STATISTICS &

PROBABILITY
Hypothesis Testing
Z- test

Prepared by: Mrs. Gutierrez

Hypothesis
It is an educated guess that can be tested. It is a statement that describes
the population parameter. It is a tentative explanation/claim/assertion about
people, objects, or events.
Types of Hypothesis
Null hypothesis, denoted by means that there is no significant difference
 

between the variables.

It is formulated for the purpose of either rejecting or accepting a given
statement.
It is accepted is the sample data failed to offer a convincing evidence. It
means there is no practical change between the compared variables. It is
rejected otherwise.
 𝐻 0 : 𝜇=𝑠𝑜𝑚𝑒 𝑣𝑎𝑙𝑢𝑒 𝐻 0 : 𝜇 𝑝𝑟𝑒 −𝑡𝑒𝑠𝑡 =𝜇 𝑝 𝑜𝑠𝑡 −𝑡𝑒𝑠𝑡
 

 𝐻 0 : 𝜇 ≥ 𝑠𝑜𝑚𝑒 𝑣𝑎𝑙𝑢𝑒 𝐻 0 : 𝜇 𝑝𝑟𝑒 −𝑡𝑒𝑠𝑡 ≥ 𝜇 𝑝𝑜𝑠𝑡 −𝑡𝑒𝑠𝑡

 

 𝐻 0 : 𝜇 ≤ 𝑠𝑜𝑚𝑒 𝑣𝑎𝑙𝑢𝑒 𝐻 0 : 𝜇 𝑝𝑟𝑒 −𝑡𝑒𝑠𝑡 ≤ 𝜇 𝑝𝑜𝑠𝑡 −𝑡𝑒𝑠𝑡

 
Alternative hypothesis, denoted by is the substitute of the null hypothesis.
 

It is what a researcher believed to be true when the null hypothesis is

rejected.

It is accepted if the sample data provide an evidence that the null

hypothesis is rejected.

 𝐻 𝑎 : 𝜇 ≠ 𝑠𝑜𝑚𝑒 𝑣𝑎𝑙𝑢𝑒 𝐻 𝑎 : 𝜇 𝑝𝑟𝑒 −𝑡𝑒𝑠𝑡 ≠ 𝜇 𝑝𝑜𝑠𝑡 − 𝑡𝑒𝑠𝑡

 

 𝐻 𝑎 : 𝜇 > 𝑠𝑜𝑚𝑒 𝑣𝑎𝑙𝑢𝑒 𝐻 𝑎 : 𝜇 𝑝𝑟𝑒 −𝑡𝑒𝑠𝑡 > 𝜇 𝑝𝑜𝑠𝑡 −𝑡𝑒𝑠𝑡

 

 𝐻 𝑎 : 𝜇 < 𝑠𝑜𝑚𝑒 𝑣𝑎𝑙𝑢𝑒   𝐻 𝑎 : 𝜇 𝑝𝑟𝑒 −𝑡𝑒𝑠𝑡 < 𝜇 𝑝𝑜𝑠𝑡 −𝑡𝑒𝑠𝑡

 Written Work # 8
Write the null and alternative hypotheses for the following:
1. The sportsmanship of boys and girls.
2. The academic performance of STEM and ABM students of CEU.

3. The choice of specialization among Grade 11 students of CEU.

4. The life span of Chinese and Filipino citizens.

5. The choice of women among the boys of CEU Makati.
6. The expertise of new and old teachers.
7. The performance in Statistics of boys and girls.
8. The running time of ants and spiders.
9. The alcohol tolerance of boys and girls.
10. The milk consumption of men and women.
Types of Error
It is one of the many things a man is afraid to commit.
Type 1 error: It rejects the null hypothesis when in fact it is true. This is
 

known as error.
Type 2 error: It fails to reject the null hypothesis when in fact it is false.
 

This is known as error.

Fact
Decision
is TRUE is FALSE
Accept Correct Decision Type 2 error
Reject Type 1 error Correct Decision
Level of Significance
The probability of committing type 1 error is the probability of rejecting
 

a true null hypothesis. In short, it is the probability that the test statistic
will be in the rejection region if, when in fact, the null hypothesis is true.
The probability of type 1 error is called level of significance of the
hypothesis test denoted by

Statisticians commonly use 1%, 5%, and 10% for convenience as limits
for how unlikely a value of mean they will tolerate before rejecting the
hypothesis.
The probability of committing type 2 error is the probability of accepting
 

a false null hypothesis. In short, it is the probability that the test statistic
will be in the non-rejection region if, when in fact, the null hypothesis is
false. The probability of type 1 error is called level of significance of the
hypothesis test denoted by
 One-Tailed Test
It is used when the alternative hypothesis is directional. It means that the
value of the measures is either greater than or less than.

