BUS 173 Chapter 10: Inference about the difference between two population means: 1 and 2 known and

unknown 1 and 2 known 1 and 1 are population characteristics of a population1. 2 and 2 are population characteristics of a population2. Difference between two population means = 1 - 2 x1- bar = sample mean from a sample on population1 x2 - bar = sample mean from a sample on population2 The point estimator of the difference between the two population means is the difference between the two sample means. x1-bar x2 bar Standard Error of x1-bar x2-bar, x1-bar x2-bar = (12/n1+ 22/n2) If both populations have a normal distribution and if the sample sizes are large enough, then the central limit theory allows us to approximate the difference between the using a normal distribution. The Margin of Error = Z/2 x1-bar x2-bar = Z/2 (12/n1+ 22/n2) Where 1- is the confidence coefficient Given this margin of error, internal estimate of the difference between the two population means, x1-bar x2 bar Z/2 (12/n1+ 22/n2) Where 1- is the confidence coefficient Hypothesis test about 1-2: There can be three forms of hypothesis tests: H0 : 1-2 D0 Ha : 1-2 < D0 H0 : 1-2 D0 Ha : 1-2 < D0 H0 : 1-2 = D0 Ha : 1-2 D0

In many application of hypothesis tests involving difference D0 = 0. For example, in a two tailed test involving D0 = 0, the null hypothesis is 1=2, rejection of this would lead to 1 and 2 are not equal. Test statistic for 1-2 hypothesis test, 1 and 2 known Z = ((x1-bar x2 bar) D0)/ (12/n1+ 22/n2) Interference about the difference between two population means: 1 and 2 unknown When the values of the population standard deviation are not known, we use the tdistribution score instead of the standard normal distribution Z score. Internal estimate for 1 and 2 unknown case is, x1-bar x2 bar t/2 (12/n1+ 22/n2) Where 1- is the confidence coefficient The problem that we face here is with finding the appropriate degrees of freedom in calculating the t static, df = (s12/n1 + s22/n2)2 / ((1/(n1-1)(s12/n1)2 + (1/(n2-1)(s22/n2)2) Test static for 1 and 2 unknown case, t = ((x1-bar x2 bar) D0) / (s12/n1+ s22/n2) Where degrees of freedom is to be found using the above mentioned formula Interference about the difference between two population means: Matched Samples When we use the same sample assess the difference between two things, we need to use the matched sample method. On a matched sample we use the difference data for the test statistic, d-bar = di / n Sd = ( (d1- d-bar)2 / (n-1)) Test static for matched samples, t = (d-bar - d) / (Sd/n) Where the degrees of freedom = n-1 Interference about the difference between two population proportions When considering the differences between two population proportions p1 and p2, we consider the following test statistics: p1 p2 point estimator = p1-bar p2-bar

Standard Error of p1-bar p2-bar p1-bar p2-bar = ((p1(1-p1)/n1) + (p2(1-p2)/n2) for Margin of Error we cannot use Z/2 or p1-bar p2-bar because p1 and p2 are unknown using the sample proportion p1-bar to estimate p1 and sample proportion p2-bar to estimate p2, the margin of error is as follows: M.E. = Z/2 ((p1-bar(1-p1-bar)/n1) + (p2-bar(1-p2-bar)/n2) Internal Estimate would be p1-bar p2-bar Z/2 ((p1-bar(1-p1-bar)/n1) + (p2-bar(1-p2-bar)/n2) Where 1- is the confidence coefficient Standard Error of p1-bar p2-bar when p1= p2 = p p1-bar p2-bar = ((p(1-p)/n1) + (p(1-p)/n2) = (p(1-p)(1/n1+1/n2)) With p unknown, pooled estimator of p when p1= p2 = p p-bar = (n1 p1-bar + n2 p2-bar) / (n1+n2) Pooled estimator of p is the weighted average of p1-bar and p2-bar Test statistics for tests about p1 p2 Z = (p1-bar p2-bar) / (p-bar(1 - p-bar) (1/n1+1/n2))