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MODULE 2.3
NOVEMBER 8 – 16, 2020
Learning Objectives
After completing this chapter, the students will able to:
o Discuss the procedures in the test of hypothesis of statistics.
o Test the difference between two large samples, using z test.
o Test the difference between two means for small independent samples.
o Test the difference between two means paired samples.
o Test the difference between two proportions.
o Differentiate the tests of differences.
o Apply the formulas on hypothesis testing in different fields.
Chapter Outline
9.1 Introduction
9.2 Testing the Difference Two Means: Large Independent Samples
9.3 Testing the Difference Two Means: Small Independent Samples
9.4 Testing the Difference Two Means: PairedSamples
9.5 Testing the Difference Two Proportions
…….
231
9.1 Introduction
In this chapter we are going to deal with the procedures for making inferences
abouttwo populations. When wewant tocompare two populations we need two samples,
one from each. Two basic kinds of samples can be used the independent anddependent
samples. The independence and dependence of a sample is determined by the sources
used for the data. Asourcecan be an object, a person, or something that yield a part of
data. If two unrelated sets of the sources are used, one set of each population, we have
independent sampling. If same set of sources are paired or matched in some way to
obtain the data representing both populations, we have dependent sampling.
When comparing the means of two populations, we usually consider the difference
between their means, μ1−μ 2 . The inferences will make about μ1−μ 2 will based on the
difference between the observed sample means, X́ 1 − X́ 2. This observed difference belongs
to a sampling distribution.
If two independent samples are drawn randomly from a large populations with
means μ1 and μ2 and variances σ 12andσ 22 , respectively. This normal approximation is
applicable for all samples sizes given that the populations involved are approximately
normal and the population variances σ 12 and σ 22 are known quantities.
Since the sampling distribution is approximately normal, we will use the z test in our
inferences. The formula for the z test for comparing two means from independent
populations will be determined by
X́ 1− X́ 2−( μ1−μ 2 )
z=
σ 21 σ 22 (Formula 9-1)
√ +
n1 n2
X́ 1− X́ 2−( μ1−μ 2 )
z=
s 21 s 22 (Formula 9-2)
√ +
n1 n 2
X́ =
∑X (Formula 3-1)
n
s= √∑ ¿¿ ¿ ¿ (Formula 4-5)
Since the computed z test is greater than the critical z value of at = 0.001
(3.471 > 1.645), we need to rejectthe null hypothesis.
Reject H0
0 +1.645 3.471
Step 6:Conclusion.
Since we reject the null hypothesis, we can conclude that there is enough
evidence to support the claim that the means are not equal. Hence, there is a
significant difference in the prices and the average price of townhouse in Quezon
City is higher than in Makati City.
Example 2: The operations manager of sales company wants to see whether there is a
significant difference in the ages of male and female customers. He selects a sample of 35
samples for each group. The ages are shown here. At α = 0.05, decide if there is enough
evidence to reject the claim of no difference in the ages of the two groups.
Male Female
X́ 1 = 27.3 X́ 2 = 28
s1 = 2.4 s2 = 3.1
n1 = 35 n2 = 35
Solution:
Step 1:State the hypothesis and identify the claim.
H0: 1 =2(claim)
(There is no significant difference between the average ages of male and
female customers.
H1:12(claim
(There is significant difference between the average ages of male and female
customers.)
Step 2:The level of significance is α =0.05 .
Step 3:The critical value is +1.960 and -1.960 (two-tailed test).
Step 4:Compute the test value.
X́ 1− X́ 2−( μ1−μ 2 ) (27.3−28)−0
z= = =−1.056
s 21 s 22 ( 2.4 )2 ( 3.1 )2
√ +
n1 n 2 √ 35
+
35
Step 6:Conclusion.
There is no evidence of significant difference between the average ages of male
and female customers.
Student’s t test (or t test for independent samples)of difference of means is used to
test the significance of the difference between two samples means. This can be used to
compare the sample means between two independent samples. It is a parametric test
which assumes a normal distribution and it is used for smaller samples (i.e. the sample
size should be less than 30).
