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Hypothesis Testing:
One Sample Cases
Outline:
Z= -1.96 Z = +1.96
c c
Z
N
When the Population σ is not known,
use the following formula:
Z
s n 1
Test the Hypotheses
3.0 2.7
Z 4.62
.7
117 1
We can substitute the sample standard deviation
S for (pop. s.d.) and correct for bias by
substituting N-1 in the denominator.
Substituting the values into the formula, we
calculate a Z score of 4.62.
Step 5 Make a Decision and Interpret
Results
The obtained Z score fell in the Critical Region, so we reject
the H0.
If the H0 were true, a sample outcome of 3.00 would be
unlikely.
Therefore, the H0 is false and must be rejected.
Z= -1.96 Z = +1.96
c c z= +4.62
I
Summary:
t
S
n 1
Example (text 2/3e #7.9 or 1e #8.9):
1. Random sample
2. Level of measurement is interval-ratio
3. The sample is small (<100)
Solution (cont.)
t= -2.060 t = +2.060
c c t= +4.50
I
Step 5 Make a Decision and Interpret
Results
The obtained t score fell in the Critical Region, so
we reject the H0 (t (obtained) > t (critical)
If the H0 were true, a sample outcome of 458
would be unlikely.
Therefore, the H0 is false and must be rejected.
Ps Pu
Z
Pu (1 Pu ) / n
Example (text 2/3e #7.13, 1e #8.13)
In a recent provincial election, 55% of
voters rejected lotteries. A random sample
of 150 rural communities showed that 49%
of voters rejected lotteries. Is the
difference significant?
Ps Pu .49 .55
Z 1.48
Pu (1 Pu ) / n .55(1 .55) / 150
Step 5
Z (obtained) < Z (critical)
Fail to reject Ho. There is no significant difference
between the rural population and rest of the
province.
Main Considerations in Hypothesis
Testing:
Sample size
Use Z for large samples, t for small (<100)
Two-tailed test:
“is there a significant
difference?”
One-tailed tests:
“is the sample mean
greater than µ or Pu?”