CHAPTER 9

HYPOTHESIS TESTS
ABOUT THE MEAN AND
PROPORTION

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HYPOTHESIS TESTS: AN
INTRODUCTION
 Two Hypotheses
 Rejection and Nonrejection Regions
 Two Types of Errors
 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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A null hypothesis is a claim (or statement)
about a population parameter that is
assumed to be true until it is declared false.

An alternative hypothesis is a claim

about a population parameter that will be
true if the null hypothesis is false.
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
 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.
 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

 Let μ be the weight of backpacks for the

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

 Let μ be the mean amount of soda in all

cans. The two possible decisions are
 H0 : μ = 12 ounces (The mean is equal to 12
ounces)
 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

 Let μ be the current mean price of homes in

this town. The two possible decisions are
 H0 : μ = $461,216 (The current mean price of homes
in this town is not higher than $461,216)
 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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Table 9.3 Signs in H0 and H1 and Tails
of a Test

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Summary of tests and the
Significance Level ()
Two Procedures

Two procedures to make tests of

hypothesis

1. The p-value approach

2. The critical-value approach

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The p-value approach
 We calculate the observed value of z or t
from the sample statistic. We identify this
as zo or to.
 We calculate the p-value of the sample
statistics (from zo or to) and compare with
the α.
 If p-value< α or if α > p-value – Reject the Null
Hypothesis.
 If p-value≥ α or if α≤p-value – Fail to Reject the Null
Hypothesis.
The Critical Value Approach
 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.
 Then we calculate the observed value (z or t) for
the sample statistic. We identify these observed
values as zo or to.
 Given the location of the observed value, we
reject or do not reject the Null Hypothesis.
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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HYPOTHESIS TESTS ABOUT μ: σ
KNOWN

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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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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  
z where  x 
x n

 The value of z calculated for x using this

formula is also called the observed value
of zo.
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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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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

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:

2.4
x   .40
n 36
x   9.2  10
z   2.00
x .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 Prem Mann, Introductory Statistics, 7/E
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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 : 
KNOWN
Test Statistic
In tests of hypotheses about μ using the
normal distribution, the random variable
x  
z where x 
x 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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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

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

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

 Step 2: Because there is the ≠ sign in the
H1, the two-tailed test is appropriate.
 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

 Step 4: α = .02
 Area in each tail = α / 2= .02 / 2 = .0100
 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  
z where  x 
x n

 The value of z for x is also called the

observed value of z.
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Example 9-3: Solution
 Step 5:
 2.65
x   .21637159
n 150
x   13.71  12.44
z  5.87
x .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

 Step 1: H0 : μ ≥ $300,000
H1 : μ < $300,000
 Step 2: Left-tailed test is appropriate.
 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

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

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Figure 9.10

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Example 9-4: Solution
 Step 4:

 80,000
x   $16,000
n 25
x   288,000  300,000
z   .75
x 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.

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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  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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Example 9-5

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Example 9-5: Solution

 Step 1: H0 : μ = 12.5
H1 : μ ≠ 12.5
 Step 2: This is a two-tailed test.
 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.
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Example 9-5: Solution
 Step 4: The ≠ sign in the alternative
hypothesis indicates that the test is two-
tailed
s .80
sx   .18856181
n 18
x   12.9  12.5
t  2.121
sx .18856181

and df = n – 1 = 18 – 1 = 17.

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Example 9-5 Solution
 df = n-1 = 18 – 1 = 17.
 tobserved = 2.121
 This observed value of t falls between 2.110 and
2.567.
 From the table, we can say the corresponding
area falls between 0.025 and 0.01.
 0.01<Area<0.025
 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)
 0.02<p-value<0.05
Figure 9.11 The required p-value

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Example 9-5: Solution
 Step 4: For any alpha greater than .05,
we will reject the null hypothesis. For any
αlpha less than .02, we will not reject the
null hypothesis. For our example, αlpha
= .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.

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Example 9-6

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Example 9-6: Solution

 Step 1: H0 : μ ≥ 65
H1 : μ < 65
 Step 2: It is a left tailed test.
 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.

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Example 9-6: Solution
 Step 4: The < sign in the alternative
hypothesis indicates that the test is left-
tailed
s 3
sx   .44721360
n 45
x  63.4  65
t   3.578
sx .44721360

and df = n – 1 = 45 – 1 = 44

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

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Example 9-7

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Example 9-7: Solution

 Step 1: H0 : μ = 12.5
H1 : μ ≠ 12.5
 Step 2: Two tailed test
 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
 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.
 Area in each tail = α/2 = .01/2 = .005
 df = n – 1 = 18 – 1 = 17
 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

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Figure 9.13 The regions

Prem Mann, Introductory Statistics, 7/E

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Example 9-7: Solution
 Step 5: s .80
sx   .18856181
n 18
x   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

Prem Mann, Introductory Statistics, 7/E

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Example 9-8: Solution

 Step 1: H0 : μ = 22
H1 : μ > 22
 Step 2: This is a right tailed test.
 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
 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.
 Area in the right tail = α = .01
 df = n – 1 = 70 – 1 = 69
 The critical value for t for 69 df and .01
area in the right tail is 2.382.

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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
 Step 5: s 2.5
sx   .29880715
n 70
x  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
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.

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
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  pˆ 
 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.
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

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-9: Solution
 Step 1: H0 : p = .81
H1 : p ≠ .81
 Step 2: This is a two tailed test.
 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
 Step 4: The ≠ sign in the alternative hypothesis
indicates that the test is two-tailed.

pq (.81)(.19)
 pˆ   .00980752
n 1600
pˆ  p .83  .81
z  2.04
 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
Copyright © 2010 John Wiley & Sons. All right reserved
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
 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
 Step 1: H0: p ≤ .04
H1: p > .04
 Step 2: Right tailed test
 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
 Step 4: The > sign in the alternative hypothesis
indicates that the test is right-tailed.

pq (.04)(.96)
 pˆ   .01385641
n 200
pˆ  p .06  .04
z  1.44
 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
Copyright © 2010 John Wiley & Sons. All right reserved
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
 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
 Step 1: H0 : p = .81
H1 : p ≠ .81
 Step 2: This is two tailed test
 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
 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
 Step 5:

pq (.81)(.19)
 pˆ   .00980752
n 1600
pˆ  p .83  .81
z  2.04
 pˆ .00980752

Prem Mann, Introductory Statistics, 7/E

Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-11: Solution
 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
 Step 1: H0 : p ≥ .90
H1 : p < .90
 Step 2: Left tailed test
 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
Copyright © 2010 John Wiley & Sons. All right reserved
Example 9-12: Solution
 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
 Step 5:

pq (.90)(.10)
 pˆ   .02449490
n 150
pˆ  p .86  .90
z   1.63
 pˆ .02449490

Prem Mann, Introductory Statistics, 7/E

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Example 9-12: Solution
 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