Lesson 4

Identifying Appropriate
Test Statistics Involving
Population Mean
 Identifying Appropriate
Test Statistics Involving
Population Mean
• define the statistical concepts related to test concerning means;
• identify the appropriate form of 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; and
• apply the concepts of test statistic on real-life problems.
Hypothesis testing is a method of testing a claim or
hypothesis about a parameter in a population given a data
sample. In this method, we test the hypothesis by
determining the likelihood that sample statistic could be
selected and if the hypotheses regarding the population
parameter were true. The process of hypothesis testing
involves setting up two contrasting hypotheses: the null
hypothesis and the alternative hypothesis. One selects a
random sample, computes summary statistics using
appropriate test statistics, and then assesses the
likelihood that the sample data support the alternative
hypothesis.
Activity 1: Is It Zee or Tee?
Write the letter “z” if the statement is a characteristic of
standard normal distribution and “t” if the given characteristic
describes t-distribution.

1. It is best applied if you have a limited sample size (n < 30)

as long as the variables are approximately normally
distributed.
2. It is also applicable if you do not know the populations’
standard deviation.
3. This is the best to use in a statistical test if the population
standard deviation is known.
4. It is always used for normal distribution.
5. This test is often applied in large samples (n > 30).
Follow-up Questions:

1. In the items, how did you differentiate the statements

describing standard normal distribution from those
involving t-distribution?

2. Were you able to answer them easily? If not, which item/s

did you find difficult to answer?

3. Were you able to differentiate the statements characterizing

normal distribution from those describing t-distribution?
Activity 2: Find Me!
Determine the needed data for each given problem. First, read
and understand the examples below before you proceed to the
items that follow.

1. A Grade 11 researcher reported that the average allowance

of Senior High School students was more than ₱100. A
sample of 40 students had mean allowance of ₱120. At
𝛼=0.01 test, it was the claimed that the students had
allowance of more than ₱ 100.The standard deviation of the
population is ₱50.
Activity 2: Find Me!
Determine the needed data for each given problem. First, read
and understand the examples below before you proceed to the
items that follow.

2. According to a cell phone company, the average price of

cellular phone in the Philippines is ₱12,999. However, in a
sample of 20 costumers randomly asked about the price of
their cellular phone, data collected showed an average of
₱9,999 and standard deviation of ₱7,999. Using 𝛼=0.05
level of significance, is there enough evidence proving that
the average price of their cellular phones is less than
₱12,999?
Activity 2: Find Me!
Determine the needed data for each given problem. First, read
and understand the examples below before you proceed to the
items that follow.

3. The average number of ad clicks per day for Facebook

before was 192,000 and the standard deviation was
100,000. Sixty-four (64) days after the redesign, the mean
number of ad clicks per day was 200,000.
Activity 2: Find Me!
Determine the needed data for each given problem. First, read
and understand the examples below before you proceed to the
items that follow.

4. The average life of typical incandescent bulb is 1,500 hours

as claimed by a light bulb company. Thinking that the
average life of bulbs is less than what the company claimed,
a client tested a random sample of 55 light bulbs. The rest
resulted to sample mean of 1,300 hours and standard
deviation of 25 hours. Is there enough evidence to prove
that the average life of the company’s light bulb is less than
1,500 hours?
Activity 2: Find Me!
Determine the needed data for each given problem. First, read
and understand the examples below before you proceed to the
items that follow.

5. The mean number of close friends for the population of

people living in the Philippines is 5. The standard deviation
of scores in this population is 1.2. An investigator predicts
that the mean number of close friends for introverts will be
significantly different from the mean of the population. The
mean number of close friends for a sample of 26 introverts
is 6.
Guide Questions:

1. How did you find the activity?

2. What mathematical concepts did you apply in answering
the activity?
3. Were you able to determine the needed data for each
notation?
4. Which value of notation/s seemed too difficult to identify on
the given problems?
5. Have you observed the differences of notations in the
items? Is the value of 𝑠 same as σ? If not, how do they
differ?
6. What do you think is the relationship of these notations on
determining test statistic in hypothesis testing?
Definition of Terms

