Tests of Hypothesis

1
 Hypothesis Tests

Hypothesis test
• A process that uses sample statistics to test a claim
about the value of a population parameter.
• For example: An automobile manufacturer
advertises that its new hybrid car has a mean mileage
of 50 miles per gallon. To test this claim, a sample
would be taken. If the sample mean differs enough
from the advertised mean, you can decide the
advertisement is wrong.

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 Hypothesis Tests

Statistical hypothesis
• A statement, or claim, about a population parameter.
• Need a pair of hypotheses
• one that represents the claim
• the other, its complement
• When one of these hypotheses is false, the other must
be true.

3
 Stating a Hypothesis

Null hypothesis Alternative hypothesis

• A statistical hypothesis • A statement of
that contains a statement inequality such as >, ,
of equality such as , =, or <.
or . • Must be true if H0 is
• Denoted H0 read “H false.
subzero” or “H naught.” • Denoted Ha read “H
sub-a.”
complementary
statements
4
 Stating a Hypothesis

• To write the null and alternative hypotheses, translate

the claim made about the population parameter from
a verbal statement to a mathematical statement.
• Then write its complement.
H0: μ ≤ k H0: μ ≥ k H0: μ = k
Ha: μ > k Ha: μ < k Ha: μ ≠ k
• Regardless of which pair of hypotheses you use, you
always assume μ = k and examine the sampling
distribution on the basis of this assumption.

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 Example: Stating the Null and Alternative
Hypotheses
Write the claim as a mathematical sentence. State the null
and alternative hypotheses and identify which represents
the claim.
1. A university publicizes that the proportion of its
students who graduate in 4 years is 82%.

Solution:
H0: p = 0.82 Equality condition (Claim)
Ha: p ≠ 0.82 Complement of H0

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 Example: Stating the Null and Alternative
Hypotheses
Write the claim as a mathematical sentence. State the null
and alternative hypotheses and identify which represents
the claim.
2. A water faucet manufacturer announces that the mean
flow rate of a certain type of faucet is less than 2.5
gallons per minute.

Solution:
H0: μ ≥ 2.5 gallons per minute Complement of Ha
Ha: μ < 2.5 gallons per minute Inequality
(Claim)
condition
7
 Example: Stating the Null and Alternative
Hypotheses
Write the claim as a mathematical sentence. State the null
and alternative hypotheses and identify which represents
the claim.
3. A cereal company advertises that the mean weight of
the contents of its 20-ounce size cereal boxes is more
than 20 ounces.
Solution:
H0: μ ≤ 20 ounces Complement of Ha
Ha: μ > 20 ounces Inequality
(Claim)
condition

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 Types of Errors

• No matter which hypothesis represents the claim,

always begin the hypothesis test assuming that the
equality condition in the null hypothesis is true.
• At the end of the test, one of two decisions will be
made:
 reject the null hypothesis
 fail to reject the null hypothesis
• Because your decision is based on a sample, there is
the possibility of making the wrong decision.

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 Types of Errors

Actual Truth of H0
Decision H0 is true H0 is false
Do not reject H0 Correct Decision Type II Error
Reject H0 Type I Error Correct Decision

• A type I error occurs if the null hypothesis is rejected

when it is true.
• A type II error occurs if the null hypothesis is not
rejected when it is false.

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 Level of Significance

Level of significance
• Your maximum allowable probability of making a
type I error.
 Denoted by , the lowercase Greek letter alpha.
• By setting the level of significance at a small value,
you are saying that you want the probability of
rejecting a true null hypothesis to be small.
• Commonly used levels of significance:
  = 0.10  = 0.05  = 0.01
• P(type II error) = β (beta)

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 Statistical Tests
• After stating the null and alternative hypotheses and
specifying the level of significance, a random sample
is taken from the population and sample statistics are
calculated.
• The statistic that is compared with the parameter in
the null hypothesis is called the test statistic.
Population Test statistic Standardized test
parameter statistic
μ x z ( n  30)
t ( n < 30)
p p̂ z
σ2 s2 χ2
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 Nature of the Test

• Three types of hypothesis tests

 left-tailed test
 right-tailed test
 two-tailed test
• The type of test depends on the region of the
sampling distribution that favors a rejection of H0.
• This region is indicated by the alternative hypothesis.

