HYPOTHESIS TESTING:

INDEPENDENT SAMPLE
T-TEST
INDEPENDENT SAMPLE T-TEST
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 EXAMPLE
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 EXAMPLE
Previous midterm examination in Statistics showed an average score obtained by students
in Section A and B are the same. The department chair randomly selects two sections of
Statistics classes to record the performance of the students. The following statistics were
shown below.

Sections Number of Means Variances

STudents
A 15 85.2 10.40
B 14 86.1 20.99

Is there an evidence to say by the department chair that the scores in Sections A and Bare
the same? Use 5% level of significance.
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 EXAMPLE
Given the data and some descriptive statistics below, can we say that the
borrower’s transaction cost in pesos is higher in formal lending institutions that
in non-formal lending institutions? Use 1% level of significance.

Type of Lending Institution

Formal Non-Formal
Average Costs 127.50 61.90
Variances 64.19 150.06
Sample Size 20 29
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