1. Making Decisions about a Population Mean with Confidence
Lecture 32
Sections 10.1 – 10.2
Mon, Nov 29, 2004

2. Introduction
In Chapter 10 we will ask the same basic questions as in Chapter 9, except they will concern the mean.
Find an estimate for the mean.
Test a hypothesis about the mean.

3. The Steps of Testing a Hypothesis
1. State the null and alternative hypotheses.
2. State the significance level.
3. Compute the value of the test statistic.
4. Compute the p-value.
5. State the conclusion.

4. The Hypotheses
The null and altenative hypotheses will be statements concerning .
Null hypothesis.
H0:  = 0.
Alternative hypothesis (choose one).
H1:   0.
H1:  < 0.
H1:  > 0.

5. Level of Significance The level of significance is the same as before.
If the value is not given, assume that  = 0.05.

6. The Test Statistic
The choice of test statistic will depend on the sample size and what is known about the population.
For the moment, we will assume that  is known for the population.
Later we will consider the case where  is unknown.

7. The Sampling Distribution ofx
If the population is normal, then the distribution ofx is also normal, with mean 0 and standard deviation /n.
That is,x is N(0, /n).
Note that this assumes that  is known.

8. The Sampling Distribution ofx
Therefore, the test statistic is
It is exactly standard normal.

9. The Sampling Distribution ofx
On the other hand, if
the population is not normal,
but the sample size is at least 30,
then the distribution ofx is approximately normal, with mean 0 and standard deviation /n.
That is,x is approximately N(0, /n).
Note that we are still assuming that  is known.

10. The Sampling Distribution ofx
Therefore, the test statistic is
It is approximately standard normal.
The approximation is good enough that we can use the normal tables.

11. Example
See Example 10.1, p. 569 – Too Much Carbon Monoxide? ( known).

12. Hypothesis Testing on the TI-83
Press STAT.
Select TESTS.
Select Z-Test. Press ENTER.
A window appears requesting information.
Select Data if you have the sample data entered into a list.
Otherwise, select Stats.

13. Hypothesis Testing on the TI-83
Assuming you selected Stats,
Enter 0, the hypothetical mean.
Enter . (Remember,  is known.)
Enterx.
Enter n, the sample size.
Select the type of alternative hypothesis.
Select Calculate and press ENTER.

14. Hypothesis Testing on the TI-83
A window appears with the following information.
The title “Z-Test.”
The alternative hypothesis.
The value of the test statistic Z.
The p-value of the test.
The sample mean.
The sample size.

15. Example Re-do Example 10.1 on the TI-83. The TI-83 reports that
z = –2.575.
p-value =

16. Hypothesis Testing on the TI-83
Suppose we selected Data instead of Stats.
Then somewhat different information is requested.
Enter the hypothetical mean.
Enter .
Identify the list that contains the data.

17. Hypothesis Testing on the TI-83
Skip Freq (it should be 1).
Select the alternative hypothesis.
Select Calculate and press ENTER.

18. Example
Re-do Example 10.1 by entering the data in the chart on page 570 into list L1.
The TI-83 reports that
z =
p-value =
x =
s = ( 4.8).