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 Left-tailed Test
• The alternative hypothesis Ha contains the less-than
inequality symbol (<).
H0: μ  k
Ha: μ < k
P is the area to
the left of the
test statistic.

z
-3 -2 -1 0 1 2 3
Test
statistic
14
 Right-tailed Test
• The alternative hypothesis Ha contains the greater-
than inequality symbol (>).
H0: μ ≤ k
Ha: μ > k P is the area
to the right
of the test
statistic.

z
-3 -2 -1 0 1 2 3
Test
statistic
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 Two-tailed Test
• The alternative hypothesis Ha contains the not equal
inequality symbol (≠). Each tail has an area of ½P.
H0: μ = k
Ha: μ  k
P is twice the
P is twice the
area to the right
area to the left of
of the positive
the negative test
test statistic.
statistic.

z
-3 -2 -1 0 1 2 3
Test Test
statistic statistic 16
Example: Identifying The Nature of a Test
For each claim, state H0 and Ha. Then determine
whether the hypothesis test is a left-tailed, right-tailed,
or two-tailed test. Sketch a normal sampling distribution
and shade the area for the P-value.
1. A university publicizes that the proportion of its
students who graduate in 4 years is 82%.
Solution:
H0: p = 0.82 ½ P-value ½ P-value
Ha: p ≠ 0.82 area area
z
Two-tailed test -z 0 z

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Example: Identifying The Nature of a Test
For each claim, state H0 and Ha. Then determine
whether the hypothesis test is a left-tailed, right-tailed,
or two-tailed test. Sketch a normal sampling distribution
and shade the area for the P-value.
2. A water faucet manufacturer announces that the
mean flow rate of a certain type of faucet is less than
2.5 gallons per minute.
Solution:
H0: μ ≥ 2.5 gpm P-value
area
Ha: μ < 2.5 gpm
z
-z 0
Left-tailed test
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Example: Identifying The Nature of a Test
For each claim, state H0 and Ha. Then determine
whether the hypothesis test is a left-tailed, right-tailed,
or two-tailed test. Sketch a normal sampling distribution
and shade the area for the P-value.
3. A cereal company advertises that the mean weight of
the contents of its 20-ounce size cereal boxes is
more than 20 ounces.
Solution:
P-value
H0: μ ≤ 20 oz area
Ha: μ > 20 oz
z
0 z
Right-tailed test
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 Making a Decision
Decision Rule Based on P-value
• Compare the P-value with .
 If P  , then reject H0.
 If P > , then fail to reject H0.

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 Example: Interpreting a Decision

You perform a hypothesis test for the following claim.

How should you interpret your decision if you reject
H0? If you fail to reject H0?
1. H0 (Claim): A university publicizes that the
proportion of its students who graduate in 4 years is
82%.

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 Solution: Interpreting a Decision

• The claim is represented by H0.

• If you reject H0 you should conclude “there is
sufficient evidence to indicate that the university’s
claim is false.”

• If you fail to reject H0, you should conclude “there is

insufficient evidence to indicate that the university’s
claim (of a four-year graduation rate of 82%) is
false.”

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 Example: Interpreting a Decision

You perform a hypothesis test for the following claim.

How should you interpret your decision if you reject
H0? If you fail to reject H0?
2. Ha (Claim): Consumer Reports states that the mean
stopping distance (on a dry surface) for a Honda
Civic is less than 136 feet.
Solution:
• The claim is represented by Ha.
• H0 is “the mean stopping distance…is greater than or
equal to 136 feet.”
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 Solution: Interpreting a Decision

• If you reject H0 you should conclude “there is enough

evidence to support Consumer Reports’ claim that the
stopping distance for a Honda Civic is less than 136
feet.”

• If you fail to reject H0, you should conclude “there is

not enough evidence to support Consumer Reports’
claim that the stopping distance for a Honda Civic is
less than 136 feet.”

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 Steps for Hypothesis Testing
1. State the claim mathematically and verbally. Identify
the null and alternative hypotheses.
H0: ? Ha: ?
2. Specify the level of significance. This sampling distribution
α= ? is based on the assumption
that H0 is true.
3. Determine the standardized
sampling distribution and
draw its graph. z
0
4. Calculate the test statistic
and its standardized value.
Add it to your sketch. 0
z
Test statistic
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 Steps for Hypothesis Testing

5. Find the P-value.

6. Use the following decision rule.
Is the P-value less
than or equal to the
No Fail to reject H0.
level of significance?
Yes

Reject H0.
7. Write a statement to interpret the decision in the
context of the original claim.

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 Using P-values to Make a Decision

Decision Rule Based on P-value

• To use a P-value to make a conclusion in a hypothesis
test, compare the P-value with .
1. If P  , then reject H0.
2. If P > , then fail to reject H0.

