Hypothesis Testing with One Sample

Mrs. Kiranmayi Patel

 Chapter Outline

 Introduction to Hypothesis Testing

 Hypothesis Testing for the Mean (Large Samples)
 Hypothesis Testing for the Mean (Small Samples)
 Hypothesis Testing for Proportions
 Hypothesis Testing for Variance and Standard
Deviation
 Objectives

• State a null hypothesis and an alternative hypothesis

• Identify type I and type II errors and interpret the
level of significance
• Determine whether to use a one-tailed or two-tailed
statistical test and find a p-value
• Make and interpret a decision based on the results of
a statistical test
• Write a claim for a hypothesis test
 Hypothesis Tests

Hypothesis test
• A process that uses sample statistics to test a claim
about the value of a population parameter.
• For example: An automobile manufacturer
advertises that its new hybrid car has a mean mileage
of 50 miles per gallon. To test this claim, a sample
would be taken. If the sample mean differs enough
from the advertised mean, you can decide the
advertisement is wrong.
 Hypothesis Tests

Statistical hypothesis
• A statement, or claim, about a population parameter.
• Need a pair of hypotheses
• one that represents the claim
• the other, its complement
• When one of these hypotheses is false, the other must
be true.
 Stating a Hypothesis

Null hypothesis Alternative hypothesis

• A statistical hypothesis • A statement of strict
that contains a statement inequality such as >, ≠,
of equality such as ≤, =, or <.
or ≥. • Must be true if H0 is
• Denoted H0 read “H false.
sub-zero” or “H naught.” • Denoted Ha read “H
sub-a.”
complementary
statements
 Stating a Hypothesis

• To write the null and alternative hypotheses, translate

the claim made about the population parameter from
a verbal statement to a mathematical statement.
• Then write its complement.
H0: μ ≤ k H0: μ ≥ k H0: μ = k
Ha: μ > k Ha: μ < k Ha: μ ≠ k
• Regardless of which pair of hypotheses you use, you
always assume μ = k and examine the sampling
distribution on the basis of this assumption.
 Example: Stating the Null and Alternative
Hypotheses
Write the claim as a mathematical sentence. State the null
and alternative hypotheses and identify which represents
the claim.

1. A school publicizes that the proportion of its students

who are involved in at least one extracurricular activity is
61%.
Solution:
H0: p = 0.61 Equality condition (Claim)
Ha: p ≠ 0.61 Complement of H0
 Example: Stating the Null and Alternative
Hypotheses
Write the claim as a mathematical sentence. State the null
and alternative hypotheses and identify which represents
the claim.

2. A car dealership announces that the mean time for an

oil change is less than 15 minutes.
Solution:
H0: μ ≥ 15 minutes Complement of Ha
Ha: μ < 15 minutes Inequality condition (Claim)
 Example: Stating the Null and Alternative
Hypotheses
Write the claim as a mathematical sentence. State the null
and alternative hypotheses and identify which represents
the claim.

3. A company advertises that the mean life of its furnaces

is more than 18 years
Solution:
H0: μ ≤ 18 years Complement of Ha
Ha: μ > 18 years Inequality condition (Claim)
 Types of Errors

• No matter which hypothesis represents the claim,

always begin the hypothesis test assuming that the
equality condition in the null hypothesis is true.
• At the end of the test, one of two decisions will be
made:
 reject the null hypothesis
 fail to reject the null hypothesis
• Because your decision is based on a sample, there is
the possibility of making the wrong decision.
 Types of Errors

Actual Truth of H0
Decision H0 is true H0 is false
Do not reject H0 Correct Decision Type II Error
Reject H0 Type I Error Correct Decision

• A type I error occurs if the null hypothesis is rejected

when it is true.
• A type II error occurs if the null hypothesis is not
rejected when it is false.
 Example: Identifying Type I and Type II
Errors
The USDA limit for salmonella contamination for
chicken is 20%. A meat inspector reports that the
chicken produced by a company exceeds the USDA
limit. You perform a hypothesis test to determine
whether the meat inspector’s claim is true. When will a
type I or type II error occur? Which is more serious?
(Source: United States Department of Agriculture)
 Solution: Identifying Type I and Type II
Errors
Let p represent the proportion of chicken that is
contaminated.
Hypotheses: H0: p ≤ 0.2
Ha: p > 0.2 (Claim)
Chicken meets Chicken exceeds
USDA limits. USDA limits.
H0: p ≤ 0.20 H0: p > 0.20
p
0.16 0.18 0.20 0.22 0.24
 Solution: Identifying Type I and Type II
Errors
Hypotheses: H0: p ≤ 0.2
Ha: p > 0.2 (Claim)

A type I error is rejecting H0 when it is true.

