Lecture-14

CO4: Compare various statistical methods of study data samples

TESTING OF HYPOTHESIS FOR POPULATION

VARIANCES USING Z-TEST

we have discussed testing of hypothesis for population mean but when

analysing quantitative data, it is often important to draw conclusion about the

average as well as the variability of a characteristic of under study. For example,

a company manufactured the electric bulbs and the manager of the company

would probably be interested in determining the average life of the bulbs and

also determining whether or not the variability in the life of bulbs is within

acceptable limits, the product controller of a milk company may be interested to

know variance of the amount of fat in the whole milk processed by the company

is no more than the specified level, etc. So, we require a test for this purpose.

The procedure of testing a hypothesis for population variance or standard

deviation is similar to the testing of population mean.

For testing a hypothesis about the population variance, we draw a random

sample X1 , X2 ,..., Xn of size n  30 from the population with mean  and

variance σ2 where,  be known or unknown.

normally distributed with mean σ2 and variance 2σ4/n whether parent population

is normal or non-normal. That is, if S2 is the sample variance of the random

sample then

4
2σ
E ( S ) =σ ∧Var ( S ) = (1)
2 2 2
n

But we know that standard error = √ Variance

SE ( S 2 )= √ Var ( S 2 )=
√ 2 2
n
σ (2)

The general procedure of this test is explained given.

As we are doing so far in all tests, first Step in hypothesis testing problems is to

setup null and alternative hypotheses. Here, we want to test the hypothesis

specified value ❑20 of the population variance 2 so we can take our null and

alternative hypotheses as

2 2
H 0 :σ =❑0∧H 1 :σ ≠❑0
2 2
[for two-tailed test]

or

}
2 2 2 2
H 0 :σ ≤❑0∧H 1 : σ >❑0
[for one-tailed test]
H 0 :σ 2 ≥❑20∧H 1 : σ 2 <❑20

For testing the null hypothesis, the test statistic Z is given by

2 2
S −σ 0
Z=

√
2 2 [Using equations (1) and (2) and under H 0 :σ 2=❑20]
σ 0
n

After that, we calculate the value of test statistic and compare it with the critical

value given in Table at prefixed level of significance α. Take the decision about

the null hypothesis as described already.

Note 2: When population under study is normal then for testing the hypothesis

about population variance or population standard deviation, we use chi-square

test. Whereas when the distribution of the population under study is not known

and sample size is large then we apply Z-test as discussed above.

Now, it is time to do example based on above test.

Example 1: A random sample of size 65 screws is taken from a population of

big box of screws and measured their length (in mm) which gives sample

variance 9.0. Test that the two years old population variance 10.5 is still

maintained at present at 5% level of significance.

Solution: We are given that

2 2
n=65 , S =9.0 , σ 0 =10.5
Here, we want to test that the two years old screw length population variance

(σ2) is still maintained at 10.5. So our claim is σ 2= 10.5 and its complement is σ 2

≠ 10.5. Since the claim contains the equality sign so we can take the claim as

the null hypothesis and complement as the alternative hypothesis. Thus,

2 2 2
H 0 :σ =❑0=10.5∧H 1 : σ ≠ 10.5

Since the alternative hypothesis is two-tailed so the test is two-tailed test. Here,

the distribution of population under study is not known and sample size is large

(n > 30) so we can go for Z-test.

For testing the null hypothesis, the test statistic Z is given by

S 2−E ( S 2 )
Z= N (0 ,1)
SE ( S2 )

9.0−10.5 −1.5 −1.5

√ 2 10.5∗0.175 1.84
10.5
65

The critical values for two-tailed test at 5% level of significance are ± z α/2 = ±

z0.025 = ±1.96.

Since calculated value of Z (= −0.81) is less than critical value (= 1.96) and

greater than the critical value (= −1.96), that means it lies in non-rejection

region, so we do not reject the null hypothesis i.e., we support the claim.
Thus, we conclude that sample fails to provide us sufficient evidence against the

claim so we may assume that two years old screw length population variance is

still maintained at 10.5mm.

Now, you can try the following exercise.

Example 2: A random sample of size 120 bulbs is taken from a lot which

gives the standard deviation of the life of electric bulbs 7 hours. Test the

standard deviation of the life of bulbs of the lot is 6 hours at 5% level of

significance.

TEXT BOOKS
• T1 = H. K Dass, Higher Engineering Mathematics, S. Chand
Publishers,3rd revised edition.2014.
• T2 = B.S. Grewal, Higher Engineering Mathematics, Khanna
Publishers,42th ed.2013, New Delhi.
• T3= N. P. Bali and Manish Goyal, A textbook of engineering
Mathematics, Laxmi Publications, Reprint 2008.

REFERENCE BOOKS
• R1=R. K. Jain and S. R. K. Lyenger, Advanced Engineering
Mathematics ,3rd Edition Narosa Publishing House ,2004,New Delhi.
• R2 =B. V. Ramana Advanced Engineering Mathematics, McGrawHill,
July2006, New Delhi.
• S.P. Gupta, Statistical Methods, S.Chand &Sons, 2017, NewDelhi,
ISBN9789351610281 Insiders’ Guide

Video Lecture: https://www.youtube.com/watch?v=K6wNyoDdRSk&t=95s