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Chapter
Eleven
McGraw-Hill/Irwin
© 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.
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Chapter Eleven
Two-Sample Tests of Hypothesis
GOALS
When you have completed this chapter, you will be able to:
TWO
Conduct a test of hypothesis regarding the difference in two
population proportions.
THREE
Conduct a test of hypothesis about the mean difference between
paired or dependent observations.
ONE
Conduct a test of hypothesis about the difference between two
independent population means.
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Chapter Eleven continued
Two Sample Tests of Hypothesis
GOALS
When you have completed this chapter, you will be able to:
FOUR
Understand the difference between dependent and
independent samples.
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Comparing two populations
Does the
distribution of the
differences in sample
means have a
mean of 0?
Comparing two populations
If both samples
contain at least 30
observations we use
the z distribution as
the test statistic.
No assumptions about the
shape of the populations
are required.
The samples are
from independent
populations.
The formula for
computing the
value of z is:
2
2
2
1
2
1
2 1
n
s
n
s
X X
z
+
÷
=
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EXAMPLE 1

with a standard deviation
of $7,000 for a sample of
35 households. At the .01
significance level can we
conclude the mean income
i n Br adf or d i s mor e?
T w o c i t i e s ,
Bradford and Kane
are separated only
by the Conewango
River. There is
c o m p e t i t i o n
between the two
cities. The local
paper recently reported that
the mean household income
in Bradford is $38,000 with
a standard deviation of
$6,000 for a sample of 40
househol ds . The same
article reported the mean
income in Kane is $35,000
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Example 1 continued
Step 2
State the level of significance.
The .01 significance level is
stated in the problem.
Step 3
Find the appropriate test
statistic. Because both
samples are more than 30, we
can use z as the test statistic.
Step 1
State the null and
alternate hypotheses.
H
0
: µB < µK
H
1
: µB > µK
Step 4
State the decision rule.
The null hypothesis is
rejected if z is greater
than 2.33 or p < .01.
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Example 1 continued
98 . 1
35
) 000 , 7 ($
40
) 000 , 6 ($
000 , 35 $ 000 , 38 $
2 2
=
+
÷
= z
Step 5: Compute the value of z and make a decision.
The p(z > 1.98)
is .0239 for a
one-tailed test
of significance.
Because the computed Z of 1.98
< critical Z of 2.33, the p-value of
.0239 > o of .01, the decision is
to not reject the null hypothesis.
We cannot conclude that the mean
household income in Bradford is
larger.
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2 1
2 1
n n
X X
p
c
+
+
=
Two Sample Tests of Proportions investigate
whether two samples came from populations with an
equal proportion of successes.
The two samples
are pooled using
the following
formula.
where X
1
and X
2
refer to
the number of successes
in the respective samples
of n
1
and n
2
.
The value of the test
statistic is computed from
the following formula.
2 1
2 1
) 1 ( ) 1 (
n
p p
n
p p
p p
z
c c c c
÷
+
÷
÷
=
where X
1
and X
2
refer to the
number of successes in the
respective samples of n
1

and n
2
.
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Example 2
A r e u n m a r r i e d
workers more likely
to be absent from
work than married
workers? A sample of
250 married workers
showed 22 missed
more than 5 days last
year, while a sample
of 300 unmar ri ed
w o r k e r s
showed 35 missed more
than five days. Use a .05
significance level.
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Example 2 continued
The null and the alternate hypotheses
H
0
: t
U
< t
M
H
1
: t
U
> t
M



The null hypothesis is
rejected if the computed
value of z is greater than
1.65 or the p-value < .05.
The pooled proportion
250 300
22 35
+
+
=
c
p
= .1036
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Example 2 continued
10 . 1
250
) 1036 . 1 ( 1036 .
300
) 1036 . 1 ( 1036 .
250
22
300
35
=
÷
+
÷
÷
= z
The p(z > 1.10)
= .136 for a
one-tailed test
of significance.
Because a calculated z of 1.10 <
a critical z of 1.96, p of .136 > o
of .05, the null hypothesis is not
rejected. We cannot conclude
that a higher proportion of
unmarried workers miss more
days in a year than the married
workers.
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Small Sample Tests of Means
The required assumptions
1. Both populations must follow
the normal distribution.
2. The populations must have
equal standard deviations.
3. The samples are from
independent populations.
Small Sample Tests of Means
The t distribution is used as the test statistic if one or
more of the samples have less than 30 observations.
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Small sample test of means
continued
2
) 1 ( ) 1 (
2 1
2
2 2
2
1 1
2
÷ +
÷ + ÷
=
n n
s n s n
s
p
|
|
.
|

