CHAPTER 9

HYPOTHESIS TESTS
ABOUT THE MEAN AND
PROPORTION:
SINGLE POPULATION

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HYPOTHESIS TESTS: AN INTRODUCTION
p Two Hypotheses
p Rejection and Nonrejection Regions
p Two Types of Errors
p 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.

H0

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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.

H1

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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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Table 9.2 Four Possible Outcomes for a Test of
Hypothesis

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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
p 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.
p 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

p Let μ be the weight of backpacks for the

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

p Let μ be the mean amount of soda in all

cans. The two possible decisions are
n H0 : μ = 12 ounces (The mean is equal to 12
ounces)
n 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 [Link], 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

p Let μ be the current mean price of homes in

this town. The two possible decisions are
n H0 : μ = $461,216 (The current mean price of
homes in this town is not higher than $461,216)
n 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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Summary of tests and the
Significance Level (a)
 A null hypothesis is a claim (or
statement) about a population parameter
that is assumed to be true until it is
declared false. (Ho)

An alternative hypothesis is a claim

about a population parameter that will be
true if the null hypothesis is false. (H1)
Table 9.3 Signs in H0 and H1 and Tails of a Test

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H0, H1, and Tails of a Test
H0, H1, and Tails of a Test
The manufacturer of a certain brand of auto batteries claims that
the mean life of these batteries is 45 months. A consumer
protection agency that wants to check this claim took a random
sample of 24 such batteries and found that the mean life for this
sample is 43.05 months. The lives of all such batteries have a normal
distribution with the population standard deviation of 4.5 months.
Perform a test of hypothesis with the alternative hypothesis that
the mean life of these batteries is less than 45 months.
H0, H1, and Tails of a Test
According to the U.S. Bureau of Labor Statistics, all workers in
America who had a bachelor’s degree and were employed earned an
average of $1038 a week in 2010. A recent sample of 400
American workers who have a bachelor’s degree showed that they
earn an average of $1060 per week. Suppose that the population
standard deviation of such earnings is $160. Perform a test of
hypothesis with the alternative hypothesis that the current
mean weekly earning of American workers who have a
bachelor’s degree is higher than $1038.
H0, H1, and Tails of a Test
A telephone company claims that the mean duration of all long-
distance phone calls made by its residential customers is 10
minutes. A random sample of 100 long-distance calls made by its
residential customers taken from the records of this company
showed that the mean duration of calls for this sample is 9.20
minutes. The population standard deviation is known to be 3.80
minutes. Test if the mean duration of all long-distance calls made by
residential customers of this company is different from 10 minutes.
H0, H1, and Tails of a Test
Records in a three-county area show that in the last few years, Girl
Scouts sold an average of 47.93 boxes of cookies per year per girl
scout, with a population standard deviation of 8.45 boxes per year.
Fifty randomly selected Girl Scouts from the region sold an average
of 46.54 boxes this year. Scout leaders are concerned that the
demand for Girl Scout cookies may have decreased. Test at a 10%
significance level whether the average number of boxes of cookies
sold by all Girl Scouts in the three-county area is lower than the
historical average of 47.93.
H0, H1, and Tails of a Test
A study claims that all homeowners in a town spend an average of 8
hours or more on house cleaning and gardening during a weekend. A
researcher wanted to check if this claim is true. A random sample of
20 homeowners taken by this researcher showed that they spend an
average of 7.68 hours on such chores during a weekend. The
population of such times for all homeowners in this town is normally
distributed with the population standard deviation of 2.1 hours.
Using a 1% significance level, can you conclude that the claim
that all homeowners spend an average of 8 hours or more on
such chores during a weekend is false?
H0, H1, and Tails of a Test
According to an estimate, the average age at first marriage for
women in the United States was 26.1 years in 2010 (Time, March
21, 2011). A recent sample of 60 women from New Jersey who got
married for the first time this year showed that their average age at
first marriage was 27.2 years with a standard deviation of 3.5 years.
Using a 2.5% significance level and the critical-value approach, can
you conclude that the average age for women in New Jersey who
got married for the first time this year is higher than 26.1 years?
H0, H1, and Tails of a Test
The mean balance of all checking accounts at a bank on December
31, 2011, was $850. A random sample of 55 checking accounts
taken recently from this bank gave a mean balance of $780 with a
standard deviation of $230. Using a 1% significance level, can you
conclude that the mean balance of such accounts has decreased
during this period?
H0, H1, and Tails of a Test
According to an estimate, the average price of homes in
Martha’s Vineyard, Massachusetts, was $650,000 in 2011 (USA
TODAY, August 11, 2011). A recent random sample of 70 homes
from Martha’s Vineyard showed that their average price is $674,000
with a standard deviation of $94,500. Using a 2% significance level,
can you conclude that the current average price of homes in
Martha’s Vineyard is different from $650,000?
H0, H1, and Tails of a Test
The manager of a restaurant in a large city claims that waiters
working in all restaurants in his city earn an average of $150 or
more in tips per week. A random sample of 25 waiters selected from
restaurants of this city yielded a mean of $139 in tips per week with
a standard deviation of $28. Assume that the weekly tips for all
waiters in this city have a normal distribution. Using a 1%
significance level, can you conclude that the manager’s claim is
true?
H0, H1, and Tails of a Test
A tool manufacturing company claims that its top-of-the-line
machine that is used to manufacture bolts produces an average of
88 or more bolts per hour. A company that is interested in buying
this machine wants to check this claim.
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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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 -µ s
z= where s x =
sx n

