
Ha : µ 6= 18

2.) The level of significance is set at α = 0.05

3.) x = 17; µ0 = 18; s = 4.5; n = 48.
Test statistic:
x − µ0
t= √
s/ n
17 − 18
= √
4.5/ 48
= −1.53960071784 ≈ −1.54

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution: p-value Approach

4.)

A(t ≥ 1.54) = (0.050, 0.100)

p-value = (0.100, 0.200)
p-value = (0.100, 0.200) > α = 0.05. Do not reject H0 .

5.) Therefore, we find sufficient statistical evidence not to

reject the null hypothesis.

Critical Value approach

4.) −tα/2 = −t0.05/2 = −t0.025 ≈ −2.021 and t0.025 ≈ 2.021

−1.54 = t > −t0.025 ≈ −2.021

Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.
Joselito O. Jayme Statistics and Probability
Hypothesis Testing (EXAMPLE)

2 Consider the following hypothesis test:

H0 : µ ≤ 7
Ha : µ > 7
A sample of 60 provided a sample mean of 7.25 and the
sample standard deviation is 1.052. What is your
conclusion at α = 0.05.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution:
1.)

H0 : µ ≤ 7
Ha : µ > 7

2.) The level of significance is set at α = 0.05

3.) x = 7.25; µ0 = 7; s = 1.052; n = 60.
Test statistic:
x − µ0
t= √
s/ n
7.25 − 7
= √
1.052/ 60
= 1.84077155238 ≈ 1.84

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution: p-value Approach

4.)

A(t ≥ 1.84) = (0.025, 0.050)

p-value = (0.025, 0.050)
p-value = (0.025, 0.050) < α = 0.05. Reject H0 .

5.) Therefore, we find sufficient statistical evidence to reject

the null hypothesis.

Critical Value approach

4.) −tα = −t0.05 ≈ −1.671 and t0.05 ≈ 1.671

1.84 = t > t0.05 ≈ 1.671

Reject H0 .
5.) Therefore, we find sufficient statistical evidence to reject
the null hypothesis.
Joselito O. Jayme Statistics and Probability
Hypothesis Testing (EXAMINATION)

3 Consider the following hypothesis test:

H0 : µ ≥ 20
Ha : µ < 20
A sample of 50 provided a sample mean of 19.4. The
population standard deviation is 2. What is your
conclusion at α = 0.05.
4 Consider the following hypothesis test:
H0 : µ ≥ 80
Ha : µ < 80
A sample of 100 provided a sample mean of 78.5. The
population standard deviation is 12. What is your
conclusion at α = 0.01.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (EXAMINATION)

5 Consider the following hypothesis test:

H0 : µ = 22
Ha : µ 6= 22
A sample of 75 provided a sample mean of 23. The
population standard deviation is 10. What is your
conclusion at α = 0.05.
6 Consider the following hypothesis test:
H0 : µ ≤ 12
Ha : µ > 12
A sample of 25 provided a sample mean of 14 and the
sample standard deviation is 4.32. What is your conclusion
at α = 0.05.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (EXAMINATION)

7 Consider the following hypothesis test:

H0 : µ ≥ 45
Ha : µ < 45
A sample of 36 provided a sample mean of 44 and the
sample standard deviation is 5.2. What is your conclusion
at α = 0.01.
8 Consider the following hypothesis test:
H0 : µ = 100
Ha : µ 6= 100
A sample of 65 provided a sample mean of 103 and the
sample standard deviation is 11.5. What is your conclusion
at α = 0.05.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (EXAMINATION)

3 Consider the following hypothesis test:

H0 : µ ≥ 20
Ha : µ < 20
A sample of 50 provided a sample mean of 19.4. The
population standard deviation is 2. What is your
conclusion at α = 0.05.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution:
1.)

H0 : µ ≥ 20
Ha : µ < 20

2.) The level of significance is set at α = 0.05

3.) x = 19.4; µ0 = 20; σ = 2; n = 50.
Test statistic:
x − µ0
z= √
σ/ n
19.4 − 20
= √
2/ 50
= −2.12132034356 ≈ −2.12

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution: p-value Approach

4.)
A(−2.12 ≤ z ≤ 0) = 0.4830
A(z ≤ −2.12) = 0.5 − 0.4830 = 0.017
p-value = 0.017
p-value = 0.017 < α = 0.05. Reject H0 .
5.) Therefore, we find sufficient statistical evidence to reject
the null hypothesis.

Critical Value approach

4.) −zα = −1.645 and zα = 1.645
−2.12 = z < −zα = −1.645
Reject H0 .
5.) Therefore, we find sufficient statistical evidence to reject
the null hypothesis.
Joselito O. Jayme Statistics and Probability
Hypothesis Testing (EXAMINATION)

4 Consider the following hypothesis test:

H0 : µ ≥ 80
Ha : µ < 80
A sample of 100 provided a sample mean of 78.5. The
population standard deviation is 12. What is your
conclusion at α = 0.01.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution:
1.)

H0 : µ ≥ 80
Ha : µ < 80

2.) The level of significance is set at α = 0.01

3.) x = 78.5; µ0 = 80; σ = 12; n = 100.
Test statistic:
x − µ0
z= √
σ/ n
78.5 − 80
= √
12/ 100
= −1.25

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution: p-value Approach

4.)
A(−1.25 ≤ z ≤ 0) = 0.3944
A(z ≤ −2.12) = 0.5 − 0.3944 = 0.1056
p-value = 0.1056
p-value = 0.1056 > α = 0.01. Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.

Critical Value approach

4.) −zα = −2.33 and zα = 2.33
−1.25 = z > −zα = −2.33
Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.
Joselito O. Jayme Statistics and Probability
Hypothesis Testing (EXAMINATION)

5 Consider the following hypothesis test:

H0 : µ = 22
Ha : µ 6= 22
A sample of 75 provided a sample mean of 23. The
population standard deviation is 10. What is your
conclusion at α = 0.05.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution:
1.)

H0 : µ = 22
Ha : µ 6= 22

2.) The level of significance is set at α = 0.05

3.) x = 23; µ0 = 22; σ = 10; n = 75.
Test statistic:
x − µ0
z= √
σ/ n
23 − 22
= √
10/ 75
= 0.86602540378 ≈ 0.87

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (SOLUTIONS)

Solution: p-value Approach

4.)
A(0 ≤ z ≤ 0.87) = 0.3078
A(z ≥ 0.87) = 0.5 − 0.3078 = 0.1922
p-value = 2(0.1922) = 0.3844
p-value = 0.3844 > α = 0.05. Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.

Critical Value approach

4.) −zα = −1.96 and zα = 1.96
0.87 = z < zα = 1.96
Do not reject H0 .
5.) Therefore, we find sufficient statistical evidence not to
reject the null hypothesis.
Joselito O. Jayme Statistics and Probability
Hypothesis Testing (ASSIGNMENT)

1 The Department of Labor and Employment reported that

the unemployment insurance benefit was more than
Php238 per week. A researcher in Calicanan anticipated
that sample data would show evidence that the mean
weekly unemployment insurance benefit was below the
national average. If a sample of 100 individuals showed a
sample mean of weekly unemployment insurance benefit of
Php231 with a sample standard deviation of Php80 at
α = 0.05, what is your conclusion?
2 In Calicanan, the mean monthly electric bill is more than
Php32.79 per household. A sample of 50 households
showed a sample mean of Php30.63. If the population
standard deviation is Php5.60 and at α = 0.01, then what
is your conclusion?

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (Population Proportion)

1 The researcher wants to test his belief taht 50% of the

population of rats is female. Fromhis collected samples, 23
out of 50 are female. Would this support his claim? Use
α = 5%.
2 A movie and regulations personnel claims that 30% of all
movies made are Rated G. If 13 out of the 40 randomly
selected movies are Rated G, is the personnel’s claim
supported? Use α = 5%.

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (Population Proportion)

1 The researcher wants to test his belief taht 50% of the

population of rats is female. Fromhis collected samples, 23
out of 50 are female. Would this support his claim? Use
α = 5%.
Solution:
1. H0 : p = 0.5 and Ha : p 6= 0.5
2. α = 5% = 0.05
3. p0 = 0.5, n = 50, p = 0.46

p − p0
z=q
p0 (1−p0 )
n
0.46 − 0.5
=q
0.5(1−0.5)
50
= −0.56568542495 ≈ −0.57
Joselito O. Jayme Statistics and Probability
Hypothesis Testing (Population Proportion)

2 A movie and regulations personnel claims that 30% of all

movies made are Rated G. If 13 out of the 40 randomly
selected movies are Rated G, is the personnel’s claim
supported? Use α = 5%.
Solution:
1. H0 : p = 0.3 and Ha : p 6= 0.3
2. α = 5% = 0.05
3. p0 = 0.3, n = 40, p = 0.325

p − p0
z=q
p0 (1−p0 )
n
0.325 − 0.3
=q
0.3(1−0.3)
40
= 0.34503277967 ≈ 0.35
Joselito O. Jayme Statistics and Probability
Hypothesis Testing (Population Proportion)

4. p-value approach
A(0 ≤ z ≤ 0.35) = 0.1368
A(z ≥ 0.35) = 0.5 − 0.1368 = 0.3632
p-value = 2(0.3632) = 0.7264
p-value 0.7264 ≥ α = 0.05

Joselito O. Jayme Statistics and Probability

Hypothesis Testing (Population Proportion)

3 A TV channel claims that 40% of the population who

watch TV patronize their TV channel. After collecting 70
samples, they found that 30 of them watch the said
channel. Use α = 1% to test their claim.

Joselito O. Jayme Statistics and Probability

CORRELATION ANALYSIS

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Learning Competencies
The learner. . .
1 illustrates the nature of bivariate data.
2 constructs a scatter plot.
3 describes shape (form), trend (direction), and variation
(strength) based on a scatter plot.
4 estimates strength of association between the variables
based on a scatter plot.
5 calculates the Pearson’s sample correlation coefficient.
6 solves problems involving correlation analysis.

