9-1

Chapter
Nine
One-Sample Tests of
Hypothesis
GOALS
When you have completed this chapter, you
will be able to:
ONE
Define a hypothesis and hypothesis testing.
TWO
Describe the five step hypothesis testing procedure.
THREE
Distinguish between a one-tailed and a two-tailed test of
hypothesis.
FOUR
Conduct a test of hypothesis about a population mean.
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 9-2

Chapter Nine continued

One-Sample Tests of Hypothesis
GOALS
When you have completed this chapter, you
will be able to:
FIVE
Conduct a test of hypothesis about a population proportion.
SIX
Define Type I and Type II errors.

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 9-3

What is a Hypothesis?
A Hypothesis is a statement about the value of a
population parameter developed for the purpose of
testing.

Examples of hypotheses made about a population

parameter are:
The mean monthly income for systems analysts
is $3,625.
Twenty percent of all customers at Bovines
Chop House return for another meal within a
month.
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 9-4

What is Hypothesis Testing?

Hypothesis testing is a procedure,

based on sample evidence and
probability theory, used to determine
whether the hypothesis is a
reasonable statement and should not
be rejected, or is unreasonable and
should be rejected.
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 9-5

Hypothesis Testing

S t e p 1 : S t a t e n u ll a n d a lt e r n a t e h y p o t h e s e s

S t e p 2 : S e le c t a le v e l o f s ig n ific a n c e

S t e p 3 : I d e n t ify t h e t e s t s t a t is t ic

S t e p 4 : F o r m u la t e a d e c is io n r u le

S t e p 5 : T a k e a s a m p le , a r r iv e a t a d e c is io n

D o n o t r e je c t n u ll R e je c t n u ll a n d a c c e p t a lt e r n a t e

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 9-6

Definitions

Null Hypothesis H0: A statement about the

value of a population parameter.

Alternative Hypothesis H1: A statement that is

accepted if the sample data provide evidence
that the null hypothesis is false.

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 9-7

Definitions
Type I Error: Rejecting the null hypothesis when it
is actually true.

Level of Significance: The probability of

rejecting the null hypothesis when it is
actually true.

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 9-8

Definitions
Type II Error: Accepting the null hypothesis
when it is actually false.

Test statistic: A value, determined from sample

information, used to determine whether or not to
reject the null hypothesis.
Critical value: The dividing point between the
region where the null hypothesis is rejected and
the region where it is not rejected.
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 9-9

One-Tailed Tests of Significance

A test is one-tailed when the alternate hypothesis,

H1 , states a direction, such as:
H : The mean yearly commissions earned by
1
full-time realtors is more than $35,000.
(>$35,000)
H : The mean speed of trucks traveling on I-95 in
1
Georgia is less than 60 miles per hour. (<60)
H : Less than 20 percent of the customers pay
1
cash for their gasoline purchase. (<.20)
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 9-10
Sampling Distribution for the Statistic Z for a
r a l i t r b u i o n : = 0 , = 1

One-Tailed Test, .05 Level of Significance

0 . 4

0 . 3

.95 probability
.05 region of
0 . 2
rejection
f ( x

0 . 1
Critical
Value
z=1.65
. 0

- 5

0 1 2 3 4

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 9-11

Two-Tailed Tests of Significance

A test is two-tailed when no direction is specified in
the alternate hypothesis H1 , such as:
H : The mean amount spent by customers at
1
the Wal-Mart in Georgetown is not equal to
$25. ($25).

H : The mean price for a gallon of gasoline

1
is not equal to $1.54. ($1.54).

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 9-12
r a l i t r b u i o n : = 0 , = 1

Sampling Distribution for the Statistic Z for a

Two-Tailed Test, .05 Level of Significance
0 . 4

.95 probability
0 . 3

2 .025 regions
of rejection
0 . 2
f ( x

0 . 1
Critical
Value
z=1.96
. 0

- 5

-4 -3 -2 -1 0 1 2 3 4

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 9-13

Testing for the Population Mean: Large

Sample, Population Standard Deviation
Known
When testing for the population mean from a large
sample and the population standard deviation is
known, the test statistic is given by:

X
z
/ n

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 9-14

EXAMPLE 1
The processors of Fries Catsup indicate on the label that
the bottle contains 16 ounces of catsup. The standard
deviation of the process is 0.5 ounces. A sample of 36
bottles from last hours production revealed a mean
weight of 16.12 ounces per bottle. At the .05 significance
level is the process out of control? That is, can we
conclude that the mean amount per bottle is different
from 16 ounces?

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 9-15

EXAMPLE 1 continued

Step 1: State the null and the alternative hypotheses:

H0: = 16; H1: 16

Step 2: Select the level of significance. In this case

we selected the .05 significance level.

Step 3: Identify the test statistic. Because we know the

population standard deviation, the test statistic is z.

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 9-16

EXAMPLE 1 continued

Step 4: State the decision rule:

Reject H0 if z > 1.96 or z < -1.96
Step 5: Compute the value of the test statistic and arrive
at a decision.

X 16.12 16.00
z 1.44
n 0.5 36

Do not reject the null hypothesis. We cannot conclude the

mean is different from 16 ounces.

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 9-17

The manufacturer of the new subcompact Clipper claims in

their TV advertisements that it will average 40 or more
miles per gallon on the open road. Some of the
competitors believe this claim is too high. To investigate,
an independent testing agency is hired to conduct
highway mileage tests. A random sample of 64 Clippers
showed their mean miles per gallon to be 38.9, with a
sample standard deviation of 4.00 miles per gallon. At the
0.01 significance level can the manufacturer's claim be
refuted?

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 9-18

Step 1: State the null and alternate hypotheses:

H0: 40
H1: < 40
Step 2: Select the level of significance
0.01significance level
step 3: 38.9 40.0 11
.
z 2.20
4.0 / 64 0.5

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 9-19

The computed value of 2.20 is to the right of

2.33, so the null hypothesis is not rejected.
We do not reject the claim of the manufacturer
that the Clipper gets at least 40.0 miles per
gallon.

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