It is a hypothesis test where the rejection region lies only at one tail of the
distribution. It may be on left or on the right.
If the population mean is less than the specified value of the population
 

mean , use left-tailed test and .

If the population mean is greater than the specified value of the population
 

mean , use right-tailed test and .

 Acceptance Region

Rejection Region

Critical Region
 Two-Tailed Test
It is used when the alternative hypothesis is non-directional. It means that
the value of the measures are not equal.
If the population mean is not equal to the specified value of the population
 

mean , and .
It is a hypothesis test where the rejection region lies on both end tails of
the distribution. The significant level is divided into two equal parts.
Left-tailed Right-tailed
When the computed value of z lies within the area of the rejection region,
reject the null hypothesis.
Types of Test

Level of Significance One-Tailed Test

Two-Tailed Test
Left-Tailed Right-Tailed
Test Statistic is used as a basis for deciding whether the null hypothesis
should be rejected.
Rejection Region is the set of values of the test statistic that leads to
rejection of the null hypothesis.
Non-Rejection Region is the set of values of the test statistic that leads to
acceptance of the null hypothesis.
Critical Value is the set of values of the set statistic that separates the
rejection and non-rejection region
  
∝=0.01
𝐴𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑅𝑒𝑔𝑖𝑜𝑛
 
𝑅𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛𝑅𝑒𝑔𝑖𝑜𝑛
 

z = 2.33
  
∝=0.05
𝐴𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑅𝑒𝑔𝑖𝑜𝑛
 
𝑅𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛𝑅𝑒𝑔𝑖𝑜𝑛
 

z = 1.645
  
∝=0.10
𝐴𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑅𝑒𝑔𝑖𝑜𝑛
 
𝑅𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛𝑅𝑒𝑔𝑖𝑜𝑛
 

z = 1.28
  
∝=0.01

𝑅 𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑅𝑒𝑔𝑖𝑜𝑛
 
𝐴𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑅𝑒𝑔𝑖𝑜𝑛
 

z = -2.33
  
∝=0.05

𝑅 𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑅𝑒𝑔𝑖𝑜𝑛
 
𝐴𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑅𝑒𝑔𝑖𝑜𝑛
 

z = -1.645
  
∝=0.10

𝑅 𝑒𝑗𝑒𝑐𝑡𝑖𝑜𝑛 𝑅𝑒𝑔𝑖𝑜𝑛
 
𝐴𝑐𝑐𝑒𝑝𝑡𝑎𝑛𝑐𝑒 𝑅𝑒𝑔𝑖𝑜𝑛
 

z = -1.28
 Hypothesis Testing Procedure

Formulate the null and alternative hypotheses.

Decide the level of significance.
Compute the value of the appropriate statistical test.
Choose the appropriate test statistic. One-tailed test if is directional (e.g
 

>, <) and two-tailed test if non-directional ().

Establish the critical region.

Make decision and draw conclusion.
Case 1: Hypothesis about Means
Comparing the sample and population means
 
´𝑥 − 𝜇
𝑧=
𝜎
√𝑛
 
= sample mean
 
= population mean
 
= population standard deviation
 
= sample size
  
´𝑥 − 𝜇
𝑧=
𝑠
√𝑛
 
= sample mean
 
= population mean
 
= sample standard deviation
 
= sample size
1. The cashier department of CEU claims that the mean monthly salary of
their employees is ₱ 20 000.00 with a standard deviation of ₱ 7 000.00.
Budoy takes a random sample of 65 employees and found out that they
have a mean monthly salary of ₱ 18 500.00. Do the 65 employees have
lower salaries than the rest of the employees. Test the claim at 5% level of
significance.

 𝐻 0 : 𝜇= ₱  20 000.00

 𝐻 𝑎 : 𝜇 < ₱  20 000.00
   ´𝑥 − 𝜇 Types of Test

𝑧= Level of One-Tailed Test

𝜎 Significance
Left-Tailed Right-Tailed
Two-Tailed Test

√𝑛
  18 500− 20 000
𝑧=
7 000
√ 65
  −1 500 𝒛=− 𝟏. 𝟕𝟑
𝑧=  
8 68.24

𝑧=− 1.73
 

Consider it left-tailed because the computed z value is

negative. 𝒛=−
  𝟏. 𝟔𝟒𝟓
 Types of Test
 𝐻 0 : 𝜇= ₱  20 000.00
Level of One-Tailed Test
Significance Two-Tailed Test
Left-Tailed Right-Tailed
 𝐻 𝑎 : 𝜇 < ₱  20 000.00

Since the computed value of z = -

 

1.73 and lies under the rejection

region, ACCEPT .
𝒛=−
  𝟏. 𝟕𝟑

𝒛=−
  𝟏. 𝟔𝟒𝟓
2. The mean weight of the bag by a student at CEU Makati is
 

4.55 kg. Jun-jun takes a random sample of 45 bags and obtains a

sample mean weight of 4.75 kg with a standard deviation of 2.5
kg. Test the claim that at 1% level of significance.

