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Statistical Inferences about Two Populations

Statistical Inference Two Pops 1

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Page 1: Statistical Inference Two Pops 1

Statistical

Inferences about Two

Populations

Page 2: Statistical Inference Two Pops 1

Learning Objectives

• Test hypotheses and construct confidenceintervals about the difference in two populationmeans using the Z statistic.

• Test hypotheses and construct confidenceintervals about the difference in two populationmeans using the t statistic.

QT-II/Ses 3/SAMPRIT

Page 3: Statistical Inference Two Pops 1

Learning Objectives

• Test hypotheses and construct confidence intervals about the differences in two population proportions.

• Test hypotheses and construct confidence intervals about two population variances.

QT-II/Ses 3/SAMPRIT

Page 4: Statistical Inference Two Pops 1

Sampling Distribution of the Difference Between

Two Sample Means

nx

x

1

1

Population 1

Population 2

nx

x

2

2

1 2X X

1X

2X

1 2X X

1x

1x1x 2x

2x

2x

QT-II/Ses 3/SAMPRIT

Page 5: Statistical Inference Two Pops 1

Sampling Distribution of the Difference

between Two Sample Means

1 2X X1 2X X

1 2

1

2

1

2

2

2X X n n

1 21 2X X 2121 xx

2

2

2

1

2

1

21 nnxx

21 xx21 xx

QT-II/Ses 3/SAMPRIT

Page 6: Statistical Inference Two Pops 1

Z Formula for the Difference

in Two Sample Means

nn

xxz

2

2

2

1

2

1

2121

When 12 and 2

2 are known and Independent Samples

QT-II/Ses 3/SAMPRIT

Page 7: Statistical Inference Two Pops 1

Hypothesis Testing for Differences Between

Means: Example with CI 95%

1 2X X

Rejection

Region

Non Rejection Region

Critical Values

Rejection

Region

1 2X X

025.2

025.2

H

H

o

a

:

:

1 2

1 2

0

0

21 xx 21 xx

QT-II/Ses 3/SAMPRIT

Page 8: Statistical Inference Two Pops 1

Hypothesis Testing for Differences Between

Means: The Wage Example (part 2)

.Hz

.Hzz

o

o

reject not do 1.96, 1.96- If

reject 1.96, > or 1.96- < IfRejection

Region

Non Rejection Region

Critical Values

Rejection

Region

96.1Z c0 96.1Z c

025.2

025.2

96.1cz96.1cz

QT-II/Ses 3/SAMPRIT

Page 9: Statistical Inference Two Pops 1

Example

• We want to conduct a Hypothesis test todetermine whether the average annual wage foran advertising manager is different from theaverage annual wage of an auditing manager. Arandom sample of 32 advertising managers fromacross US is taken. The advertising managers arecontacted by telephone and asked what is theirannual salary. A similar random sample is takenof 34 auditing managers. The resulting salarydata are given in the next table, along with thesample means, the sample standard deviationsand the sample variances.

QT-II/Ses 3/SAMPRIT

Page 10: Statistical Inference Two Pops 1

Crucial points

• The analyst is testing whether there is any difference in the average wage of an advertising manager and an auditing manager

• So it is a two tailed test

• If testing is on whether one was paid more than the other, the test would have been one tailed

QT-II/Ses 3/SAMPRIT

Page 11: Statistical Inference Two Pops 1

Example

Advertising Managers

74.256 57.791 71.115

96.234 65.145 67.574

89.807 96.767 59.621

93.261 77.242 62.483

103.030 67.056 69.319

74.195 64.276 35.394

75.932 74.194 86.741

80.742 65.360 57.351

39.672 73.904

45.652 54.270

93.083 59.045

63.384 68.508

164.264

253.16

700.70

32

2

1

1

1

1

x

n

411.166

900.12

187.62

34

2

2

2

2

2

x

n

Auditing Managers

69.962 77.136 43.649

55.052 66.035 63.369

57.828 54.335 59.676

63.362 42.494 54.449

37.194 83.849 46.394

99.198 67.160 71.804

61.254 37.386 72.401

73.065 59.505 56.470

48.036 72.790 67.814

60.053 71.351 71.492

66.359 58.653

61.261 63.508

QT-II/Ses 3/SAMPRIT

Page 12: Statistical Inference Two Pops 1

Working

35.2

34

411.166

32

253.256

0187.62700.70

2

2

2

1

2

1

2121

nS

nS

XXZ

.Hreject not do 1.96, Z 1.96- If

.Hreject 1.96, > or Z 1.96- < ZIf

o

o

.Hreject 1.96, > 2.35 = ZSince o

Rejection

Region

Non Rejection Region

Critical Values

Rejection

Region

cZ 2 33.