\
|
+
÷
=
2 1
2
2 1
1 1
n n
s
X X
t
p
Step Two: Determine the value of t from the
following formula.
Finding the value of the test statistic requires two steps.
Step One: Pool the
sample standard
deviations.
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Example 3
A recent EPA study
compared the highway
fuel economy of
domestic and imported
passenger cars. A
sample of 15 domestic
cars revealed a mean of
33.7 mpg with a standard
deviation of 2.4 mpg.
A sample of 12 imported
cars revealed a mean of
35.7 mpg with a standard
deviation of 3.9. At the
.05 significance level can
the EPA conclude that the
mpg is higher on the
imported cars?
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Example 3 continued
Step 1
State the null and
alternate hypotheses.
H
0
: µ
D
> µ
I

H
1
: µ
D
< µ
I
Step 2
State the level of
significance. The .05
significance level is
stated in the problem.
Step 3
Find the appropriate test
statistic. Both samples
are less than 30, so we
use the t distribution.
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Example 3 continued
918 . 9
2 12 15
) 9 . 3 )( 1 12 ( ) 4 . 2 )( 1 15 (
2
) )( 1 ( ) )( 1 (
2 2
2 1
2
2 2
2
1 1 2
=
÷ +
÷ + ÷
=
÷ +
÷ + ÷
=
n n
s n s n
s
p
Step 4
The decision rule is to reject
H
0
if t<-1.708 or if p-value
< .05. There are n-1 or 25
degrees of freedom.
Step 5
We compute the
pooled variance.
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Example 3 continued
640 . 1
12
1
15
1
312 . 8
7 . 35 7 . 33
1 1
2 1
2
2 1
÷ =
|
.
|

\
|
+
÷
=
|
|
.
|

\
|
+
÷
=
n n
s
X X
t
p
We compute the value of t as follows.
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Since a computed z of –1.64
> critical z of –1.71, the p-
value of .0567 > o of .05, H
0

is not rejected. There is
insufficient sample evidence
to claim a higher mpg on the
imported cars.
P(t < -1.64) =
.0567 for a one-
tailed t-test.
Example 3 continued
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Hypothesis Testing Involving Paired Observations
Dependent samples are
samples that are paired or
related in some fashion.
Independent samples
are samples that are not
related in any way.
If you wished to buy a car you would look
at the same car at two (or more) different
dealerships and compare the prices.
If you wished to measure
the effectiveness of a new
diet you would weigh the
dieters at the start and at
the finish of the program.
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Hypothesis Testing Involving Paired
Observations
t
d
s n
d
=
/
d
s
d
Use the following test when the samples are
dependent:




where is the mean of the differences
is the standard deviation of the differences
n is the number of pairs (differences)

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EXAMPLE 4
An independent testing
agency is comparing the
daily rental cost for
renting a compact car
from Hertz and Avis. A
random sample of eight
cities revealed the
following information.
At the .05 significance
level can the testing
agency conclude that
there is a difference in
the rental charged?
City Hertz
($)
Avis ($)
Atlanta 42 40
Chicago 56 52
Cleveland 45 43
Denver 48 48
Honolulu 37 32
Kansas City 45 48
Miami 41 39
Seattle 46 50
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Example 4 continued
Step 4
H
0
is rejected if
t < -2.365 or t > 2.365;
or if p-value < .05.
We use the t distribution with
n-1 or 7 degrees of freedom.
Step 2
The stated
significance
level is .05.
Step 3
The appropriate
test statistic is the
paired t-test.
Step 1
H
o
: µ
d
= 0
H
1
: µ
d
= 0
Step 5
Perform the
calculations and make
a decision.
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Example 4 continued
City Hertz Avis d d
2

Atlanta 42 40 2 4
Chicago 56 52 4 16
Cleveland 45 43 2 4
Denver 48 48 0 0
Honolulu 37 32 5 25
Kansas City 45 48 -3 9
Miami 41 39 2 4
Seattle 46 50 -4 16
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Example 4 continued

00 . 1
8
0 . 8
= =
E
=
n
d
d
( )
1623 . 3
1 8
8
8
78
1
2
2
2
=
÷
÷
=
÷
E
÷ E
=
n
n
d
d
s
d
894 . 0
8 1623 . 3
00 . 1
= = =
n s
d
t
d
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Example 4 continued
P(t>.894) = .20 for a
one-tailed t-test at 7
degrees of freedom.
Because 0.894 is less
than the critical value,
the p-value of .20 > a of
.05, do not reject the
null hypothesis. There
is no difference in the
mean amount charged
by Hertz and Avis.
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Advantage of dependent samples:
Reduction in variation in the sampling distribution
Disadvantage of
dependent samples:
Degrees of freedom
are halved
Comparing dependent and independent samples
The same
subjects
measured at two
different points
in time.
Two types of dependent samples
Matched or
paired
observations