The actual proportion of contaminated chicken is less
than or equal to 0.2, but you decide to reject H0.
A type II error is failing to reject H0 when it is false.
The actual proportion of contaminated chicken is
greater than 0.2, but you do not reject H0.
 Solution: Identifying Type I and Type II
Errors
Hypotheses: H0: p ≤ 0.2
Ha: p > 0.2 (Claim)

• With a type I error, you might create a health scare

and hurt the sales of chicken producers who were
actually meeting the USDA limits.
• With a type II error, you could be allowing chicken
that exceeded the USDA contamination limit to be
sold to consumers.
• A type II error could result in sickness or even death.
 Level of Significance

Level of significance
• Your maximum allowable probability of making a
type I error.
 Denoted by α, the lowercase Greek letter alpha.
• By setting the level of significance at a small value,
you are saying that you want the probability of
rejecting a true null hypothesis to be small.
• Commonly used levels of significance:
 α = 0.10 α = 0.05 α = 0.01
• P(type II error) = β (beta)
 Statistical Tests
• After stating the null and alternative hypotheses and
specifying the level of significance, a random sample
is taken from the population and sample statistics are
calculated.
• The statistic that is compared with the parameter in
the null hypothesis is called the test statistic.
Population Test statistic Standardized test
parameter statistic
μ x z ( n ≥ 30)
t (n < 30)
p p̂ z
σ2 s2 χ2
 P-values

P-value (or probability value)

• A P-value is a probability that provides a measure of
the evidence against the null hypothesis provided by
the sample.
• Smaller P-value indicates more evidence against null
hypothesis.
• Depends on the nature of the test.
 Nature of the Test

• Three types of hypothesis tests

 left-tailed test
 right-tailed test
 two-tailed test
• The type of test depends on the region of the
sampling distribution that favors a rejection of H0.
• This region is indicated by the alternative hypothesis.
 Left-tailed Test
• The alternative hypothesis Ha contains the less-than
inequality symbol (<).
H0: μ ≥ k
Ha: μ < k
P is the area to
the left of the
standardized
test statistic.
z
–3 –2 –1 0 1 2 3
Test
statistic
 Right-tailed Test
• The alternative hypothesis Ha contains the greater-
than inequality symbol (>).
H0: μ ≤ k
Ha: μ > k P is the area to
the right of the
standardized
test statistic.

z
–3 –2 –1 0 1 2 3
Test
statistic
 Two-tailed Test
• The alternative hypothesis Ha contains the not-equal-
to symbol (≠). Each tail has an area of ½P.
H0: μ = k
Ha: μ ≠ k P is twice the
P is twice the area to area to the right
the left of the of the positive
negative standardized standardized test
test statistic. statistic.

z
–3 –2 –1 0 1 2 3
Test Test
statistic statistic
Example: Identifying The Nature of a Test
For each claim, state H0 and Ha. Then determine
whether the hypothesis test is a left-tailed, right-tailed,
or two-tailed test. Sketch a normal sampling distribution
and shade the area for the P-value.
1. A school publicizes that the proportion of its students
who are involved in at least one extracurricular activity
is 61%.
Solution:
H0: p = 0.61
Ha: p ≠ 0.61

Two-tailed test
Example: Identifying The Nature of a Test
For each claim, state H0 and Ha. Then determine
whether the hypothesis test is a left-tailed, right-tailed,
or two-tailed test. Sketch a normal sampling distribution
and shade the area for the P-value.
2. A car dealership announces that the mean time for an
oil change is less than 15 minutes.

Solution:
H0: μ ≥ 15 min P-value
area
Ha: μ < 15 min
z
-z 0
Left-tailed test
Example: Identifying The Nature of a Test
For each claim, state H0 and Ha. Then determine
whether the hypothesis test is a left-tailed, right-tailed,
or two-tailed test. Sketch a normal sampling distribution
and shade the area for the P-value.
3. A company advertises that the mean life of its
furnaces is more than 18 years.