025.2

0 cZ 2 33.

025.2

.reject not do ,96.196.1 If

.reject ,96.1or 96.1 If

0

0

Hz

Hzz

35.2

34

411.166

32

253.256

(0)-62.187)-(70.700

()(

2

2

2

1

2

1

)2121

nn

xxz

.reject ,96.135.2 Since 0Hz

96.1cz 96.1cz

QT-II/Ses 3/SAMPRIT

Page 13: Statistical Inference Two Pops 1

Example

• A sample of 87 working professional working womenshowed that the average amount paid annually into aprivate pension fund per person was $3,352, with asample standard deviation of $1,100. A sample of 76professional working men showed that the averageamount paid annually into a private pension fund perperson was $5,727, with a sample standard deviation of$1,700. A women’s activist group wants to prove thatwomen do not pay as much per year as men into privatepension funds. If they use CI = 99% and the sampledata, will they be able to reject a null hypothesis thatwomen annually pay the same as or more than men intoprivate pension funds?

QT-II/Ses 3/SAMPRIT

Page 14: Statistical Inference Two Pops 1

Crucial points

• Test is one tailed

• When the population variances areunknown and the sample sizes are large (n1and n2 greater than equal to 30), samplevariances can be used

• For large samples, sample variances aregood approximations of populationvariances

QT-II/Ses 3/SAMPRIT

Page 15: Statistical Inference Two Pops 1

Working

H

H

o

a

:

:

1 2

1 2

0

0

Non Rejection Region

Critical Value

Rejection

Region

.001

cZ 308. 008.3cz

QT-II/Ses 3/SAMPRIT

Page 16: Statistical Inference Two Pops 1

Working

Non Rejection Region

Critical Value

Rejection

Region

.001

cZ 308. 0

.H

.H

o

o

reject not do ,08.3 z If

reject 3.08,- <z If

42.10

76

1700

87

1100

057273352

22

2

2

2

1

2

1

2121

nn

xxz

.Horeject 3.08,- < 10.42- = z Since

87

100,1$

352,3$

1

1

1

n

x

Women

76

700,1$

727,5$

2

2

2

n

x

Men

08.3cz

QT-II/Ses 3/SAMPRIT

Page 17: Statistical Inference Two Pops 1

Confidence Interval to Estimate 1 - 2 When 1, 2

are known

nnzxx

nnzxx

2

2

2

1

2

1

21212

2

2

1

2

1

21

QT-II/Ses 3/SAMPRIT

Page 18: Statistical Inference Two Pops 1

Example

• A consumer test group wants to determine the difference ingasoline mileage of cars using regular unleaded gas and carsusing premium unleaded gas. Researchers for the group divideda fleet of 100 cars of the same make in half and tested each caron one tank of gas. Fifty of the cars were filled with regularunleaded gas and 50 were filled with premium unleaded gas.The sample average for the regular gasoline group was 21.45miles per gallon, with a standard deviation of 3.46 mpg. Thesample average for the premium gasoline group was 24.6 mpg,with a standard deviation of 2.99 mpg. Construct a 95%confidence interval to estimate the difference in the mean gasmileage between the cars using regular gasoline and the carsusing premium gasoline

QT-II/Ses 3/SAMPRIT

Page 19: Statistical Inference Two Pops 1

Working

88.142.4

50

99.2 2

50

46.396.16.2445.21

505096.16.2445.21

21

2

21

22

2

2

2

1

2

1

21212

2

2

1

2

1

21

99.246.3

nnxx

nnxx zz

46.3

45.21

50

Re

1

1

1

x

n

gular

99.2

6.24

50

Pr

2

2

2

x

n

emium

1.96 = Confidence %95 z

QT-II/Ses 3/SAMPRIT

Page 20: Statistical Inference Two Pops 1

The t Test for Differences

in Population Means

• Each of the two populations is normally distributed.

• The two samples are independent.

• The values of the population variances are unknown.

• The variances of the two populations are equal.

