CHAPTER 9

HYPOTHESIS TESTS
ABOUT THE MEAN AND
PROPORTION

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HYPOTHESIS TESTS: AN
INTRODUCTION
 Two Hypotheses
 Rejection and Nonrejection Regions
 Two Types of Errors
 Tails of a Test

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Two Hypotheses

Definition
A null hypothesis is a claim (or statement)
about a population parameter that is
assumed to be true until it is declared false.

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Two Hypotheses

Definition
An alternative hypothesis is a claim about
a population parameter that will be true if the
null hypothesis is false.

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Rejection and Nonrejection Regions
Figure 9.1 Nonrejection and rejection
regions for the court case.

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Two Types of Errors
Table 9.1 Four Possible Outcomes for a
Court Case

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Two Types of Errors

Definition
A Type I error occurs when a true null
hypothesis is rejected. The value of α
represents the probability of committing
this type of error; that is,
α = P(H0 is rejected | H0 is true)
The value of α represents the significance
level of the test.

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Two Types of Errors

Definition
A Type II error occurs when a false null
hypotheses is not rejected. The value of β
represents the probability of committing a Type II
error; that is,
β = P (H0 is not rejected | H0 is false)
The value of 1 – β is called the power of the
test. It represents the probability of not making
a Type II error.

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Tails of a Test

Definition
A two-tailed test has rejection regions in
both tails, a left-tailed test has the
rejection region in the left tail, and a
right-tailed test has the rejection region
in the right tail of the distribution curve.

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A Two-Tailed Test
 According to a survey by Consumer Reports
magazine conducted in 2008, a sample of sixth
graders selected from New York schools showed
that their backpacks weighed an average of 18.4
pounds (USA TODAY, August 3, 2009). Another
magazine wants to check whether or not this mean
has changed since that survey. The key word here
is changed.
 The mean weight of backpacks for sixth-graders in
New York has changed if it has either increased or
decreased since 2008. This is an example of a two
tailed test.
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A Two-Tailed Test

 Let μ be the weight of backpacks for the

current sixth-graders in New York. The two
possible decisions are
 H0 : μ = 18.4 pounds (The mean weight of
backpacks for sixth-graders in New York has
not changed)
 H1 : μ ≠ 18.4 pounds (The mean weight of
backpacks for sixth-graders in New York has
changed)

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A Two-Tailed Test

 Whether a test is two–tailed or one–tailed is

determined by the sign in the alternative
hypothesis.
 If the alternative hypothesis has a not
equal to (≠) sign, it is a two–tailed test.

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Figure 9.2 A two-tailed test.

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A Left-Tailed Test
Reconsider the example of the mean amount of
soda in all soft-drink cans produced by a company.
The company claims that these cans, on average,
contain 12 ounces of soda. However, if these cans
contain less than the claimed amount of soda, then
the company can be accused of cheating. Suppose
a consumer agency wants to test whether the
mean amount of soda per can is less than 12
ounces. Note that the key phrase this time is less
than, which indicates a left-tailed test.

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A Left-Tailed Test

 Let μ be the mean amount of soda in all

cans. The two possible decisions are
 H0 : μ = 12 ounces (The mean is equal to 12
ounces)
 H1 : μ < 12 ounces (The mean is less than 12
ounces)

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A Left-Tailed Test

In this case, we can also write the null

hypothesis as H0 : μ ≥ 12. This will not
affect the result of the test as long as the
sign in H1 is less than (<).
When the alternative hypothesis has a less
than (<) sign, the test is always left–tailed.

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Figure 9.3 A left-tailed test.

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A Right-Tailed Test
According to www.city-data.com, the
average price of homes in West Orange,
New Jersey, was $461,216 in 2007.
Suppose a real estate researcher wants to
check whether the current mean price of
homes in this town is higher than
$461,216. The key phrase in this case is
higher than, which indicates a right-tailed
test.

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 A Right-Tailed Test

 Let μ be the current mean price of homes in

this town. The two possible decisions are
 H0 : μ = $461,216 (The current mean price of homes
in this town is not higher than $461,216)
 H1 : μ > $461,216 (The current mean price of homes
in this town is higher than $461,216)

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A Right-Tailed Test

When the alternative hypothesis has a

greater than (>) sign, the test is always
right–tailed.

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Figure 9.4 A right-tailed test.

