Learning Competency 4: Identifies the appropriate form of

the test-statistic

Learning Competency 5: Identifies the appropriate rejection

region for a given level of significance when:
(a) the population variance is assumed to be known;
(b) the population variance is assumed to be unknown; and
(c) the Central Limit Theorem is to be used.

Learning Competency 6: Computes for the test-statistic

value (population mean)
By the end of this lesson, you are expected to:

1.Identify the appropriate form of the test-statistic

when: (a) the population variance is assumed to be
known; (b) the population variance is assumed to be
unknown; and (c) the Central Limit Theorem is to be
used
 
2. Identify the appropriate rejection region for a given
level of significance when: (a) the population variance
is assumed to be known; (b) the population variance is
assumed to be unknown; and (c) the Central Limit
Theorem is to be used
THE TEST STATISTIC
 
TEST STATISTIC WHEN THE POPULATION VARIANCE IS
ASSUMED TO BE KNOWN
 
In this condition, the z-score is used. The formula for z-score
is given by the formula below.
 
Test Statistic:
where
 
z is the z-score, is the sample mean, is the population
mean, is the population standard deviation, and n is the
sample size.
Example 1:
A manufacturer of ethyl alcohol has developed a new
packaging design. He claims that the new packaging
design has an average reduction of production
expenses of Php 5.00 per bottle with a standard
deviation of Php 2.00. A manager of one of their satellite
production branch claims that the 200 samples of this
new packaging design has an average reduction of
production expenses of Php 3.00. Test the difference of
the population and sample means at 0.05 level of
significance.
 Solution
 
Given: , , , and
 
Test Statistic:

 
´𝒙 − 𝜇0 4 − 10
𝒛= ( 𝝈 )(√ 𝒏)=( 3 )( √ 50 )=−14.14
Example 2:
A manufacturer of face mask has developed
a new face mask design. He claims that the
new design has an average profit increase of
10% with a standard deviation of 3%. Test the
hypothesis that the new face mask design
average profit increase of is not 10% if a
random sample of 50 face mask is tested with
an average profit increase of 4%. Use 10%
level of significance.
 Solution
 
Given: , , , and
 Test Statistic:
 

 
 
Example 3:
A teacher conducted a study to know if
blended learning affects the students’
performances. A class of 30 students of
Grade 11 was surveyed and found out that
their mean score was 83 with a standard
deviation of 4. A study from other country
revealed that with a standard deviation of
3. Test the hypothesis at 0.10 level of
significance.
 Solution
 
Given: ,, , and
 Test Statistic:
 

 
Activity 8:

Determine given and compute the z-

score of the problem in Activity 6. Write
your answer in your notebook
 
TEST STATISTIC WHEN THE POPULATION VARIANCE IS ASSUMED
TO BE UNKNOWN
 
In this condition, the z-score is inappropriate to use. A different test
statistic will be used then. The t-score will be used in this case. Another
condition to observe when using t-score is when the sample size n is less
than 30, i.e., () and the population is normally or approximately normally
distributed. The formula for t-score is given by the formula below.
 
Test Statistic: and the degrees of freedom
where
t is the t-score, is the sample mean, is the population mean, is the
sample standard deviation, and n is the sample size.
 
Example 1:
The mean number of hours of student to
finish answering the Statistics Module is 5
hours. A random sample of 15 students was
asked and found that their mean number of
hours to finish answering the Statistics
module is 6 hours with a standard deviation
of 2 hours. Test the hypothesis at 5% level
of significance.
 Solution
 
Given: ,, , , and
 
Test Statistic:

 
Example 2:
In a study of television viewing, the mean
number of television program they watched during
daytime was 7. A survey was conducted on the
random sample of 25 households and found that
the mean number of television program they
watched during daytime was 5 with a standard
deviation of 1.5. Test the hypothesis at 10% level
of significance.  
 Solution
 
Given: , , , ,
and
 
Test Statistic:
Activity 9:

Determine given and compute the z-

score of the problem in Activity 7. Write
your answer in your notebook
 
TEST STATISTIC USING CENTRAL LIMIT THEOREM
 
The Central Limit Theorem states that if a random
samples of size n are drawn from a large or infinite
population with finite mean and variance , then the
sampling distribution of the sample mean is
approximately normally distributed with mean and a
standard deviation of . Hence, or equivalently, .
Example 1:
San Miguel Corporation gives a monthly benefit to their
employees during the COVID19 pandemic. They
claimed that the average monthly benefit of their
employees is at least Php 5, 000.00. A random sample
of 35 employees were taken as samples to verify the
said claim and found that their average monthly benefit
is Php 6, 000.00 with a standard deviation of Php
600.00. Is the company’s claim correct at 0.05 level of
significance? Assume that the population is
approximately normally distributed.
 
Given: , , ,
 
Solution:
According to Central Limit Theorem,
Hence,
Test Statistic: .
Example 2:
GMA-ABS claimed that their employees had a
mean monthly salary of Php12,500.00. A reporter
wants to verify this claim by asking 30
employees. The result showed that these
employees had an average monthly salary of
Php10,000.00 with a standard deviation of Php
2,000.00. Test the claim at 10% level of
significance assume that the population is
approximately normally distributed.
 
Given: , , ,
 
 
Solution:
According to Central Limit Theorem,

 
Hence,
Test Statistic: .
Do ACTIVITY 10 on page 37. you are
going to determine the given and
compute the test statistic of the
problems below using Central Limit
Theorem. Write the problems and
answers in your activity notebook
THE REJECTION REGION
 REJECTION REGION WHEN THE POPULATION VARIANCE
IS ASSUMED TO BE KNOWN
Alternative Hypothesis Critical Region/s

or

 
Where is the population mean, is the possible value of
the population mean, is the value of test statistic and ,
and are the critical values.
Example 1:
A manufacturer of ethyl alcohol has developed a new
packaging design. He claims that the new packaging
design has an average reduction of production
expenses of Php 5.00 per bottle with a standard
deviation of Php 2.00. A manager of one of their satellite
production branch claims that the 200 samples of this
new packaging design has an average reduction of
production expenses of Php 3.00. Test the difference of
the population and sample means at 0.05 level of
significance.
 
Given: ,, ,
 
Null and alternative hypotheses
 
: The average reduction of production expenses
of the new packaging design of ethyl alcohol is
Php 5.00.
:
 
: The average reduction of production expenses
of the new packaging design of ethyl alcohol is
less than Php 5.00.
:
Note: we use less than because the sample
mean 3 is less than 5 which is the possible value
of the population mean.
test statistic:
 
Critical region
 
Since < is use in , will be used. Now using
the z-table, the value of is
 

Now, we construct the critical and

acceptance regions.
Example 2:
A manufacturer of face mask has developed
a new face mask design. He claims that the
new design has an average profit increase of
10% with a standard deviation of 3%. Test the
hypothesis that the new face mask design
average profit increase of is not 10% if a
random sample of 50 face mask is tested with
an average profit increase of 4%. Use 10%
level of significance.
 
Given: , , ,
 
Null and alternative hypotheses
: The average profit increase of the new face mask design is
10%
:
 
: The average profit increase of the new face mask design is
not 10%.
:
Note: we use not equal because it was indicated to test the
hypothesis that the new face mask design average profit
increase is not 10%.
 
Test Statistic: and
 
Critical region
 
Since is use in , or will be used. Now using the z-
table, the values of and are the following
or
Now, we construct the critical and acceptance regions.
 
