Inferential Statistics

Tests of Differences Tests of Relationship

 Identify: Independent Variable

Dependent Variable &  Predict an output
Levels of treatment  Only see if there is a relation
 How many groups?

1 2 3 or more Relations Predict

What kind of variables ?

How many independent variable?

Dependent t-test Independent t-test ANOVA ( F-test )
Nominal Ordinal
or Paired t-test Interval or Ratio 1 2 or more

Pearson Product Simple Linear Multiple Regression

Chi-Square test of Spearman-Rank Moment Coefficient of Regression Analysis Analysis
Independent Order Correlation Correlation ( Pearson r)

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 Formula for Tests of Differences.

1. Dependent t-test (also called the paired t-test or paired-samples t-test ) is used when there is only one group with two sets of data to be compared.
or we are interested in the difference between two variables for the same subject.

a. Degrees of Freedom df =n−1

b. Formula

2. Independent t-test, also called the two sample t-test, independent-samples t-test or student's t-test, is an inferential statistical test that determines whether there
is a statistically significant difference between the means in two unrelated groups or two different groups.

a. Degrees of Freedom df =(n1−n2 )−1

b. Formula

z−test

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 A z-test is used for testing the mean of a population versus a standard, or comparing the means of two populations, with large (n ≥ 30) samples whether
you know the population standard deviation or not. It is also used for testing the proportion of some characteristic versus a standard proportion, or comparing the
proportions of two populations.

Example: Comparing the average engineering salaries of men versus women.

Example: Comparing the fraction defectives from 2 production lines.

t−test

A t-test is used for testing the mean of one population against a standard or comparing the means of two populations if you do not know the populations’
standard deviation and when you have a limited sample (n < 30). If you know the populations’ standard deviation, you may use a z-test.

Example: Measuring the average diameter of shafts from a certain machine when you have a small sample.

3. F-test or ANOVA is a method of testing the equality of three or more population means by analyzing sample variances.

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 a. Degrees of Freedom df =df between∧¿
df within

b. Formula

Source of Sum of Squares Degrees of Mean Square F Value

Variance SS Freedom MS Tabular Value Computed F value
df
Between
Groups
Within
Groups

Total

Formula for Tests of Relationships.

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1. Chi – Square is commonly used for testing relationships between categorical variables whether there is a significant association between these
two variables. It is also a test that measures how expectations compare to actual observed data (or model results).

For example, in an election survey, voters might be classified by gender (male or female) and voting preference
(Democrat, Republican, or Independent). We could use a chi-square test for independence to determine whether gender is
related to voting preference.

a. Degrees of Freedom df =( row−1 )∗(column−1)

2 ∑ (O−E)2
b. Formula X =
E X 2 = chi -square test
O= observed frequencies

E = expected frequencies

2. Spearman Rank Order Correlation  is often used to evaluate relationships involving ordinal variables. It measures the strength and
direction of association between two ranked variables.

There are two methods to calculate Spearman's correlation depending on whether:

(1) your data does not have tied ranks. The formula for when there are no tied ranks is:

where di = difference in paired ranks and n = number of cases.

(2) your data has tied ranks. The formula to use when there are tied ranks is:
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 where i = paired score.

3. Pearson Product Moment Coefficient of Correlation. It is used to measures the strength of relationship ( degree of relationship) between variables.
a. Degrees of Freedom df =n−2 where n= number of pairs
b. Formula

Formula for Tests of Prediction Models  ( Prediction and observe what happens.)

Regression Analysis --- used to identify the strength of the effect that the independent variable(s) have on a dependent variable(s).
There are three major uses for regression analysis;
a. determining the strength of predictors,
b. forecasting an effect, and
c. trend forecasting.

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1. Simple Linear Regression Analysis . It is used to show or predict the relationship between two variables or factors. The factor that is being predicted is
called the dependent variable while the factor that is used to predict the value of the dependent variable is called the independent variable.

a. Formula:
y=a+bx
Where;
y=dependent variable
x=independent variable

2. Multiple Regression Analysis is a powerful technique used for predicting the unknown value of a variable from the known value of two
or more variables- also called the predictors.

For example, if you're doing a multiple regression to try to predict blood pressure (the dependent variable) from independent variables
such as height, weight, age, gender and hours of exercise per week.

a. Formula y=b0 +b1 x 1+b 2 x 2+…+¿ b x

n n ¿

Where;
y=dependent variable
x=independent variable