The value of z calculated for x using this

formula is also called the observed value
of zo.
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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 -µ 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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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
We use the Standard Normal Distribution if the
sample is normally distributed or approximately
normally distributed.
np>5 AND nq>5
p is population proportion (from Ho)
q=1–p
n is sample size

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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 s pˆ =
s 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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The Two Approaches
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 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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The p-value approach
p We calculate the observed value of z or t
from the sample statistic. We identify this
as zo or to.
p We calculate the p-value of the sample
statistics (from zo or to) and compare with
the α.
n If p-value< α or if α > p-value – reject the Null Hypothesis.
n If p-value≥ α or if α≤p-value – do not reject the Null
Hypothesis.
Steps to Perform a Test of Hypothesis Using the
p–Value Approach

1. State the null and alternative hypothesis.

2. Select the type of test to use: two-tailed
or right-tailed or left-tailed.
3. Select the distribution to use.
4. Calculate the p–value.
5. Make a decision.

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

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

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

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The Critical Value Approach
p Given the α, we establish rejection and non-
rejection regions. We identify the critical values
of z or t that separate the rejection region(s)
from the non-rejection region. We identify the
critical value(s) as zc or tc.
p Then we calculate the observed value (z or t) for
the sample statistic. We identify these observed
values as zo or to.
p Given the location of the observed value, we
reject or do not reject the Null Hypothesis.
Steps to Perform a Test of Hypothesis with the
Critical-Value Approach

1. State the null and alternative hypotheses.

2. Determine the appropriate test: two-tailed
or right-tailed or left-tailed.
3. Select the distribution to use.
4. Determine the rejection and non-rejection
regions.
5. Calculate the value of the test statistic.
6. Make a decision.

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 Two-tailed test

Left-tailed test Right-tailed test

EXAMPLES
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: Because the sign in the
alternative hypothesis is ≠, the
appropriate test is a two-tailed test.
§ Step 3: 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
p

1.565

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

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Example 9-1: Solution
§ Step 5: Because α = .0100 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 with a population
standard deviation of 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: Because there is the < sign in H1,
the left-tailed test is appropriate.
§ Step 3: The population standard deviation
σ is known, the sample size is large (n >
30). Due to the Central Limit Theorem,
we will use the Standard Normal
Distribution to find the p–value and
perform the test.