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 Example: Interpreting a P-value
The P-value for a hypothesis test is P = 0.0237. What is
your decision if the level of significance is
1. 0.05?
Solution:
Because 0.0237 < 0.05, you should reject the null
hypothesis.

2. 0.01?
Solution:
Because 0.0237 > 0.01, you should fail to reject the
null hypothesis.
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 Finding the P-value

After determining the hypothesis test’s standardized test

statistic and the test statistic’s corresponding area, do one
of the following to find the P-value.
a. For a left-tailed test, P = (Area in left tail).
b. For a right-tailed test, P = (Area in right tail).
c. For a two-tailed test, P = 2(Area in tail of test statistic).

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 Example: Finding the P-value
Find the P-value for a left-tailed hypothesis test with a
test statistic of z = -2.23. Decide whether to reject H0 if
the level of significance is α = 0.01.
Solution:
For a left-tailed test, P = (Area in left tail)

P = 0.0129

z
-2.23 0
Because 0.0129 > 0.01, you should fail to reject H0
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 Example: Finding the P-value
Find the P-value for a two-tailed hypothesis test with a
test statistic of z = 2.14. Decide whether to reject H0 if
the level of significance is α = 0.05.
Solution:
For a two-tailed test, P = 2(Area in tail of test statistic)
1 – 0.9838
P = 2(0.0162)
= 0.0162
0.9838 = 0.0324
z
0 2.14
Because 0.0324 < 0.05, you should reject H0
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 Z-Test for a Mean μ

• Can be used when the population is normal and  is

known, or for any population when the sample size n
is at least 30.
• The test statistic is the sample mean x
• The standardized test statistic is z
x    standard error  
z
 n n
x

• When n  30, the sample standard deviation s can be

substituted for .

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 Using P-values for a z-Test for Mean μ
In Words In Symbols
1. State the claim mathematically State H0 and Ha.
and verbally. Identify the null
and alternative hypotheses.
2. Specify the level of significance. Identify .
3. Determine the standardized test x 
z
statistic.  n
4. Find the area that corresponds Use Table
to z.

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 Using P-values for a z-Test for Mean μ
In Words In Symbols
5. Find the P-value.
a. For a left-tailed test, P = (Area in left tail).
b. For a right-tailed test, P = (Area in right tail).
c. For a two-tailed test, P = 2(Area in tail of test
statistic).
6. Make a decision to reject or Reject H0 if P-value
fail to reject the null hypothesis. is less than or equal
to . Otherwise,
fail to reject H0.
7. Interpret the decision in the
context of the original claim.
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 Example: Hypothesis Testing Using P-
values
In an advertisement, a pizza shop claims that its mean
delivery time is less than 30 minutes. A random
selection of 36 delivery times has a sample mean of
28.5 minutes and a standard deviation of 3.5 minutes. Is
there enough evidence to support the claim at  = 0.01?
Use a P-value.

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 Solution: Hypothesis Testing Using P-
values

• H0: μ ≥ 30 min • P-value

• Ha: μ < 30 min
•  = 0.01 0.0051
• Test Statistic: -2.57 0
z

x  • Decision: 0.0051 < 0.01

z
 n Reject H0
28.5  30 At the 1% level of significance,
 you have sufficient evidence to
3.5 36
conclude the mean delivery time
 2.57 is less than 30 minutes.
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 Rejection Regions and Critical Values

Rejection region (or critical region)

• The range of values for which the null hypothesis is
not probable.
• If a test statistic falls in this region, the null
hypothesis is rejected.
• A critical value z0 separates the rejection region from
the nonrejection region.

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 Rejection Regions and Critical Values
Finding Critical Values in a Normal Distribution
1. Specify the level of significance .
2. Decide whether the test is left-, right-, or two-tailed.
3. Find the critical value(s) z0. If the hypothesis test is
a. left-tailed, find the z-score that corresponds to an area
of ,
b. right-tailed, find the z-score that corresponds to an area
of 1 – ,
c. two-tailed, find the z-score that corresponds to ½ and
1 – ½.
4. Sketch the standard normal distribution. Draw a vertical
line at each critical value and shade the rejection region(s).
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 Example: Finding Critical Values

Find the critical value and rejection region for a two-

tailed test with  = 0.05.
Solution: 1 – α = 0.95

½α = 0.025 ½α = 0.025

z
-z0 = -1.96z0 0 z0 =z01.96

The rejection regions are to the left of -z0 = -1.96 and

to the right of z0 = 1.96.

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 Decision Rule Based on Rejection
Region
To use a rejection region to conduct a hypothesis test,
calculate the standardized test statistic, z. If the
standardized test statistic
1. is in the rejection region, then reject H0.
2. is not in the rejection region, then fail to reject H0.
Fail to reject H0. Fail to reject Ho.

Reject H0. Reject Ho.

z z
z < z0 z0 0 0 z0 z > z0
Fail to reject H0
Left-Tailed Test Right-Tailed Test
Reject H0 Reject H0
z
z < -z0 z0 0 z0 z > z0
Two-Tailed Test
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Using Rejection Regions for a z-Test for a
Mean μ
In Words In Symbols
1. State the claim mathematically State H0 and Ha.
and verbally. Identify the null
and alternative hypotheses.
2. Specify the level of significance. Identify .
3. Sketch the sampling distribution.
4. Determine the critical value(s). Use Table 4 in
Appendix B.
5. Determine the rejection region(s).

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Using Rejection Regions for a z-Test for a
Mean μ
In Words In Symbols
x 
6. Find the standardized test z or if n  30
statistic.  n
use   s.
7. Make a decision to reject or fail If z is in the rejection
to reject the null hypothesis. region, reject H0.
Otherwise, fail to
8. Interpret the decision in the reject H0.
context of the original claim.

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Example: Testing with Rejection Regions

Employees in a large accounting firm claim that the

mean salary of the firm’s accountants is less than that of
its competitor’s, which is $45,000. A random sample of
30 of the firm’s accountants has a mean salary of
$43,500 with a standard deviation of $5200. At
α = 0.05, test the employees’ claim.

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 Solution: Testing with Rejection Regions

• H0: μ ≥ $45,000 • Test Statistic

• Ha: μ < $45,000 x   43, 500  45, 000
z 
•  = 0.05  n 5200 30
• Rejection Region:   1.58
• Decision: Fail to reject H0
At the 5% level of significance,
0.05 there is not sufficient evidence
-1.645 0
z to support the employees’ claim
that the mean salary is less than
-1.58 $45,000.

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Example: Testing with Rejection Regions

The U.S. Department of Agriculture reports that the

mean cost of raising a child from birth to age 2 in a rural
area is $10,460. You believe this value is incorrect, so
you select a random sample of 900 children (age 2) and
find that the mean cost is $10,345 with a standard
deviation of $1540. At α = 0.05, is there enough
evidence to conclude that the mean cost is different
from $10,460? (Adapted from U.S. Department of Agriculture
Center for Nutrition Policy and Promotion)

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 Solution: Testing with Rejection Regions

• H0: μ = $10,460 • Test Statistic

• Ha: μ ≠ $10,460 x   10, 345  10, 460
z 
•  = 0.05  n 1540 900
• Rejection Region:   2.24
• Decision: Reject H0
At the 5% level of significance,
0.025 0.025 you have enough evidence to
z conclude the mean cost of
-1.96 0 1.96
raising a child from birth to age
-2.24 2 in a rural area is significantly
different from $10,460.
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Finding Critical Values in a t-Distribution
1. Identify the level of significance .
2. Identify the degrees of freedom d.f. = n – 1.
3. Find the critical value(s) using Table 5 in Appendix B in
the row with n – 1 degrees of freedom. If the hypothesis
test is
a. left-tailed, use “One Tail,  ” column with a negative
sign,
b. right-tailed, use “One Tail,  ” column with a
positive sign,
c. two-tailed, use “Two Tails,  ” column with a
negative and a positive sign.
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 Example: Finding Critical Values for t

Find the critical value t0 for a left-tailed test given

 = 0.05 and n = 21.
Solution:
• The degrees of freedom are
d.f. = n – 1 = 21 – 1 = 20.
• Look at α = 0.05 in the
“One Tail, ” column. 0.05
• Because the test is left- -1.725 0
t
tailed, the critical value is
negative.
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 Example: Finding Critical Values for t

Find the critical values t0 and -t0 for a two-tailed test

given  = 0.05 and n = 26.
Solution:
• The degrees of freedom are
d.f. = n – 1 = 26 – 1 = 25.
• Look at α = 0.05 in the
“Two Tail, ” column. 0.025 0.025
• Because the test is two- -2.060 0 2.060
t

tailed, one critical value is

negative and one is positive.
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 t-Test for a Mean μ (n < 30,  Unknown)

t-Test for a Mean

• A statistical test for a population mean.
• The t-test can be used when the population is normal
or nearly normal,  is unknown, and n < 30.
• The test statistic is the sample mean x
• The standardized test statistic is t.
x 
t
s n
• The degrees of freedom are d.f. = n – 1.

50
 Using the t-Test for a Mean μ
(Small Sample)
In Words In Symbols
1. State the claim mathematically State H0 and Ha.
and verbally. Identify the null
and alternative hypotheses.
2. Specify the level of significance. Identify .
3. Identify the degrees of freedom d.f. = n – 1.
and sketch the sampling
distribution.
4. Determine any critical value(s). Use Table

51
 Using the t-Test for a Mean μ
(Small Sample)
In Words In Symbols
5. Determine any rejection
region(s).
x 
6. Find the standardized test t
statistic. s n

7. Make a decision to reject or If t is in the rejection

fail to reject the null region, reject H0.
hypothesis. Otherwise, fail to
reject H0.
8. Interpret the decision in the
context of the original claim.
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 Example: Testing μ with a Small Sample

A used car dealer says that the mean price of a 2005

Honda Pilot LX is at least $23,900. You suspect this
claim is incorrect and find that a random sample of 14
similar vehicles has a mean price of $23,000 and a
standard deviation of $1113. Is there enough evidence to
reject the dealer’s claim at α = 0.05? Assume the
population is normally distributed. (Adapted from Kelley
Blue Book)

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 Solution: Testing μ with a Small Sample

• H0: μ ≥ $23,900 • Test Statistic:

• Ha: μ < $23,900 x   23, 000  23, 900
t    3.026
• α = 0.05 s n 1113 14
• df = 14 – 1 = 13 • Decision: Reject H0
• Rejection Region: At the 0.05 level of
significance, there is enough
evidence to reject the claim
0.05
that the mean price of a 2005
t
-1.771 0 Honda Pilot LX is at least
-3.026 $23,900
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 Example: Testing μ with a Small Sample

An industrial company claims that the mean pH level of

the water in a nearby river is 6.8. You randomly select
19 water samples and measure the pH of each. The
sample mean and standard deviation are 6.7 and 0.24,
respectively. Is there enough evidence to reject the
company’s claim at α = 0.05? Assume the population is
normally distributed.

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 Solution: Testing μ with a Small Sample

• H0: μ = 6.8 • Test Statistic:

• Ha: μ ≠ 6.8 t
x

6 .7  6 .8
  1 .8 1 6
• α = 0.05 s n 0 .2 4 19
• df = 19 – 1 = 18 • Decision: Fail to reject H0
• Rejection Region: At the 0.05 level of
significance, there is not
enough evidence to reject
0.025 0.025
the claim that the mean pH
t is 6.8.
-2.101 0 2.101

-1.816
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 State the null and alternative hypotheses.
A company claims the mean lifetime of its
AA batteries is more than 16 hours.

A. H0: μ > 16 Ha: μ ≤ 16

B. H0: μ < 16 Ha: μ ≥ 16
C. H0: μ ≤ 16 Ha: μ > 16
D. H0: μ ≥ 16 Ha: μ < 16

Slide 7- 57 .
 State the null and alternative hypotheses.
A company claims the mean lifetime of its
AA batteries is more than 16 hours.

A. H0: μ > 16 Ha: μ ≤ 16

B. H0: μ < 16 Ha: μ ≥ 16
C. H0: μ ≤ 16 Ha: μ > 16
D. H0: μ ≥ 16 Ha: μ < 16

Slide 7- 58 .
 State the null and alternative hypotheses.
A student claims the mean cost of a
textbook is at least $125.

A. H0: μ > 125 Ha: μ ≤ 125

B. H0: μ < 125 Ha: μ ≥ 125
C. H0: μ ≤ 125 Ha: μ > 125
D. H0: μ ≥ 125 Ha: μ < 125

Slide 7- 59 .
 State the null and alternative hypotheses.
A student claims the mean cost of a
textbook is at least $125.

A. H0: μ > 125 Ha: μ ≤ 125

B. H0: μ < 125 Ha: μ ≥ 125
C. H0: μ ≤ 125 Ha: μ > 125
D. H0: μ ≥ 125 Ha: μ < 125

Slide 7- 60 .
 True or false:
Testing the claim that at least 88% of
students have a cell phone would be a
right-tail test.

A. True
B. False

Slide 7- 61 .
 True or false:
Testing the claim that at least 88% of
students have a cell phone would be a
right-tail test.
H 0 : p  0.88
A. True H a : p  0.88
B. False

Slide 7- 62 .
 You are testing the claim that the mean cost of a
new car is more than $25,200. How should you
interpret a decision that rejects the null
hypothesis?
A. There is enough evidence to reject the claim.
B. There is enough evidence to support the
claim.
C. There is not enough evidence to reject the
claim.
D. There is not enough evidence to support the
claim.

Slide 7- 63 .
You are testing the claim that the mean cost of a
new car is more than $25,200. How should you
interpret a decision that rejects the null
hypothesis?
A. There is enough evidence to reject the claim.
B. There is enough evidence to support the
claim.
C. There is not enough evidence to reject the
claim.
D. There is not enough evidence to support the
claim.
 True or false:
Given H0: μ = 40 Ha: μ ≠ 40 and P = 0.0436.
You would reject the null hypothesis at the
0.05 level of significance.

A. True
B. False

Slide 7- 65 .
 True or false:
Given H0: μ = 40 Ha: μ ≠ 40 and P = 0.0436.
You would reject the null hypothesis at the
0.05 level of significance.

A. True
B. False
p 

Slide 7- 66 .
 Find the critical value, z0, for a left-tailed
test at the 0.10 level of significance.

A. z0 = –1.645
B. z0 = 1.645
C. z0 = –1.28
D. z0 = 1.28

Slide 7- 67 .
 Find the standardized test statistic z for the
following situation:
Claim: μ >15; x  13.6 s = 3.4 n = 40

A. z = 2.60
B. z = –2.60
C. z = –0.07
D. z = 12.90

Slide 7- 68 .
 Find the standardized test statistic z for the
following situation:
Claim: μ >15; x  13.6 s = 3.4 n = 40

A. z = 2.60 ( x   ) (13.6  15)

z   2.6042
B. z = –2.60 s 3.4
( )
C. z = –0.07 n 40

D. z = 12.90

Slide 7- 69 .
 Find the critical value(s), t0, for a two-tailed
test, α = 0.05, and n = 8.

A. –t0 = –1.96 and t0 = 1.96

B. –t0 = –2.306 and t0 = 2.306
C. –t0 = –1.895 and t0 = 1.895
D. –t0 = –2.365 and t0 = 2.365

Slide 7- 70 .
Find the critical value(s), t0, for a two-tailed
test, α = 0.05, and n = 8.

Slide 7- 71 .
 Find the standardized test statistic z for the
following situation:
Claim: p ≠ 0.23; x = 52 n = 200

A. z = 0.97
B. z = 1.01
C. z = 0.51
D. z = –1.01

Slide 7- 72 .
 Find the standardized test statistic χ2 for
the following situation:
Claim: σ < 5.2; s = 4.47 n = 20

A. χ2 = 25.71
B. χ2 = 16.33
C. χ2 = 14.04
D. χ2 = 14.78

Slide 7- 73 .
Example 1.
An electrical company claims that the lives of the light bulbs it
manufactures are normally distributed with a mean of 1,000
hours and a standard deviation of 150 hours. What can you say
about this claim if a random sample of 100 bulbs produced by
this company has a mean life of 980 hours? Use a .05 level of
significance.

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Solution:
H0: The average life of all the bulbs produced by
the firm is 1,000 hours
(μ=1,000)
H1: The average life of all the bulbs produced by
the firm is not equal to 1,000 hours (μ≠ 1,000).
Significance level: α =.05, two-tailed test
Test statistic: Z statistic
Critical region: z > 1.96 or z < -1.96
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Example 2.
An instructor gives his class an achievement test
which, as he knows from years of experience,
yields a mean μ = 80. His present class of 40
obtains a mean of 85 and a standard deviation of
8. Can he claim that his present class is a superior
class? Employ α= .01.

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Decision:
Since the computed value of z is greater than the
critical value 2.33, we may reject H0 and accept H1.
Therefore, the instructor is justified in assuming
that his present class is a superior class.

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Example: 3.
A new production process is being considered to replace
the old process presently used. This new process was
tested for 8 consecutive hours with the following results:

118, 122, 120, 124, 126, 125, 125, 124.

If the average output per hour using the old process is 120
units, is the management justified in stating that the
output per hour can be increased with the new process?
Use α = .01

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Solution:
H0: The new process does not change the average
output per hour (μ=120).
H1: The new process increases the average output per
hour (μ >120).
Significance level: α= .01, one tailed-test
Test statistic T statistic with df = 8-1 = 7.
Critical region: t > 2.998

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