SESENIOR HIGH SCHOOL

H SCHOOL

SHS Core Subject

Statistics and Probability
Quarter 4 - Module 3
Identifying the Appropriate Rejection Region for a
Given Level of Significance

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 What I Know (Pre-Test)
Instruction: Choose the letter of the correct answer to the given items.
Write them on a separate sheet of paper.

1. It is a value that divides the sampling distribution of a test statistic into

critical and acceptance region.
A. Acceptance Region C. Level of Significance
B. Critical Value D. Rejection Region

2. What set of values for the test statistic could range from negative infinity to
positive infinity and which the null hypothesis is rejected?
A. Acceptance Region C. Level of Significance
B. Critical Value D. Rejection Region

3. In the two-tailed test, the rejection region lies on ___________ of the normal
distribution.
A. center B. left tail C. right tail D. both tails

4. Which of the following pairs is INCORRECT?

A. Left tailed or directional < : The rejection region is at the left side of
the acceptance region.
B. Right tailed or directional test > : The rejection region is at the right
side of the acceptance region.
C. Left tailed or directional > = : The rejection region is at the left side of
the acceptance region.
D. Two-tailed test or non-directional test ≠ : The critical region is at the
left and right sides of the acceptance region.

5. Which of the following is the sketch of the normal curve if 𝑧≥1.645?

6. Which of the following graphs of rejection region show 𝑡≥2.074?

For items 7-10, please refer to the problem below.

A pediatrician claimed that the average time for a drug to take effect is 15
minutes with a standard deviation of 8 minutes. In a sample of 49 trials, the
average time was 18 minutes. Test the claim of the pediatrician that the
average time is not equal to 15 minutes. Assume that the average time for a
drug take effect is approximately normally distributed. Test the hypothesis at
0.01 level of significance.

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7. Which of the following is a statement that describes the null hypothesis?
A. H0 : μ = 15 . C. H0 : μ > 15
B. H0 : μ ≠ 15 D. H0 : μ ≥ 15

8. Which of the following statements describes the alternative hypothesis?

A. Ha : μ = 15 . C. Ha : μ > 15
B. H0 : μ ≠ 15 D. Ha : μ ≥ 15

9. What is the level of significance?

A. 0.01 B. 0.05 C. 0.10 D. 0.15

10. What is the z- value?

A. 2.60 B. 2.61 C. 2.62 D. 2.63

For items 11-15, please refer to the problem below.

Teacher Agnese conducted a study to know if modular distance
learning affects the students’ performances. A class of 40 students of
Grade 11- St. Thomas in Mambaling NHS was surveyed and found out
that their mean score was 90 with a standard deviation of 4. A similar
study in Cantipla IS revealed that 𝜇 = 85 with a standard deviation of 3.
Test the hypothesis at 0.10 level of significance.

11. What are the given in the problem?

A. 𝑥̅ = 90 , 𝜇0 = 85, 𝜎 = 3, 𝑛 = 30 and 𝛼 = 0.10
B. 𝑥̅ = 85, 𝜇0 = 90, 𝜎 = 3, 𝑛 = 30 and 𝛼 = 0.10
C. 𝑥̅ = 90 , 𝜇0 = 85, 𝜎 = 30, 𝑛 = 3 and 𝛼 = 0.10
D. 𝑥̅ = 90 , 𝜇0 = 85, 𝜎 = 30, 𝑛 = 3 and 𝛼 = 0.10

12. Which of the following is a statement that describes the null hypothesis.
A.H0 : μ = 85 . C. H0 : μ > 85
B.H0 : μ ≠ 85 D. H0 : μ ≥ 85

13. Which of the following statements describes the alternative hypothesis.

A.Ha : μ = 85 . C. Ha : μ > 85
B.Ha : μ ≠ 85 D. Ha : μ ≥ 85

14. What is the level of significance?

A. 0.01 B. 0.05 C. 0.10 D. 0.15

15. What is the rejection region?

A. – 1.96 B. – 1.645 C. 1.96 D. 1.645

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Lesson Identifying the Appropriate
1 Rejection Region for a Given Level
of Significance

What I Need to Know

At the end of this lesson, you are expected to:
o 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.

What’s In
Directions: Read and understand the problem carefully then match column A
with column B.