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Example 9-2: Solution
§ Step 4:

s 2.4
sx = = = .40
n 36
x - µ 9.2 - 10
z= = = -2.00
sx .40
Looking up the Standard Normal Distribution
Table: when zo = -2.00 the area under the
curve is 0.0228.
This is a left-tail test (i.e., single tail).
Therefore, 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 5:
§ 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 µ: s KNOWN
Test Statistic
In tests of hypotheses about μ using the
normal distribution, the random variable
x -µ s
z= where sx =
sx n

is called the test statistic. The test

statistic can be defined as a rule or
criterion that is used to make the decision
whether or not to reject the null
hypothesis.
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Example 9-3
The TIV Telephone Company provides long-distance
telephone service in an area. According to the company’s
records, the average length of all long-distance calls placed
through this company in 2009 was 12.44 minutes. The
company’s management wanted to check if the mean length
of the current long-distance calls is different from 12.44
minutes. A sample of 150 such calls placed through this
company produced a mean length of 13.71 minutes. It is
known that the standard deviation of all calls is 2.65
minutes. Using the 2% significance level, can you
conclude that the mean length of all current long-distance
calls is different from 12.44 minutes?

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Example 9-3: Solution

p Step 1: H0 : μ = 12.44 H1 : μ ≠ 12.44

p Step 2: Because there is the ≠ sign in the
H1, the two-tailed test is appropriate.
p Step 3: The population standard deviation
σ is known, and the sample size is large (n
> 30). Due to the Central Limit Theorem,
we will use the normal distribution to
perform the test.

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Example 9-3: Solution

p Step 4: α = .02
p Area in each tail = α / 2= .02 / 2 = .0100
p The z values for the two critical points are
-2.33 and 2.33

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Figure 9.9

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Calculating the Value of the Test Statistic

When using the normal distribution, the

value of the test statistic z for x for a
test of hypothesis about μ is computed as
follows:
x -µ s
z= where s x =
sx n

The value of z for x is also called the

observed value of z.
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Example 9-3: Solution
p Step 5:
s 2.65
sx = = = .21637159
n 150
x - µ 13.71 - 12.44
z= = = 5.87
sx .21637159

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Example 9-3: Solution
§ Step 6: This value of zo = 5.87 is greater
than the critical value of zc = 2.33, and it
falls in the rejection region in the right
tail in Figure 9.9. Hence, we reject H0
and conclude that based on the sample
information, it appears that the mean
length of all such calls is not equal to
12.44 minutes.

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Example 9-4
The mayor of a large city claims that the average
net worth of families living in this city is at least
$300,000. A random sample of 25 families
selected from this city produced a mean net
worth of $288,000. Assume that the net worths
of all families in this city have a normal
distribution with the population standard
deviation of $80,000. Using the 2.5%
significance level, can you conclude that the
mayor’s claim is false?

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Example 9-4: Solution

p Step 1: H0 : μ ≥ $300,000
H1 : μ < $300,000
p Step 2: Left-tailed test is appropriate.
p Step 3: The population standard deviation
σ is known, the sample size is small (n <
30), but the population distribution is
normal. Consequently, we will use the
normal distribution to perform the test.

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Example 9-4: Solution

p Step 4: α = .0250
p The < sign in the alternative hypothesis
indicates that the test is left-tailed
p Area in the left tail = α = .025
p The critical value of z is -1.96

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Figure 9.10

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Example 9-4: Solution
p Step 4:

s 80,000
sx = = = $16,000
n 25
x - µ 288,000 - 300,000
z= = = -.75
sx 16,000

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Example 9-4: Solution
§ Step 5: This value of z = -.75 is greater
than the critical value of z = -1.96, and it
falls in the non-rejection region. As a
result, we fail to reject H0. Therefore, we
can state that based on the sample
information, it appears that the mean net
worth of families in this city is not less
than $300,000.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-5
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%?
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-5: Solution

p Step 1: H0 : μ = 12.5
H1 : μ ≠ 12.5
p Step 2: This is a two-tailed test.
p Step 3: 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.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-5: Solution
p Step 4: The ≠ sign in the alternative
hypothesis indicates that the test is two-
tailed
s .80
sx = = = .18856181
n 18
x - µ 12.9 - 12.5
t= = = 2.121
sx .18856181

and df = n – 1 = 18 – 1 = 17.

