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MEANS
Examples
1. The drug problem in the Philippines is a serious issue. Through the
years, surveys has been done to assess the profile of drug abusers
hoping that these statistics will play a more prominent role in future
discussions and evaluations on the war against drugs. According to
the DDBs profile of drug abusers, their average family income is
10,172.00 with a standard deviation of 2,485.00. A random sample
of 50 newly arrested drug abusers were surveyed and found to have
an average monthly family income of 8,432.00. Test the hypothesis
that the average monthly income of the newly arrested drug abusers
is less than 10,172.00 at the 1% level of significance. Assuming
average monthly family income is normally distributed.
SOLUTION
Given: = 10,172 = 50
= 2,485 = 8,432
Test of Hypothesis For Average Monthly Income of The Newly Arrested
Drug Abusers
Ho: = 10,172
Ha: < 10,172
Level of Significance: = 0.01
0
Test Statistic: Z =
/
4.95
Ho: 1 = 2
Ha:1 < 2
1 = 7 2 = 7
SOLUTION
Decision Rules: Reject the null hypothesis if 0.025 7,7 = 4.99;
otherwise, do not reject the null hypothesis.
Reject the null hypothesis if 0.975 (7,7) = 0.200 ;
otherwise, do not reject the null hypothesis.
Ho: 1 = 2
Ha: 1 2