Hypothesis Testing for One Mean

Raw Data null hypothesis μ 60

59 level of significance, a 0.05
55 population s, if known sigma not known
56 population size, N, if known Population size not known
59 and sampling without replacement
56 Since you provided raw data, Delete raw data if you wish to enter
63.5 ← I'll use it to summary data
55 compute x-bar, s, and n.
56
58 mean of this sample, x-bar: 57.225 = AVERAGE(range)
54 standard deviation of this sample, s: 2.285394127 = STDEV(range)
60 sample size, n: 20 = COUNT(range)
59 critical t value, t* -1.729132812 =TINV(2 * alpha/# of tails, n-1)*
59 standard error 0.5110296623 = s/SQRT(n)
56 margin of error (MOE) 0.8836381568 = ABS(std err x crit value)
57 lower limit for nonrejection region 59.116361843 = m - MOE (or infinity for < null hypothesis)
57 upper limit for nonrejection region ∞ = m + MOE (or infinity for > null hypothesis)
56 tsam, t score of sample mean -5.430213165 = (x-bar - m )/std err
57 P value of sample mean 1.534654E-05 = TDIST(ABS(tsam),n-1,# tails)**
54 Conclusion: Reject null hypothesis
58 Check
Population must be roughly symmetric--sample<30

Template copyright 2009 by Scott Stevens

Values above are correct, but formulas in blue need to be modified as listed below.
* t* or z* has its sign changed for a lower tail test
** P value in the nonrejectable tail is 1- this formula
Hypothesis Test for the Population Mean
Template by Scott Stevens

Instructions
1. Enter the data.
a. If you have a sample, enter the sample observations in the yellow cells in the first column of the spreadsheet.
b. If you do not have the sample, but only the sample's statistics, be sure the first column is blank. Enter
the sample mean, sample size, and sample standard deviation in the appropriate yellow boxes.

2. Select the appropriate parameters for the test.

a. In the appropriate yellow box, enter the hypothesized value of the population mean.
b. From the pull down menu, specify whether the test is <, = or >.
c. Enter the desired level of significance. Commonly used values are 0.01, 0.05, and 0.1.
(The smaller the number used, the stronger the implication that follows from a rejected null hypothesis.)

3. Enter the population parameters, if known. (Usually, you WILL NOT know them.)
a. If you know σ, enter it into the grey cell. If you don't leave the cell blank.
b. If you know the population size and are sampling with replacement, enter its size.
If you don't know N, or if you are sampling with replacement, leave it blank.

Results
1. The template goes through the work of conducting the hypothesis test. If s is known, it uses the appropriate z distribution.
If s is unknown, it uses the appropriate t distribution. If N is known, the finite population modifer is used in the calculations.
Formulas used in the calculation are shown in the blue boxes.
Words in CAP ITALICS (except for MOE) are entered into Excel exactly as typed. Lower case words refer to quantities
already computed. The finite population multiplier is used if the sampling is with replacement and N is known.

2. The template reports the information needed to conduct hypothesis tests in any of three ways:
nonrejection region, critical value approach, and P-value. The conclusion drawn from the hypothesis test is then given
as well as a check of the reasonableness of the assumptions that the underlying sampling distributions are normal.
The conclusion drawn from the hypothesis test, stated in terms of the nonrejection region.

3. The template evaluates the reasonableness of the assumption that the underlying sampling distribution is normal.

Note: Some calculations needed by Excel are hidding in column H. Please do not delete that column.
st column of the spreadsheet.
olumn is blank. Enter
propriate yellow boxes.

jected null hypothesis.)

es the appropriate z distribution.

odifer is used in the calculations.

ase words refer to quantities

nt and N is known.

ays:
ypothesis test is then given
distributions are normal.

g distribution is normal.