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HYPOTHESIS TESTING FOR A

SINGLE POPULATION
JC Tamayo
Mathematics and Statistics Department
De La Salle University
STEPS FOR HYPOTHESIS TESTING
Step 1: Develop the Research and Statistical
Hypothesis

Step 2: Specify the level of significance ()

Step 3: Collect sample data and compute the value


of the test - statistic
CRITICAL VALUE APPROACH
Step 4: Use the level of significance to determine
the critical value and the rejection rule

Step 5: Use the value of the test statistic and the


rejection rule to determine whether to reject H0 or
not

Note:
Critical Value/s: is/are the value/s which serve
as benchmarks to which exceedance would mean
evidences against H0
Test-Statistic: is the value generated from the
sample data which is compared to the Critical
Value
P-VALUE APPROACH
Step 4: Use the value of the test-statistic to
compute the p-value

Step 5: Reject H0 if p-value

Note:
p-value: Probability that provides a measure of
evidence against H0 (i.e. smaller values of the p-
value indicate more evidence against H0)
P-VALUE APPROACH

Interpretation guide:
TESTING HYPOTHESIS ABOUT ONE MEAN
Take note that there are 2 kinds of Hypothesis
Testing for One Mean
Hypothesis Testing for One Mean (Population
Variance is Known)
Hypothesis Testing for the Mean (Population
Variance is Unknown)
TESTING HYPOTHESIS ABOUT A POPULATION
MEAN (POPULATION VARIANCE KNOWN)
Is used when a researcher would want to test a
certain claim or hypothesis regarding the mean

Makes use of certain information such as 0


(hypothesized population mean), 2 (population
variance), (population standard deviation), n
(sample size), and (sample mean)

Take note that, in this test of hypothesis, we


know the value of the population variance
( ) or population standard deviation ()
TESTING HYPOTHESIS ABOUT A POPULATION
MEAN (POPULATION VARIANCE KNOWN)

This formula can only be used if (population


standard deviation) is known and if the sample
size is sufficiently large (n 30)
DECISION RULES
How to compute for the value of and
2

< = 1
2 2
< = 1

For Example,
Find:
, , = 0.05
2
, , = 0.05
EXAMPLE #1
The Federal Trade Commission (FTC) periodically
conducts statistical studies designed to test the
claims that the manufacturers make about their
products. As an example, it is required by the FTC
that Hilltop Coffees production mean filling weight
is at least 3 lbs/can as claimed in their product
labels so that consumer rights are protected
EXAMPLE #1
Suppose that a random sample of 36 cans of coffee
was selected for testing the manufacturers claim
and the sampled cans provided a mean of 2.92 lbs.
Assume that the filling weights are approximately
normally distributed with the population standard
deviation equal to 0.18 lbs.

Perform an appropriate test of means to


determine whether FTC can or cannot charge
label violation against Hilltop Coffee. (Use =
0.01)
STEPS FOR HYPOTHESIS TESTING
Step 1: Develop the Research and Statistical
Hypothesis
Step 2: Specify the level of significance ()
Step 3: Collect sample data and compute the value
of the test statistic
Step 4: Use the level of significance to determine
the critical value and the rejection rule
Step 5: Use the value of the test statistic and the
rejection rule to determine whether to reject H0 or
not
TESTING HYPOTHESIS ABOUT A POPULATION
MEAN (POPULATION VARIANCE UNKNOWN)
Is also used when a researcher would want to test a
certain claim or hypothesis regarding the mean

Makes use of certain information such as 0


(hypothesized population mean), 2 (sample variance),
s (sample standard deviation), n (sample size), and
(sample mean)

Take note that, in this test of hypothesis, we do not


know the value of the population variance (2 ) or
population standard deviation ()

That is why we use the value of the sample variance


( 2 ) and sample standard deviation (s)
TESTING HYPOTHESIS ABOUT A POPULATION
MEAN (POPULATION VARIANCE UNKNOWN)

We shall call this test the t-test


DECISION RULES
How to compute for the value of and
2

Find:
,(=1) , = 0.01 = 10
,(=1) , = 0.1 = 15
2
T-TABLE
EXAMPLE #5
Holiday Toys, a company which manufactures and
distributes toy products through more than 1000
retail outlets, is deciding on how many units of
each product to produce in preparation for the
Christmas Season. For this years most important
new toy, Holiday Toys marketing director is
expecting demand to average 40 units/retail outlet.
Prior to making the final production based upon
this estimate, the company decided to survey a
sample of 25 retailers in order to develop more
information regarding the demand for the new toy.
EXAMPLE #5
The sample of 25 retail outlets provided a mean of
37.4 and a standard deviation of 11.79 units.