Prem Mann, Introductory Statistics, 7/E

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Example 9-5 Solution
p df = n-1 = 18 – 1 = 17.
p tobserved = 2.121
p This observed value of t falls between 2.110 and
2.567.
p From the table, we can say the corresponding
area falls between 0.025 and 0.01.
n 0.01<Area<0.025
p We have a two tail test. So, we will say the p-
value is between 0.05 and 0.02 (For a two tailed
test: p-value = 2XArea)
n 0.02<p-value<0.05
Figure 9.11 The required p-value

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-5: Solution
§ Step 4: For any α greater than .05, we
will reject the null hypothesis. For any α
less than .02, we will not reject the null
hypothesis. 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.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-6
Grand Auto Corporation produces auto batteries.
The company claims that its top-of-the-line
Never Die batteries are good, on average, for at
least 65 months. A consumer protection agency
tested 45 such batteries to check this claim. It
found the mean life of these 45 batteries to
be 63.4 months with a standard deviation of
3 months. Find the p-value for the test that
mean life of all such batteries is less than 65
months. What will your conclusion be if the
significance level is 2.5%?

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-6: Solution

p Step 1: H0 : μ ≥ 65
H1 : μ < 65
p Step 2: It is a left tailed test.
p Step 3: The population standard deviation
σ is not known and the sample size is large
(n > 30). Consequently, we will use the t
distribution to find the p-value for the test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-6: Solution
p Step 4: The < sign in the alternative
hypothesis indicates that the test is left-
tailed
s 3
sx = = = .44721360
n 45
x -µ 63.4 - 65
t= = = -3.578
sx .44721360

and df = n – 1 = 45 – 1 = 44

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-6: Solution
p df = n – 1 = 45 – 1 = 44
p The absolute value of tobserved is 3.578
p In the t-distribution table, we see that:
n From left to right, the areas are decreasing
n From left to right, the t values are increasing.
p For df = 44, the highest given t value is
3.286, which corresponds to the area =
0.001.
p the tobserved value of 3.578 is larger than
3.286
Example 9-6: Solution
p Therefore, for the tobserved value of -3.578,
we will conclude that the area is smaller
than 0.001.
n Area<0.001
p This is a one-tail left-tailed test. So the p-
value = 1XArea.
p Therefore, p-value<0.001
p α=0.025
p α>p-value : reject the Null Hypothesis
Figure 9.12 The required p-value

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-7
Refer to Example 9-5. 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. Using the 1%
significance level, can you conclude that the mean
age at which all children start walking is different
from 12.5 months? Assume that the ages at
which all children start walking have an
approximately normal distribution.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-7: Solution

p Step 1: H0 : μ = 12.5
H1 : μ ≠ 12.5
p Step 2: Two tailed test
p Step 3: 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 perform the test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-7: Solution
p Step 4: Significance level = .01. The ≠ sign
in the alternative hypothesis indicates
that the test is two-tailed and the
rejection region lies in both tails.
p Area in each tail = α/2 = .01/2 = .005
p df = n – 1 = 18 – 1 = 17
p The critical values for t for 17 df and
.005 area in each tail are -2.898 and
2.898.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Figure 9.13 The regions

