Statistics and

Probability
Quarter 4 – Module 2:
Test Statistics For Known and Unknown
Population Variance
Statistics and Probability
Alternative Delivery Mode
Quarter 4 – Module 2: Test Statistics for Known and Unknown Population Variance
First Edition, 2020

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SENIOR HS MODULE DEVELOPMENT TEAM

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 Statistics and
Probability
Quarter 4 – Module 2:
Test Statistics For Known and
Unknown Population Variance
 What I Need to Know

After going through this module, you are expected to:

1. Identify the appropriate form of the test statistics 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. (M11/12SP-IVb-2)
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. (M11/12SP-IVc-1)

What I Know

Before we start our new lesson, let us first check your knowledge about forms
of test statistics. Choose the correct answer, then write the letter on your answer
sheet.
1. It is used when n ≥ 30, or when the population is normally distributed and the
standard deviation is known.

A. p – test C. t - test
B. s – test D. z – test

2. A statistical procedure that is used to know the mean difference between the
sample and the known value of the population mean based from an interval or ratio
scale. The sample size should be less than 30 (n < 30).

A. p – test C. t - test

B. s – test D. z – test
3. What is the z - value of the following given: µ = 100; σ = 2; x̄ = 100.5; n = 80?.

A. 0.0119 C. 0.0139

B. 0.0129 D. 0.0129
4. What is the z - value using the following given: µ = 87; σ2 = 25; x̄ = 86.2; n = 33?
A. 0.1814 C. 0.1814
B. 0.1718 D. 0.1617

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5. What is the value of t when n = 25, α = 0.05?

A. 1.511 C. 1.711
B. 1.611 D. 1.811

6. Determine the value of t when n = 4 and α = 0.025.

A. 3.182 C. 5.182

B. 4.182 D. 6.182

7. What is the t-value of the following given: µ = 42; s = 5; x̄ = 43; n = 20?

A. 0.79 C. 0,59

B. 0.89 D. 0.49

8. Find the t-value when: µ = 67.2; s2 = 4; x̄ = 68.5; n = 11.

A. 0.736 C. 0.716

B. 0.726 D. 0.706
9. Suppose that the z is the test statistic for hypothesis testing, calculate the value
of z for each given: µ = 50; σ = 4; x̄ = 51; n = 80.

A. 2.25 C. 2.23
B. 2.24 D. 2.22

10. Find the value of z using the given: µ = 75; σ = 6; x̄ = 78.5; n = 30.
A. 2.74 C. 4.74

B. 3.74 D. 5.74
11. What decision should be made when zcomputed = 2.340 and zcritical = 1.980?
A. Reject the Ho C. Reject the Ha

B. Do not reject the Ho D. Do not reject the Ha

12. If zcomputed = 1.236 and zcritical = 1.502, what decision should you made?
A. Reject the Ho C. Reject the Ha

B. Do not reject the Ho D. Do not reject the H a

Refer to the problem below to answer 13 to 15.

The treasurer of a municipality claims that the average net worth of families
living in this municipality is Php 730,000. A random sample of 50 families selected
from this area produced a mean net worth of Php 860,000 with standard deviation
of Php 65,000. Using 1% significance level, can we conclude that the claim is true?

13. What is the null hypothesis (Ho) and the alternative hypothesis (Ha)?
A. Ho: µ = Php 730,000 C. Ho: µ ≠ Php 730,000

Ha: µ > Php 730,000 Ha: µ = Php 730,000

B. Ho: µ < Php 730,000 D. Ho: µ ≥ Php 730,000
Ha: µ ≤ Php 730,000 Ha: µ ≠ Php 730,000
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 14. What is the critical value?

A. 2.33 C. 4.33
B. 3.33 D. 5.33

15. Will you accept the Ho?

A. Do not accept the Ho C. Do not accept the Ha
B. Accept the Ho D. Accept the Ha

Lesson Identifying the Appropriate

1 Rejection Region when
n ≥ 30
Statistics is so famous when it comes to economic chaos, like in this time of
Pandemic. A lot of hypotheses were being read and heard in the news. Do you know
how these hypotheses were formulated? Yes! This is through statistics. Statistics
means numerical data, and it deals with the collection of data, tabulation, and
interpretation of data. In this module, you will learn how and when to use Z-test and
T-test in testing the hypothesis.

What’s In

You have learned in your previous lessons the formula in computing the z-
value and the t-value as shown below. These formulas will be used in our discussion.

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 THEOREM

If x̄ and s are the mean and standard deviation, respectively, of a

random sample of size n taken from a normally distributed population
with a mean µ, it can be standardized as

xlj − µ
t= 𝒔
ξ𝒏
a value of a random variable T following the t-distribution.