Joselito O. Jayme Statistics and Probability

Correlation Analysis

The linear correlation coefficient is a measure that is used

to decide the strength of linear relationship between two
variables (X and Y ). The population linear correlation
coefficient is denoted by the Greek letter rho (ρ). Since this is a
parameter, ρ is estimated by the statistic r. This is called
Pearson’s correlation of coefficient given by the formula:
P P P
n XY − ( X)( Y )
r= p P
(n X 2 − ( X)2 )(n Y 2 − ( Y )2 )
P P P

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Scatter Diagram
Scatterplot (scatter diagram, scattergram) is a figure in
which the individual data points are plotted in two-dimensional
space.

Independent Variable and Dependent Variable

Predictor variable (or independent variable) is the
variable from which a prediction is made and traditionally
presented on the X (horizontal) axis.
Criterion variable (dependent variable) is the variable to
be predicted and on the Y (vertical) axis.

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Joselito O. Jayme Statistics and Probability

Correlation Analysis

The Pearson r can take on values from −1 to 1. Specifically if

r > 0, then we say that there is a positive correlation
between X and Y , that is Y tends to increase linearly as X
increases. In particular, if r = 1, then we say that there is a
perfect positive correlation between X and Y . The
following diagram show the scatter plot for r > 0 and r = 1.

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Perfect Positive Correlation

Positive Correlation r > 0
r=1

Joselito O. Jayme Statistics and Probability

Correlation Analysis

If r < 0, then we say that there is a negative correlation

between X and Y , that is Y tends to decrease linearly as X
increases. In particular, if r = −1, then we say that there is a
perfect negative correlation between X and Y . The
following diagram show the scatter plot for r < 0 and r = −1.

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Perfect Negative Correlation

Negative Correlation r < 0 r = −1

Joselito O. Jayme Statistics and Probability

Correlation Analysis

If r = 0, then we say that there is no linear correlation between

X and Y . This means that there is lack of linearity between X
and Y but not a lack of association. The following diagram
show the scatter plot for r = 0

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Negative Correlation r = 0 Perfect Negative Correlation

r=0

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Example
A report read by a physician indicated that the maximum heart
rate an individual can reach during intensive exercise decreases
with age. The physician decided to do his own study. Ten
randomly selected members of a jogging club performed exercise
tests and recorded their peak heart rates. The result are shown
in the following table:

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Example
Age (X) Peak Heart Rate (Y )
10 210
20 200
20 195
25 195
30 190
30 180
30 185
40 180
45 170
50 165

Joselito O. Jayme Statistics and Probability

Correlation Analysis

To compute the Pearson r, we construct column XY .

X Y XY
10 210 2100
20 200 4000
20 195 3900
25 195 4875
30 190 5700
30 180 5400
30 185 5550
40 180 7200
45 170 7650
50 165 8250

Joselito O. Jayme Statistics and Probability

Correlation Analysis

We construct column X 2 .

X Y XY X2
10 210 2100 100
20 200 4000 400
20 195 3900 400
25 195 4875 625
30 190 5700 900
30 180 5400 900
30 185 5550 900
40 180 7200 1600
45 170 7650 2025
50 165 8250 2500

Joselito O. Jayme Statistics and Probability

Correlation Analysis

We construct column Y 2 and take the sum of each columns.

X Y XY X2 Y2
10 210 2100 100 44100
20 200 4000 400 40000
20 195 3900 400 38025
25 195 4875 625 38025
30 190 5700 900 36100
30 180 5400 900 32400
30 185 5550 900 34225
40 180 7200 1600 32400
45 170 7650 2025 28900
50 165 8250 2500 27225
Σ = 300 1870 54625 10350 351400

Joselito O. Jayme Statistics and Probability

Correlation Analysis

P P
Thus,
P we have n
P 2 = 10; XY = 54625;
P 2 X = 300;
Y = 1870; X = 10350; Y = 351400

P P P
n XY − ( X)( Y )
r= p P
(n X 2 − ( X)2 )(n Y 2 − ( Y )2 )
P P P

(10)(54625) − (300)(1870)
= p
((10)(3002 ) − (300)2 )((10)(18702 ) − (1870)2 )
= −0.970793994105179

Joselito O. Jayme Statistics and Probability

Correlation Analysis

Joselito O. Jayme Statistics and Probability

Correlation Analysis

ACTIVITY

Joselito O. Jayme Statistics and Probability

Correlation Analysis

ACTIVITY 1

Joselito O. Jayme Statistics and Probability

Correlation Analysis

ACTIVITY 2

Joselito O. Jayme Statistics and Probability

Correlation Analysis

ACTIVITY 3

Joselito O. Jayme Statistics and Probability

Correlation Analysis

ACTIVITY 4

Joselito O. Jayme Statistics and Probability

WALA NA! FINISH NA!

SALAMAT.

Joselito O. Jayme Statistics and Probability