Comparing the

Sample Mean and the

Population Mean in a
Large Sample Size
 There are many situations wherein we
test hypothesis concerning means. For
instance, there is a claim that the mean of
population is equal to µ. A random sample of
size n has been selected with a mean 𝑋. ത We
want to find out whether there is a
significant difference between µ and 𝑋. ത When
we say significant difference, we mean that
the difference is statistically significant.
 In this lesson, we shall learn
how to determine if a significant
difference exists between sample
mean and population mean, using
the z-test one-sample mean. Do the
following activity before going
through this lesson.
Compute the standard error of estimate
(𝜎𝑋ത ) in each of the following:

1. σ = 15, n = 100
2. σ = 12, n = 50
3. σ = 10, n = 64
4. σ = 25, n = 36
5. σ = 27, n = 49
 In many instances when we are testing hypothesis,
we want to find out if the mean difference is statistically
significant or not. The z-test can be used for this purpose.
Generally, the z-test is used when the following conditions
are satisfied.

1. The population standard deviation is know or given.

2. The population standard is unknown but the sample

size is sufficiently large, ( i.e., greater than or equal to
thirty, n ≥ 30). In this case, we use the sample standard
deviation (s) to replace the population standard deviation
(σ).
The z-test of One-Sample Mean

The z-test of one-sample mean is used when we want

to test if the sample mean 𝑋ത differs significantly form
a population mean or hypothesized mean µ. To
illustrate, suppose that the mean of population is
known to be 𝜇𝑜 . If we take a random sample size n
from this population and obtain a sample 𝑋ത which is
somewhat different from 𝜇𝑜 , so there is a reason to
believe that there is a significant difference between
𝜇𝑜 and 𝑋.ത
 The z-test of one sample mean is used to
compare sample mean and population
mean. We use the z-score formula for sample
means because we are dealing with sample
means. Thus, by Central Limit Theorem we
have

𝑋ത − 𝜇 𝜎
𝑧= 𝑤ℎ𝑒𝑟𝑒 𝜎𝑋ത =
𝜎𝑋ത 𝑛
The formula can be written as

(𝑋ത − 𝜇) 𝑛
𝑧=
𝜎
Where
𝑋ത = mean of the sample
µ = mean of the population
n = sample size
σ = standard deviation of population
 Afterwards, we compare the
test value of z against the critical
value of z by drawing the rejection
region in the sampling distribution.
The next table ( Table 5.1 ) shows
the critical values of z for the given
type of test and level of significance.
Table 5.1 : Critical Value of z

Level of Significance
Type of Test 𝛼 = 0.05
𝛼 = 0.01
+ 1.65 ( > ) or
+ 2.33 ( > ) or
One-tailed – 1.65 ( < )
– 2.33 ( < )
± 2.58 ± 1.96
Two-tailed
Example 1

A new drug on the market is claimed bt

its manufacturers to reduce overweight
women by 4.55 kg per month with a
standard deviation of 0.91 kg. Ten women
chosen at random have reported losing an
average of 4.05 kg within a month. Does this
data support the claim of the manufacturer
at 0.05 level of significance?
Solution:

Follow the five-step procedure in testing

hypothesis.
Step 1:

𝐻𝑜 : The average weight loss per month using a

new drug is equal to 4.55 kg ( µ = 4.55 )

𝐻𝑎 : The average weight loss per month using a

new drug is not equal to 4.55 ( µ ≠ 4.55 )
Step 2:

Type of test : two-tailed or nondirectional test

Critical Value : With the use of Table 5.1, 𝛼 = 0.05, two

tailed test. The critical value is z = ±1.96.

Rejection Region:
Step 3:
Compute the test value, using the formula or test statistic.

Given : 𝑋ത = 4.05, µ = 4.55, n = 10, σ = 0.91

Substitute the given values in the formula.