Situation # 1.
A grade 12 General Academic Strand (GAS) researchers of Mambaling
National High School used to develop problem solving test to randomly select
50 Grade 7 students. In this sample, 𝑋̅ = 80 and 𝑠 = 10. The mean 𝜇 and
standard deviation of the population used in the standardization of the test
were 75 and 15, respectively. Use the 95% confidence level to answer the
following questions:

COLUMN A COLUMN B

_______1. What are the hypotheses? A. z-test

_______2. Is it two-tailed test or one-tailed test? B. 0.05
_______3. What is the level of significance? C. known
_______4. Is the population standard deviation D. μ= 75
known or unknown? μ≠ 75
_______5. What appropriate test statistic (z-test E. two-tailed
or t-test) can you use? F. z = ±1.96
_______6. Based on the level of significance, G. Unknown
hypothesis test and test statistic, what H. T-test
is the critical value?

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What’s New
Let us answer of the following stimulating questions below to link the
notion on identifying the appropriate rejection region for a given level of
significance.

Stimulating question 1: What is critical value?

Critical value is a point on the test distribution that is compared to the
test statistic to determine whether to reject the null hypothesis.
It is a value that divides the sampling distribution of a test statistic into
critical and acceptance region.

Stimulating question 2: What is a level of significance?

Significance level denoted by the Greek letter 𝒂 (alpha), this is the
probability value which specifies the risk of incorrectly rejecting the
null hypothesis when it’s true.
It also defines the sensitivity of the test. A value of 𝛼=0.05 implies that the
null hypothesis is rejected 5% of the time when it is in fact true. In
practice, the common values of α are 0.1, 0.05, and 0.01.

Generally, Statisticians agree on using three significance level: the 0.01,

0.05 and 0.10 level. That is, if the null hypothesis is rejected, the
probability of type I error will be 10%, 5% and 1%, and the probability of
a correct decision will be 90%, 95%, or 99%, depending on which level of
significance is used. In other words, when 𝑎 = 0.05, there is a 5% chance
of rejecting a true null hypothesis.

Stimulating question 3: What is critical value of z-Distribution?

Critical value of z- Distribution is used when the sampling distribution
is normal or close to normal. Z-scores are used when the population
standard deviation is known or when you have larger sample sizes. While
the z-score can also be used to calculate probability for unknown standard
deviations and small samples. Many statisticians prefer using the t-
distribution to calculate these probabilities.

Stimulating question 4: When do you use the z-table?

If you know the standard deviation of the population, use the z-table.
If you don't but you have a large sample size (traditionally over 30, but
some teachers might go up to 100 these days), then assume that the
population standard deviation is the same as the sample standard
deviation and use the z-table.
https://www.khanacademy.org/math/statistics-probability

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Table of Critical Values (Z-Score)

A. left-tailed test: If the alternative hypothesis 𝐻𝑎 contains the less-than

inequality symbol (<), the hypothesis test is a left-tailed test.

Note: In the given example, assume that the normal distribution is

applied.
Example 1. Find the critical z- value of left -tailed test with 𝑎 = 0.01?

Answer: 𝒛=−2.33 (based on the table of critical value of z).

Example 2. Find the critical z- value of left- tailed test with 𝑎 = 0.025?

Answer: 𝒛=−1.96 (based on the table of critical value of z).

B. right-tailed test: If the alternative hypothesis 𝐻𝑎 contains the greater-

than inequality symbol (>), the hypothesis test is a right-tailed test.
Note: In the given example, assume that the normal distribution is
applied.
Example 1. Find the critical z- value right -tailed test with 𝑎 = 0.05 ?

Answer: 𝒛= 1.645 (based on the table of critical value of z).

Example 2. Find the critical z- value right -tailed test with 𝑎 = 0.10?

Answer: 𝒛=1.28 (based on the table of critical value of z).

c. two-tailed test: If the alternative hypothesis 𝐻𝑎 contains the not-equal-

to symbol (≠), the hypothesis test is a two-tailed test. In a two-tailed test,
each tail has an area of .

Note: In the given example, assume that the normal distribution is

applied.
Example 1. Find the critical z- value of two-tailed test with 𝑎 = 0.01?

Answer: 𝒛= ±2.575 (based on the table of critical value of z).

Example 2. Find the critical z- value of two- tailed test with 𝑎 = 0.05?

Answer: 𝒛= ±1.96 (based on the table of critical value of z).

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Stimulating question 5: What is critical value of t-Distribution?
The t-distribution table values are critical values of the t-distribution.
The column header is the t-distribution probabilities (alpha). The row
names are the degrees of freedom (df).

