OBJECTIVES:

1. Illustrate hypothesis testing as

statistical inference.
2. Determine the critical value when
using 1%, 5%, and 10% level of
significance using z-test.
3. Discuss the procedures in
Hypothesis Testing.
 RECALL …
90%
90%
5% 5% 99%
−1.65 𝜇 1.65
99%
0.5% 0.5%
95% −2.58 𝜇 2.58
95%
2.5% 2.5%
−1.96 𝜇 1.96
 Definition of level of significance
~ The probability of committing type I error
is the probability of rejecting a true null
hypothesis.
~ It is the probability that the test statistic will
be in the rejection region.
~ The probability of type I error is called the
level of significance and is denoted by 𝜶.
 Critical Region Critical Region

Acceptance
𝜶 Region 𝜶

Rejection Region Rejection Region

 DEFINITION OF TERMS

1. TEST STATISTIC – This is used as a basis for

deciding whether the null hypothesis should be
rejected.
2. REJECTION REGION – This is the set of
values of the test statistic that leads to rejection of
the null hypothesis.
3. NON-REJECTION REGION - This is the
set of values of the test statistic that leads to
acceptance of the null hypothesis.

4. CRITICAL VALUE - This is the set of

values of the test statistic that separates the
rejection and non-rejection region.
 STEPS IN HYPOTHESIS TESTING
1.Formulate null and alternative hypothesis.
2.Decide the level of significance to be used.
3.Compute the value of the appropriate
statistical test.
4.Choose the appropriate test statistic.
5.Establish the critical region.
6.Make decision and draw conclusion.
 z – test
> It is used when the sample size is
greater than or equal to 30.
> To solve for z-value, z-table will be
used.
 DIFFERENT CASES OF HYPOTHESIS
TESTING USING Z-Test

CASE 1: Hypothesis about Means

(Comparing Sample and Population mean)
a. The population standard deviation is
known.
b. The sample standard deviation is
known.
EXAMPLE:
The cashier department of QT University
claims that the mean monthly salary of their
employees is Php 22,500.00 with a standard
deviation of Php 7,000.00. A researcher takes a
random sample of 80 employees and found out that
they have a mean monthly salary of Php 18,
750.00. Do the 80 selected employees have lower
salaries than the rest? Test the claim at 5% level of
significance.
 TRY THIS!!!
A researcher used a developed problem
solving test to a randomly selected 50 Grade 6
pupils. In this sample, the sample mean is 80 and
sd=10. The mean µ of the population used in a
standardization of the test was 75. Use the 95%
CL to answer the question:
a. Does the sample mean differ
significantly from the population mean?
 2. The owner of a factory that sells a particular
bottled fruit juice claims that the average capacity
of their product is 250ml. To test the claim, a
consumer group gets a sample of 100 such bottles,
calculates the capacity of each bottle, and then
finds the mean capacity to be 248ml. The sample
standard deviation is 5ml. Is the claim true?
(Conduct a hypothesis test using 𝛼 = 0.05)
A sample of five measurements, randomly selected from
an approximately normally distributed population,
resulted in the summary statistics: sample mean is 4.6,
sd = 1.5.
a. Test the null hypothesis that the mean of the
population is against the alternative hypothesis
𝜇 < 6. Use 𝛼 = 0.05.
b. Test the null hypothesis that the mean of the
population is against the alternative hypothesis
𝜇 ≠ 6. Use 𝛼 = 0.05.