chapter 10 10-1liush/st/ch10.pdf · chapter 10 10-1 prof. shuguang liu chapter 10 two-sample tests...

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Chapter 10 10-1 Prof. Shuguang Liu Chapter 10 Two-Sample Tests Chap 10-1 Prof. Shuguang Liu Learning Objectives In this chapter, you learn how to use hypothesis testing for comparing the difference between: The means of two independent populations The means of two related populations The proportions of two independent populations The variances of two independent populations by testing the ratio of the two variances Chap 10-2 Prof. Shuguang Liu Two-Sample Tests Chap 10-3 Two-Sample Tests Population Means, Independent Samples Population Means, Related Samples Population Variances Group 1 vs. Group 2 Same group before vs. after treatment Variance 1 vs. Variance 2 Examples: Population Proportions Proportion 1 vs. Proportion 2 DCOVA Prof. Shuguang Liu Difference Between Two Means Chap 10-4 Population means, independent samples Goal: Test hypothesis or form a confidence interval for the difference between two population means, μ 1 – μ 2 The point estimate for the difference is X 1 – X 2 * σ 1 and σ 2 unknown, assumed equal σ 1 and σ 2 unknown, not assumed equal DCOVA Prof. Shuguang Liu Difference Between Two Means: Independent Samples Different data sources Unrelated Independent Sample selected from one population has no effect on the sample selected from the other population Chap 10-5 Population means, independent samples * Use S p to estimate unknown σ. Use a Pooled-Variance t test. σ 1 and σ 2 unknown, assumed equal σ 1 and σ 2 unknown, not assumed equal Use S 1 and S 2 to estimate unknown σ 1 and σ 2 . Use a Separate-Variance t test. DCOVA Prof. Shuguang Liu Hypothesis Tests for Two Population Means Chap 10-6 Lower-tail test: H 0 : μ 1 μ 2 H 1 : μ 1 < μ 2 i.e., H 0 : μ 1 – μ 2 0 H 1 : μ 1 – μ 2 < 0 Upper-tail test: H 0 : μ 1 μ 2 H 1 : μ 1 > μ 2 i.e., H 0 : μ 1 – μ 2 0 H 1 : μ 1 – μ 2 > 0 Two-tail test: H 0 : μ 1 = μ 2 H 1 : μ 1 μ 2 i.e., H 0 : μ 1 – μ 2 = 0 H 1 : μ 1 – μ 2 0 Two Population Means, Independent Samples DCOVA

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Page 1: Chapter 10 10-1liush/ST/ch10.pdf · Chapter 10 10-1 Prof. Shuguang Liu Chapter 10 Two-Sample Tests Chap ... Goal: Test hypothesis or form a confidence interval for the difference

Chapter 10 10-1

Prof. Shuguang Liu

Chapter 10 Two-Sample Tests

Chap 10-1 Prof. Shuguang Liu

Learning Objectives

In this chapter, you learn how to use hypothesis testing for comparing the difference between:

•  The means of two independent populations •  The means of two related populations •  The proportions of two independent

populations •  The variances of two independent populations

by testing the ratio of the two variances

Chap 10-2

Prof. Shuguang Liu

Two-Sample Tests

Chap 10-3

Two-Sample Tests

Population Means,

Independent Samples

Population Means, Related Samples

Population Variances

Group 1 vs. Group 2

Same group before vs. after treatment

Variance 1 vs. Variance 2

Examples:

Population Proportions

Proportion 1 vs. Proportion 2

DCOVA

Prof. Shuguang Liu

Difference Between Two Means

Chap 10-4

Population means, independent

samples

Goal: Test hypothesis or form a confidence interval for the difference between two population means, µ1 – µ2

The point estimate for the difference is

X1 – X2

*

σ1 and σ2 unknown, assumed equal

σ1 and σ2 unknown, not assumed equal

DCOVA

Prof. Shuguang Liu

Difference Between Two Means: Independent Samples

§  Different data sources •  Unrelated •  Independent

u  Sample selected from one population has no effect on the sample selected from the other population

Chap 10-5

Population means, independent

samples *

Use Sp to estimate unknown σ. Use a Pooled-Variance t test.

