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SINGLE POPULATION

JC Tamayo

Mathematics and Statistics Department

De La Salle University

STEPS FOR HYPOTHESIS TESTING

Step 1: Develop the Research and Statistical

Hypothesis

of the test - statistic

CRITICAL VALUE APPROACH

Step 4: Use the level of significance to determine

the critical value and the rejection rule

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

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

(hypothesized population mean), 2 (population

variance), (population standard deviation), n

(sample size), and (sample mean)

know the value of the population variance

( ) or population standard deviation ()

TESTING HYPOTHESIS ABOUT A POPULATION

MEAN (POPULATION VARIANCE KNOWN)

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.

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

(hypothesized population mean), 2 (sample variance),

s (sample standard deviation), n (sample size), and

(sample mean)

know the value of the population variance (2 ) or

population standard deviation ()

( 2 ) and sample standard deviation (s)

TESTING HYPOTHESIS ABOUT A POPULATION

MEAN (POPULATION VARIANCE UNKNOWN)

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.

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

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

(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.

product quality, company officials believe that

the market share increased, and they want to

prove it.

HYPOTHESIS TESTING FOR A PROPORTION

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.

motels showed 49 with a no-vacancy sign and 9

with vacancies.

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.

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.

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.

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.

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)

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

women players in Pine Creek have indeed

increased from 20%?

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