Stimulating question 6: When do you use the t-table?

You must use the t-distribution table when working problems when the
population standard deviation (σ) is not known and the sample size is
small (n<30). General Correct Rule: If σ is not known, then using t-
distribution is correct. If σ is known, then using the normal distribution
is correct.
http://web.pdx.edu/~stipakb/download/PA551/NormalVersusTdistribution.doc

Table 12.2
Critical Values of the t Distribution
Conf. Level 50% 80% 90% 95% 98% 99%

One Tail 0.250 0.100 0.050 0.025 0.010 0.005

Two Tail 0.500 0.200 0.100 0.050 0.020 0.010

df = 1 1.000 3.078 6.314 12.706 31.821 63.657
2 0.816 1.886 2.920 4.303 6.965 9.925
3 0.765 1.638 2.353 3.182 4.541 5.841
4 0.741 1.533 2.132 2.776 3.747 4.604
5 0.727 1.476 2.015 2.571 3.365 4.032
6 0.718 1.440 1.943 2.447 3.143 3.707
7 0.711 1.415 1.895 2.365 2.998 3.499
8 0.706 1.397 1.860 2.306 2.896 3.355
9 0.703 1.383 1.833 2.262 2.821 3.250
10 0.700 1.372 1.812 2.228 2.764 3.169
11 0.697 1.363 1.796 2.201 2.718 3.106
12 0.695 1.356 1.782 2.179 2.681 3.055
13 0.694 1.350 1.771 2.160 2.650 3.012
14 0.692 1.345 1.761 2.145 2.624 2.977
15 0.691 1.341 1.753 2.131 2.602 2.947
16 0.690 1.337 1.746 2.120 2.583 2.921
17 0.689 1.333 1.740 2.110 2.567 2.898
18 0.688 1.330 1.734 2.101 2.552 2.878
19 0.688 1.328 1.729 2.093 2.539 2.861
20 0.687 1.325 1.725 2.086 2.528 2.845
21 0.686 1.323 1.721 2.080 2.518 2.831
22 0.686 1.321 1.717 2.074 2.508 2.819
23 0.685 1.319 1.714 2.069 2.500 2.807
24 0.685 1.318 1.711 2.064 2.492 2.797
25 0.684 1.316 1.708 2.060 2.485 2.787
26 0.684 1.315 1.706 2.056 2.479 2.779
27 0.684 1.314 1.703 2.052 2.473 2.771

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 Conf. Level 50% 80% 90% 95% 98% 99%

One Tail 0.250 0.100 0.050 0.025 0.010 0.005

Two Tail 0.500 0.200 0.100 0.050 0.020 0.010

28 0.683 1.313 1.701 2.048 2.467 2.763
29 0.683 1.311 1.699 2.045 2.462 2.756
30 0.683 1.310 1.697 2.042 2.457 2.750
40 0.681 1.303 1.684 2.021 2.423 2.704
50 0.679 1.299 1.676 2.009 2.403 2.678
60 0.679 1.296 1.671 2.000 2.390 2.660
70 0.678 1.294 1.667 1.994 2.381 2.648
80 0.678 1.292 1.664 1.990 2.374 2.639
90 0.677 1.291 1.662 1.987 2.368 2.632
100 0.677 1.290 1.660 1.984 2.364 2.626
z 0.674 1.282 1.645 1.960 2.326 2.576
Source: https://people.richland.edu/james/lecture/m170/tbl-t.html

To find critical values for t-distribution:

1. Identify the level of significance.
2. Identify the degrees of freedom, df. = n -1.
3. Find the critical value using t-distribution in the row with n-1 degrees
of freedom. If the hypothesis test is:

A. Left-tailed, use “α one tail” column with a negative sign.

(Hint: Use the t-distribution table above)
Example 1: Find the critical t-value for a left-tailed test with α= 0.01
and n = 15.
Degrees of freedom (df) = n- 1= 15 -1 = 14

Answer: 𝒕 = − 2.6245

Example 2: Find the critical t-value for a left-tailed test with α= 0.05
and n = 20.
Degrees of freedom (df) = n- 1= 20 -1 = 19

Answer: 𝒕 = − 1.7291

B. Right-tailed, use “α one tail” column with a positive sign.

Example 1: Find the critical t-value for a right -tailed test with
α= 0.0005 and n = 18.
Degrees of freedom (df) = n- 1= 18 -1 = 17

Answer: 𝒕 =3.9651

Example 2: Find the critical t-value for a left-tailed test with α= 0.025
and n = 10
Degrees of freedom (df) = n- 1= 10-1 = 9

Answer: 𝒕 = 2.2621

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C. Two-tailed, use “α two tailed” column with a negative and a positive
sign.