σ1 and σ2 unknown, assumed equal

σ1 and σ2 unknown, not assumed equal

Use S1 and S2 to estimate unknown σ1 and σ2. Use a Separate-Variance t test.

DCOVA

Prof. Shuguang Liu

Hypothesis Tests for Two Population Means

Chap 10-6

Lower-tail test:

H0: µ1 ≥ µ2 H1: µ1 < µ2

i.e.,

H0: µ1 – µ2 ≥ 0 H1: µ1 – µ2 < 0

Upper-tail test:

H0: µ1 ≤ µ2 H1: µ1 > µ2

i.e.,

H0: µ1 – µ2 ≤ 0 H1: µ1 – µ2 > 0

Two-tail test:

H0: µ1 = µ2 H1: µ1 ≠ µ2

i.e.,

H0: µ1 – µ2 = 0 H1: µ1 – µ2 ≠ 0

Two Population Means, Independent Samples

DCOVA

Page 2: Chapter 10 10-1liush/ST/ch10.pdf · Chapter 10 10-1 Prof. Shuguang Liu Chapter 10 Two-Sample Tests Chap ... Goal: Test hypothesis or form a confidence interval for the difference

Chapter 10 10-2

Prof. Shuguang Liu

Hypothesis tests for µ1 – µ2

Chap 10-7

Two Population Means, Independent Samples

Lower-tail test:

H0: µ1 – µ2 ≥ 0 H1: µ1 – µ2 < 0

Upper-tail test:

H0: µ1 – µ2 ≤ 0 H1: µ1 – µ2 > 0

Two-tail test:

H0: µ1 – µ2 = 0 H1: µ1 – µ2 ≠ 0

α α/2 α/2 α

-tα -tα/2 tα tα/2

Reject H0 if tSTAT < -tα Reject H0 if tSTAT > tα Reject H0 if tSTAT < -tα/2 or tSTAT > tα/2

DCOVA

Prof. Shuguang Liu

Hypothesis tests for µ1 - µ2 with σ1 and σ2 unknown and assumed equal

Chap 10-8

Population means, independent

samples

Assumptions: §  Samples are randomly and independently drawn

§  Populations are normally distributed or both sample sizes are at least 30 §  Population variances are unknown but assumed equal

* σ1 and σ2 unknown, assumed equal

σ1 and σ2 unknown, not assumed equal

DCOVA

Prof. Shuguang Liu

Hypothesis tests for µ1 - µ2 with σ1 and σ2 unknown and assumed equal

Chap 10-9

Population means, independent

samples

•  The pooled variance is:

•  The test statistic is:

•  Where tSTAT has d.f. = (n1 + n2 – 2)

(continued)

( ) ( )1)n()1(nS1nS1nS

21

222

2112

p −+−

−+−=

* σ1 and σ2 unknown, assumed equal

σ1 and σ2 unknown, not assumed equal

( ) ( )

⎟⎟⎠

⎞⎜⎜⎝

⎛+

−−−=

21

2p

2121STAT

n1

n1S

µµXXt

DCOVA

Prof. Shuguang Liu

Confidence interval for µ1 - µ2 with σ1 and σ2 unknown and assumed equal

Chap 10-10

Population means, independent

samples

( ) ⎟⎟⎠

⎞⎜⎜⎝

⎛+±−

21

2p/221

n1

n1SXX αt

The confidence interval for µ1 – µ2 is:

Where tα/2 has d.f. = n1 + n2 – 2

* σ1 and σ2 unknown, assumed equal

σ1 and σ2 unknown, not assumed equal

DCOVA

Prof. Shuguang Liu

Pooled-Variance t Test Example

You are a financial analyst for a brokerage firm. Is there a difference in dividend yield between stocks listed on the NYSE & NASDAQ? You collect the following data: NYSE NASDAQ Number 21 25 Sample mean 3.27 2.53 Sample std dev 1.30 1.16

Chap 10-11

Assuming both populations are approximately normal with equal variances, is there a difference in mean yield (α = 0.05)?