 𝐻 0 :𝜇=4.55  kg
 𝐻 𝑎 : 𝜇 <4.55  kg
   ´𝑥 − 𝜇 Types of Test

𝑧= Level of One-Tailed Test

𝜎 Significance
Left-Tailed Right-Tailed
Two-Tailed Test

√𝑛
 
4.75 − 4.55
𝑧=
2.5
√ 45
  0.2
𝑧=
0 .37 𝒛=𝟎
  . 𝟓𝟒

𝑧=0.54
 

Consider it right-tailed because the computed z value 𝒛=𝟐

  . 𝟑𝟑
is positive.
 Types of Test
 𝐻 0 : 𝜇=4.55
Level of One-Tailed Test
Significance Two-Tailed Test
Left-Tailed Right-Tailed
 𝐻 𝑎 : 𝜇 <4.55

Since the computed value of z = -

 

0.54 and lies under the

acceptance region, Accept .

𝒛=𝟎
  . 𝟓𝟒

𝒛=𝟐
  . 𝟑𝟑
 Written Work # 9
1. The head of crew of JFC claims that the mean monthly salary of their
employees is ₱ 13 000.00 with a standard deviation of ₱ 5 000.00.
Bentong takes a random sample of 37 employees and found out that they
have a mean monthly salary of ₱ 12 500.00. Do the 37 employees have
lower salaries than the rest of the employees. Test the claim at 10% level
of significance.

2. The mean weight of SHS students of CEU Makati is 48.55 kg. Carding
 

takes a random sample of 45 students and obtains a sample mean weight

of 46.75 kg with a standard deviation of 3.15 kg. Test the claim that at
5% level of significance.
 Case 2: Hypothesis about Means
To test the significant difference between two sample means when the
sample standard deviation is known and the number of cases is more than
or equal to 30, use z-test.
 
´𝑥 1 − 𝑥´ 2  
= first sample mean
𝑧=  
= second sample mean
2 2
𝑠 𝑠
√ 1
+
𝑛 1 𝑛2
2  

 
= first sample standard deviation
= second sample standard deviation
= first sample size
 
= second sample size
 
1. A sample of 45 observations is selected from a normal
population with a sample mean of 3.75 and sample
standard deviation of 0.65.
Another sample of 42 observations is selected from a normal
population with a sample mean of 3.60 and a standard
deviation of 0.55.
Test the hypothesis at 5% level of significance.

 
𝐻 0 : ´𝑥1 =´𝑥2
 
𝐻 1 : 𝑥´ 1 ≠ ´𝑥 2
  
´𝑥 1 − 𝑥´ 2 Types of Test

𝑧= Level of
Significance
One-Tailed Test
Two-Tailed Test
2 2 Left-Tailed Right-Tailed
𝑠 𝑠

 
𝑧=
√ 1
+
𝑛 1 𝑛2
3 .75 −3.60
2

2 2
0.6 5 0.55
√ 45
+
42

 
𝑧=1.64
 Types of Test
 
𝐻 0 : ´𝑥1 =´𝑥2 Level of
Significance
One-Tailed Test
Two-Tailed Test
Left-Tailed Right-Tailed
 
𝐻 1 : 𝑥´ 1 ≠ ´𝑥 2

Since the computed value of z =

 

 𝑧=1.64 1.64 and lies under the

acceptance region, therefore
−1.96
  1.96
 
Accept .

 
𝑧=1.64
2. To compare customer satisfaction levels of two competing cable
television companies, 174 customers of Company 1 and 355 customers
of Company 2 were randomly selected and were asked to rate their
cable companies on a five-point scale, with 1 being least satisfied and 5
most satisfied. The survey results are summarized in the table:

Company 1 Company 2
 
𝐻 0 : ´𝑥1 =´𝑥2
 
𝐻 1 : 𝑥´ 1 ≠ ´𝑥 2
Construct a point estimate and a 99% confidence level.
 Company 1 Company 2 Types of Test
Level of One-Tailed Test
Significance Two-Tailed Test
Left-Tailed Right-Tailed

 
´𝑥 1 − 𝑥´ 2  
𝑧=
3 .51 −3.24  
𝑧= 2 2
1.53
1.51 2.52

√
2
𝑠 𝑠
1
+
𝑛 1 𝑛2
2
2
√ 174
+
355
 Types of Test
 
𝐻 0 : ´𝑥1 =´𝑥2 Level of
Significance
One-Tailed Test
Two-Tailed Test
Left-Tailed Right-Tailed
 
𝐻 1 : 𝑥´ 1 ≠ ´𝑥 2

Since the computed value of z =

 

 𝑧=1.53 1.53 and lies under the

acceptance region, therefore
−2.575
  2.575
 
Accept .

