Hypothesis Testing: Two-tailed z test for mean

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Summary

This video describes how to conduct a two-tailed z-test for the population mean to determine if there has been a significant change. It covers setting up hypotheses, calculating critical values using different Z-tables, computing the test statistic, and making a decision based on various significance levels.

Highlights

Problem Statement and Hypotheses
00:00:00

The video introduces a problem: the mean age of college students in City X was 23. A sample of 42 students now has a mean age of 23.8. The goal is to determine if the population mean age has changed at a significance level (α) of 0.05, given a population standard deviation of 2.4. The null hypothesis (H0) is that the mean age equals 23, and the alternative hypothesis (Ha) is that the mean age is not equal to 23.

Determining Critical Values for a Two-Tailed Z-Test
00:00:45

For a two-tailed test with α = 0.05, the rejection region is split into both tails, meaning 0.025 in each tail. The video explains how to find the critical Z-values using a cumulative less-than Z-table, a mean-to-Z Z-table, and even the t-distribution table (when the sample size is large). For an α of 0.05, the critical Z-values are -1.96 and +1.96.

Calculating the Test Statistic and Making a Decision (α = 0.05)
00:03:55

The decision rule is to reject the null hypothesis if the calculated Z-test statistic is less than -1.96 or greater than +1.96. Using the provided sample data, the test statistic is calculated as 2.16. Since 2.16 is greater than 1.96, the null hypothesis is rejected. This indicates sufficient evidence to conclude that the mean age has changed at an α of 0.05.

Analyzing the Test with a Different Significance Level (α = 0.02)
00:04:54

The video then re-evaluates the same problem with a significance level of α = 0.02. Dividing alpha into two tails gives 0.01 in each tail. The critical Z-values for this significance level are found to be -2.33 and +2.33. The test statistic remains 2.16. Since 2.16 does not fall into the rejection region (it's not less than -2.33 and not greater than +2.33), the null hypothesis is not rejected. Therefore, at α = 0.02, there is not enough evidence to infer that the mean age has changed.

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