DCOVA

Prof. Shuguang Liu

Pooled-Variance t Test Example: Calculating the Test Statistic

Chap 10-12

( ) ( ) ( ) ( )1.5021

1)25(1)-(211.161251.30121

1)n()1(n1n1n 22

21

222

2112 =

−+

−+−=

−+−

−+−=

SSSP

( ) ( ) ( )2.040

251

2115021.1

02.533.27

n1

n1S

µµXXt

21

2p

2121STAT =

⎟⎠

⎞⎜⎝

⎛+

−−=

⎟⎟⎠

⎞⎜⎜⎝

⎛+

−−−=

The test statistic is:

(continued)

H0: µ1 - µ2 = 0 i.e. (µ1 = µ2) H1: µ1 - µ2 ≠ 0 i.e. (µ1 ≠ µ2)

DCOVA

Page 3: Chapter 10 10-1liush/ST/ch10.pdf · Chapter 10 10-1 Prof. Shuguang Liu Chapter 10 Two-Sample Tests Chap ... Goal: Test hypothesis or form a confidence interval for the difference

Chapter 10 10-3

Prof. Shuguang Liu

Pooled-Variance t Test Example: Hypothesis Test Solution

H0: µ1 - µ2 = 0 i.e. (µ1 = µ2) H1: µ1 - µ2 ≠ 0 i.e. (µ1 ≠ µ2) α = 0.05 df = 21 + 25 - 2 = 44 Critical Values: t = ± 2.0154

Test Statistic:

Chap 10-13

Decision: Conclusion:

Reject H0 at α = 0.05

There is evidence of a difference in means.

t 0 2.0154 -2.0154

.025

Reject H0 Reject H0

.025

2.040

2.040

251

2115021.1

2.533.27tSTAT =

⎟⎠

⎞⎜⎝

⎛+

−=

DCOVA

Prof. Shuguang Liu

Excel Pooled-Variance t test Comparing NYSE & NASDAQ

Chap 10-14

Pooled-­‐Variance  t  Test  for  the  Difference  Between  Two  Means  (assumes  equal  popula=on  variances)  

Data  Hypothesized  Difference   0  Level  of  Significance   0.05  

Popula*on  1  Sample  Sample  Size   21  =COUNT(DATA!$A:$A)  Sample  Mean   3.27  =AVERAGE(DATA!$A:$A)  Sample  Standard  Devia=on   1.3  =STDEV(DATA!$A:$A)  

Popula*on  2  Sample  Sample  Size   25  =COUNT(DATA!$B:$B)  Sample  Mean   2.53  =AVERAGE(DATA!$B:$B)  Sample  Standard  Devia=on   1.16  =STDEV(DATA!$B:$B)  

Intermediate  Calcula*ons  Popula=on  1  Sample  Degrees  of  Freedom   20  =B7  -­‐  1  Popula=on  2  Sample  Degrees  of  Freedom   24  =B11  -­‐  1  Total  Degrees  of  Freedom   44  =B16  +  B17  Pooled  Variance   1.502  =((B16  *  B9^2)  +  (B17  *  B13^2))  /  B18  Standard  Error   0.363  =SQRT(B19  *  (1/B7  +  1/B11))  Difference  in  Sample  Means   0.74  =B8  -­‐  B12  t  Test  Sta=s=c   2.040  =(B21  -­‐  B4)  /  B20  

Two-­‐Tail  Test  Lower  Cri=cal  Value   -­‐2.015  =-­‐TINV(B5,  B18)  Upper  Cri=cal  Value   2.015  =TINV(B5,  B18)  p-­‐value   0.047  =TDIST(ABS(B22),B18,2)  

Reject  the  null  hypothesis   =IF(B27<B5,"Reject  the  null  hypothesis",  "Do  not  reject  the  null  hypothesis")  

Decision: Conclusion:

Reject H0 at α = 0.05

There is evidence of a difference in means.

DCOVA

Prof. Shuguang Liu

Minitab Pooled-Variance t test Comparing NYSE & NASDAQ

Chap 10-15

Decision: Conclusion:

Reject H0 at α = 0.05

There is evidence of a difference in means.