Example 1. Find the critical t-values for a two-tailed test with α=0.05
and n =21.
Degrees of freedom (df) = n- 1= 20-1 = 19

Answer: 𝒕=±2.0930

Stimulating question 7: What is rejection region?

A rejection region, also known as the critical region is a set of values

for the test statistic that could range from negative infinity to positive
infinity and which the null hypothesis is rejected. i.e. if the observed
test statistic is in the critical region, then we reject the null hypothesis
and accept the alternative hypothesis.

Hypothesis Test and Their Tails

Three Types of Description Graph

Hypothesis Test

one-tailed test or The rejection Rejection Acceptance

left tailed or region is at the Region Region

directional < left side of the

acceptance
region.

one-tailed test or The rejection

Acceptance Rejection
right tailed or region is at the Region Region
directional test > right side of the
acceptance
region.

two-tailed test or The critical region Rejection

Rejection
non-directional is at the left and Region
Region
test ≠ right sides of the
acceptance Acceptance
Region
region.

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What Is It
REJECTION REGION WHEN THE POPULATION VARIANCE
IS ASSUMED TO BE KNOWN

In the previous topic, you are tasked to identify the appropriate form of
test statistic. After the test statistic is computed, the critical region is set.
The set of all possible values of the test statistic could range from negative
infinity to positive infinity. This will be divided into two regions. One region
will be set as the acceptance region and the other one is the rejection or
critical region. The division of these two regions will be based on the
alternative hypothesis.
Below is the summary of the possible alternative hypothesis and its
corresponding critical region for testing population mean when the
population variance is assumed to be known.

Alternative Hypothesis Rejection or Critical Regions

𝜇 < 𝜇0 𝑧 < −𝑧𝛼
𝜇 > 𝜇0 𝑧 > 𝑧𝛼
𝜇 ≠ 𝜇0 𝑧 < −𝑧𝛼⁄2 or 𝑧 > 𝑧𝛼⁄2

where
𝜇 is the population mean
𝜇0 is the possible value of the population mean
𝑧 is the value of test statistic and
−𝑧𝛼 , 𝑧𝛼 , −𝑍𝛼⁄ and 𝑍𝛼⁄ are the critical values.
2 2

Directions: Determine the given, formulate the null and alternative

hypothesis, compute the test statistic and construct the
acceptance and critical regions.
Example 1: A manufacturer of Cebuano Affectionate Perfume 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 branches 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: 𝑥̅ = 3 ,𝜇0 = 5, 𝜎 = 2, 𝑛 = 200 𝛼 = 0.05

Solutions:

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 Null Hypothesis 𝐻0 : The average reduction of production expenses
of the new packaging design of affectionate
perfume is Php 5.00.
𝐻0 : 𝜇 = 5
Alternative 𝐻1 : The average reduction of production expenses
Hypothesis of the new packaging design of affectionate
perfume is less than Php 5.00.
𝐻1 : 𝜇 < 5
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 3−5

𝑧=( ) (√200) = −𝟏𝟒. 𝟏𝟒
2

Critical/ Since < is use in 𝐻1 , 𝑧 < −𝑧𝛼 will be used. Now

Rejection Region using the z-table, the value of −𝑧𝛼 is
−𝑧𝛼 = −𝑧0.05 = −1.645

Graph

Example 2: A manufacturer of sanitizer bottle spray has developed a

new sanitizer bottle 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 sanitizer bottle spray design average profit
increase of is not 10% if a random sample of 50 sanitizer bottle spray is
tested with an average profit increase of 4%. Use 10% level of
significance.

Given: 𝑥̅ = 4, 𝜇0 = 10, 𝜎 = 3, 𝑛 = 50 𝛼 = 10% = 0.10

Solutions:
Null 𝐻0 : The average profit increase of the sanitizer bottle
Hypothesis spray design is 10%
𝐻0 : 𝜇 = 10

Alternative 𝐻1 : The average profit increase of the sanitizer bottle

Hypothesis spray design is not 10%.
𝐻1 : 𝜇 ≠ 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%.