Note:

 The formula is used when n < 30 and the

population standard deviation is unknown.

Now, let’s have a little review in formulating the hypothesis. Formulate a null
(Ho) and alternative (Ha) hypothesis to the following situations. Write your answer in
your answer sheet.

1. Senior high school students answer their module in Statistics and Probability for
4 hours.

Ho: Ha:

2. Senior high school students answer their module in Statistics and Probability for
less than 4 hours.

Ho: Ha:

3. Senior high school students answer their module in Statistics and Probability for
more than 4 hours.

Ho: Ha:

Notes to the Teacher

This contains helpful tips or strategies that will help you in
guiding the learners.

4
 What’s New

Z-test is a statistical test for the mean of a population, applicable interval, and
ratio scale. It is used when n ≥ 30, or when the population is normally distributed
and population standard deviation is known. The formula for z-test is

Where:

z – z-test σ – population standard deviation

x̄ - sample mean s – sample standard deviation
µ - population mean n – number of observations in the sample
Assumptions for z-test
1. Subjects are randomly selected.

2. Population distribution is normal.

3. The population should be known.

4. Cases of the sample should be independent.

5. Sample size should be greater than or equal to 30.

To determine the Critical Value:

Example: Given: α = 0.05 two tailed.
Find the value in the Critical Value Table below

Critical Value Table

Alpha (α)
0.10 0.05 0.03 0.02 0.01

Confidence 90% 95% 97% 98% 99%

Level

One-tailed 1.28 1.64 1.88 2.05 2.33

(Directional)
Two-tailed
(Non- 1.64 1.96 2.17 2.33 2.58
directional)
Adapted from Statistics and Probabilty by Ricardo B. Banigon Jr., et. Al Appendix C

5
The critical value is 1.96. Please see next page for illustration.

Critical Value Critical Value

Rejection region Rejection region

-1.96 µ +1.96

Procedure for z-test

1. Set up the hypotheses (Ho and Ha)

2. Set the level of significance and determine the critical value of z.

3. Calculate the sample mean for z-test by using x̄ = ∑𝑥

𝑛

Where: x̄ - sample mean n – number of observations in the sample

Note: Calculate the sample standard deviation if σ is unknown.
4. Calculate the value of the z-test by using the first formula if σ is known,
otherwise use the second formula.

5. Statistical decision for hypothesis testing.

If Z computed < Zcritical, do not reject the Ho.

If Zcomputed ≥ Zcritical, reject Ho.
6. State the conclusion.

What is It

Now let’s have examples.

1. A researcher reports that the average salary of company managers is Php 63,000.
A sample of 35 company managers has a mean salary of Php 65,700. At α = 0.01,
test the claim that the company managers earn more than Php 63,000 a month. The
standard deviation of the population is Php 5,250.

Solution:

Given: x̄ = Php 65,700 µ = Php 63,000 σ = Php 5,250 n = 35

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 1. State the hypotheses.
Ho: µ = Php 63,000
Ha: µ > Php 63,000
2. Set the level of significance and determine the critical value of z.
α = 0.01 under one-tailed (directional)

Critical value of z = 2.33

Please refer below Critical Value of Z.

Alpha (α)
0.10 0.05 0.03 0.02 0.01

Confidence 90% 95% 97% 98% 99%

Level

One-tailed 1.28 1.64 1.88 2.05 2.33

(Directional)
Two-tailed
(Non- 1.64 1.96 2.17 2.33 2.58
directional)

Adapted from Statistics and Probabilty by Ricardo B. Banigon Jr., et. Al Appendix C

3. There is no need to compute for sample mean (x̄) because it is given

already

4. Calculate the z-test. Standard deviation (σ) is known so we will use the
formula:

5. Statistical Decision for hypothesis testing.

Reject the Null hypothesis. zcomputed ≥ zcritical

Since 3.043 > 2.33

Check the illustration.

7
 6. State the conclusion
Since we reject the null hypothesis, we can conclude that there is
enough evidence to support the claim that the monthly salary of a company
manager is more than Php 63,000.

2. The average baptismal cost includes 50 guests. A random sample of 32

baptismal during the past years in the National Capital Region had a mean of 53
guests and a standard deviation of 10. Is there sufficient evidence at the 0.05 level
of significance that the average number of guests differs from the national average?