Two-Sample T-Test and CI Sample N Mean StDev SE Mean 1 21 3.27 1.30 0.28 2 25 2.53 1.16 0.23 Difference = mu (1) - mu (2) Estimate for difference: 0.740 95% CI for difference: (0.009, 1.471) T-Test of difference = 0 (vs not =): T-Value = 2.04 P-Value = 0.047 DF = 44 Both use Pooled StDev = 1.2256

DCOVA

Prof. Shuguang Liu

Pooled-Variance t Test Example: Confidence Interval for µ1 - µ2

( ) )471.1,009.0(3628.00154.274.0 n1

n1SXX

21

2p/221 =×±=⎟⎟

⎞⎜⎜⎝

⎛+±− αt

Since we rejected H0 can we be 95% confident that µNYSE > µNASDAQ? 95% Confidence Interval for µNYSE - µNASDAQ

Since 0 is less than the entire interval, we can be 95% confident that µNYSE > µNASDAQ

Chap 10-16

DCOVA

Prof. Shuguang Liu

Hypothesis tests for µ1 - µ2 with σ1 and σ2 unknown, not assumed equal

Chap 10-17

Population means, independent

samples

Assumptions: §  Samples are randomly and independently drawn

§  Populations are normally distributed or both sample sizes are at least 30 §  Population variances are unknown and cannot be assumed to be equal

*

σ1 and σ2 unknown, assumed equal

σ1 and σ2 unknown, not assumed equal

DCOVA

Prof. Shuguang Liu

Hypothesis tests for µ1 - µ2 with σ1 and σ2 unknown and not assumed equal

1nnS

1nnS

nS

nS

2

2

2

22

1

2

1

21

2

2

22

1

21

⎟⎟⎠

⎞⎜⎜⎝

+−

⎟⎟⎠

⎞⎜⎜⎝

⎟⎟⎠

⎞⎜⎜⎝

⎛+

Chap 10-18

Population means, independent

samples

(continued)

*

σ1 and σ2 unknown, assumed equal

σ1 and σ2 unknown, not assumed equal

The test statistic is: ( ) ( )

2

22

1

21

2121STAT

nS

nS

µµXXt+

−−−=

tSTAT has d.f. ν =

DCOVA

Page 4: Chapter 10 10-1liush/ST/ch10.pdf · Chapter 10 10-1 Prof. Shuguang Liu Chapter 10 Two-Sample Tests Chap ... Goal: Test hypothesis or form a confidence interval for the difference

Chapter 10 10-4

Prof. Shuguang Liu

Related Populations The Paired Difference Test

Tests Means of 2 Related Populations –  Paired or matched samples –  Repeated measures (before/after) –  Use difference between paired values:

§  Eliminates Variation Among Subjects §  Assumptions:

•  Both Populations Are Normally Distributed •  Or, if not Normal, use large samples

Chap 10-19

Related samples

Di = X1i - X2i

DCOVA

Prof. Shuguang Liu

Related Populations The Paired Difference Test

The ith paired difference is Di , where

Chap 10-20

Related samples

Di = X1i - X2i

The point estimate for the paired difference population mean µD is D : n

DD

n

1ii∑

==

n is the number of pairs in the paired sample

1n

)D(DS

n

1i

2i

D −

−=∑=

The sample standard deviation is SD

(continued) DCOVA

Prof. Shuguang Liu

The Paired Difference Test: Finding tSTAT

§  The test statistic for µD is:

Chap 10-21

Paired samples

nSµDtD

STATD−

=

n  Where tSTAT has n - 1 d.f.

DCOVA

Prof. Shuguang Liu

The Paired Difference Test: Possible Hypotheses

Chap 10-22

Lower-tail test:

H0: µD ≥ 0 H1: µD < 0

Upper-tail test:

H0: µD ≤ 0 H1: µD > 0

Two-tail test:

H0: µD = 0 H1: µD ≠ 0

Paired Samples

α α/2 α/2 α

-tα -tα/2 tα tα/2 Reject H0 if tSTAT < -tα Reject H0 if tSTAT > tα Reject H0 if tSTAT < -tα/2

or tSTAT > tα/2 Where tSTAT has n - 1 d.f.