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Table 9.3 Signs in H0 and H1 and Tails
of a Test

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Two Procedures

Two procedures to make tests of

hypothesis

1. The p-value approach

2. The critical-value approach

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HYPOTHESIS TESTS ABOUT : 
KNOWN

Three Possible Cases

Case I. If the following three conditions are

fulfilled:

1. The population standard deviation σ is known

2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is normally distributed.

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HYPOTHESIS TESTS ABOUT μ: σ
KNOWN

Three Possible Cases

Case II. If the following two conditions are

fulfilled:

1. The population standard deviation σ is known

2. The sample size is large (i.e., n ≥ 30)

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HYPOTHESIS TESTS ABOUT μ: σ
KNOWN

Three Possible Cases

Case III. If the following three conditions are

fulfilled:

1. The population standard deviation σ is known

2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is not normally distributed (or its
distribution is unknown).

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HYPOTHESIS TESTS ABOUT μ: σ
KNOWN
Three Possible Cases

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HYPOTHESIS TESTS ABOUT μ: σ
KNOWN
Definition
Assuming that the null hypothesis is true, the p-
value can be defined as the probability that a
sample statistic (such as the sample mean) is at
least as far away from the hypothesized value in
the direction of the alternative hypothesis as the
one obtained from the sample data under
consideration. Note that the p–value is the
smallest significance level at which the null
hypothesis is rejected.

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Figure 9.5 The p–value for a right-
tailed test.

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Figure 9.6 The p–value for a two-tailed
test.

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Calculating the z Value for x
 When using the normal distribution, the
value of z for x for a test of hypothesis
about μ is computed as follows:
x  
z where  x 
x n

 The value of z calculated for x using this

formula is also called the observed value
of z.
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Steps to Perform a Test of
Hypothesis Using the p–Value
Approach

1. State the null and alternative hypothesis.

2. Select the distribution to use.
3. Calculate the p–value.
4. Make a decision.

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Example 9-1
At Canon Food Corporation, it used to take an average of 90
minutes for new workers to learn a food processing job.
Recently the company installed a new food processing
machine. The supervisor at the company wants to find if the
mean time taken by new workers to learn the food
processing procedure on this new machine is different from
90 minutes. A sample of 20 workers showed that it took, on
average, 85 minutes for them to learn the food processing
procedure on the new machine. It is known that the learning
times for all new workers are normally distributed with a
population standard deviation of 7 minutes. Find the p–
value for the test that the mean learning time for the food
processing procedure on the new machine is different from
90 minutes. What will your conclusion be if α = .01?

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Example 9-1: Solution
 Step 1: H0: μ = 90 H1: μ ≠ 90
 Step 2: The population standard deviation
σ is known, the sample size is small (n <
30), but the population distribution is
normal. We will use the normal
distribution to find the p–value and make
the test.

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Example 9-1: Solution
 Step 3:
 7
x   1.56524758 min utes
n 20
x  85  90
z   3.19
x 1.56524758
p-value = 2(.0007) = .0014

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Figure 9-7 The p-value for a two-tailed
test.

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Example 9-1: Solution
 Step 4: Because α = .01 is greater than
the p-value of .0014, we reject the null
hypothesis at this significance level.

Therefore, we conclude that the mean

time for learning the food processing
procedure on the new machine is
different from 90 minutes.

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Example 9-2
The management of Priority Health Club claims
that its members lose an average of 10 pounds or
more within the first month after joining the club.
A consumer agency that wanted to check this
claim took a random sample of 36 members of
this health club and found that they lost an
average of 9.2 pounds within the first month of
membership. The population standard deviation is
known to be 2.4 pounds. Find the p–value for this
test. What will you decision be if α = .01? What if α
= .05?

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Example 9-2: Solution
 Step 1: H0: μ ≥ 10 H1: μ < 10
 Step 2: The population standard deviation
σ is known, the sample size is large (n >
30). Due to the Central Limit Theorem, we
will use the normal distribution to find the
p–value and perform the test.

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Example 9-2: Solution
 Step 3:
 2.4
x   .40
n 36
x   9.2  10
z   2.00
x .40
p-value = .0228

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Figure 9-8 The p-value for a left-tailed
test.

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Example 9-2: Solution
 Step 4:
 Since α = .01 is less than the p-value of .0228,
we do not reject the null hypothesis at this
significance level. Consequently, we conclude
that the mean weight lost within the first month
of membership by the members of this club is 10
pounds or more.

 Because α = .05 is greater than the p-value

of .0228, we reject the null hypothesis at this
significance level. Therefore, we conclude that
the mean weight lost within the first month of
membership by the members of this club is less
than 10 pounds.
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HYPOTHESIS TESTS ABOUT :  NOT
KNOWN

Three Possible Cases

Case I. If the following three conditions are

fulfilled:

1. The population standard deviation σ is not

known
2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is normally distributed.

