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Hypothesis Testing in Employee Age Study

This module discusses comparing sample and population means with large sample sizes. The objectives are to compare sample and population means when the sample size is large. Students are instructed to read their textbook, watch a lecture video, and review hypothesis testing. They are given a problem to solve involving a company estimating its employees' mean age. The problem is solved step-by-step following the hypothesis testing process: setting the null and alternative hypotheses, finding the critical value, calculating the test value, and making a statistical conclusion.

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Bernadeth Morgado
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100 views2 pages

Hypothesis Testing in Employee Age Study

This module discusses comparing sample and population means with large sample sizes. The objectives are to compare sample and population means when the sample size is large. Students are instructed to read their textbook, watch a lecture video, and review hypothesis testing. They are given a problem to solve involving a company estimating its employees' mean age. The problem is solved step-by-step following the hypothesis testing process: setting the null and alternative hypotheses, finding the critical value, calculating the test value, and making a statistical conclusion.

Uploaded by

Bernadeth Morgado
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Statistics and Probability

Alternative Lesson Delivery


SY 2019-2020

Module 1

Objectives:
By the end of this module the students will have completed the following objectives:
 compare sample mean and population mean when the sample size is large.

To Do List:
- Read Chapter 5, Lesson 2 Comparing the Sample Mean and the Population Mean in a Large
Sample Size, pp. 181-185.
- Watch lecture on youtube: https://www.youtube.com/watch?v=zJ8e_wAWUzE
- Review on the last discussion about Hypothesis Testing. While watching the video, specify
the details that you will have to do for each step in the solution process.
1. Null Hypothesis
2. Alternative Hypothesis
3. Critical Value
4. Test Value
5. Conclusion

Lectures:
Given this problem, we will be making a step by step process on hypothesis testing.

Problem:
The production manager of a large manufacturing company estimates that the mean age of his
employees is 22.8 years. The treasurer of the firm needs a more accurate employee mean age figure in
order to estimate the cost of an annuity benefit program being considered for employees. The treasurer
takes a random sample of 70 workers and finds out that the mean age of the employees sampled is 26.2
years with a standard deviation of 4.6 years. At the 0.1 level of significance, what can the treasurer
conclude about the accuracy of the production manager’s estimate?

 Null Hypothesis:
On construction of Null Hypothesis, review the definition of Null Hypothesis. It states that there is no
significant difference between the parameter and specific value ( μ=22.8¿ . Thus, this must be the Null
hypothesis of the problem:
The average age of the employees in a large manufacturing company is 22.8 years. ( μ=22.8¿

 Alternative Hypothesis
Review the definition of Alternative Hypothesis. It states that there is a significant difference between
the parameter and specific value ( μ ≠ 22.8¿ . Thus, this must be the Alternative hypothesis of the
problem:
The average age of the employees in a large manufacturing company is not 22.8 years. (
μ ≠ 22.8¿
 Critical Value:
In finding the critical value of z, you need to use this table:
One Tailed Test Two Tailed Test
∝=.01 ± 2.33 ± 2.58
∝=.05 ± 1.65 ± 1.96

Based on the problem, we will be using 0.01 level of significance and based on our alternative
hypothesis, we will be using two tailed test or non directional test since the inequality used is
“not equal to”. Therefore, the Critical Value for this problem is ± 2.58.

 Test Value:
In finding the test value, we will be using this formula:

z=
√ n ( x́ −μ )
σ
After Substitution,

z=
√ 70 ( 26.2−22.8 )
4.6
z=6.18
 Conclusion:
Given the Critical Value of ± 2.58 and the Test Value as 6.18, the test value will fall on the
rejection region. Therefore, reject the Null Hypothesis. The conclusion will be:

There is a significant difference between the population mean and the sample mean. The
average age of the employees in a large manufacturing company is not 22.8 years. Thus, the
treasurer can conclude that the manager is incorrect in his estimate.

Activities:
Do the following:
1. Firm Up, p 186
2. DYU, p. 187, #4 only. *Directions: Specify the details (null and alternative hypothesis, Critical
and Test Value, Conclusion) in each step in the solution process.

Prepared by:

Arrianne Mae Aniban


Subject Teacher

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