 ACTIVITY 11
 
Determine the given and construct the acceptance
and critical region of the problems in Activity 6.
Write your answer in your notebook.
 THE REJECTION REGION WHEN THE
POPULATION VARIANCE IS ASSUMED TO BE
UNKNOWN
 
In this case, the student t-distribution table will be
used in determining the critical value/s. This will be
used when the sample size is less than 30. When the
sample size is greater than 30 and the variance is
unknown, the Central Limit Theorem will be used.
This case will be discussed in the next lesson
 Alternative Hypothesis Critical Region/s
𝜇 < 𝜇0 𝑡 < −𝑡𝛼,𝑣
𝜇 > 𝜇0 𝑡 > 𝑡𝛼,𝑣
𝜇 ≠ 𝜇0 𝑡 < −𝑡𝛼ൗ2 ,𝑣 or 𝑡 > 𝑡𝛼ൗ,𝑣
2

 
Where is the population mean, is the possible
value of the population mean, t is the value of test
statistic, , and are the critical values and is the
degrees of freedom
Example 1:
The mean number of hours of student to
finish answering the Statistics Module is 5
hours. A random sample of 15 students was
asked and found that their mean number of
hours to finish answering the Statistics
module is 6 hours with a standard deviation
of 2 hours. Test the hypothesis at 5% level
of significance.
Solution:
Given: 𝑥ҧ= 6 , 𝜇0 = 5, 𝑠 = 2, 𝑛 = 15, 𝑣 = 𝑑𝑓 = 15 − 1 = 14 and 𝛼 = 0.05
Null and alternative hypotheses
𝐻0 : The mean number of hours of students to finish answering the Statistics module
is 5 hours.
𝐻0 : 𝜇 = 5

𝐻1 : The mean number of hours of students to finish answering the Statistics module is
greater than 5 hours.
𝐻1 : 𝜇 > 5
𝒙ഥ−𝝁 𝟔−𝟓
Test Statistic: 𝒕 = ቀ 𝒔 ቁ൫ξ 𝒏൯= ቀ 𝟐 ቁ൫ξ 𝟏𝟓൯= 𝟏. 𝟗𝟒
Critical region
Since > is use in 𝐻1 , 𝑡 > 𝑡𝛼,𝑣 will be used. Now using the student t-distribution table,
the value of 𝑡𝛼,𝑣 is 𝑡𝛼,𝑣 = 𝑡0.05,14 = 1.761
Example 2:
In a study of television viewing, the mean
number of television program they watched during
daytime was 7. A survey was conducted on the
random sample of 25 households and found that
the mean number of television program they
watched during daytime was 5 with a standard
deviation of 1.5. Test the hypothesis at 10% level
of significance.  
Solution:
Given: 𝑥ҧ= 5 , 𝜇0 = 7, 𝑠 = 1.5, 𝑛 = 25, 𝑣 = 𝑑𝑓 = 25 − 1 = 24 and 𝛼 = 0.10
Null and alternative hypotheses
𝐻0 : The mean number of hours of television program they watched during daytime
was 7 hours.
𝐻0 : 𝜇 = 7

𝐻1 : The mean number of hours of television program they watched during daytime was
less than 7 hours.
𝐻1 : 𝜇75
𝒙ഥ−𝝁 𝟓−𝟕
Test Statistic: 𝒕 = ቀ ቁ൫ξ 𝒏൯= ቀ ቁ൫ξ 𝟐𝟓൯= −𝟔. 𝟔𝟕
𝒔 𝟏.𝟓
 ഥ−𝝁
𝒙 𝟓−𝟕
Test Statistic: 𝒕 = ቀ ቁ൫ξ 𝒏൯= ቀ ቁ൫ξ 𝟐𝟓൯= −𝟔. 𝟔𝟕
𝒔 𝟏.𝟓
Critical region
Since > is use in 𝐻1 , 𝑡 < −𝑡𝛼,𝑣 will be used. Now using the student t-distribution table,
the value of −𝑡𝛼,𝑣 is −𝑡𝛼,𝑣 = −𝑡0.10, 24 = −1.318
Now, we construct the critical and acceptance regions
 ACTIVITY 12
Determine the given and construct the
acceptance and critical region of the
problems in Activity 7. Write your answer
in your notebook.
 REJECTION REGION USING CENTRAL LIMIT THEOREM
 