DCOVA

Prof. Shuguang Liu

The Paired Difference Confidence Interval

The confidence interval for µD is

Chap 10-23

Paired samples

1n

)D(DS

n

1i

2i

D −

−=∑=

nSD

2/αtD ±

where

DCOVA

Prof. Shuguang Liu

§  Assume you send your salespeople to a “customer service” training workshop. Has the training made a difference in the number of complaints? You collect the following data:

Chap 10-24

Paired Difference Test: Example

Number of Complaints: (2) - (1) Salesperson Before (1) After (2) Difference, Di C.B. 6 4 - 2 T.F. 20 6 -14 M.H. 3 2 - 1 R.K. 0 0 0 M.O. 4 0 - 4 -21

D = Σ Di

n

5.67

1n)D(D

S2

iD

=

−= ∑

= -4.2

DCOVA

Page 5: Chapter 10 10-1liush/ST/ch10.pdf · Chapter 10 10-1 Prof. Shuguang Liu Chapter 10 Two-Sample Tests Chap ... Goal: Test hypothesis or form a confidence interval for the difference

Chapter 10 10-5

Prof. Shuguang Liu

§  Has the training made a difference in the number of complaints (at the 0.01 level)?

Chap 10-25

- 4.2 D =

1.6655.67/04.2

n/Sµt

DSTAT

D −=−−

=−

=D

H0: µD = 0 H1: µD ≠ 0

Test Statistic:

t0.005 = ± 4.604 d.f. = n - 1 = 4

Reject

α/2 - 4.604 4.604

Decision: Do not reject H0 (tstat is not in the reject region)

Conclusion: There is insufficient evidence there is significant change in the number of complaints.

Paired Difference Test: Solution

Reject

α/2

- 1.66 α = .01

DCOVA

Prof. Shuguang Liu

Paired t Test In Excel

Chap 10-26

Paired  t  Test  

Data  Hypothesized  Mean  Diff.   0  Level  of  Significance   0.05  

Intermediate  Calcula*ons  Sample  Size   5  =COUNT(I2:I6)  Dbar   -­‐4.2  =AVERAGE(I2:I6)  Degrees  of  Freedom   4  =B8  -­‐  1  SD   5.67  =STDEV(I2:I6)  Standard  Error   2.54  =B11/SQRT(B8)  t-­‐Test  Sta=s=c   -­‐1.66  =(B9  -­‐  B4)/B12  

Two-­‐Tail  Test  Lower  Cri=cal  Value   -­‐2.776  =-­‐TINV(B5,B10)  Upper  Cri=cal  Value   2.776  =TINV(B5,B10)  p-­‐value   0.173  =TDIST(ABS(B13),B10,2)  Do  not  reject  the  null  Hypothesis      

=IF(B18<B5,"Reject  the  null  hypothesis",  "Do  not  reject  the  null  hypothesis")  

Data  not  shown  is  in  column  I  

DCOVA

Since -2.776 < -1.66 < 2.776 we do not reject the null hypothesis. Or Since p-value = 0.173 > 0.05 we do not reject the null hypothesis. Thus we conclude that there is Insufficient evidence to conclude there is a difference in the average number of complaints.

Prof. Shuguang Liu

Paired t Test In Minitab Yields The Same Conclusions

Chap 10-27

DCOVA Paired T-Test and CI: After, Before Paired T for After - Before N Mean StDev SE Mean After 5 2.40 2.61 1.17 Before 5 6.60 7.80 3.49 Difference 5 -4.20 5.67 2.54 95% CI for mean difference: (-11.25, 2.85) T-Test of mean difference = 0 (vs not = 0): T-Value = -1.66 P-Value = 0.173

Prof. Shuguang Liu

Two Population Proportions

Chap 10-28

Goal: test a hypothesis or form a confidence interval for the difference between two population proportions,