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 Test 𝒛=(
𝟒−𝟏𝟎
) (√𝟓𝟎) = −𝟏𝟒. 𝟏𝟒
Statistic 𝟑
0.10
and 𝛼⁄2 = = 0.05
2

Critical/ Since ≠ is use in 𝐻1 , 𝑧 < −𝑧𝛼⁄ or 𝑧 > 𝑧𝛼⁄ will be used.

2 2
Rejection Now using the z-table, the values of −𝑧𝛼⁄ and 𝑧𝛼⁄ are
2 2
Region
the following:
−𝑧𝛼⁄ = −𝑧0.05 = −1.645 or
2
𝑧𝛼⁄ = 𝑧0.05 = 1.645
2

Graph

Example 3: A teacher conducted a study to know if modular distance

learning affects the students’ performances. A class of 30 students of
Grade 11- St. Luke was surveyed and found out that their mean score
was 83 with a standard deviation of 4. A study from other school revealed
that their 𝜇 = 80 has a standard deviation of 3. Test the hypothesis at
0.10 level of significance.

Given: 𝑥̅ = 83 , 𝜇0 = 80, 𝜎 = 3, 𝑛 = 30 and 𝛼 = 0.10

Solutions:
Null 𝐻0 : The mean score of Grade 11- St. Luke students is
Hypothesis 80.

𝐻0 : 𝜇 = 80
Alternative 𝐻1 : The mean score of Grade 11- St. Luke students is
Hypothesis greater than 80.
𝐻1 : 𝜇 > 80
Note: we use greater than because sample mean 83 is greater
than 80 which is the possible population mean.
Test 𝟖𝟑 − 𝟖𝟎
Statistic 𝒛=( ) (√𝟑𝟎) = 𝟓. 𝟒𝟖
𝟑

Critical/ Since > is use in 𝐻1 , 𝑧 > 𝑧𝛼 will be used. Now using the
z-table, the value of 𝑧𝛼 is.

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Rejection 𝑧𝛼 = 𝑧0.10 = 1.96
Region
Graph

THE REJECTION REGION WHEN THE POPULATION

VARIANCE IS ASSUMED TO BE UNKNOWN
In this instance, the critical value/s will be determined using the
student t-distribution table. When the sample size is less than 30,
this method will be used. The Central Limit Theorem is used when
the sample size is greater than 30 and the variance is unknown.

Alternative Hypothesis Rejection or Critical Regions

𝜇 < 𝜇0 𝑡 < −𝑡𝛼,𝑣
𝜇 > 𝜇0 𝑡 > 𝑡𝛼,𝑣
𝜇 ≠ 𝜇0 𝑡 < −𝑡𝛼⁄ ,𝑣 or 𝑡 > 𝑡𝛼⁄
2 2,𝑣

where
𝜇 is the population mean,
𝜇0 is the possible value of the population mean,
t is the value of test statistic,
−𝑡𝛼,𝑣 , 𝑡𝛼,𝑣 , −𝑡𝛼⁄ ,𝑣 and 𝑡𝛼⁄ ,𝑣 are the critical values and 𝑣 is the
2 2
degrees of freedom

Directions: Determine the given, formulate the null and alternative

hypothesis, compute the test statistic and construct the acceptance
and critical regions.

Example 1: The mean number of hours for a student to finish

answering the Statistics and Probability 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 and Probability module is 6
hours with a standard deviation of 2 hours. Test the hypothesis at 5%
level of significance.

Given: 𝒙
̅ = 𝟔 , 𝝁𝟎 = 𝟓, 𝒔 = 𝟐, 𝒏 = 𝟏𝟓,
𝒅𝒇 = 𝟏𝟓 − 𝟏 = 𝟏𝟒 and 𝜶 = 𝟎. 𝟎𝟓

12
 Null 𝐻0 : The mean number of hours of students to finish
Hypothesis answering the Statistics and Probability module is 5
hours.
𝐻0 : 𝜇 = 5
Alternative 𝐻1 : The mean number of hours of students to finish
Hypothesis answering the Statistics and Probability module is
greater than 5 hours.
𝐻1 : 𝜇 > 5
Test 𝑥̅ − 𝜇 6−5
Statistic 𝑡=( ) (√𝑛) = ( ) (√15) = 𝟏. 𝟗𝟒
𝑠 2
Critical/ Since > is use in 𝐻1 , 𝑡 > 𝑡𝛼,𝑣 will be used. Now using
Rejection the student t-distribution table, the value of 𝑡𝛼,𝑣 is
Region 𝑡𝛼,𝑣 = 𝑡0.05,14 = 1.761
Graph

Example 2: In a study of mobile legends playing, the mean number of

hours of playing mobile legends during daytime was 7. A survey was
conducted on the random sample of 25 households and found that the
mean number of mobile legends playing during daytime was 5 with a
standard deviation of 1.5. Test the hypothesis at 10% level of significance.

Given: 𝒙
̅ = 𝟓 , 𝝁𝟎 = 𝟕, 𝒔 = 𝟏. 𝟓, 𝒏 = 𝟐𝟓,
𝒅𝒇 = 𝟐𝟓 − 𝟏 = 𝟐𝟒 and 𝜶 = 𝟎. 𝟏𝟎
Solution:

Null 𝐻0 : The mean number of hours of playing mobile legends

Hypothesis during daytime was 7 hours.
𝐻0 : 𝜇 = 7
Alternative 𝐻1 : The mean number of hours of playing mobile legends
Hypothesis during daytime was less than 7 hours.
𝐻1 : 𝜇 > 75
Test 𝑥̅ − 𝜇 5−7
Statistic 𝑡=( ) (√𝑛) = ( ) (√25) = −𝟔. 𝟔𝟕
𝑠 1.5
Critical/ Since > is use in 𝐻1 , 𝑡 < −𝑡𝛼,𝑑𝑓 will be used. Now using
Rejection the student t-distribution table, the value of −𝑡𝛼,𝑑𝑓 is
Region −𝑡𝛼,𝑑𝑓 = −𝑡0.10, 24 = −1.318

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 Graph

Example 3: A rural health unit conducted a survey on the heights of the

male aged 18 to 24 years old. It was found out that the mean height of
male aged 18 to 24 years old was 70 inches. Test the hypothesis that the
mean height of the male aged 18 to 24 years old is not 70 inches if a
random sample of 20 male aged 18 to 24 years old had a mean height of
65 inches with a standard deviation of 3. Use 1% level of significance.

Given : 𝒙
̅ = 𝟔𝟓 , 𝝁𝟎 = 𝟕𝟎, 𝒔 = 𝟑𝟐, 𝒏 = 𝟐𝟎,
𝒅𝒇 = 𝟐𝟎 − 𝟏 = 𝟏𝟗 and 𝜶 = 𝟏% = 𝟎. 𝟎𝟏

Null 𝐻0 : The mean height of male aged 18 to 24 years old is

Hypothesis 70 inches.
𝐻0 : 𝜇 = 70
Alternative 𝐻1 : The mean height of male aged 18 to 24 years old is
Hypothesis 70 inches.
𝐻1 : 𝜇 ≠ 70
Test ̅−𝝁
𝒙 𝟔𝟓 − 𝟕𝟎
𝒕=( ) (√𝒏) = ( ) (√𝟐𝟎) = −𝟎. 𝟕𝟎
Statistic 𝒔 𝟑𝟐
Critical/ Since ≠ is use in 𝐻1 , 𝑡 < −𝑡𝛼⁄ ,𝑑𝑓 or 𝑡 > 𝑡𝛼⁄ ,𝑑𝑓 will be
2 2
Rejection used. Now using the student t-distribution table, the
Region value of −𝑡𝛼⁄ ,𝑑𝑓 is −𝑡𝛼⁄ ,𝑑𝑓 = −𝑡0.005, 19 = −2.861 and
2 2
𝑡0.005, 19 = 2.861
Graph

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 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. We will
determine the given, formulate the null and alternative hypotheses, compute
the test statistic, and construct the acceptance and critical region.

Directions: Determine the given, formulate the null and alternative

hypothesis, compute the test statistic and construct the acceptance and
critical regions.