 
𝑧=1.53
 Written Work # 10

Mini Go 7/15 Boys Girls

 Case 3: Hypothesis Testing for a Single Proportion

To test the significant difference between a sample proportion and a

population proportion when the number of cases is more than or equal to
30, use z-test.

 
 
𝑃− 𝑃
^ = sample proportion
𝑧=  
𝑃 (1− 𝑃) = population proportion
√ 𝑛  
= sample size
1. Bida Group claims that at least 75% of the students of
ABM are bright. To test this claim, Kurdapia randomly
selected a sample of 92 students and found out that 73
students of ABM are bright. At 0.05 level of significance,
what can you conclude?

 
𝐻 0 : 𝑃 ≥75 %
 
𝐻 𝑎 : 𝑃<75 %
 Types of Test
 
𝑃− 𝑃
^
𝑧= Level of
Significance
One-Tailed Test
Two-Tailed Test
𝑃 (1− 𝑃)
√
Left-Tailed Right-Tailed

𝑛
  73
− 0.75
92
𝑧=
0.75 (1− 0.75)
√ 92
 
𝑧=0.96 Consider it right-tailed because the computed z value
is positive.
 
𝐻 0 : 𝑃 ≥75 % Level of
Types of Test
One-Tailed Test
Significance Two-Tailed Test
 
𝐻 𝑎 : 𝑃<75 % Left-Tailed Right-Tailed

Since the computed value of z =

 

1.53 and lies under the

1.645
  acceptance region. Accept .
 
𝑧=0.96
2. Kapitan Barbel claims that at most 3% of the residents in
his area use Marijuana. To test this claim, Tiktik randomly
selected a sample of 150 residents and found out that 10 of
them uses Marijuana. At 1% level of significance, what can
you conclude?

𝐻 0 : 𝑃 ≤3 %
 

 
𝐻 𝑎 : 𝑃>3 %
 Types of Test
 
𝑃− 𝑃
^
𝑧= Level of
Significance
One-Tailed Test
Two-Tailed Test
𝑃 (1− 𝑃)
√
Left-Tailed Right-Tailed

𝑛
  10
− 0.03
150
𝑧=
0.03 (1− 0.03)
√ 150
Consider it right-tailed because the computed z value
 
𝑧=2.63 is positive.
 Types of Test

 
𝐻 0 : 𝑃 ≤3 % Level of
Significance
One-Tailed Test
Two-Tailed Test
Left-Tailed Right-Tailed

 
𝐻 𝑎 : 𝑃 ≥3 %

 𝑧=2.63
Since the computed value of z =
 

2.63 and lies under the rejection

2.575
  region, Reject .

 
𝑧=2.63
3. We take a random sample of 400 SHS students and find that
195 are from Makati. Can we conclude that the proportion is
larger than 0.5 at a 10% level of significance?

 
𝐻 0 : 𝑃>50 %
 
𝐻 𝑎 : 𝑃<50 %
 Types of Test
 
𝑃− 𝑃
^
𝑧= Level of
Significance
One-Tailed Test
Two-Tailed Test
𝑃 (1− 𝑃)
√
Left-Tailed Right-Tailed

𝑛
  195
− 0.50
400
𝑧=
0.50 (1− 0.50)
√ 400
Consider it left-tailed because the computed z value is
 
𝑧=− 0.50 positive.
 
𝐻 0 : 𝑃>50 % Types of Test
Level of One-Tailed Test
Significance
 
𝐻 𝑎 : 𝑃<50 % Left-Tailed Right-Tailed
Two-Tailed Test

 𝑧=− 0.50

Since the computed value of z = -

 

0.5 and lies under the acceptance

−1.28
  region, Accept .

 
𝑧=− 0.50
 Written Work # 11
1. Darna claims that at most 65% of the residents in her area
use paper bags. To test this claim, Spiderman randomly
selected a sample of 250 residents and found out that 189 of
them uses paper bags. At 5% level of significance, what can
you conclude?