π1 – π2

The point estimate for the difference is

Population proportions

21 pp −

DCOVA

Prof. Shuguang Liu

Two Population Proportions

Chap 10-29

Population proportions

21

21

nnXX

+

+=p

The pooled estimate for the overall proportion is:

where X1 and X2 are the number of items of interest in samples 1 and 2

In the null hypothesis we assume the null hypothesis is true, so we assume π1 = π2 and pool the two sample estimates

DCOVA

Prof. Shuguang Liu

Two Population Proportions

Chap 10-30

Population proportions

( ) ( )

⎟⎟⎠

⎞⎜⎜⎝

⎛+−

−−−=

21

2121

11)1(nn

pp

ππppZSTAT

The test statistic for π1 – π2 is a Z statistic:

(continued)

2

22

1

11

21

21

nX , p

nX , p

nnXXp ==

+

+=where

DCOVA

Page 6: Chapter 10 10-1liush/ST/ch10.pdf · Chapter 10 10-1 Prof. Shuguang Liu Chapter 10 Two-Sample Tests Chap ... Goal: Test hypothesis or form a confidence interval for the difference

Chapter 10 10-6

Prof. Shuguang Liu

Hypothesis Tests for Two Population Proportions

Chap 10-31

Population proportions

Lower-tail test:

H0: π1 ≥ π2 H1: π1 < π2

i.e.,

H0: π1 – π2 ≥ 0 H1: π1 – π2 < 0

Upper-tail test:

H0: π1 ≤ π2 H1: π1 > π2

i.e.,

H0: π1 – π2 ≤ 0 H1: π1 – π2 > 0

Two-tail test:

H0: π1 = π2 H1: π1 ≠ π2

i.e.,

H0: π1 – π2 = 0 H1: π1 – π2 ≠ 0

DCOVA

Prof. Shuguang Liu

Hypothesis Tests for Two Population Proportions

Chap 10-32

Population proportions

Lower-tail test:

H0: π1 – π2 ≥ 0 H1: π1 – π2 < 0

Upper-tail test:

H0: π1 – π2 ≤ 0 H1: π1 – π2 > 0

Two-tail test:

H0: π1 – π2 = 0 H1: π1 – π2 ≠ 0

α α/2 α/2 α

-zα -zα/2 zα zα/2

Reject H0 if ZSTAT < -Zα Reject H0 if ZSTAT > Zα Reject H0 if ZSTAT < -Zα/2

or ZSTAT > Zα/2

(continued)

DCOVA

Prof. Shuguang Liu

Hypothesis Test Example: Two population Proportions

Is there a significant difference between the proportion of men and the proportion of women who will vote Yes on Proposition A?

§  In a random sample, 36 of 72 men and 35 of 50 women indicated they would vote Yes

§  Test at the .05 level of significance

Chap 10-33

DCOVA

Prof. Shuguang Liu

§  The hypothesis test is:

Chap 10-34

H0: π1 – π2 = 0 (the two proportions are equal) H1: π1 – π2 ≠ 0 (there is a significant difference between proportions)

n  The sample proportions are: n  Men: p1 = 36/72 = 0.50

n  Women: p2 = 35/50 = 0.70

582012271

50723536

21

21 .nnXXp ==

+

+=

+

+=

§  The pooled estimate for the overall proportion is:

Hypothesis Test Example: Two population Proportions

(continued)

DCOVA

Prof. Shuguang Liu

Hypothesis Test Example: Two population Proportions

Chap 10-35

The test statistic for π1 – π2 is:

(continued)

.025

-1.96 1.96

.025

-2.20

Decision: Reject H0

Conclusion: There is evidence of a difference in proportions who will vote yes between men and women.

( ) ( )

( ) ( )202

501

7215821582

07050

11121

2121

.).(.