12 = 2

2

QT-II/Ses 3/SAMPRIT

Page 21: Statistical Inference Two Pops 1

t Formula to Test the Difference in

Means Assuming 12 = 2

2

2121

2

2

21

2

1

2121

11

2

)1()1(

)()(

nnnn

nsns

xxt

QT-II/Ses 3/SAMPRIT

Page 22: Statistical Inference Two Pops 1

Example• At the Hernandez Manufacturing Company, an application of

the test of the difference in small sample mean arises. Newemployees are expected to attend a three-day seminar to learnabout the company. At the end of the seminar, they are tested tomeasure their knowledge about the company. The traditionaltraining method has been lecture and a QnA session.Management decided to experiment with a different trainingprocedure, which processes new employees in two days byusing vcd and having no QnA session. If, this procedure works,it could save the company thousands of dollars over a period ofseveral years. However, there is some concern about theeffectiveness of the two day method, and the companymanagers would like to know whether there is any difference in

the effectiveness of the two training methods.To test the difference in the two methods, the managersrandomly select one group of 15 newly hired employees to takethe three day seminar (method A) and a second group of 12 newemployees for the two day vcd method (method B)

QT-II/Ses 3/SAMPRIT

Page 23: Statistical Inference Two Pops 1

Example

• The table show the test scores of the two groups. Using α = 0.05,the managers want to determine whether there is a significantdifference in the mean scores of the two groups. They assumethat the scores for this test are normally distributed and that thepopulation variances are approximately equal.

Training Method A

56 51 45

47 52 43

42 53 52

50 42 48

47 44 44

Training Method B

59

52

53

54

57

56

55

64

53

65

53

57

QT-II/Ses 3/SAMPRIT

Page 24: Statistical Inference Two Pops 1

Solution

H

H

o

a

:

:

1 2

1 2

0

0

If t < - 2.060 or t > 2.060, reject H .

If - 2.060 t 2.060, do not reject H .

o

o

060.2

25212152

025.2

05.

2

25,25.0

21

t

nndf

Rejection

Region

Non Rejection Region

Critical Values

Rejection

Region

2025.

0 . ,.

025 252 060t

2025.

. ,.

025 252 060t

QT-II/Ses 3/SAMPRIT

Page 25: Statistical Inference Two Pops 1

Solution

Training Method A

56 51 45

47 52 43

42 53 52

50 42 48

47 44 44

Training Method B

59

52

53

54

57

56

55

64

53

65

53

57

495.19

73.47

15

2

1

1

1

s

x

n

273.18

5.56

12

2

2

2

2

s

x

n

QT-II/Ses 3/SAMPRIT

Page 26: Statistical Inference Two Pops 1

Solution

.Ht oreject -2.060,<-5.20= Since

20.5

12

1

15

1

21215

11273.1814495.19

050.5673.47

11

2

)1()1(

)()(

2121

2

2

21

2

1

2121

nnnn

nsns

xxt

.Ht

.Htt

o

o

reject not do 2.060, 2.060- If

reject 2.060, > or 2.060- < If

QT-II/Ses 3/SAMPRIT

Page 27: Statistical Inference Two Pops 1

Example• Is there any difference in the way Chinese cultural values affect

the purchasing strategies of industrial buyers in Taiwan andmainland China? A study by researchers at the Nationaluniversity in Taiwan attempted to determine whether there is asignificant difference in the purchasing strategies of industrialbuyers in the two countries based on the cultural dimensionlabeled “integration.” Integration is being in harmony with one’sself, family, and associates. For the study, 46 Taiwanese buyersand 26 mainland Chinese buyers were contacted and interviewed.Buyers were asked to respond to 35 using a 9-point scale withpossible answers ranging from no importance (1) to extremeimportance (9). The resulting statistics for the two groups areshown in the table. Using α = 0.01, test to determine whetherthere is a significant difference between buyers of the twocountries on integration.

QT-II/Ses 3/SAMPRIT

Page 28: Statistical Inference Two Pops 1

Example

Taiwanese Buyers Mainland Chinese Buyers

Sample size is 46 Sample size is 26

Mean is 5.42 Mean is 5.04

Sample Variance is 0.3364 Sample Variance is 0.2401

QT-II/Ses 3/SAMPRIT

Page 29: Statistical Inference Two Pops 1

Confidence Interval to Estimate 1 - 2 when

12 and 2

2 are unknown and 12 = 2

2

2 where

11

2

)1()1()(

21

2121

2

2

21

2

121

nndf

nnnn

nsnstxx

QT-II/Ses 3/SAMPRIT

Page 30: Statistical Inference Two Pops 1

Example

• Construct a 99% Confidence Interval from the following data

Sample Size = 9 Sample Size = 10

Mean = 37.09 Mean = 34.99

Sample sd = 1.727 Sample sd = 1.253

t for 0.005 and 17 is 2.898

QT-II/Ses 3/SAMPRIT