Perform an appropriate test to determine if


the average demand for the new toy is indeed
40/retail outlet or not. (Use = 0.10)
STEPS FOR HYPOTHESIS TESTING
Step 1: Develop the Research and Statistical
Hypothesis
Step 2: Specify the level of significance ()
Step 3: Collect sample data and compute the value
of the test statistic
Step 4: Use the level of significance to determine
the critical value and the rejection rule
Step 5: Use the value of the test statistic and the
rejection rule to determine whether to reject H0 or
not
EXAMPLE #6
Joans Nursery specializes in custom-designed
landscaping for residential areas. The estimated
labor cost associated with a particular landscaping
proposal is based on the number of planting of
trees, shrubs, and so on to be used for the project.
For cost-estimating purposes, managers use two
hours of labor time for the planting of a medium-
sized tree.
EXAMPLE #6
Actual times from a sample of 10 medium-sized
tree plantings during the past month are as follows
(time is in hours):
1.7 1.5 2.6 2.2 2.4
2.3 2.6 3.0 1.4 2.3

Use an appropriate test to see whether the


mean tree-planting time for medium-sized
trees is actually higher than two hours. (Use
= 0.01)
STEPS FOR HYPOTHESIS TESTING
Step 1: Develop the Research and Statistical
Hypothesis
Step 2: Specify the level of significance ()
Step 3: Collect sample data and compute the value
of the test statistic
Step 4: Use the level of significance to determine
the critical value and the rejection rule
Step 5: Use the value of the test statistic and the
rejection rule to determine whether to reject H0 or
not
TESTING HYPOTHESIS ABOUT A
PROPORTION
Is used when a researcher would want to test a
claim or a hypothesis regarding a proportion

Makes use of certain information such as 0


(hypothesized population proportion), n (sample
size), and (sample proportion)
TESTING HYPOTHESIS ABOUT A
PROPORTION
As an example, suppose a company held a 26%
share of the market for several years.

Due to a massive marketing effort and improved


product quality, company officials believe that
the market share increased, and they want to
prove it.
HYPOTHESIS TESTING FOR A PROPORTION

Only applies if np 5 and n(1-p) 5


EXAMPLE #8
A radio station in Myrtle Beach announced that
atleast 90% of the hotels and motels would be full
for the Memorial Day weekend. The station advised
listeners to make reservation in advance if they
planned to be in the resort over the weekend.

On Saturday night, a sample of 58 hotels and


motels showed 49 with a no-vacancy sign and 9
with vacancies.

What is your reaction to the radio stations


claim after seeing the evidence? (Use = 0.10)
STEPS FOR HYPOTHESIS TESTING
Step 1: Develop the Research and Statistical
Hypothesis
Step 2: Specify the level of significance ()
Step 3: Collect sample data and compute the value
of the test statistic
Step 4: Use the level of significance to determine
the critical value and the rejection rule
Step 5: Use the value of the test statistic and the
rejection rule to determine whether to reject H0 or
not
EXERCISE
EXERCISE #1
In 2001, the U.S. Department of Labor reported
the average hourly earnings for U.S. production
workers to be $14.32. A sample of 75 production
workers during 2003 showed a sample mean of
$14.68/hr. Assume that the population standard
deviation is equal to $1.45.

Perform an appropriate test to determine


whether one can conclude that an increase
occurred in the mean hourly earnings since
2001? (Use = 0.05)
EXERCISE #2
A business travel magazine wants to classify
transatlantic gateway airports according to the
mean rating for the population of business
travelers. A rating scale with a low score of 0 and a
high score of 10 will be used, and airports with a
population mean rating greater than 7 will be
designated as superior service airports
EXERCISE #2
The magazine staff surveyed a sample of 61
business travelers at each airport to obtain the
ratings data. The sample for Londons Heathrow
Airport provided a sample mean rating of 7.25 and
a sample standard deviation of 1.052.

Does the data indicate that Heathrow should


be designated as a superior service airport?
(Use = 0.05)
EXERCISE #3
The U.S. Golf Association establishes standards
that manufacturers of golf equipment must meet
if their products are to be acceptable for use in
USGA events. MaxFlight uses a high-technology
manufacturing process to produce golf balls with
a mean driving distance of 295 yards. When the
mean falls below 295 yards, the company worries
about losing sales because the golf balls do not
provide as much distance as advertised. When
the mean distance passes 295 yards, MaxFlights
golf balls may be rejected by the USGA for
exceeding the overall distance concerning carry
and roll.
EXERCISE #3
Suppose that MaxFlights quality control program
routinely collects a sample of 50 golf balls to
monitor the manufacturing process. In one
instance, the sample mean distance was found to
be 297.6 yards. Assume that = 12 yards.

Perform an appropriate test to determine


whether MaxFlight has any reason to worry
or none regarding the production process of
its golf balls. (Use = 0.05)
EXERCISE #4
A study by Consumer Reports showed that 64% of
supermarket shoppers believe supermarket brands
to be as good as national name brands. To
investigate whether this result applies to its own
products, the manufacturer of a national name
brand ketchup asked a sample of shoppers whether
they believed that supermarket ketchup was as
good as the national brand ketchup
EXERCISE #4
Suppose from a random sample of 100 shoppers, 52
stated that the supermarket brand was as good as
the national brand.

Determine whether the percentage of


supermarket shoppers who believe that the
supermarket ketchup was as good as the
national brand ketchup is significantly
different from 64% or not. (Use = 0.05)

Follow-Up: Should the national brand ketchup


manufacturer be pleased with this conclusion?
Explain
EXERCISE #5
Over the past year, 20% of the players of Pine
Creek golf course were women. In an effort to
increase the proportion of women players, Pine
Creek implemented a special promotion designed to
attract women golfers. One month after the
promotion was implemented, the course manager
requested a statistical study to determine whether
the proportion of women players at Pine Creek had
increased or not.
EXERCISE #5
Suppose a random sample of 400 players were
selected and that 100 of them were women

Does the data indicate that the proportion of


women players in Pine Creek have indeed
increased from 20%?