..

nn)p(p

ππppzSTAT

−=

⎟⎠

⎞⎜⎝

⎛+−

−−=

⎟⎟⎠

⎞⎜⎜⎝

⎛+−

−−−=

Reject H0 Reject H0

Critical Values = ±1.96 For α = .05

DCOVA

Prof. Shuguang Liu

Two Proportion Test In Excel

Chap 10-36

DCOVA Z  Test  for  Differences  in  Two  Propor=ons  

Data  Hypothesized  Difference   0  Level  of  Significance   0.05  

Group  1  Number  of  items  of  interest   36  Sample  Size   72  

Group  2  Number  of  items  of  interest   35  Sample  Size   50  

Intermediate  Calcula*ons  Group  1  Propor=on   0.5  =B7/B8  Group  2  Propor=on   0.7  =B10/B11  Difference  in  Two  Propor=ons   -­‐0.2  =B14  -­‐  B15  Average  Propor=on   0.582  =(B7  +  B10)/(B8  +  B11)  Z  Test  Sta=s=c   -­‐2.20  =(B16-­‐B4)/SQRT((B17*(1-­‐B17))*(1/B8+1/B11))  

Two-­‐Tail  Test  Lower  Cri=cal  Value   -­‐1.96  =NORMSINV(B5/2)  Upper  Cri=cal  Value   1.96  =NORMSINV(1  -­‐  B5/2)  p-­‐value   0.028  =2*(1  -­‐  NORMSDIST(ABS(B18)))  

Reject  the  null  hypothesis   =IF(B23  <  B5,"Reject  the  null  hypothesis",  "Do  not  reject  the  null  hypothesis")  

Decision: Reject H0

Conclusion: There is evidence of a difference in proportions who will vote yes between men and women.

Since -2.20 < -1.96 Or Since p-value = 0.028 < 0.05 We reject the null hypothesis

Page 7: Chapter 10 10-1liush/ST/ch10.pdf · Chapter 10 10-1 Prof. Shuguang Liu Chapter 10 Two-Sample Tests Chap ... Goal: Test hypothesis or form a confidence interval for the difference

Chapter 10 10-7

Prof. Shuguang Liu

Two Proportion Test In Minitab Shows The Same Conclusions

Chap 10-37

DCOVA

Test and CI for Two Proportions Sample X N Sample p 1 36 72 0.500000 2 35 50 0.700000 Difference = p (1) - p (2) Estimate for difference: -0.2 95% CI for difference: (-0.371676, -0.0283244) Test for difference = 0 (vs not = 0): Z = -2.28 P-Value = 0.022

Prof. Shuguang Liu

Confidence Interval for Two Population Proportions

Chap 10-38

Population proportions

( )2

22

1

11/221 n

)p(1pn

)p(1pZpp −+

−±− α

The confidence interval for π1 – π2 is:

DCOVA

Prof. Shuguang Liu

Testing for the Ratio Of Two Population Variances

Chap 10-39

Tests for Two Population Variances

F test statistic

H0: σ12 = σ2

2 H1: σ1

2 ≠ σ22

H0: σ12 ≤ σ2

2 H1: σ1

2 > σ22

* Hypotheses FSTAT

= Variance of sample 1 (the larger sample variance)

n1 = sample size of sample 1

= Variance of sample 2 (the smaller sample variance)

n2 = sample size of sample 2

n1 –1 = numerator degrees of freedom

n2 – 1 = denominator degrees of freedom

Where:

DCOVA

21S

22S

22

21

SS

Prof. Shuguang Liu

The F Distribution

§  The F critical value is found from the F table

§  There are two degrees of freedom required: numerator and denominator

§  The larger sample variance is always the numerator

§  When

§  In the F table, •  numerator degrees of freedom determine the column

•  denominator degrees of freedom determine the row

Chap 10-40

df1 = n1 – 1 ; df2 = n2 – 1

22

21

SSFSTAT =

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Prof. Shuguang Liu

Finding the Rejection Region

Chap 10-41

H0: σ12 = σ2

2 H1: σ1

2 ≠ σ22

H0: σ12 ≤ σ2

2 H1: σ1

2 > σ22

F 0 α

Fα Reject H0 Do not reject H0

Reject H0 if FSTAT > Fα

F 0

α/2

Reject H0 Do not reject H0 Fα/2

Reject H0 if FSTAT > Fα/2

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Prof. Shuguang Liu

F Test: An Example

You are a financial analyst for a brokerage firm. You want to compare dividend yields between stocks listed on the NYSE & NASDAQ. You collect the following data: NYSE NASDAQ Number 21 25 Mean 3.27 2.53 Std dev 1.30 1.16

Is there a difference in the variances between the NYSE & NASDAQ at the α = 0.05 level?