2. We take a random sample of 740 SHS students and find that

524 are from Manila. Can we conclude that the proportion is
less than 0.67 at a 1% level of significance?
 Case 4: Hypothesis Testing for Two Proportions

This case deals with the hypothesis testing between two

proportions of random samples. If the number of cases is
greater than or equal to 30, use z-test.

  𝑃1 − 𝑃2  𝑃1= proportion of the first sample

𝑧=  𝑃 = proportion of the second sample
𝑃 1(1 − 𝑃 1) 𝑃2 (1− 𝑃2)
√ 𝑛1
+
𝑛2
2
 𝑛 =first sample ¿ ¿
1
 𝑛 =second sample ¿ ¿
2
1. A researcher made a survey about the proportion of male and
female senior high school students of CEU Makati who failed
in Statistics after a quarter examination. In a sample of 550
female students, 55 failed in Statistics and in a sample of 475
males, 40 failed in the same subject. Is there a significant
difference between the proportion of male and female students
who failed in Statistics? Use 5% level of significance.

 
𝐻 0 : 𝑃1=𝑃 2
 
𝐻 𝑎 : 𝑃1 ≠ 𝑃2
  𝑃1 − 𝑃2
𝑧=
𝑃 1(1 − 𝑃 1) 𝑃2 (1− 𝑃2)
√ 𝑛1
+
𝑛2

  55 40
−
550 475
𝑧=
55 55 40 40

𝑧=0.8
 
√ 550
(1−
550
550
)
+
475
(1 −
475
475
)

Consider it two-tailed because the alternative

hypothesis is non-directional.
 Types of Test
Level of One-Tailed Test
Significance Two-Tailed Test
Left-Tailed Right-Tailed

Since the computed value of z 0.8

 

and lies under the acceptance

−1.96
 
1.96
  region, Accept .

𝑧=0.8
 
2. A researcher made a survey regarding the proportion of male
and female college students who were able to pass the moving
examination in Accountancy. In a sample of 200 female
students, 95 have successfully passed the moving examination
while in a sample of 190 male students, 90 have successfully
passed. Is there a significant difference in the proportion of
male and female student who have successfully passed the
moving examination? Use 0.01 level of significance.

 
𝐻 0 : 𝑃1=𝑃 2
 
𝐻 𝑎 : 𝑃1 ≠ 𝑃2
  𝑃1 − 𝑃2
𝑧=
𝑃 1(1 − 𝑃 1) 𝑃2 (1− 𝑃2)
√ 𝑛1
+
𝑛2

  95 90
−
200 190
𝑧=
95 95 90 90

𝑧=0.03
 
√ 200
(1−
200
200
)
+
190
(1 −
190
190
)

Consider it two-tailed because the alternative

hypothesis is non-directional.
 Types of Test
Level of One-Tailed Test
Significance Two-Tailed Test
Left-Tailed Right-Tailed

Since the computed value of z =

 

0.03 and lies under the

−2.575
  2.575
  acceptance region, Accept .

𝑧=0.03
 
 Written Work # 12

Mini Go 7/15 Boys Girls

Sample 1 Sample 2 Sample 1 Sample 2

 
𝐻 0 : 𝑃1=𝑃 2
 
𝐻 𝑎 : 𝑃1 ≠ 𝑃2
 Performance Task # 3
Case 1: The SHS department of CEU claims that the mean
monthly salary of their employees is ₱ 20 000.00 with a
standard deviation of ₱ 6 200.00. Berting takes a random
sample of 47 employees and found out that they have a mean
monthly salary of ₱ 19 400.00. Do the 47 employees have
lower salaries than the rest of the employees. Test the claim at
5% level of significance.
 
Case 2: A sample of 53 observations is selected from a
normal population with a sample mean of 3.85 and sample
standard deviation of 1.23.
Another sample of 55 observations is selected from a normal
population with a sample mean of 3.76 and a standard
deviation of 1.42.
Test the hypothesis at 10% level of significance.
Case 3: Junis Group claims that at least 83% of the students
of ABM are smart. To test this claim, Karpa Group randomly
selected a sample of 108 students and found out that 65
students of ABM are smart. At 1% level of significance,
what can you conclude?
Case 4: A researcher made a survey regarding the proportion of
male and female senior high school students who to failed the
moving examination in Biology. In a sample of 350 female
students, 46 have failed the moving examination while in a
sample of 235 male students, 25 have failed. Is there a
significant difference in the proportion of male and female
student who have failed the moving examination? Use 0.01
level of significance.
Gabuyo, Y.A. & Cardenas M.C.(2016). Statistics and Probability.The Inteligente Publiching,Inc.: Quezon City