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-7: Solution
p Step 5: s = s = .80 = .18856181
x
n 18
x - µ 12.9 - 12.5
t= = = 2.121
sx .18856181
The value of the test statistic t = 2.121 falls
between the two critical points, -2.898 and
2.898, which is the non-rejection region.
Consequently, we fail to reject H0.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-8
The management at Massachusetts Savings Bank
is always concerned about the quality of service
provided to its customers. With the old computer
system, a teller at this bank could serve, on
average, 22 customers per hour. The
management noticed that with this service rate,
the waiting time for customers was too long.
Recently the management of the bank installed a
new computer system in the bank, expecting that
it would increase the service rate and
consequently make the customers happier by
reducing the waiting time.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-8
To check if the new computer system is more
efficient than the old system, the management of
the bank took a random sample of 70 hours
and found that during these hours the mean
number of customers served by tellers was
27 per hour with a standard deviation of
2.5. Testing at the 1% significance level,
would you conclude that the new computer
system is more efficient than the old computer
system?

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-8: Solution

p Step 1: H0 : μ = 22
H1 : μ > 22
p Step 2: This is a right tailed test.
p Step 3: The population standard deviation
σ is not known and the sample size is large
(n > 30). Consequently, we will use the t
distribution to perform the test.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-8: Solution
p Step 4: Significance level = .01. The > sign
in the alternative hypothesis indicates
that the test is right-tailed and the
rejection region lies in the right tail.
p Area in the right tail = α = .01
p df = n – 1 = 70 – 1 = 69
p The critical value for t for 69 df and .01
area in the right tail is 2.382.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Figure 9.14

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-8: Solution
p Step 5: s = s = 2.5 = .29880715
x
n 70
x -µ 27 - 22
t= = = 16.733
sx .29880715
The value of the test statistic to = 16.733 is
greater than the critical value of t = 2.382, and
it falls in the rejection region. Consequently,
we reject H0.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-9
According to a Nationwide Mutual Insurance
Company Driving While Distracted study
conducted in 2008, 81% of the drivers
interviewed said that they have talked on
their cell phones while driving (The New
York Times, July 19, 2009). The survey
included drivers aged 16 to 61 years selected
from 48 states. Assume that this result holds
true for the 2008 population of all such drivers
in the United States. In a recent random
sample of 1600 drivers aged 16 to 61 years
selected from the United States, 83% said
that they have talked on their cell phones
while driving.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-9
Find the p-value to test the hypothesis that
the current percentage of such drivers who
have talked on their cell phones while driving is
different from 81%. What is your conclusion
if the significance level is 5%?

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-9: Solution

p Step 1: H0 : p = .81
H1 : p ≠ .81
p Step 2: This is a two tailed test.
p Step 3: To check whether the sample is
large, we calculate the values of np and nq:
np = 1600(.81) = 1296 > 5
nq = 1600(.19) = 304 > 5
Consequently, we will use the normal
distribution to find the p-value for this test.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-9: Solution
p Step 4: The ≠ sign in the alternative hypothesis
indicates that the test is two-tailed.

pq (.81)(.19)
s pˆ = = = .00980752
n 1600
pˆ - p .83 - .81
z= = = 2.04
s pˆ .00980752
Area to the left when z = 2.04 is 0.9793. So the
area to the right when z = 2.04 is 1-0.9793 =
0.0207
p-value = 2(.0207) = .0414
Prem Mann, Introductory Statistics, 7/E
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Figure 9.15 The required p-value

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-9: Solution
p Step 4: We can state that for any α greater
than .0414 we will reject the null hypothesis.
For our example, α = .05, which is greater than
the p-value of .0414. As a result, we reject H0
and conclude that the current percentage of all
U.S. drivers aged 16 to 61 years who have
talked on their cell phones while driving is
different from .81.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-10

When working properly, a machine that is used

to make chips for calculators does not produce
more than 4% defective chips. Whenever the
machine produces more than 4% defective
chips, it needs an adjustment. To check if the
machine is working properly, the quality control
department at the company often takes samples
of chips and inspects them to determine if they
are good or defective.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-10

One such random sample of 200 chips taken

recently from the production line contained 12
defective chips. Find the p-value to test the
hypothesis whether or not the machine needs
an adjustment. What would your conclusion be
if the significance level is 2.5%?