The t distribution was developed by G.W Gosset in 1908 and published the
pseudonym Student. As a result, the t distribution is also called student’s t distribution.
The number of the degrees of freedom in the test is the total number of items sampled
minus the number of sample groups or n1 + n2– 2.
Private Public
X́ 1 = ₱16,400 X́ 2 = ₱15,170
s1 = ₱700 s2 = ₱800
n1 = 15 n2 = 9
Solution:
Step 1:State the null hypothesis and identify the claim.
H0: 1 = 2
(There is no significant difference between the monthly salaries of private and
public elementary teachers.)
H1:12(claim)
(There is a significant difference between the monthly salaries of private and
public elementary teachers.)
√ ( n 1−1 ) s 1+ ( n2−1 ) s2 1 1
n1 +n2−1 √ +
n1 n2
(16,400−15,170 )−0
¿
√( 15−1 ) (700)2+( 9−1 ) ¿ ¿ ¿ ¿
Step 5:Decision Rule.
Reject H0
Since the absolute value of the computed t is greater than the absolute value of
the t critical value, therefore we reject the null hypothesis (/+3.953/≥/±2.819/).
Step 6:Conclusion.
There is enough evidence to support the claim that the salaries paid to elementary
teachers employed in private schools are different with public schools teachers.
Example 2: A budget head for SSS Sales Inc. would like to compare the daily travel
expenses for the sales staff and the audit staff. He collected the following sample
information.
Sales Staff 105 120 140 160 100 170 160 140 130 16 180 190
0
Audit Staff 130 50 90 80 70 125 180 80 110
At 0.05 significance level, can he conclude that the mean daily expenses of sales staff are
greater than the audit staff?
Solution:
Step 1:State the null hypothesis and identify the claim.
H0:1 ≤ 2
(The daily travel expenses of sales staff is not greater than and the audit staff.)
H1: 1>2 (claim)
(The daily travel expenses of sales staff is greater than and the audit staff.)
Step 2:The level of significance is α =0.05 .
Step 3:Determine the critical region. (one-tailed test and refer to Table B)
df = n1 + n2 – 2 = 12 + 9 – 2 = 19 and tcritical = 1.729
Step 4: Compute the t value.
Before we can compute for the t test for two independent samples, we need to
obtain the sample means and sample variances of the two groups first using
Formula 3-1 and Formula 4-4, and then apply Formula 9-4 to obtain the value of
t test.
X1 X2 (X1- X́ 1 ¿2 (X2- X́ 2 ¿2
105 130 1,701.5625 802.7778
120 50 689.0625 2,669.4444
140 90 39.0625 136.1111
160 80 189.0625 469.4444
100 70 2,139.0625 1,002.7778
170 125 564.0625 544.4444
160 180 189.0625 6,136.1111
140 80 39.0625 469.4444
130 110 264.0625 69.4444
160 189.0625
180 1,139.0625
190 1,914.0625
∑ X 1=1,755 ∑ X 2=915 ∑ ¿¿ ∑ ¿¿ ¿
X́ 1 =
∑ X 1 = 1,755 =146.25
n 12
X́ 2 =
∑ X 2 = 915 =101.67
n 9
s21=∑ ¿ ¿¿
s22=∑ ¿ ¿¿
√
( n 1−1 ) s 1+ ( n2−1 ) s2 1 1
n1 +n2−1
+
√
n1 n2
(146.25−101.67 )−0
¿ =3.015
( 12−1 ) ( 823.30 ) + ( 9−1 )( 1,537.5 ) 1 1
√ 12+9−2 √ +
12 9
Step 5:Decision Rule.
Reject H0
0 1.7293.015
Since the computed t value of 3.015 is greater than the t critical value of 1.729
at level of significance of 0.05, the statistical decision is to reject the null
hypothesis.
Step 6: Conclusion.