Solution:

Given: x̄ = 53 µ = 50 s = 10 n = 32

Ho: µ = 50
Ha: µ ≠ 50 (claim)
Level of significance: α = 0.05 under two tailed (non-directional)

Alpha (α)
0.10 0.05 0.03 0.02 0.01

Confidence 90% 95% 97% 98% 99%

Level

One-tailed 1.28 1.64 1.88 2.05 2.33

(Directional)
Two-tailed
(Non- 1.64 1.96 2.17 2.33 2.58
directional)
Adapted from Statistics and Probabilty by Ricardo B. Banigon Jr., et. Al Appendix C

α = 0.05 two tailed → ±1.96

1.697 < ±1.96, Thus, do not reject the Ho because zcomputed < zcritical

Note:
Negative sign of the computed z is disregarded when comparing it to the critical value of z if the
hypothesis is non directional.

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 Lesson Identifying the Appropriate
2 Rejection Region when
n < 30
You have learned how and when to use Z-test in hypothesis testing. What if n
< 30? Is there a statistical test to be used? Let us now proceed to t-test.

What’s New

T-test is a statistical procedure that is used to know the mean difference

between the sample and the known value of the population mean based from an
interval or ratio scale. We draw a random sample from the population and then
compare the sample mean with the population mean and make a statistical decision
as to whether or not the sample mean is different from the population. The sample
size should be less than 30 (n < 30).

Assumption in t-test
1. The population must be approximately normally distributed.
2. Sample drawn from the population should be random.

3. Cases of the samples should be independent.

4. Sample size should be less than 30 (n < 30).

5. The population mean should be known.

Procedure for t-test

1. State the hypotheses and identify the claim (Ho and Ha).

2. Set the level of significance, calculate the degrees of freedom (df = n – 1) and
determine the critical value of it.

3. Calculate the value of t-test using

Where: t - t-test

x̄ - sample mean
µ - population mean
s – sample standard deviation

n – number of observations in the sample

4. Statistical decision for hypothesis testing.

If tcomputed < tcritical, do not reject the Ho.

If tcomputed ≥ tcritical, reject the Ho.

5. State the conclusion.

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 What is It

Let’s have an example.

1. One of the undersecretaries of the Department of Labor and Employment (DOLE)
claims that the average salary of a civil engineer is Php 37,600. A sample 19 civil
engineers’ salary has a mean of Php 37,000 and a standard deviation of Php 1,230.
Is there enough evidence to reject the undersecretary’s claim at α = 0.01?

Solution:
Given: x̄ = Php 37,000 µ = Php 37,600 s = Php 1,230 n = 19

Step 1: State the hypotheses and identify the claim.

Ho: µ = Php 37,600 (claim)

Ha: µ ≠ Php 37,600
Step 2: Level of significance
α = 0.01 df = 19 – 1 = 18
Step 3: Find the critical value using T-distribution table on the next page.

The value under α = 0.01 with a df of 18 is 2.552

Step 4: Compute the t-test value using the formula

Step 5: Decision Rule

tcomputed = -2.12 tcritical = 2.552

-2.13 < 2.552 – Do not reject the Ho.

-2.13

-2.552 +2.552

Step 6: Conclusion

Since we fail to reject the Ho, we can conclude that the starting salary of civil
engineers is Php 37,600

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 T-distribution Table
α 0.1 0.05 0.025 0.01 0.005
df
1 3.078 6.314 12.076 31.821 63.657
2 1.886 2.920 4.303 6.965 9.925
3 1.638 2.353 3.182 4.541 5.841
4 1.533 2.132 2.776 3.747 4.604
5 1.476 2.015 2.571 3.365 4.032
6 1.440 1.943 2.447 3.143 3.707
7 1.415 1.895 2.365 2.998 3.499
8 1.397 1.860 2.306 2.896 3.355
9 1.383 1.833 2.262 2.821 3.250
10 1.372 1.812 2.228 2.764 3.169
11 1.363 1.796 2.201 2.718 3.106
12 1.356 1.782 2.179 2.681 3.055
13 1.350 1.771 2.160 2.650 3.012
14 1.345 1.761 2.145 2.624 2.977
15 1.341 1.753 2.131 2.602 2.947
16 1.337 1.746 2.120 2.583 2.921
17 1.333 1.740 2.110 2.567 2.898
18 1.330 1.734 2.101 2.552 2.878
19 1.328 1.729 2.093 2.539 2.861
20 1.325 1.725 2.086 2.528 2.845
21 1.323 1.721 2.080 2.518 2.831
22 1.321 1.717 2.074 2.508 2.819
23 1.319 1.714 2.069 2.500 2.807
24 1.318 1.711 2.064 2.492 2.797
25 1.316 1.708 2.060 2.485 2.787
26 1.315 1.706 2.056 2.479 2.779
27 1.314 1.703 2.052 2.473 2.771
28 1.313 1.701 2.048 2.467 2.763
∞ 1.282 1.645 1.960 2.326 2.576

Adapted from Statistics and Probabilty by Ricardo B. Banigon Jr., et. Al Appendix C