Solution:
P-value
H0: μ ≤ 18 yr area
Ha: μ > 18 yr
z
z 0
Right-tailed test
 Making a Decision
Decision Rule Based on P-value
• Compare the P-value with α.
 If P ≤ α , then reject H0.
 If P > α, then fail to reject H0.

Claim
Decision Claim is H0 Claim is Ha
There is enough evidence to There is enough evidence to
Reject H0 reject the claim support the claim
There is not enough evidence There is not enough evidence
Fail to reject H0 to reject the claim to support the claim
 Example: Interpreting a Decision
You perform a hypothesis test for the following claim.
How should you interpret your decision if you reject
H0? If you fail to reject H0?
1. H0 (Claim): A school publicizes that the proportion
of its students who are involved in at least one
extracurricular activity is 61%.
Solution:
• The claim is represented by H0.
 Solution: Interpreting a Decision

• If you reject H0, then you should conclude “there is

enough evidence to reject the school’s claim that the
proportion of students who are involved in at least
one extracurricular activity is 61%.”

• If you fail to reject H0, then you should conclude

“there is not enough evidence to reject the school’s
claim that proportion of students who are involved in
at least one extracurricular activity is 61%.”
 Example: Interpreting a Decision

You perform a hypothesis test for the following claim.

How should you interpret your decision if you reject
H0? If you fail to reject H0?
2. Ha (Claim): A car dealership announces that the
mean time for an oil change is less than 15 minutes.

Solution:
• The claim is represented by Ha.
• H0 is “the mean time for an oil change is greater than
or equal to 15 minutes.”
 Solution: Interpreting a Decision

• If you reject H0, then you should conclude “there is

enough evidence to support the dealership’s claim
that the mean time for an oil change is less than 15
minutes.”

• If you fail to reject H0, then you should conclude

“there is not enough evidence to support the
dealership’s claim that the mean time for an oil
change is less than 15 minutes.”
 Steps for Hypothesis Testing
1. State the claim mathematically and verbally. Identify
the null and alternative hypotheses.
H0: ? Ha: ?
2. Specify the level of significance. This sampling distribution
α= ? is based on the assumption
that H0 is true.
3. Determine the standardized
sampling distribution and
sketch its graph. z
0
4. Calculate the test statistic
and its corresponding
standardized test statistic. 0
z
Add it to your sketch. Standardized test
statistic
 Steps for Hypothesis Testing

5. Find the P-value.

6. Use the following decision rule.
Is the P-value less
than or equal to the
No Fail to reject H0.
level of significance?
Yes

Reject H0.
7. Write a statement to interpret the decision in the
context of the original claim.
Hypothesis Testing for the Mean (Large
Samples)
 Objectives

• Find P-values and use them to test a mean μ

• Use P-values for a z-test
• Find critical values and rejection regions in a normal
distribution
• Use rejection regions for a z-test
 Using P-values to Make a Decision

Decision Rule Based on P-value

• To use a P-value to make a conclusion in a hypothesis
test, compare the P-value with α.
1. If P ≤ α, then reject H0.
2. If P > α, then fail to reject H0.
 Example: Interpreting a P-value
The P-value for a hypothesis test is P = 0.0237. What is
your decision if the level of significance is
1. α = 0.05?
Solution:
Because 0.0237 < 0.05, you should reject the null
hypothesis.

2. α = 0.01?
Solution:
Because 0.0237 > 0.01, you should fail to reject the
null hypothesis.
 Finding the P-value

After determining the hypothesis test’s standardized test

statistic and the test statistic’s corresponding area, do one
of the following to find the P-value.
a. For a left-tailed test, P = (Area in left tail).
b. For a right-tailed test, P = (Area in right tail).
c. For a two-tailed test, P = 2(Area in tail of test statistic).
 Example: Finding the P-value
Find the P-value for a left-tailed hypothesis test with a
test statistic of z = –2.23. Decide whether to reject H0 if
the level of significance is α = 0.01.
Solution:
For a left-tailed test, P = (Area in left tail)

P = 0.0129

z
-2.23 0
Because 0.0129 > 0.01, you should fail to reject H0.
 Example: Finding the P-value
Find the P-value for a two-tailed hypothesis test with a
test statistic of z = 2.14. Decide whether to reject H0 if
the level of significance is α = 0.05.
Solution:
For a two-tailed test, P = 2(Area in tail of test statistic)
1 – 0.9838
P = 2(0.0162)
= 0.0162
0.9838 = 0.0324
z
0 2.14
Because 0.0324 < 0.05, you should reject H0.
 Z-Test for a Mean μ

