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**Exploratory Data Analysis
**

1.3. EDA Techniques

1.3.5. Quantitative Techniques

**1.3.5.3. Two-Sample t-Test for Equal Means
**

Purpose:

Test if two

population

means are

equal

**The two-sample t-test (Snedecor and Cochran, 1989) is used to
**

determine if two population means are equal. A common application is

to test if a new process or treatment is superior to a current process or

treatment.

There are several variations on this test.

1. The data may either be paired or not paired. By paired, we mean

that there is a one-to-one correspondence between the values in

the two samples. That is, if X1, X2, ..., Xn and Y1, Y2, ... , Yn are

the two samples, then Xi corresponds to Yi. For paired samples,

the difference Xi - Yi is usually calculated. For unpaired samples,

the sample sizes for the two samples may or may not be equal.

The formulas for paired data are somewhat simpler than the

formulas for unpaired data.

2. The variances of the two samples may be assumed to be equal

or unequal. Equal variances yields somewhat simpler formulas,

although with computers this is no longer a significant issue.

3. In some applications, you may want to adopt a new process or

treatment only if it exceeds the current treatment by some

threshold. In this case, we can state the null hypothesis in the

form that the difference between the two populations means is

equal to some constant μ1−μ2=d0 where the constant is the

desired threshold.

**Definition The two-sample t-test for unpaired data is defined as:
**

H0:

μ1=μ2

Ha:

μ1≠μ2

Test

Statistic:

**T=Y1¯−Y2¯s21/N1+s22/N2√
**

where N1 and N2 are the sample sizes, Y1¯ and Y2¯ are the

**sample means, and s21 and s22 are the sample variances.
**

If equal variances are assumed, then the formula reduces

to:

T=Y1¯−Y2¯sp1/N1+1/N2√

where

**s2p=(N1−1)s21+(N2−1)s22N1+N2−2
**

Significance α.

Level:

Critical

Reject the null hypothesis that the two means are equal if

Region:

|T| > t1-α/2,ν

where t1-α/2,ν is the critical value of the t distribution with ν

degrees of freedom where

**υ=(s21/N1+s22/N2)2(s21/N1)2/(N1−1)+(s22/N2)2/(N2−1)
**

If equal variances are assumed, then ν = N1 + N2 - 2

TwoThe following two-sample t-test was generated for the AUTO83B.DAT

Sample t- data set. The data set contains miles per gallon for U.S. cars (sample 1)

Test

and for Japanese cars (sample 2); the summary statistics for each

Example sample are shown below.

SAMPLE 1:

NUMBER OF OBSERVATIONS

MEAN

STANDARD DEVIATION

STANDARD ERROR OF THE MEAN

= 249

= 20.14458

=

6.41470

=

0.40652

SAMPLE 2:

NUMBER OF OBSERVATIONS

MEAN

STANDARD DEVIATION

STANDARD ERROR OF THE MEAN

= 79

= 30.48101

= 6.10771

= 0.68717

**We are testing the hypothesis that the population means are equal for
**

the two samples. We assume that the variances for the two samples are

equal.

H0:

Ha:

μ1 = μ2

μ1 ≠ μ2

Test statistic:

T = -12.62059

Pooled standard deviation:

sp = 6.34260

Degrees of freedom:

ν = 326

Significance level:

α = 0.05

Critical value (upper tail):

t1-α/2,ν = 1.9673

Critical region: Reject H0 if |T| > 1.9673

**The absolute value of the test statistic for our example, 12.62059, is
**

greater than the critical value of 1.9673, so we reject the null hypothesis

and conclude that the two population means are different at the 0.05

significance level.

In general, there are three possible alternative hypotheses and rejection

regions for the one-sample t-test:

Alternative Hypothesis

Rejection Region

Ha: μ1 ≠ μ2

|T| > t1-α/2,ν

Ha: μ1 > μ2

T > t1-α,ν

Ha: μ1 < μ2

T < tα,ν

**For our two-tailed t-test, the critical value is t1-α/2,ν = 1.9673, where α =
**

0.05 and ν = 326. If we were to perform an upper, one-tailed test, the

critical value would be t1-α,ν = 1.6495. The rejection regions for three

posssible alternative hypotheses using our example data are shown

below.

**Questions Two-sample t-tests can be used to answer the following questions:
**

1. Is process 1 equivalent to process 2?

2. Is the new process better than the current process?

3. Is the new process better than the current process by at least

some pre-determined threshold amount?

Related

Techniques

Case Study

Software

**Confidence Limits for the Mean
**

Analysis of Variance

Ceramic strength data.

Two-sample t-tests are available in just about all general purpose

**statistical software programs. Both Dataplot code and R code can be
**

used to generate the analyses in this section.

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