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Slide 4
 Hypothesis Tests
 Developing Null and Alternative Hypotheses
 Type I and Type II Errors
 Hypothesis Tests for Population Mean: s Known
 Hypothesis Tests for Population Mean: s Unknown

Slide 5
 Summary of Forms for Null and Alternative
Hypotheses about a Population Mean
 The equality part of the hypotheses always appears
in the null hypothesis.
 In general, a hypothesis test about the value of a
population mean  must take one of the following
three forms (where 0 is the hypothesized value of the
population mean).

H 0 :   0 H 0 :   0 H 0 :   0
H a :   0 H a :   0 H a :   0

One-tailed One-tailed Two-tailed

(lower-tail) (upper-tail)

Slide 6
 Type I and Type II Errors

Population Condition

H0 True H0 False
Conclusion ( < µ0) ( > µ0)

Accept H0 Correct
Type II Error
(Conclude  < µ0) Decision

Reject H0 Correct
Type I Error
(Conclude  > µ0) Decision

Slide 7
 Two Basic Approaches to Hypothesis Testing

 There are two basic approaches to conducting a

hypothesis test:
 1- p-Value Approach, and
2- Critical Value Approach

Slide 8
 1- p-Value Approach to
One-Tailed Hypothesis Testing

 In order to accept or reject the null hypothesis the p-value is

computed using the test statistic --Actual Z value.

 Reject H0 if the p-value < 

 Do not reject (accept) H0 if the p-value > 

Slide 9
 2- Critical Value Approach
One-Tailed Hypothesis Testing

 Use the Z table to find the critical Z value, and

 Use the equation to find the actual Z--Z .
 The rejection rule is:
• Lower tail: Reject H0 if Actual z < Critical -z
• Upper tail: Reject H0 if Actual z > Critical z

In other words, if the actual Z (Z ) is in the rejection

region, then reject the null hypothesis.

Equation for finding the x

actual Z value: z
s/ n
Slide 10
 Steps of Hypothesis Testing

Step 1. Develop the null and alternative hypotheses.

Step 2. Specify  and n.
Step 3. Compute critical Z and actual Z values.
Step 4. Use either of the following approaches to
make conclusion:
1- p-Value Approach, or
2- Critical Approach

Slide 11
 One-Tailed Tests About a Population Mean:
s Known
 Example: Metro EMS
 The response times for a random
sample of 40 medical emergencies
were tabulated. The sample mean
is 13.25 minutes. The population
standard deviation is believed to
be 3.2 minutes.
 The EMS director wants to
perform a hypothesis test, with a
0.05 level of significance, to determine
whether the service goal of the response time to be
at most 12 minutes or less is being achieved.

Slide 12
 One-Tailed Tests About a Population Mean:
s Known: Solution
 p -Value and Critical Value Approaches

1. Develop the hypotheses. H0:  

Ha: 

2. Level of significance and sample size are: = .05

n = 40
3. Compute the value of the test statistic.
x   13.25  12
z   2.47
s / n 3.2 / 40

Actual z

Slide 13
 One-Tailed Tests About a Population Mean:
s Known: Solution Continued
 p –Value Approach

4. Compute the p –value.

From the Z table the actual z = 2.47

using Z table, p–value = 0.5 - .4932 = .0068

5. Make conclusion about H0

Because p–value = .0068 <  = .05, we reject H0.
 We are at least 95% confident that Metro EMS is
not meeting the response goal of 12 minutes.

Slide 14
 Solution Continued
Because p–value = .0068 <  = .05, we reject H0.

 = .05

p-value


z
0 Zc = Za =
1.645 2.47

Slide 15
 One-Tailed Tests About a Population Mean:
s Known: Solution Continued
 Critical Value Approach

4. Determine the critical value and rejection rule.

For  = .05, z.05 = 1.645 Finding critical z value

0.5 – 0.05 = 0.45
Reject H0 if actual z > 1.645 Then, from table
1.64 + 1.65
3.29 / 2 = 1.645
5. Make conclusion about H0

Because actual z = 2.47 > Critical z = 1.645

we reject H0.
 We are at least 95% confident that Metro EMS is
not meeting the response goal of 12 minutes.