• Can be used when the population is normal and σ is

known, or for any population when the sample size n
is at least 30.
• The test statistic is the sample mean x
• The standardized test statistic is z
x    standard error  
z
 n n
x

• When n ≥ 30, the sample standard deviation s can be

substituted for σ.
 Using P-values for a z-Test for Mean μ
In Words In Symbols
1. State the claim mathematically State H0 and Ha.
and verbally. Identify the null
and alternative hypotheses.
2. Specify the level of significance. Identify α.
3. Determine the standardized test x 
z
statistic.  n
4. Find the area that corresponds Use Table 4 in
to z. Appendix B.
 Using P-values for a z-Test for Mean μ
In Words In Symbols
5. Find the P-value.
a. For a left-tailed test, P = (Area in left tail).
b. For a right-tailed test, P = (Area in right tail).
c. For a two-tailed test, P = 2(Area in tail of test statistic).

6. Make a decision to reject or Reject H0 if P-value

fail to reject the null hypothesis. is less than or equal
to α. Otherwise, fail
to reject H0.
7. Interpret the decision in the
context of the original claim.
 Example: Hypothesis Testing Using P-
values
In auto racing, a pit crew claims that its mean pit stop
time (for 4 new tires and fuel) is less than 13 seconds. A
random selection of 32 pit stop times has a sample mean
of 12.9 seconds and a standard deviation of 0.19 second.
Is there enough evidence to support the claim at
α = 0.01? Use a P-value.
 Solution: Hypothesis Testing Using P-
values
• P-value
• H0: μ ≥ 13 sec
• Ha: μ < 13 sec (Claim)
•  = 0.01
• Test Statistic:
x  • Decision: 0.0014 < 0.01
z
 n Reject H0 .
12.9  13 At the 1% level of significance,
 you have sufficient evidence to
0.19 32
support the claim that the mean pit
 2.98 stop time is less than 13 seconds.
 Example: Hypothesis Testing Using P-
values
The National Institute of Diabetes and Digestive and
Kidney Diseases reports that the average cost of
bariatric (weight loss) surgery is $22,500. You think this
information is incorrect. You randomly select 30
bariatric surgery patients and find that the average cost
for their surgeries is $21,545 with a standard deviation
of $3015. Is there enough evidence to support your
claim at α = 0.05? Use a P-value. (Adapted from National
Institute of Diabetes and Digestive and Kidney Diseases)
 Solution: Hypothesis Testing Using P-
values
• P-value
• H0: μ = $22,500
• Ha: μ ≠ 22,500 (Claim)
• α = 0.05
• Test Statistic:
x  • Decision: 0.0836 > 0.05
z
 n Fail to reject H0 .
21,545  22,500 At the 5% level of significance,
 there is not sufficient evidence to
3015 30
support the claim that the mean
 1.73 cost of bariatric surgery is
different from $22,500.
 Rejection Regions and Critical Values

Rejection region (or critical region)

• The range of values for which the null hypothesis is
not probable.
• If a test statistic falls in this region, the null
hypothesis is rejected.
• A critical value z0 separates the rejection region from
the nonrejection region.
 Rejection Regions and Critical Values
Finding Critical Values in a Normal Distribution
1. Specify the level of significance α.
2. Decide whether the test is left-, right-, or two-tailed.
3. Find the critical value(s) z0. If the hypothesis test is
a. left-tailed, find the z-score that corresponds to an area
of α,
b. right-tailed, find the z-score that corresponds to an area
of 1 – α,
c. two-tailed, find the z-score that corresponds to ½α and
1 – ½α.
4. Sketch the standard normal distribution. Draw a vertical
line at each critical value and shade the rejection region(s).
 Example: Finding Critical Values

Find the critical value and rejection region for a two-

tailed test with α = 0.05.
Solution: 1 – α = 0.95

½α = 0.025 ½α = 0.025

z
–z0 = z–1.96
0 0 z0 =z01.96

The rejection regions are to the left of –z0 = –1.96

and to the right of z0 = 1.96.
 Decision Rule Based on Rejection
Region
To use a rejection region to conduct a hypothesis test,
calculate the standardized test statistic, z. If the
standardized test statistic
1. is in the rejection region, then reject H0.
2. is not in the rejection region, then fail to reject H0.
Fail to reject H0. Fail to reject Ho.