There is enough evidence to support the claim that the daily travel expence of
sales staff is greater than the audit staff.
Paired sample t testis a statistical technique that is used to compare two population
means in the case of two samples that are correlated. It isused in “before-and-after”
studies, or when the samples are matched pairs, or the case is a control study. For
instance, if a company gives training its employees and the company wants to know
whether or not the training hadany impact on the performance of the employees, the
paired sample t test can be applied. By using the paired sample t test, the company can
statistically conclude whether or not training has improved the performance of the
employee.
Example: the management of Resale Furniture, a change of second hand furniture stores
in Metro Manila, designed an incentive plan for salespeople. To evaluate this innovative
incentive plan, 10 salespeople were selected at random, and their weekly incomes before
and after the incentive plan were recorded.
Salesperson 1 2 3 4 5 6 7 8 9 10
Before ₱2,000 3,000 2,500 3,100 1,900 1,750 2,300 3,210 2,340 1,870
After ₱3,500 4,120 3,800 4,200 1,820 1,600 3,400 1,900 2,340 3,290
Was there a significant increase in the typical salesperson’s weekly income due to the
innovative incentive plan? Use the 0.05 significance level.
Solution:
Step 1:State the null hypothesis and identify the claim.
H0: D ≤ 0
(The income after the incentive plan is not greater than before the incentive
plan.)
H1: D> 0 (claim)
(The income after the incentive plan is greater than before the incentive plan.)
Step 2:The level of significance is α =0.05 .
Step 3:Determine the critical region. (one-tailed test and refer to Table B)
df = n – 1 = 10 - 1 = 9 and tcritical = 1.833
Step 4:Compute the t value for paired samples.
Before we can compute for the t value we need to obtain the differences.
D=
∑ D = 6,000 =600
n 10
s D= √∑ D 2−¿ ¿¿ ¿ ¿
Reject H 0
0 1.833 2.041
Since the computed t value of 2.041 is greater than the t critical value of 1.833 at
level of significance of 0.05, the statistical decision is to reject the null hypothesis.
Step 6: Conclusion
Since we reject the H 0, we can conclude that there is enough evidence to support
the claim that the income after the incentive plan is greater than before the
incentive plan.
This section deals with the procedures for drawing inferences about the differences
between populations whose data are nominal. The number of application for these
techniques is almost unlimited. For instance, operations manager compare defective rates
between two manufacturing machines. A pharmacist test new drugs by comparing the
new and old. Marketing specialist compare market shares before and after advertising
campaigns thru television.
When the data are nominal in nature the only way to make a meaningful
computation is by computing the occurrence of each type of outcome and compute the
proportions. Thus the parameter to be tested and estimated in this section is difference
between two population proportions. The formula for the z test for comparing two
proportions is
( ^P1− P^ 2 ) −( P1−P2 )
z=
√ pq
´
( n1 + n1 )
1 2
Example 1: In a sample of 240 store costumer, 72 used visa card. In another sample of
190, 76 used a MasterCard. At a = 0.10, is there a difference in the proportion of people
who used each type of credit card?
Solution:
Let ^p1 be the proportion of visa card users, and
^p2be the proportion of MasterCard users.
Then
^p X 72 1
1=¿ = =0.30 ¿
n1 240
X 2 76
^p2= = =0.40
n2 190
X1+ X2 72+76 148
ṕ= = = =0.344
n1 +n 2 240+190 430
q́=1− ṕ=1−0.344=0.656
Now, follow the steps in hypothesis testing.
Reject
H0
-2.168 -1.645 0 +1.645
Since the absolute value of the computed z value of 2.168 is greater than the z
critical value of 1.645 at level of significance of 0.10, the statistical decision is to
reject the null hypothesis.
Step 6: Conclusion
There is enough evidence to support the claim that there is significant difference
in the proportions of visa and MasterCard usage.
