Hypothesis Tests

Making Decisions with Inference-II

 Inferences About the Difference Between

Two Population Means: s 1 and s 2 Known
Inference About Means and
Inferences About the Difference Between
Proportions with

Two Population Means: s 1 and s 2 Unknown
Two Populations  Inferences About the Difference Between
Two Population Means: Matched Samples

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Inferences About the Difference Between Estimating the Difference Between

Two Population Means: s 1 and s 2 Known Two Population Means
 Interval Estimation of m 1 – m 2  Let m1 equal the mean of population 1 and m2 equal
 Hypothesis Tests About m 1 – m 2 the mean of population 2.
 The difference between the two population means is
m1 - m2.
 To estimate m1 - m2, we will select a simple random
sample of size n1 from population 1 and a simple
random sample of size n2 from population 2.
 Let x1 equal the mean of sample 1 and x2 equal the
mean of sample 2.
 The point estimator of the difference between the
means of the populations 1 and 2 is x1  x2.

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Sampling Distribution of x1  x2 Interval Estimation of m1 - m2:

s 1 and s 2 Known
 Expected Value  Interval Estimate
E ( x1  x2 )  m1  m 2
s 12 s 22
x1  x2  z / 2 
 Standard Deviation (Standard Error) n1 n2

s12 s 22 where:
s x1  x2  
n1 n2 1 -  is the confidence coefficient

where: s1 = standard deviation of population 1

s2 = standard deviation of population 2
n1 = sample size from population 1
n2 = sample size from population 2

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 Interval Estimation of m1 - m2: Interval Estimation of m1 - m2:
s 1 and s 2 Known s 1 and s 2 Known
 Example: Par, Inc.  Example: Par, Inc.
Par, Inc. is a manufacturer of golf equipment and
has developed a new golf ball that has been Sample #1 Sample #2
Par, Inc. Rap, Ltd.
designed to provide “extra distance.”
Sample Size 120 balls 80 balls
In a test of driving distance using a mechanical Sample Mean 295 yards 278 yards
driving device, a sample of Par golf balls was
compared with a sample of golf balls made by Rap, Based on data from previous driving distance
Ltd., a competitor. The sample statistics appear on tests, the two population standard deviations are
the next slide. known with s 1 = 15 yards and s 2 = 20 yards.

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Interval Estimation of m1 - m2: Estimating the Difference Between

s 1 and s 2 Known Two Population Means
 Example: Par, Inc.
Population 1 Population 2
Let us develop a 95% confidence interval estimate Par, Inc. Golf Balls Rap, Ltd. Golf Balls
of the difference between the mean driving distances of m1 = mean driving m2 = mean driving
distance of Par distance of Rap
the two brands of golf ball. golf balls golf balls
m1 – m2 = difference between
the mean distances
Simple random sample Simple random sample
of n1 Par golf balls of n2 Rap golf balls
x1 = sample mean distance x2 = sample mean distance
for the Par golf balls for the Rap golf balls
x1 - x2 = Point Estimate of m1 – m2

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Point Estimate of m1 - m2 Interval Estimation of m1 - m2:

s 1 and s 2 Known
Point estimate of m1  m2 = x1  x2
s12 s 22 (15) 2 ( 20) 2
= 295  278 x1  x2  z / 2   17  1. 96 
n1 n2 120 80
= 17 yards 17 + 5.14 or 11.86 yards to 22.14 yards
where: We are 95% confident that the difference between
m1 = mean distance for the population the mean driving distances of Par, Inc. balls and Rap,
of Par, Inc. golf balls Ltd. balls is 11.86 to 22.14 yards.
m2 = mean distance for the population
of Rap, Ltd. golf balls

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 Hypothesis Tests About m 1  m 2: Hypothesis Tests About m 1  m 2:
s 1 and s 2 Known s 1 and s 2 Known
 Hypotheses  Example: Par, Inc.
Can we conclude, using  = .01, that the
H 0 : m1  m2  D0 H 0 : m1  m2  D0 H 0 : m1  m2  D0
mean driving distance of Par, Inc. golf balls is
H a : m1  m 2  D0 H a : m1  m2  D0 H a : m1  m2  D0
greater than the mean driving distance of Rap, Ltd.
Left-tailed Right-tailed Two-tailed golf balls?
 Test Statistic

( x1  x2 )  D0
z
s 12 s 22

n1 n2

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Hypothesis Tests About m 1  m 2: Hypothesis Tests About m 1  m 2:

s 1 and s 2 Known s 1 and s 2 Known
 p –Value and Critical Value Approaches  p –Value and Critical Value Approaches

1. Develop the hypotheses. H0: m1 - m2 < 0  3. Compute the value of the test statistic.
Ha: m1 - m2 > 0
( x1  x 2 )  D0
where: z
s 12 s 22
m1 = mean distance for the population 
of Par, Inc. golf balls n1 n2
m2 = mean distance for the population z
(295  278 )  0

17
 6.49
of Rap, Ltd. golf balls (15) 2 (20) 2 2.62

120 80
2. Specify the level of significance.  = .01

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Hypothesis Tests About m 1  m 2: Hypothesis Tests About m 1  m 2:

s 1 and s 2 Known s 1 and s 2 Known
 p –Value Approach  Critical Value Approach

4. Compute the p–value. 4. Determine the critical value and rejection rule.
For z = 6.49, the p –value < .0001. For  = .01, z.01 = 2.33

5. Determine whether to reject H0. Reject H0 if z > 2.33

Because p–value <  = .01, we reject H0. 5. Determine whether to reject H0.
At the .01 level of significance, the sample evidence Because z = 6.49 > 2.33, we reject H0.
indicates the mean driving distance of Par, Inc. golf
balls is greater than the mean driving distance of Rap, The sample evidence indicates the mean driving
Ltd. golf balls. distance of Par, Inc. golf balls is greater than the mean
driving distance of Rap, Ltd. golf balls.

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 Ex: Which Baby food is better
Ex: Cholesterol Reduction with breakfast cereals
The president of Nestle Inc., a baby-food producer, claims that her
company’s product is superior to that of her leading competitor Is eating oat bran an effective way to reduce cholesterol? Early
because babies gain weight faster with her product. (This is a good studies indicated that eating oat bran daily reduces cholesterol
thing for babies.) To test this claim, a survey was undertaken. levels by 5% to 10%. Reports of this study resulted in the
Mothers of new-born babies were asked which baby food they introduction of many new breakfast cereals with various
intended to feed their babies. Those who responded Nestle or the percentages of oat bran as an ingredient. However, an
leading competitor were asked to keep track of their babies’ weight experiment performed by medical researchers in AIIMS cast
gains over the next 2 months. There were 15 mothers who indicated
doubt on the effectiveness of oat bran. In that study, 120
that they would feed their babies Nestle and 25 who responded that
volunteers ate oat bran for breakfast, and another 120
they would feed their babies the product of the leading competitor.
Each baby’s weight gain (in ounces) was recorded. volunteers ate another grain cereal for breakfast. At the end of
 Can we conclude, using weight gain as our criterion, that Nestle baby
6 weeks, the percentage of cholesterol reduction was
food is indeed superior? computed for both groups. Can we infer that oat bran is
 Estimate with 95% confidence the difference between the mean weight different from other cereals in terms of cholesterol reduction?
gains of the two products. Assume Population SDs are known as 4.41 and 4.44
 Assume the Population SDs are known- 4.5 and 3.28 ounces respectively respectively
 Data Data

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