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Value of test statistic Critical region

1 2 = 1 and 2 known 1 2 > Reject H0 if >
(1 2 ) 1 2 < Reject H0 if <
= 1 2 Reject H0 if > /2 or
2 2 < /2
1 + 2
1 2
1 2 = 1 = 2 but unknown 1 2 > Reject H0 if > ,
(1 2 ) 1 2 < Reject H0 if < ,
= 1 2
1 1 Reject H0 if > /2, and
1 2 < /2,
(1 1)12 + (2 1)22 where = 1 + 2 2
2 =
1 + 2 2
1 2 = 1 2 but unknown 1 2 > Reject H0 if > ,
(1 2 ) 1 2 < Reject H0 if < ,
= 1 2 Reject H0 if > /2, and
2 2
1 + 2 < /2,
1 2
s1 2 s 2 2

n n

1 2

/ n11
s / n2

2 2


n1 1 n2 1
1 =mean of population 1 1 =standard deviation of sample 1
2 =mean of population 2 2 =standard deviation of sample 1
1 =standard deviation of population 1 =hypothesized difference of 1 and 2
2 =standard deviation of population 2 2 =pooled variance
1 =mean of sample taken from population 1 =degrees of freedom
2 =mean of sample taken from population 2

**For the equal-variance t test, the observations should be independent, random samples from normal
distributions with the same population variance. For the unequal-variance t test, the observations should be
independent, random samples from normal distributions.

Exercises: n 10 10
1. A new computer software package has been 325 hrs 295 hrs
developed to help systems analysts in developing s 40 hrs 44 hrs
computer based information systems. The objective of
the new software package is to reduce the time 2. Independent random samples from normal
required to design, develop, and implement an distributions with equal variances of auditor fees
information system. A random sample of 20 analysts when an audit resulted in (1) a lawsuit or (2) no
was chosen and each analyst was given specifications lawsuit gave the following results. Test to see whether
for a hypothetical information system. Ten analysts the mean fee when lawsuit occurs is equal or unequal
used the current technology while the other ten used to the mean fee when no lawsuit occurs. Use 0.05 for
the new software package. Use a 0.05 level of the level of significance.
significance. The following data were revealed:
Lawsuit 17 11 5 11 15 13 7 9
Current New Software No
Technology Package 9 5 3 4 3 6 4 7 4
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3. Suppose that the makers of Duracell batteries want effective versus the alternative hypothesis that they
to prove that their size AA battery lasts an average of are not equally effective.
at least 45 minutes longer than Duracells main
competitors, the Energizer. Two independent random
6. The photography department of a glamour
samples of 100 batteries of each kind are selected, and
magazine needs to choose a camera. Of the two
the batteries are run continuously until there are no
models the department is considering, one is made by
longer operational. The sample average life for
Nikon and one by Minolta. The department contracts
Duracell is found to be 1 = 308 minutes, and the
with an agency to determine if one of the two models
sample standard deviation is 1 = 84 minutes. The
gets a higher average performance rating by the
results for the Energizer batteries are 2 = 254 minutes
professional photographers, or whether the average
and 2 = 67 minutes. Is there evidence to substantiate
performance ratings of these two cameras are not
Duracells claim that their batteries last, on the average,
statistically different. The agency asks 60 different
at least 45 minutes longer than Energizer batteries of
professional photographers to rate one of the cameras
the same size? Use = 0.01.
(30 photographers rate each model). The ratings are
on a scale of 1 to 10. The average sample rating for
4. The following data represent the running times of Nikon is 8.5, and the standard deviation is 2.1. For the
films produced by two different motion picture Minolta sample, the mean is 7.8, and the standard
companies: deviation is 1.8. Is there a difference between the
average population ratings of the two cameras? Use
Company Time (in minutes) 0.05 level of significance.
A 102 68 98 109 92
7. Mark Pollard, financial consultant for Merrill Lynch,
B 81 165 97 143 92 78 114
Pierce, Fenner & Smith, Inc., is quoted in national
advertisements for Merrill Lynch as saying: Ive made
Test hypothesis that the average running time of
more money for clients by saying no than by saying
films produced by Company B exceeds the average
yes. Suppose that Mr. Pollard allowed you access to
running time of films produced by Company A by 10
his files so that you could conduct a statistical test of
minutes against the alternative that the difference is
the correctness of his statement. Suppose further that
more than 10 minutes. Use a 0.05 level of significance
you gathered a random sample of 15 clients to whom
and assume the distribution of times to be
Mr. Pollard said yes when presented with their
approximately normal and the population variances
investment proposals, and you found that the clients
are equal.
average gain on investments was 12% and the
5. Many companies that cater to teenagers have standard deviation was 2.5%. Suppose you gathered a
learned that young people respond to commercials random sample of 15 clients to whom Mr. Pollard said
that provide dance-beat music, adventure, and a fast no when asked about possible investments; the clients
pace, rather than words. In one test, a group of 128 were then offered other investments, which they
teenagers were shown commercials featuring rock consequently made. For this sample, you found that
music, and their purchasing frequency of the the average return was 13.5% and the standard
advertised products over the following month were deviation was 1%. Test Mr. Pollards claim at =
recorded as a single score for each person in the 0.025. Assume equal variances.
group. Then a group of 212 teenagers were shown
8. The manufacturers of compact disc players want to
commercials for the same products, but with the
test whether a small price reduction is enough to
music replaced by verbal persuasion. The purchase
increase sales of their product. Randomly chosen data
frequency scores of this group were computed as well.
on 15 weekly sales totals at outlets in a given area
The results for the music group were = 23.5 and =
before the price reduction show a sample mean of
12.2; and the results for the verbal group were =
$6,598 and a sample standard deviation of $844. A
18.0 and = 10.5. Assume that the two groups were
random sample of 12 weekly sales totals after the small
randomly selected from the entire teenager consumer
price reduction gives a sample mean of $6,870 and a
population. Using the = 0.01 level of significance,
sample standard deviation of $699. Is there evidence
test the null hypothesis that both methods are equally
that a small price reduction is enough to increase sales
of compact disc players? Assume equal variances.

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