1. Hypothesis Tests Large Sample Mean
Z-Test

2. Objective
Perform a Z-Test

3. Relevance
Be able to use sample statistics to test population parameters.

4. Errors…….
When we test a claim, there is the possibility of making a wrong decision.
There are two types of errors that can possibly be made in our final conclusions.
NOTE: There is only the possibility of making an error. The test can also be free of errors. You just need to be aware of the possible errors that can be made and how it affects your conclusion.

5. Errors…….
When we test a claim, there is the possibility of making a wrong decision.
There are two types of errors that can possibly be made in our final conclusions.
NOTE: There is only the possibility of making an error. The test can also be free of errors. You just need to be aware of the possible errors that can be made and how it affects your conclusion.

6. 2 Types of Errors:
Type I Error - Reject the Ho when it is actually true; you should not have rejected it.
Type II Error – You should have rejected the Ho, but you didn’t.

7. 2 Types of Errors:
Type I Error - Reject the Ho when it is actually true; you should not have rejected it.
Type II Error – You should have rejected the Ho, but you didn’t.

8. Alpha,
Level of Significance ( ) - The maximum allowable probability of making a Type I Error.
For example, if alpha = .10 there is a 10% chance of committing a type I Error.

9. TEST STATISTIC for a Z test.

10. 5 Steps in Hypothesis Testing (Traditional Method)
1. State the Ho, Ha, and claim.
2. Find the critical value(s) – CV
3. Compute the Test Value (Test Statistic) – TV
4. Reject or Fail to Reject the Ho
a. Reject Ho: TV in critical region
b. Fail to Reject Ho: TV not in critical region
5. Summarize the Results

11. Z Test Example
A researcher reports that the average salary of asst. professors is more than $42,000. A sample of 30 asst. professors has a mean salary of $43,260. At ,test the claim that asst. professors earn more than $42,000 a year. The standard deviation of the population is $5230.

12. Example – Traditional Method
A researcher reports that the average salary of asst. professors is more than $42,000. A sample of 30 asst. professors has a mean salary of $43,260. At ,test the claim that asst. professors earn more than $42,000 a year. The standard deviation of the population is $5230.
1.64
1.32
It’s NOT in the dark – Fail to reject that Ho!

13. Z Test Example
A national magazine claims that the average college student watches less TV than the general public. The national average is 29.4 hrs. per week, with a standard deviation of 2 hrs. A sample of 30 college students has a mean of 27 hrs. Is there enough evidence to support the claim at

14. Example – Traditional Method
A national magazine claims that the average college student watches less TV than the general public. The national average is 29.4 hrs. per week, with a standard deviation of 2 hrs. A sample of 30 college students has a mean of 27 hrs. Is there enough evidence to support the claim at
-2.33
It’s in the dark – you better reject that Ho!
-6.57

15. Z Test Example
A foundation reports the average cost of rehab for stroke victims is $24,672. A researcher selected 35 stroke victims and found the average cost is $25,226. The st. dev. of the population is $ At , can it be concluded that the average cost at a large hospital is different from $24,672?

16. Example – Traditional Method
A foundation reports the average cost of rehab for stroke victims is $24,672. A researcher selected 35 stroke victims and found the average cost is $25,226. The standard deviation of the population is $ At , can it be concluded that the average cost at a large hospital is different from $24,672?
-2.58
2.58
1.01
It’s NOT in the dark – fail to reject that Ho!

17. Example……
Use the following sample statistics of the weights of men to test the claim that men have a mean weight greater than lb. Use a 0.05 significance level.

18. Example – Traditional Method
Use the following sample statistics of the weights of men to test the claim that men have a mean weight greater than lb. Use a 0.05 significance level.
1.65
1.52
It’s NOT in the dark – fail to reject that Ho!