This case happened when the population is not normally
distributed or approximately normally distributed and the
sample size is 30 or more. Let us consider examples 3.3.1
and 3.3.2. We will determine the given, formulate the null and
alternative hypotheses, compute the test statistic, and
construct the acceptance and critical region of these
examples.
3.3.1
San Miguel Corporation gives a monthly benefit to their
employees during the COVID19 pandemic. They
claimed that the average monthly benefit of their
employees is at least Php 5, 000.00. A random sample
of 35 employees were taken as samples to verify the
said claim and found that their average monthly benefit
is Php 6, 000.00 with a standard deviation of Php
600.00. Is the company’s claim correct at 0.05 level of
significance? Assume that the population is
approximately normally distributed.
Given: 𝑛 = 35 , 𝜇0 = 5,000, 𝑥ҧ= 6,000 , 𝑠 = 600 𝛼 = 0.05
Null and alternative hypotheses
𝐻0 : The average monthly benefit of San Miguel Corporation employees is
Php5.000.00.
𝐻0 : 𝜇 = 5000

𝐻1 : The average monthly benefit of San Miguel Corporation employees is greater than
Php5.000.00.
𝐻1 : 𝜇 > 5000

𝜎 𝑠 600
According to Central Limit Theorem, 𝜎𝑥ҧ= ≈ = = 101.42
ξ𝑛 ξ𝑛 ξ 35
𝒙ഥ−𝝁𝟎 𝟔𝟎𝟎𝟎−𝟓𝟎𝟎𝟎
Test Statistic: 𝒛 = ቀ ቁ൫ξ 𝒏൯= ቀ ቁ൫ξ 𝟑𝟓൯= 𝟓𝟖. 𝟑𝟑.
𝝈𝒙ഥ 𝟏𝟎𝟏.𝟒𝟐
 
Critical region/s:
3.3.2
GMA-ABS claimed that their employees had a
mean monthly salary of Php12,500.00. A
reporter wants to verify this claim by asking 30
employees. The result showed that these
employees had an average monthly salary of
Php10,000.00 with a standard deviation of Php
2,000.00. Test the claim at 10% level of
significance assume that the population is
approximately normally distributed.
Given: 𝑛 = 30 , 𝝁𝟎 = 𝟏𝟐, 𝟓𝟎𝟎, 𝒙ഥ= 𝟏𝟎, 𝟎𝟎𝟎 , 𝒔 = 𝟐𝟎𝟎𝟎 𝛼 = 10% = 0.10
Null and alternative hypotheses
𝐻0 : The mean monthly salary of GMA-ABS employees is Php12,500.00.
𝐻0 : 𝜇 = 12,500

𝐻1 : The average monthly benefit of San Miguel Corporation employees is less than
Php12,500.00.
𝐻1 : 𝜇 < 12,500

𝜎 𝑠 2000
According to Central Limit Theorem, 𝜎𝑥ҧ= ≈ = = 365.15
ξ𝑛 ξ𝑛 ξ 30
𝒙ഥ−𝝁𝟎
Test Statistic: 𝒛 = ቀ ቁ൫ξ 𝟑𝟎൯= −𝟑𝟕. 𝟓𝟎.
𝟏𝟎𝟎𝟎𝟎−𝟏𝟐𝟓𝟎𝟎
ቁ൫ξ 𝒏൯= ቀ
𝝈𝒙ഥ 𝟑𝟔𝟓.𝟏𝟓
Critical region/s: 𝑧 < −𝑧0.10
−𝑧0.10 = −1.282
 ACTIVITY 13
Construct the critical region of the
problems in Activity 10 using Central
Limit Theorem. Write the problems and
answers in your activity notebook.
 
Answer the Assessment on page 47- 48 of
your module. Write your answer in your
answer sheet