Example 1. XYZ 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 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, 𝒙
̅ = 𝟔, 𝟎𝟎𝟎 , 𝒔 = 𝟔𝟎𝟎 𝜶 = 𝟎. 𝟎𝟓
Null 𝐻0 : The average monthly benefit of XYZ Corporation
Hypothesis employees is Php5, 000.00.
𝐻0 : 𝜇 = 5000
Alternative 𝐻1 : The average monthly benefit of XYZ Corporation
Hypothesis employees is greater than Php5, 000.00.
𝐻1 : 𝜇 > 5000
𝜎 𝑠
Test According to Central Limit Theorem, 𝜎𝑥̅ = ≈ =
√𝑛 √𝑛
Statistic 600
= 101.42
√35
̅−𝝁𝟎
𝒙
Test Statistic: 𝒛 = ( ) (√𝒏) =
𝝈𝒙̅
𝟔𝟎𝟎𝟎−𝟓𝟎𝟎𝟎
( ) (√𝟑𝟓) = 𝟓𝟖. 𝟑𝟑.
𝟏𝟎𝟏.𝟒𝟐

Critical/ Critical region/s: 𝑧 > 𝑧0.05

Rejection 𝑧0.05 = 1.645
Region
Graph
Acceptance Rejection
Rejection Region

Example 2. ABC Company claimed that their employees had a mean

monthly salary of Php12,500.00. A reporter wanted 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.

15
Given: 𝒏 = 𝟑𝟎 , 𝝁𝟎 = 𝟏𝟐, 𝟓𝟎𝟎, 𝒙
̅ = 𝟏𝟎, 𝟎𝟎𝟎 , 𝒔 = 𝟐𝟎𝟎𝟎 𝜶 = 𝟏𝟎% = 𝟎. 𝟏𝟎

Null 𝐻0 : The mean monthly salary of ABC Corporation

Hypothesis employees is Php12,500.00.
𝐻0 : 𝜇 = 12,500

Alternative 𝐻1 : The average monthly benefit of ABC Corporation

Hypothesis employees is less than Php12,500.00.
𝐻1 : 𝜇 < 12,500
𝜎 𝑠
Test According to Central Limit Theorem, 𝜎𝑥̅ = ≈ =
√𝑛 √𝑛
Statistic 2000
= 365.15
√30
̅−𝝁𝟎
𝒙
Test Statistic: 𝒛 = ( ) (√𝒏) =
𝝈𝒙̅
𝟏𝟎𝟎𝟎𝟎−𝟏𝟐𝟓𝟎𝟎
( ) (√𝟑𝟎) = −𝟑𝟕. 𝟓𝟎.
𝟑𝟔𝟓.𝟏𝟓

Critical/ 𝑧 < −𝑧0.10

Rejection −𝑧0.10 = −1.282
Region
Graph
Rejection Rejection
Region Region

16
 What’s More
Directions: Read and understand the problem carefully then match
column A in column B.
The owner of Organic Fruit Juice factory that sells a particular bottled juice
claimed that the average capacity of their product is 230 ml. To test the
claim, a consumer group got a sample of 120 bottles, calculated the
capacity of each bottle, and then found the mean capacity was 238 ml. The
standard deviation was 5 ml. Test the claim at 5% level of significance
assuming that the population is approximately normally distributed.

COLUMN A COLUMN B

_______1. What are the hypotheses? A. z-test

_______2. Is it two-tailed test or one-tailed B. 0.05
test? C. known
_______3. What is the level of significance? D. μ= 250
_______4. Is the population standard deviation μ < 250
known or unknown? E. one-tailed
_______5. What appropriate test statistic F. z = - 1.645
(z-test or t-test) can you use? G. Unknown
_______6. Based on the level of significance, H. t- test
hypothesis test and test statistic, what is the
critical value?

What I Need to Remember

Significance level denoted by the Greek letter 𝒂

It also defines the sensitivity of the test. A value of 𝛼=0.05 implies that the
null hypothesis is rejected 5% of the time when it is in fact true. In practice,
the common values of α are 0.1, 0.05, and 0.01.
Rejection/ Critical Region
It is a set of values for the test statistic could range from negative infinity to
positive infinity and which the null hypothesis is rejected.

17
 What I Can Do
Instruction: Determine the given, formulate the null and alternative
hypothesis, compute the test statistic and construct the acceptance and
critical regions.

1. DEO Manufacturing Company has developed new chicharon packaging

design. It claims that the new design has an average profit increase of 15%
with a standard deviation of 5%. Test the hypothesis that the new
chicharon packaging design average profit increase is not 10% .If a random
sample of 50 chicharon packaging design is tested with an average profit
increase of 5%. Use 10% level of significance.
Given: 𝑥̅ = 5, 𝜇0 = 15, 𝜎 = 5, 𝑛 = 50 𝛼 = 10% = 0.10

Null
Hypothesis

Alternative
Hypothesis

Test
Statistic

Critical/
Rejection
Region

Graph

18