Statistical Analysis (T-Test)

MODULE
# 13 ◦ STATISTICAL ANALYSIS
MODULE G ALS FLEX Course Material
T-TEST
College of Business and Accountancy

LESSON
#13
LEARNING
OUTC MES
Determine when to use t-test
in an statistical investigation. t –TEST for one sample mean
Calculate the t-test statistic and t- test for two sample
with accuracy and precision.
Compare the computed value
means
of t-test statistic with the
tabular value.
Determine when to reject or
accept a null hypothesis.
When do we use t – test statistic?
A t - test will be used when the population standard deviation is not known in the given distribution or
problem. In using t-test, we consider the following assumptions:
a. The distribution is normal.

b. The number of sample should be less than 30 ( n < 30).
c. Population standard deviation (σ ) is not known.
What are the different types of t– test ?
Types of t-test
1. One sample t test – is used to compare a single sample with a population value.
Example: A test could be conducted to compare the average salary of workers within a company
with a value that was known to represent the national average salary for workers in the
different industries.
2. Independent sample t-test – is used to compare two groups of values on the same variable.
Example It could be used to compare salaries of workers in the NCR and salaries of workers in
the provinces whether there is a significant difference in their salaries.
3. Paired sample t-test - is used to compare the means of the variables within a single group.
Example: It could be used to see if there is a statistically significant difference between the starting
salaries and the current salaries among the workers in the different industries.
What are the formulas we are going to use for t– test ?
◦ One sample t-test
Formula t
◦ Where :
◦ t - is the test statistic value
◦ u - is the population mean or the hypothesized mean
◦ x̄ - is the sample mean
◦ s - is the sample standard deviation
◦ n - is the number of cases, n < 30
◦ Degree of freedom - is the number of values in the final calculation of statistics that are to vary.
Formula: (df = n – 1 )
◦ Note: For negative t test value (-t) take the absolute value of –t.
Application:
Illustrative example 2:
Moto Lite manufactures car batteries with an average lifespan of 2 or more years. An engineer
believes this value to be less. Using 10 samples he measures the average lifespan to be 1.8 years
with a standard deviation of 0.15. Test this claim at 5% level of significance.
1. State the null and alternative hypotheses.
2. At 95% confidence level the level of significance is at α =
3. Determine what type of test to use and find the critical value.
4. Compute the value of the statistical test using the appropriate test statistic formula.
Given: μ = , s= , n= , x̄ =
Solution:
5. Compare the value of the z - test statistic and the critical value obtained from (α =5%). (using the z-
test table)
The computed z – test statistic is – 1.06 which is located in the acceptance area.
.
z = – 1.645
6. Make decision. (Either to accept or reject the null hypothesis)
7. Interpret the result.

Application:
According to the supervisor of a certain factory, the mean weight of its dog food product is 445 grams.
An employee believes that the average weight is not equal to 400 grams. A group of marketing
researchers randomly selected 15 buckets of the product and found out that the mean weight is 430
grams with a standard deviation of 25.5 grams. Test this claim at α = 0.05 level of significance.
Given: μ = , s= , n= , x̄ =
Solution:
5. Draw the normal distribution curve and shade the area to the right and area to the left for the
rejection.

Application:
According to the production manager of Durra Ketchup Company, the mean weight of bottled ketchup
product is 250 grams. A group of researchers believe that the true mean to be different. The group
randomly selected 25 bottles of the product and found out that the mean weight is 246 grams with a
sample variance of 254.41 grams. Test this the claim at α = 0.01 level of significance.
Given: μ = , s= , n= , x̄ =
Solution:
rejection.

Hypothesis testing between two sample means ( Use t-test when the population standard deviation is
unknown and n < 30)
◦
Test Between Two Sample Means
◦ A random sample of 16 bottles of Soda had a mean content of 118 mL with a sample variance of 5
mL, while a sample of 10 bottles of Cola had a mean content of 115 mL with a sample variance of 9
ml. Using a 0.01 level of significance, is there a significant difference in the mean content of the two
brands?
rejection.

Example 2:
Mr. Santos grows papaya in two separate farms. When the papaya are ready to be harvested, he is
curious as to whether the sizes of his papaya trees differ between the two farms. He takes a random
sample of papaya trees from each farm and measures the heights of the plants. Is there a significant
difference in the mean height of papaya trees in the two farms? Test at 5% level of significance.
Here is the summary of the results:
Farm 1 Farm 2
Mean 1.3 m 1.6 m
Standard Deviation 0.5 m 0.3 m
Number of Papaya Trees 14 16
rejection.

Hypothesis testing for Paired sample t-test - is used to compare the means of the variables within a
single group
Where
= mean of the difference
Sd = standard deviation of the difference

Application:
A study was conducted to determine the effectiveness of a new weight loss program. The table below
shows the before and after weight of 10 individuals . Is the program effective for reducing weight?
Test at 5% level of significance.
Before 185 192 206 177 225 168 256 239 199 218
After 169 187 193 176 194 171 228 217 204 195
Take the weight before the program as X and after the program as Y and then taking the null
hypothesis that the mean difference is zero.
rejection.

Application:
Memory capacity of 9 students was tested before and after training. State at 5 percent level of
significance whether the training was effective from the following scores:
Before 10 15 9 3 7 12 16 17 4
After 12 17 8 5 6 11 18 20 3
Take the score before training as X and after training as Y and then taking the null hypothesis that the
mean difference is zero.
rejection.

KEEP SAFE EVERYONE
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Statistical Analysis (T-Test)

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MODULE

College of Business and Accountancy

a. The distribution is normal.

2. At 95% confidence level the level of significance is at α =

7. Interpret the result.

2. At 95% confidence level the level of significance is at α =

7. Interpret the result.

2. At 95% confidence level the level of significance is at α =

7. Interpret the result.

2. At 95% confidence level the level of significance is at α =

7. Interpret the result.

2. At 95% confidence level the level of significance is at α =

7. Interpret the result.

Sd = standard deviation of the difference

2. At 95% confidence level the level of significance is at α =

7. Interpret the result.

2. At 95% confidence level the level of significance is at α =

7. Interpret the result.

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