• A population includes all of the elements from a set of

data.
• A sample consists of one or more observations drawn from
the population.
• Sample mean (𝒙 ഥ) is the mean of sample values collected.
• Population mean (𝝁) is the mean of all the values in the
population. If the sample is randomly selected and sample
size is large, then the sample mean would be a good
estimate of the population mean.
• Population standard deviation (𝝈) is a parameter which is
a measure of variability with fixed value calculated from
every individual in the population.
Definition of Terms

• Sample standard deviation (𝒔) is a statistic which means

that this measure of variability is calculated from only some
of the individuals in a population.
• Population variance (𝝈𝟐 ), in the same sense, indicates how
the population data points are spread out. It is the average
of the distances from each data point in the population to
the mean, squared.
A test statistic is a random variable that is calculated
from sample data and used in a hypothesis test. You can
use test statistics to determine whether to reject or accept
the null hypothesis. The test statistic compares your data
with what is expected under the null hypothesis.

To identify the test statistic, you must consider whether

the population standard deviation/variance is known or
unknown. If the population standard deviation σ is
known, then the mean has a normal distribution, use z-
test. If the population standard deviation σ is unknown,
then the mean has a t- distribution, use t-test. Instead of
the population standard deviation, use the sample
standard deviation.
z-test

In a z-test, the sample is assumed to be normally

distributed. A z-score is calculated with population
parameters such as “population mean” and “population
standard deviation”. It is used to validate a hypothesis
that the sample drawn belongs to the same population.
When the variance is known and either the distribution is
normal or sample size is large, use a z-test statistic.
t-test

Like a z-test, a t-test also assumes a normal distribution

of the sample. A t-test is used when the population
variance or standard deviation are not known. When the
variance is unknown and a sample size is less than 30,
use a t-test statistic assuming that the population is
normal or approximately normal.
Central Limit Theorem

In Central Limit Theorem, if the population is normally

distributed or the sample size is large and the true
population mean 𝜇 = 𝜇0 , then z has a standard normal
distribution.

When population standard deviation σ is not known, we

may still use z-score by replacing the population standard
deviation (𝝈) by its estimate, sample standard deviation
(𝒔). Since the sample is large the resulting test statistic
still has a distribution that is approximately standard
normal.
Population Variance Is Population Variance Is Central Limit Theorem
Known Unknown (CLT)
Population is normal or
Population is normally Population may not be
nearly normally
distributed. normally distributed.
distributed.
𝑛 ≥ 30 or considered
𝑛 ≥ 30 𝑛 < 30
sufficiently large
Sample standard
deviation (s) is known.
Population standard Variance is known/
Population standard
deviation (𝜎) is known. unknown.
deviation (𝜎) is
unknown.
Use z-test by replacing
population standard
z-test t-test deviation (𝜎) by sample
standard deviation (𝑠) in
the formula.
 When the value of sample size (n) is…

𝒏 ≥ 𝟑𝟎 𝒏 < 𝟑𝟎

σ is known σ is not known σ is known σ is not known

z-test z-test z-test t-test

Illustrative Examples:
1. A manufacturer claimed that the average life of batteries used in their
electronic games is 150 hours. It is known that the standard
deviation of this type of battery is 20 hours. A consumer wished to
test the manufacturer’s claim and accordingly tested 100 electronic
games using the battery. It was found out that the mean is equal to
144 hours.

Here, the sample size (n) is 100 (extremely large) and population
standard deviation (20 hours) is known, then the appropriate test
statistic to be used is z-test.
Illustrative Examples:
2. An English teacher wanted to test whether the mean reading speed of
students is 550 words per minute. A sample of 12 students revealed a
sample mean of 540 words per minute with a standard deviation of 5
words per minute. At 0.05 significance level, is the reading speed
different from 550 words per minute?

The sample size (n) is 12 which is less than 30 and sample standard
deviation (5 words per minute) was given. Therefore, the appropriate
test is t-test.
Illustrative Examples:
3. A study was conducted to look at the average time students exercise.
A researcher claimed that in average, students exercise less than 15
hours per month. In a random sample size n=115, it was found that
the mean time students exercise is 𝑥̅=11.3 hours per month with s =
6.43 hours per month.

Since n=115, the sample size is large and variance is unknown.

Hence, z-test is the appropriate tool. (Central Limit Theorem)