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HYPOTHESIS TESTS ABOUT μ: σ
NOT KNOWN

Three Possible Cases

Case II. If the following two conditions are

fulfilled:

1. The population standard deviation σ is not

known
2. The sample size is large (i.e., n ≥ 30)

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HYPOTHESIS TESTS ABOUT μ: σ
NOT KNOWN

Three Possible Cases

Case III. If the following three conditions are

fulfilled:

1. The population standard deviation σ is not

known
2. The sample size is small (i.e., n < 30)
3. The population from which the sample is
selected is not normally distributed (or its
distribution is unknown).

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HYPOTHESIS TESTS ABOUT μ: σ
NOT KNOWN
Three Possible Cases

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HYPOTHESIS TESTS ABOUT μ: σ
NOT KNOWN

Test Statistic
The value of the test statistic t for the
sample mean x is computed as
x  s
t where s x 
sx n

The value of t calculated for x by using this

formula is also called the observed value
of t.

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Example
A psychologist claims that the mean age at which
children start walking is 12.5 months. Carol
wanted to check if this claim is true. She took a
random sample of 18 children and found that the
mean age at which these children started walking
was 12.9 months with a standard deviation of .80
month. It is known that the ages at which all
children start walking are approximately normal
distributed. Find the p-value for the test that the
mean age at which all children start walking is
different from 12.5 months. What will your
conclusion be if the significance level is 1%?

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Example: Solution

 Step 1: H0 : μ = 12.5
H1 : μ ≠ 12.5
 Step 2: The population standard deviation
σ is not known, the sample size is small (n
< 30), and the population is normally
distributed. Consequently, we will use the t
distribution to find the p-value for the test.

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Example: Solution
 Step 3: The ≠ sign in the alternative
hypothesis indicates that the test is two-
tailed
s .80
sx   .18856181
n 18
x   12.9  12.5
t  2.121
sx .18856181

and df = n – 1 = 18 – 1 = 17
.02 < p-value < .05

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Figure The required p-value

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Example: Solution
 Step 4: For our example, α = .01, which is
less than the lower limit of the p-value
ranges of .02. As a result, we fail to
reject H0 and conclude that the mean age
at which all children start walking is not
different from 12.5 months.

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Tests of Hypothesis for μ Using the t
Distribution
What If the Sample Size Is Too Large?

1. Use the t value from the last row (the

row of ∞) in Table V of Appendix C.
2. Use the normal distribution as an
approximation to the t distribution.

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HYPOTHESIS TESTS ABOUT A
POPULATION PROPORTION: LARGE
SAMPLES
Test Statistic
The value of the test statistic z for the sample
proportion, p̂, is computes as
pˆ  p pq
z where  pˆ 
 pˆ n

The value of p that is used in this formula is the

one from the null hypothesis. The value of q is
equal to 1-p. The value of z calculated for p̂
using the above formula is also called the
observed value of z.
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Example
Direct Mailing Company sells computers and
computer parts by mail. The company claims that
at least 90% of all orders are mailed within 72
hours after they are received. The quality control
department at the company often takes samples to
check if this claim is valid. A recently taken sample
of 150 orders showed that 129 of them were
mailed within 72 hours. Do you think the
company’s claim is true? Use a 2.5% significance
level.

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Example: Solution
 Step 1: H0 : p ≥ .90
H1 : p < .90
 Step 2: To check whether the sample is
large, we calculate the values of np and nq:
np = 150(.90) = 135 > 5
nq = 150(.10) = 15 > 5
Consequently, we will use the normal
distribution to make the test.

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Example: Solution
 Step 3: Significance level = .025. The < sign in
the alternative hypothesis indicates that the
test is left-tailed, and the rejection region lies in
the left tail.
The critical values of z for .0250 area in the left
tail is -1.96.

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Figure The critical values of z

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Example: Solution
 Step 4:

pq (.90)(.10)
 pˆ   .02449490
n 150
pˆ  p .86  .90
z   1.63
 pˆ .02449490

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Example: Solution
 Step 5: The value of test statistic z = -1.63 is
greater than the critical value of z = -1.96, and
it falls in the nonrejection region. Therefore, we
fail to reject H0. We can state that the
difference between the sample proportion and
the hypothesized value of the population
proportion is small, and this difference may
have occurred owing to the chance alone.

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