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 What’s More

A. Determine the decision for each of the following, given the computed and critical
value of the z and t. Write the answer on your answer sheet.
1. zcomputed = 1.82 zcritical = 1.96

2. zcomputed = 2.54 zcritical = 2.33

3. zcomputed = 2.02 zcritical = 1.771

4. tcomputed = 2.24 tcritical = 2.552

5. tcomputed = 2.34 tcritical = 2.093

B. Determine the decision on the following problems then state conclusion. Write the
answer on your answer sheet.
1. Powdered milk is packed in 1-kilogram bag. An inspector from the Department of
Trade and Industry (DTI) suspects the bags may not contain 1 kilogram. Is there
enough evidence to conclude that the bags do not contain 1 kilogram as stated at α
= 0.05?
2. A researcher claims that a 20-year-old woman on a special diet will have an
average weight of 110 pounds. A sample of 15 women has an average weight of 112.5
pounds and a standard deviation of 5 pounds. At α = 0.01, can the claim be rejected?
3. A printer manufacturing company claims that its new ink-efficient printer can
print an average of 1,500 pages of word documents with standard deviation of 60.
Thirty-five (35) of these printers showed a mean of 1475 pages. Does this support
the company’s claim? Use 95% confidence level.

What I Have Learned

Answer the following questions. Write the answer on your answer sheet.
1. Differentiate the z-distribution to t-distribution. Use Venn diagram for your
comparison.
2. State the steps in determining the decision and conclusion using z-test and t-
test.

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 What I Can Do

Use the steps you’ve learned to solve the problem below. Write the answer on your
answer sheet.
In a plant nursery, the owner thinks that the lengths of seedlings in a box
sprayed with new kind of fertilizer has an average height of 26 cm after 3 days and
a standard deviation of 10 cm. One researcher randomly selected 80 such seedlings
and calculated the mean height to be 20 cm. Will you conduct a one-tailed test or a
two tailed test? Proceed with the test using a α = 0.05.

Assessment

Solve the following and decide whether to reject or not to reject the claims.
1. The owner of the factory that sells a particular bottled fruit juice claimed that the
average capacity of their product is 250 ml. To test the claim, a consumer group gets
a sample of 100 such bottles, calculates the capacity of each bottle, and then finds
the mean capacity to be 248 ml. The standard deviation s is 5 ml. Use α = 0.03. Will
you reject or not to reject the claim.
2. The average Senior High School annual cost of tuition fee for all private schools
last year was Php 46,300. A random sample costs this year for 45 private schools
indicated that the sample mean was Php 47,800 and a sample standard deviation
was Php 5,600. At 0.10 level of significance, is there sufficient evidence to conclude
that the cost has increased? Will you reject or not to reject the Ho?
3. A fitness center claims that its members lose an average of 15 pounds or more
the first month after joining the center. An independent agency that wanted to check
this claim took a sample of 45 members and found that they lost an average of 13
pounds within the first month with standard deviation of 3 pounds. What will your
decision be if α = 0.05?
4. A consumer advocacy group suspects that a local supermarket’s 750 grams of
sugar actual weight is 750 grams. The group took a random sample of 20 such
packages, weighed each one, and found the mean weight for the sample to be 746
grams with a standard deviation of 8 grams. Using 10% significance level, would you
conclude that the mean weight is less than 750 grams? Will you reject or not to reject
the claim?

5. A survey in one of the regions in the Philippines finds the average commute time
of employees on one way is 45 minutes. One of the groups of chambers of commerce
in the particular region feels that in their city it is greater and want to publicize this.
They randomly selected 28 commuters and found the average is 50 minutes with
standard deviation of 6 minutes. At α = 0.05, will you reject or not to reject the claim?

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 Additional Activities

Solve the problem below. Write the answer in your answer sheet.
An international research claims that the mean age at which children start walking
is 13 months. A group of Pediatricians in the Philippines wanted to check if this claim
is true in the Philippines. They took a random sample of 14 children and the number
of months is shown in the table. Using 5% significance level, can you conclude that
the mean age at which all children start walking is different from 13 months? Assume
that the age of which all children start walking have an approximately normal
distribution.

12 11 8 14 15 12 13

10 9 7 13 16 11 17

Solution:

Step 1: Ho: Ha:

Step 2: The level of significance is and df =

Step 3: Determine the critical region. tcritical: _

Step 4: Complete the table and compute for the value of sample mean,
standard deviation and t-test.

x x - ̄x (x - x̄)2 x x - ̄x (x - x̄)2
12 10
11 9
8 7
14 13
15 16
12 11
13 17

n= x̄ = s= tcomputed =
Step 5: Decision rule:

Step 6: Conclusion:

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Answer Key

15
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