Example 2: In a sample of 150 Ilocanos, 65% wished that they were rich. In a sample of
260 Visayas , 60% wished that they were rich. At α =0.05, is there a difference in the
proportions? Find the 95% confidence interval for the difference of two proportions.
Solution:
Since the statistics are given in percentages, ^p1=65 %=0.65∧^p2=60 %=0.60.
To compute ṕ, one must determine the values of X 1 and X 2 .
X 1 =^p 1 n1 =0.65 (150 )=97.5
X 1 + X 2 97.5+156
ṕ= = =0.618
n1 +n 2 150+260
q́=1− ṕ=1−0.618=0.382
Do not reject H 0
Since the compute z value of 1.004 is less than the z critical value of 1.960 at
level of significance of 0.05, the statistical decision is not to reject the null
hypothesis.
Step 6: Conclusion.
There is no enough evidence to support the claim that there are significant
difference in the proportions of Ilocanos and Visayas who wished they were rich.
Name_____________________________Date: ______________Score:___________
Section Exercise 9.2
1. A survey found that the average hotel room rate in Luzon is ₱2,300and the average
room rate in Mindanao is ₱2,150. Assume that the data were obtained from two samples
of 75 hotels in Luzon and 80 hotels in Mindanao and the standard deviations were ₱250
and ₱215, respectively. At α =0.05 can it be concluded that there is significant
difference in rate?
Solution:
Step 1: State the hypotheses.
H 0 :_______________________________________________________________
_________________________________________________________________
H 1 :_______________________________________________________________
________________________________________________________________
Step 2: The level of significance and the critical region. a=_____ and z critical=¿¿ _______.
Step 3: Compute the value of z test. z computed =¿__________.
X́ 1 =¿_________ σ 12=¿_________ n1 =¿__________
X́ 2 =¿_________ σ 22=¿_________ n2 =¿__________
Step 5:Conclusion._______________________________________________________
2. The average credit card dept for a recent year was ₱43,100. Three years earlier the
average credit card dept was ₱ 41,890. Assume sample sizes of 50 were used and the
standard deviations of both samples are ₱7,810. Is there enough evidence to believe that
the average credit card dept has increased? Useα =0.01.
Solution:
Step 1: State the hypothesis
H 0 :______________________________________________________________
_________________________________________________________________
H 1 :______________________________________________________________
_________________________________________________________________
Step 2: The level of significance and critical region. α=________ and zcritical ______________.
Step 3: Compute for the value of z test. z computed =¿__________.
X́ 1 =¿_________ σ 12=¿_________ n1 =¿__________
2
X́ 2 =¿_________ σ 2=¿_________ n2 =¿__________
Step 4: Decision rule.______________________________________________________
Step 5: Conclusion.________________________________________________________
Name_____________________________Date: ______________Score:___________
Section Exercises 9.3
1. Given a sample of n1 =18 from a population with s1=13.5 and an independent sample
ofn2 =28from another population with s2=11.8 what is the value of the t test statistic for
testing H 0 :μ 1=μ2 at α =0.01 if X́ 1 =64.2and X́ 2 =69.1?
Solution:
Step 1: State the hypotheses.
H 0 :_______________________________________________________________
_________________________________________________________________
H 1 :_______________________________________________________________
________________________________________________________________
Step 2: The level of significance and the critical region. a=_____ and t critical=¿¿ _______.
Step 3: Compute the value of t test. t computed =¿__________.
Step 4: Decision rule. ______________________________________________________
Step 5: Conclusion. _______________________________________________________
_________________________________________________________________
2. The mathematical Anxiety rating scale (MARS) measures an individual level of
mathematical anxiety on a scale from 25 (no anxiety) to 100 (highest anxiety). A
group of researcher administered the MARS to 50 students. One of the objectives of
the study was to determine if there is a difference between levels of mathematical
anxiety experience by male and female computer science students.
Gende X́ s n
r
Male 34.8 10.6 24
Femal 47.2 12.4 26
e
At α =0.05level of significance, is there evidence of a difference of the mean
mathematical anxiety experienced by male and female computer science students?
Solution:
Step 1: State the hypotheses.
H 0 :_______________________________________________________________
_________________________________________________________________
H 1 :_______________________________________________________________
________________________________________________________________
Step 2: The level of significance and the critical region. a=_____ and t critical=¿¿ _______.
Step 3: Compute the value of t test. t computed =¿__________.
Step 4: Decision rule. ______________________________________________________
Step 5: Conclusion. _______________________________________________________
Name_____________________________Date: ______________Score:___________
Section Exercise 9.3
3. The economist wants to compare the hourly rates charged by automobile mechanics in
two major cities in Metro Manila. He randomly selects auto repair facilitiesfrom both
cities and records their hourly rates (in pesos). The data is as follows:
City of Manila 190 140 130 212 205 168 135 180
Quezon City 179 150 120 156 175 160 180 200
Is there sufficient evidence to indicate the difference in the mean hourly rates from these
two cities, atα =0.10?
Solution:
Step 1: State the hypotheses.
H 0 :_______________________________________________________________
_________________________________________________________________
H 1 :_______________________________________________________________
________________________________________________________________
Step 2:The level of significance and the critical region. a =____,df = _____andt critical=¿¿ ___.
X1 X2 2
( X 1− X́ 1 ) ( X 2− X́ 2 )
2
Name_____________________________Date: ______________Score:___________
Section Exercise 9.4
1. As an aid for improving employees working habits, eight employees were randomly
selected to attend the seminar-workshop on the importance of work. The table shows
the number of workload done per week before and after the seminar-workshop. At
0.05, did attending the seminar-workshop increase the performance level of
employees?
Before 10 12 8 7 11 10 13 9
After 9 14 11 12 15 13 12 14
Solution:
2. The school director of SSC-R wants to determine if the gate point average (GPA) of
accountancy college students decreases during the last semester of their junior year. A
sample of 10 students selected. Their GPAs for the first and second semesters of their
junior years are:
1st Semester 90 88 93 96 86 85 92 84 97 92
2nd Semester 89 90 94 95 90 86 85 82 90 88
Using the 1% is significance level can the director conclude that the GPA of juniors
declined during their second semester?
Solution:
Step 1: State the hypotheses.
H 0 :_______________________________________________________________
_________________________________________________________________
H 1 :_______________________________________________________________
________________________________________________________________
Name_____________________________Date: ______________Score:___________
Step 2: The level of significance and the critical region. a=_____ and t critical=¿¿ _______.
Step 3: Compute the value of t test. D́ = ________ sD = _______ and tcomputed = _________.
Name_____________________________Date: ______________Score:___________
Section Exercise 9.5
1. A survey found that in a sample of 100 families, 37 owned cats. A survey done 5 years
ago found that in a sample of 80 families, 37 owned cats. At α =0.05has the proportion
of cat owners changed over the5-year period?
Solution:
Step 1: State the hypotheses.
H 0 :_______________________________________________________________
_________________________________________________________________
H 1 :_______________________________________________________________
________________________________________________________________
Step 2: The level of significance and the critical region. a=_____ and z critical=¿¿ _______.
Step 3: Compute the value of z test for proportions. z computed =¿__________.
p1 = ____________
^ ^p2 = _________
ṕ = _____________ q́ = _________
2. A study was designed to compare the smoking habits of married men with those
married women. A random sample of 240 men revealed that 180 smoked. A random
sample of 220 women indicate that 54 smoked. At the 0.01 significance level does the
evidence show that a higher proportion of men smoke?
Solution:
Step 1: State the hypotheses.
H 0 :_______________________________________________________________
_________________________________________________________________
H 1 :_______________________________________________________________
________________________________________________________________
Step 2: The level of significance and the critical region. a=_____ and z critical=¿¿ _______.
Step 3: Compute the value of z test for proportions. z computed =¿__________.
^p1= ____________ ^p2= _________
ṕ = _____________ q́ = _________