Slide 16
 One-Tailed Tests About a Population Mean:
s Known
 Excel: SWStat

Slide 17
 One-Tailed Tests About a Population Mean:
s Known
 Excel: SWStat

P Approach

Critical Approach

Because actual z = 2.47 >

Critical z = 1.645 we
reject H0, or
Because p–value = .0068
< α = .05, we reject
H0

Slide 18
 Example: Glow Toothpaste

 Two-Tailed Test for Population Mean: s Known

The production line for Glow toothpaste
is designed to fill tubes with a mean weight
of 6 oz. Periodically, a sample of 30 tubes
will be selected in order to check the
filling process.
Quality assurance procedures call for
the continuation of the filling process if the
sample results are consistent with the assumption that
the mean filling weight for the population of toothpaste
tubes is 6 oz.; otherwise the process will be adjusted.

Slide 19
 Example Continued: Glow Toothpaste

 Two-Tailed Test for Population Mean: s Known

Assume that a sample of 30 toothpaste
tubes provides a sample mean of 6.1 oz.
The population standard deviation is
believed to be 0.2 oz.
Perform a hypothesis test, at the 0.03
level of significance, to help determine
whether the filling process should continue
operating or be stopped and corrected.

Slide 20
 Two-Tailed Tests About a Population Mean:
s Known: Solution
 p –Value and Critical Value Approaches

1. Determine the hypotheses. H0:  

Ha:   6

2. Alpha and sample size are given  = .03 and n=30

3. Compute the value of the test statistic.

x  0 6.1  6
z   2.74
s / n .2 / 30

Actual z

Slide 21
 Two-Tailed Tests About a Population Mean:
s Known: Solution Continued
 p –Value Approach

4. Compute the p –value.

For actual z = 2.74, the probability = 0.4969, thus

p–value = 2(0.5 – 0.4969) = 2 (0.0031) = 0.0062

5. Determine whether to reject or to accept H0.

Because p–value = .0062 <  = .03, we reject H0.

 We are at least 97% confident that the mean filling
weight of the toothpaste tubes is not 6 oz.

Slide 22
 Solution Continued
Because p–value = .0062 <  = .03, we reject H0.

1/2 1/2
p -value p -value
= .0031 = .0031

/2 = /2 =
.015 .015

z
z = -2.74 0 za = 2.74
-z/2 = -2.17 z/2 = 2.17

Slide 23
 Two-Tailed Tests About a Population Mean:
s Known: Solution Continued
Critical Value Approach
 To Find the Critical Z Value:
0.5
Given that  = 0.03, thus /2 = .015 and
0.5 – 0.015 = 0.485
 Then from the table we need to find the z
value of 0.485.
 Locate 0.485 in the Z Table. Critical z/2
 Thus, the critical z value for 0.485 is 2.17

0.485 /2 =
.015

Critical z/2 = 2.17

Slide 24
 Two-Tailed Tests About a Population Mean:
s Known: Solution Continued
 Critical Value Approach

Conclusion:

 Because actual z of 2.74 > critical z of 2.17, we reject H0

We are at least 97% confident that the mean filling weight
of the toothpaste tubes is not 6 oz.

x  0 6.1  6
Actual Z z   2.74
s / n .2 / 30

Slide 25
 Critical Approach: Solution Continued

Because actual z of 2.74 > critical z of 2.17, we reject H0.

Actual Z Value

x  0
z
s / n = 2.74

Reject H0 Reject H0
/2 = .015 /2 = .015

z
-2.17 0 2.17

Critical Z values
Slide 26
 Two-Tailed Tests About a Population Mean:
s Known
 Excel: SWStat

Slide 27
 Two-Tailed Tests About a Population Mean:
s Known
 Excel: SWStat

P Approach

Critical Approach

Slide 28
THOUGHT
 Confidence Intervals Versus
Hypothesis Tests
 A standard confidence interval is equivalent to a
two-tail hypothesis test.
 All two tails tests can be handled either as
hypothesis tests or as confidence intervals.
 The confidence interval has the appeal of
providing a graphic feeling for how close the
hypothesized value lies to the ends of confidence
interval.
 Rejection Rule: If the confidence interval
does not contain H0 , we reject H0.
 Thinking Challenge Example
 32 males between the ages of 40 and 69 years with
moderate carotid disease were tested at the Henry
Hospital over 39-,months period. Their mean systolic
pressure was 146.6 mmHg with a standard deviation of
17.3 mmHg. At a = 0.05, is this sample consistent with a
population mean of 140 mmHg, which is considered a
borderline for dangerously high blood pressure (note:
recent medical evidence suggests 130 as a borderline, but
we will use the older benchmark)?