Reject H0. Reject Ho.

z z
z < z0 z0 0 0 z0 z > z0
Fail to reject H0
Left-Tailed Test Right-Tailed Test
Reject H0 Reject H0
z
z < –z0 –z0 0 z0 z > z0
Two-Tailed Test
Using Rejection Regions for a z-Test for a
Mean μ
In Words In Symbols
1. State the claim mathematically State H0 and Ha.
and verbally. Identify the null
and alternative hypotheses.
2. Specify the level of significance. Identify α.
3. Determine the critical value(s). Use Table 4 in
Appendix B.
4. Determine the rejection region(s).
Using Rejection Regions for a z-Test for a
Mean μ
In Words In Symbols
x 
5. Find the standardized test z or if n  30
statistic.  n
use   s.
6. Make a decision to reject or fail If z is in the rejection
to reject the null hypothesis. region, reject H0.
Otherwise, fail to
reject H0.
7. Interpret the decision in the
context of the original claim.
Example: Testing with Rejection Regions

Employees at a construction and mining company claim

that the mean salary of the company’s mechanical
engineers is less than that of the one of its competitors,
which is $68,000. A random sample of 30 of the
company’s mechanical engineers has a mean salary of
$66,900 with a standard deviation of $5500. At
α = 0.05, test the employees’ claim.
Solution: Testing with Rejection Regions

• H0: μ ≥ $68,000 • Test Statistic

• Ha: μ < $68,000 (Claim) x   66,900  68, 000
z 
• α = 0.05  n 5500 30
• Rejection Region:  1.10
• Decision: Fail to reject H0 .
At the 5% level of significance,
there is not sufficient evidence
to support the employees’ claim
that the mean salary is less than
z  1.10 $68,000.
Example: Testing with Rejection Regions

The U.S. Department of Agriculture claims that the

mean cost of raising a child from birth to age 2 by
husband-wife families in the U.S. is $13,120. A random
sample of 500 children (age 2) has a mean cost of
$12,925 with a standard deviation of $1745. At
α = 0.10, is there enough evidence to reject the claim?
(Adapted from U.S. Department of Agriculture Center for
Nutrition Policy and Promotion)
 Solution: Testing with Rejection Regions

• H0: μ = $13,120 (Claim) • Test Statistic

• Ha: μ ≠ $13,120 x   12,925  13,120
z 
• α = 0.10  n 1745 500
• Rejection Region:  2.50
• Decision: Reject H0 .
At the 10% level of significance,
you have enough evidence to
reject the claim that the mean
cost of raising a child from birth
to age 2 by husband-wife families
in the U.S. is $13,120.
Summary of Test Statistics to be Used in a
Hypothesis Test about a Population Mean
Yes No
n > 30 ?

No
s known ?
Yes Popul.
approx.
Yes normal
Use s to
No ?
estimate s
s known ?
No
Yes Use s to
estimate s

x  x  x  x 
z z z t Increase n
/ n s/ n / n s/ n to > 30
Determining the Sample Size
for a Hypothesis Test About a Population
Mean
( z  z ) 2  2
n
( 0   a )2

where
z = z value providing an area of  in the tail
z = z value providing an area of  in the tail
 = population standard deviation
0 = value of the population mean in H0
a = value of the population mean used for the
Type II error
Note: In a two-tailed hypothesis test, use z /2 not z
 Problem
FTC periodically conducts statistical studies designed to
test the claims that the manufacturers make about their
products. Hill top coffee states that the can contains 3
pounds of coffee. Show how FTC can check Hilltop coffee
claim using hypothesis testing.
Suppose 36 samples of coffee cans provide sample mean
of 2.92 pounds with standard deviation of 0.18. and level of
significance is 1%.
The Golf Association establishes rules that
manufacturers of golf equipment must meet if their
products are to be acceptable.
Maxflight uses a high technology manufacturing process
to produce golf balls with a mean driving distance of
295 yards. Sometimes however the process gets out os
adjustment and produces golf balls with different mean
distance. The company worries about losses .
MaxFlight’s quality control program involves taking 50
golf balls to monitor the manufacturing process. sample
mean produced is 297.6 yards with standard deviation
12. the quality control team selected .05 as level of
significance. Conduct hypothesis testing .