Chap 10-42

DCOVA

Page 8: Chapter 10 10-1liush/ST/ch10.pdf · Chapter 10 10-1 Prof. Shuguang Liu Chapter 10 Two-Sample Tests Chap ... Goal: Test hypothesis or form a confidence interval for the difference

Chapter 10 10-8

Prof. Shuguang Liu

F Test: Example Solution

§  Form the hypothesis test: (there is no difference between variances)

(there is a difference between variances)

Chap 10-43

n  Find the F critical value for α = 0.05:

n  Numerator d.f. = n1 – 1 = 21 –1 = 20

n  Denominator d.f. = n2 – 1 = 25 –1 = 24

n  Fα/2 = F.025, 20, 24 = 2.33

DCOVA

22

211

22

210

σ : σH

σ : σH

=

Prof. Shuguang Liu

F Test: Example Solution

§  The test statistic is:

Chap 10-44

0

256.116.130.1

2

2

22

21 ===SSFSTAT

α/2 = .025

F0.025=2.33 Reject H0 Do not

reject H0

H0: σ12 = σ2

2 H1: σ1

2 ≠ σ22

n  FSTAT = 1.256 is not in the rejection region, so we do not reject H0

(continued)

n  Conclusion: There is insufficient evidence of a difference in variances at α = .05

F

DCOVA

Prof. Shuguang Liu

Two Variance F Test In Excel

Chap 10-45

DCOVA

F  Test  for  Differences  in  Two  Variables  

Data  Level  of  Significance   0.05  

Larger-­‐Variance  Sample  Sample  Size   21  Sample  Variance   1.6900  =1.3^2  

Smaller-­‐Variance  Sample  Sample  Size   25  Sample  Variance   1.3456  =1.16^2  

Intermediate  Calcula*ons  F  Test  Sta=s=c   1.256   1.255945  Popula=on  1  Sample  Degrees  of  Freedom   20  =B6  -­‐  1  Popula=on  2  Sample  Degrees  of  Freedom   24  =B9  -­‐  1  

Two-­‐Tail  Test  Upper  Cri=cal  Value   2.327  =FINV(B4/2,B14,B15)  p-­‐value   0.589  =2*FDIST(B13,B14,B15)  

Do  not  reject  the  null  hypothesis   =IF(B19<B4,"Reject  the  null  hypothesis",  "Do  not  reject  the  null  hypothesis")  

Conclusion: There is insufficient evidence

of a difference in variances at α = .05 because:

F statistic =1.256 < 2.327 Fα/2

or p-value = 0.589 > 0.05 = α.

Prof. Shuguang Liu

Two Variance F Test In Minitab Yields The Same Conclusion

Chap 10-46

DCOVA Test and CI for Two Variances Null hypothesis Sigma(1) / Sigma(2) = 1 Alternative hypothesis Sigma(1) / Sigma(2) not = 1 Significance level Alpha = 0.05 Statistics Sample N StDev Variance 1 21 1.300 1.690 2 25 1.160 1.346 Ratio of standard deviations = 1.121 Ratio of variances = 1.256 95% Confidence Intervals CI for Distribution CI for StDev Variance of Data Ratio Ratio Normal (0.735, 1.739) (0.540, 3.024) Tests Test Method DF1 DF2 Statistic P-Value F Test (normal) 20 24 1.26 0.589

Prof. Shuguang Liu

Chapter Summary

§  Compared two independent samples •  Performed pooled-variance t test for the

difference in two means •  Performed separate-variance t test for

difference in two means •  Formed confidence intervals for the difference

between two means §  Compared two related samples (paired

samples) •  Performed paired t test for the mean

difference •  Formed confidence intervals for the mean

difference Chap 10-47 Prof. Shuguang Liu

Chapter Summary

§  Compared two population proportions •  Formed confidence intervals for the difference

between two population proportions •  Performed Z-test for two population

proportions

§  Performed F test for the ratio of two population variances

Chap 10-48

(continued)