 Apply confidence interval approach to test the hypothesis

 Thinking Challenge Example
Solution
 Confidence Interval Approach:
 For this problem, the two-sided hypothesis would be:
H0:  4
Ha:  4
 The 95% confidence interval (α=0.05) for  is:
s
x  t /2 Margin of Error
n
146 – + (2.040) 17.3 /5.657

 Since interval 140.36 <  < 152.84 does not contain  =140 we
would reject the hypothesis H0:  4 in favor of Ha:  4
Slide 32
 Hypothesis Tests About a Population Mean:
s Unknown
 Test Statistic

x  0
Actual t Value t
s/ n

This test statistic has a t distribution

with n - 1 degrees of freedom.

Slide 33
 Example: Highway Patrol

 One-Tailed Test About a Population Mean: s Unknown

A State Highway Patrol periodically samples
vehicle speeds at various locations
on a particular roadway.
The sample of vehicle speeds
is used to test the hypothesis

H0:  < 65

The locations where H0 is rejected are deemed

the best locations for radar traps.

Slide 34
 Example Continued: Highway Patrol

At Location F on I-75, a sample of 64 vehicles shows a

mean speed of 66.2 mph with a
sample standard deviation of
4.2 mph. Use  = .05 to
test the hypothesis.

Use Excel

Slide 35
Using SWStat

Slide 36
 Solution Using SWStat

P Approach

Critical Approach

H0:  < 65

Since p=0.0128 < α=0.05

we reject H0

 The locations where H0

is rejected are deemed
the best locations for radar
traps.
Slide 37
One-Tailed Test About a Population Mean:
s Unknown: Solution Continued

Reject H0

Do Not Reject H0


t
0 critical t = 1.669
t Statistic = Actual t = 2.286

Slide 38
 Thinking Challenge

 The current rate for producing 5 and

amp fuses at Ariana Electric Co. is Solution
250 per hour. A new machine has
been purchased and installed that,
according to the supplier, will
increase the production rate. The
production hours are normally
distributed. A sample of 10 randomly
selected hours from last month At the .05 significance level
revealed that the mean hourly can Ariana Electric Co.
production on the new machine was conclude that the new
256 units, with a sample standard machine is faster?
deviation of 6 per hour.

Slide 39
The null hypothesis is rejected if t > 1.833 or, using the
p-value, the null hypothesis is rejected if p ≤ 0.05

Step 4
State the decision rule.
There are 10 – 1 = 9 Step 3
degrees of freedom. Find a test statistic. Use
the t distribution since s
Step 1 is not known and n < 30.
State the null and
alternate hypotheses.
Step 2
H0: µ < 250 Select the level of
H1: µ > 250 significance. It is .05.
Slide 40
 Step 5 X  256  250
Make a decision t   3.162
and interpret the
s n 6 10
results.
 The p(t >3.162) is .0058
Actual t
for a one-tailed test.

 Computed t (or actual t) of 3.162 >

critical t of 1.833 and Conclusion
 From Excel, p of .0058 < 
So we reject Ho The mean number of
amps produced by the
new machine is more
than 250 per hour.
Slide 41
Solution Using SWStat

Slide 42
 Solution Continued
H0: µ < 250

 Since computed t (or actual t)

of 3.162 > critical t of 1.833
and since p of .0058 < 
thus, we reject Ho

Hence, we conclude that the

mean number of amps
produced by the new machine
is more than 250 per hour.

Slide 43
 and
Thinking Challenge Solution
 A group of young businesswomen wish to open a
high fashion boutique in a vacant store, but only if
the average income of households in the area is
more than $45,000. A random sample of 9
households showed the following results.

$48,000 $44,000 $46,000

$43,000 $47,000 $46,000
$44,000 $42,000 $45,000

Slide 44
 Thinking Challenge
(Continued)

 Use the statistical techniques in Excel (SWStat) to

advise the group on whether or not they should
locate the boutique in this store. Use a 0.05 level of
significance. (Assume the population is normally
distributed).

Slide 45
Thinking Challenge 4 (Solution)

Slide 46
 Summary of
Selecting an Appropriate Test Statistic for a
Test about a Population Mean

Slide 47
End of Chapter 10
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