(𝑋ത − 𝜇) 𝑛
𝑧=
𝜎

(4.05−4.55) 10
𝑧= = -1.74
0.91

The test value or computed value is z = - 174

Step 4: Decision: Since the computed or test
value does not fall within the rejection region,
we accept the null hypothesis.

Step 5: Conclusion: There is no significant

difference between the sample mean and
population mean. Thus, the manufacturer is
correct in claiming that the new drug in the
market can reduce overweight women by 4.55
kg per month.
Example 2
A sociologist believes that it costs more than
Php 90,000 to raise a child from birth to age
one. A random sample of 49 families, each with
a child is selected to see if this figure is correct.
The average expenses for these families reveal a
mean of Php 92,000 with a standard deviation of
Php 4,500. Based on these sample data, can it
be concluded that the sociologist is correct in
his claim? Use 0.05 level of significance.
Solution:

Follow the five-step procedure in testing hypothesis.

Step 1:

𝐻𝑜 : The average cost to raise a child from birth to

age one is equal to Php 90,000 (( µ = 90,000 )

𝐻𝑎 : The average cost to raise a child from birth to

age one is more than Php 90,000 ( µ > 90,000 )
Step 2:

Type of test : one-tailed or directional test (right-tailed)

Critical Value : With the use of Table 5.1, 𝛼 = 0.05, two

tailed test. The critical value is z = + 1.65.

Rejection Region:
Step 3:
Compute the test value, using the formula or test
statistic.

Given : 𝑋ത = 92,000, µ = 90,000, n = 49, s = 4500

The population standard deviation is no known

but we can use the sample standard deviation
( s ) to replace the population standard deviation
since the sample size is large ( n > 30 )
Substitute the given values in the formula.

(𝑋ത − 𝜇) 𝑛
𝑧=
𝜎

(92000−90000) 49
𝑧= = 3.11
4500

The test value or computed value is z = 3.11

Step 4: Decision: Since the computed or test
value falls within the rejection region, we
reject the null hypothesis.

Step 5: Conclusion: There is significant

difference between the sample mean and
population mean. Thus, the sociologist is
correct in claiming that the cost to raise a
child from birth to age one is more than Php
90,000.
Example 3

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 a 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
sample is 26.2 years with a standard deviation of 4.6
years. At the 0.01 level of significance, what can the
treasurer conclude about the accuracy of the production
manager’s estimate?
Solution:

Follow the five-step procedure in testing hypothesis.

Step 1:

𝐻𝑜 : The mean age of employees is equal to 22.8

years ( µ = 22.8 )

𝐻𝑎 : The mean age of employees is not equal to 22.8

years ( µ ≠ 22.8 )
Step 2:

Type of test : two-tailed or non directional test.

Critical Value : With the use of Table 5.1, 𝛼 = 0.01, two

tailed test. The critical value is z = + 2.58.

Rejection Region:
Step 3:
Compute the test value, using the formula or test
statistic.

Given : 𝑋ത = 26.2, µ = 22.8, n = 70, s = 4.6

The population standard deviation is no known but

we can use the sample standard deviation (s)
to replace the population standard deviation since
the sample size is large ( n > 30 )
Substitute the given values in the formula.

(𝑋ത − 𝜇) 𝑛
𝑧=
𝜎

(26.2−22.8) 70
𝑧= = 6.18
4.6

The test value or computed value is z = 6.18

Step 4: Decision: Since the computed or test
value falls within the rejection region, we reject
the null hypothesis.

Step 5: Conclusion: There is significant

difference between the sample mean and
population mean. Thus, the treasurer of the firm
can conclude that the manager is incorrect in
his estimate that the mean age of employees is
22.8 years.
Seatwork:

A light-bulb manufacturer regularly

advertises that his bulbs last 900 hours with a
standard deviation 75 hours. A random sample
is choses before each campaign to make sure
that the claim is correct. If one such sample is
20 bulbs shows a mean of 925 hours, can the
advertising claim be considered an
underestimate at the 0.05 level of significance?