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-10: Solution
p Step 1: H0: p ≤ .04
H1: p > .04
p Step 2: Right tailed test
p Step 3: To check whether the sample is
large, we calculate the values of np and nq:
np = 200(.04) = 8 > 5
nq = 200(.96) = 192 > 5
Consequently, we will use the normal
distribution to find the p-value for this test.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-10: Solution
p Step 4: The > sign in the alternative hypothesis
indicates that the test is right-tailed.

pq (.04)(.96)
s pˆ = = = .01385641
n 200
pˆ - p .06 - .04
z= = = 1.44
s pˆ .01385641
Area to the left when z = 1.44 is 0.9251. The
area to the right when z = 1.44 is 1-0.9251 =
0.0749.
p-value = .0749
Prem Mann, Introductory Statistics, 7/E
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Figure 9.16 The required p-value

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-10: Solution
p Step 4: We can state that for any α greater
than .0749 we will reject the null hypothesis,
and for any α less than or equal to .0749 we
will not reject the null hypothesis. For our
example, α = .025, which is less than the p-
value of .0749. As a result, we fail to reject H0
and conclude that the machine does not need
an adjustment.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11
Refer to Example 9-9. According to a
Nationwide Mutual Insurance Company Driving
While Distracted Survey conducted in 2008,
81% of the drivers interviewed said that they
have talked on their cell phones while driving
(The New York Times, July 19, 2009). The
survey included drivers aged 16 to 61 years
selected from 48 states. Assume that this
result holds true for the 2008 population of all
such drivers in the United States. In a recent
random sample of 1600 drivers aged 16 to 61
years selected from the United States, 83%
said that they have talked on their cell phones
while driving.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11
Using the 5% significance level, can you
conclude that the current percentage of such
drivers who have talked on their cell phones
while driving is different from 81%.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11: Solution

p Step 1: H0 : p = .81
H1 : p ≠ .81
p Step 2: This is two tailed test
p Step 3: To check whether the sample is
large, we calculate the values of np and nq:
np = 1600(.81) = 1296 > 5
nq = 1600(.19) = 304 > 5
Consequently, we will use the normal
distribution to make the test.
Prem Mann, Introductory Statistics, 7/E
Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11: Solution
p Step 4: The ≠ sign in the alternative hypothesis
indicates that the test is two-tailed. The
significance level is .05. Therefore, the total
area of the two rejection regions is .05.

Area in each tail = α / 2 = .05 / 2 = .0250

The critical values of z are -1.96 and 1.96.

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Figure 9.17 The critical values of z

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11: Solution
p Step 5:

pq (.81)(.19)
s pˆ = = = .00980752
n 1600
pˆ - p .83 - .81
z= = = 2.04
s pˆ .00980752

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11: Solution
p Step 6: the value of test statistic z = 2.04 falls
in the rejection region. As a result, we reject
H0 and conclude that the current percentage of
all U.S. drivers aged 16 to 61 years who have
talked on their cell phones while driving is
different from .81.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-12
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.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-12: Solution

p Step 1: H0 : p ≥ .90
H1 : p < .90
p Step 2: Left tailed test
p Step 3: 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.
Prem Mann, Introductory Statistics, 7/E
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Example 9-12: Solution
p Step 4: Significance level = .0250. The < sign
in the alternative hypothesis indicates that the
test is left-tailed, and the rejection region leis
in the left tail.
The critical values of z for .0250 area in the left
tail is -1.96.

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Figure 9.18 The critical values of z

Prem Mann, Introductory Statistics, 7/E

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Example 9-12: Solution
p Step 5:

pq (.90)(.10)
s pˆ = = = .02449490
n 150
pˆ - p .86 - .90
z= = = -1.63
s pˆ .02449490

Prem Mann, Introductory Statistics, 7/E

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Example 9-12: Solution
p 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.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved