HYPOTHESIS TESTS FOR DIFFERENCE BETWEEN TWO MEANS

12.1 TESTS CONCERNING TWO MEANS

Ho Value of test statistic HA Critical region

μ1−μ 2=δ σ 1 and σ 2 known μ1−μ 2> δ Reject H0 if z ≥ zα

( x́ 1−x́ 2 )−δ μ1−μ 2< δ Reject H0 if z ≤−z α
z= μ1−μ 2 ≠ δ Reject H0 if z ≥ z α / 2 or
σ 21 σ 22

μ1−μ 2=δ
√
σ 1 = σ 2 but unknown
+
n1 n2
μ1−μ 2> δ
z ≤−z α / 2

Reject H0 if t ≥ t α ,ν
( x́ 1−x́ 2) −δ μ1−μ 2< δ Reject H0 if t ≤−t α , ν
t= μ1−μ 2 ≠ δ Reject H0 if t ≥ t α / 2, ν and
1 1

where
sp
√ +
n 1 n2
t ≤−t α /2 , ν

where ν=n1 +n2 −2

2 ( n1−1 ) s 21+(n2 −1) s 22
s=
p
n1 +n 2−2
μ1−μ 2=δ σ 1 ≠ σ 2 but unknown μ1−μ 2> δ Reject H0 if t ≥ t α ,ν
( x́ 1−x́ 2) −δ μ1−μ 2< δ Reject H0 if t ≤−t α , ν
t= μ1−μ 2 ≠ δ Reject H0 if t ≥ t α / 2, ν and
s12 s 22
√ +
n1 n2
t ≤−t α /2 , ν
where
s s 2

ν=
( n1
12

2
+
n2
22
) 2
( s 12 / n1 ) + ( s22 / n2 )
n1 −1 n2 −1
μ1=mean of population 1 s1=standard deviation of sample 1
μ2=mean of population 2 s2=standard deviation of sample 2
σ 1 =standard deviation of population 1 δ =hypothesized difference of μ1 and μ2
σ 2=standard deviation of population 2 s2p=pooled variance
x́ 1=mean of sample taken from population 1 ν=degrees of freedom
x́ 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 developed to x́ 325 hrs 295 hrs
help system analysts in developing computer based s 40 hrs 44 hrs
information systems. The objective of the new software
package is to reduce the time required to design, develop, 2. Independent random samples from normal distributions
and implement an information system. A random sample of with unequal variances of auditor fees when an audit
20 analysts was chosen and each analyst was given resulted in (1) a lawsuit or (2) no lawsuit gave the
specifications for a hypothetical information system. Ten following results. Test to see whether the mean fee when
analysts used the current technology while the other ten lawsuit occurs is equal or unequal to the mean fee when no
used the new software package. Use a 0.05 level of lawsuit occurs. Use 0.05 for the level of significance.
significance. The following data were revealed:
Current New Software 1 1 1 1
Technology Package Lawsuit 17 5 7 9
1 1 5 3
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 HYPOTHESIS TESTS FOR DIFFERENCE BETWEEN TWO MEANS
No
9 5 3 4 3 6 4 7 4
Lawsuit
3. Suppose that the makers of Duracell batteries want to
prove that their size AA battery lasts an average of at least
45 minutes longer than Duracell’s main competitors, the
Energizer. Two independent random samples of 100
batteries of each kind are selected, and the batteries are run
continuously until they are no longer operational. The
sample average life for Duracell is found to be x́ 1=308
minutes, and the sample standard deviation is s1=84
minutes. The results for the Energizer batteries are x́ 2=254
minutes and s2=67 minutes. Is there evidence to
substantiate Duracell’s claim that their batteries last, on the
average, at least 45 minutes longer than Energizer batteries
of the same size? Use α =0.01.
4. The following data represent the running times of films
produced by two different motion picture companies:
Company Time (in minutes)
A 102 68 98 109 92
B 81 165 97 143 92 78 114
Test hypothesis that the average running time of films
produced by Company B exceeds the average running time
of films produced by Company A by 10 minutes against
the alternative that the difference is more than 10 minutes.
Use a 0.05 level of significance and assume the
distribution of times to be approximately normal and the
population variances are equal.
5. Many companies that cater to teenagers have learned
that young people respond to commercials that provide
dance-beat music, adventure, and a fast pace, rather than
words. In one test, a group of 128 teenagers were shown
commercials featuring rock music, and their purchasing
frequency of the advertised products over the following
month were recorded as a single score for each person in
the group. Then a group of 212 teenagers were shown
commercials for the same products, but with the music
replaced by verbal persuasion. The purchase frequency
scores of this group were computed as well. The results for
the music group were x́=23.5 and s=12.2; and the
results for the verbal group were x́=18.0 and s=10.5.
Assume that the two groups were randomly selected from
the entire teenager consumer population. Using the
α =0.01 level of significance, test the null hypothesis that
both methods are equally effective versus the alternative
hypothesis that they are not equally effective.
6. The photography department of a glamour magazine
needs to choose a camera. Of the two models the
department is considering, one is made by Nikon and one
by Minolta. The department contracts with an agency to
determine if one of the two models gets a higher average
performance rating by the professional photographers, or
whether the average performance ratings of these two
cameras are not statistically different. The agency asks 60
different professional photographers to rate one of the
cameras (30 photographers rate each model). The ratings
are on a scale of 1 to 10. The average sample rating for
Nikon is 8.5, and the standard deviation is 2.1. For the
Minolta sample, the mean is 7.8, and the standard deviation
is 1.8. Is there a difference between the average population
ratings of the two cameras? Use 0.05 level of significance.
7. Mark Pollard, financial consultant for Merrill Lynch,
Pierce, Fenner & Smith, Inc., is quoted in national
advertisements for Merrill Lynch as saying: “I’ve made
more money for clients by saying no than by saying yes.”
Suppose that Mr. Pollard allowed you access to his files so
that you could conduct a statistical test of the correctness of
his statement. Suppose further that you gathered a random
sample of 15 clients to whom Mr. Pollard said yes when
presented with their investment proposals, and you found
that the clients’ average gain on investments was 12% and
the standard deviation was 2.5%. Suppose you gathered a
random sample of 15 clients to whom Mr. Pollard said no
when asked about possible investments; the clients were
then offered other investments, which they consequently
made. For this sample, you found that the average return
was 13.5% and the standard deviation was 1%. Test Mr.
Pollard’s claim at α =0.025 . Assume equal variances.
8. The manufacturers of compact disc players want to test
whether a small price reduction is enough to increase sales
of their product. Randomly chosen data on 15 weekly sales
totals at outlets in a given area before the price reduction
show a sample mean of $6,598 and a sample standard
deviation of $844. A random sample of 12 weekly sales
totals after the small price reduction gives a sample mean of
$6,870 and a sample standard deviation of $699. Is there
evidence that a small price reduction is enough to increase
sales of compact disc players? Assume unequal variances.
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