Chapter 10

Comparisons Involving Means

Estimation of the Difference between the Means of

Two Populations: Independent Samples
Hypothesis Tests about the Difference between the
Means of Two Populations: Independent Samples
Inferences about the Difference between the Means
of Two Populations: Matched Samples
Introduction to Analysis of Variance (ANOVA)
ANOVA: Testing for the Equality of k Population
Means
 ?
= 2
ANOVA 1
1
Estimation of the Difference Between the Means
of Two Populations: Independent Samples

Point Estimator of the Difference between the Means

of Two Populations
Sampling Distribution x1  x2
Interval Estimate of Large-Sample Case
Interval Estimate of Small-Sample Case

2
 Point Estimator of the Difference Between
the Means of Two Populations
Let 1 equal the mean of population 1 and 2 equal
the mean of population 2.
The difference between the two population means is
1 - 2.
To estimate 1 - 2, we will select a simple random
sample of size n1 from population 1 and a simple
random sample of size n2 from population 2.
Let x1 equal the mean of sample 1 and x2 equal the
mean of sample 2.
The point estimator of the difference between the
means of the populations 1 and 2 is x1  x2 .

3
 Sampling Distribution of x1  x2

n Properties of the Sampling Distribution of x1  x2

• Expected Value
E ( x1  x2 )  1   2

4
 Sampling Distribution of x1  x2
Properties of the Sampling Distribution of x1  x2
– Standard Deviation

12  22
 x1  x2  
n1 n2

where: 1 = standard deviation of population 1

2 = standard deviation of population 2
n1 = sample size from population 1
n2 = sample size from population 2

5
 Interval Estimate of 1 - 2:
Large-Sample Case (n1 > 30 and n2 > 30)

Interval Estimate with 1 and 2 Known

x1  x2  z / 2  x1  x2
where:
1 -  is the confidence coefficient (level).

6
 Interval Estimate of 1 - 2:
Large-Sample Case (n1 > 30 and n2 > 30)
n Interval Estimate with 1 and 2 Unknown

x1  x2  z / 2 sx1  x2

where:
s12 s22
sx1  x2  
n1 n2

7
 Example: Par, Inc.

Interval Estimate of 1 - 2: Large-Sample Case

Par, Inc. is a manufacturer of golf equipment and
has developed a new golf ball that has been designed
to provide “extra distance.” In a test of driving
distance using a mechanical driving device, a sample of
Par golf balls was compared with a sample of golf balls
made by Rap, Ltd., a competitor.
The sample statistics appear on the next slide.

8
 Example: Par, Inc.

Interval Estimate of 1 - 2: Large-Sample Case

– Sample Statistics

Sample #1 Sample #2
Par, Inc. Rap, Ltd.
Sample Size n1 = 120 balls n2 = 80 balls
Mean x1 = 235 yards x2 = 218 yards
Standard Dev. s1 = ___yards s2 =____ yards

9
 Example: Par, Inc.

Point Estimate of the Difference Between Two

Population Means
1 = mean distance for the population of
Par, Inc. golf balls
2 = mean distance for the population of
Rap, Ltd. golf balls

Point estimate of 1 - 2 = x1  x2 = 235 - 218 = 17 yards.

10
 Point Estimator of the Difference Between
the Means of Two Populations

Population 1 Population 2
Par, Inc. Golf Balls Rap, Ltd. Golf Balls
11 = mean driving 22 = mean driving
distance of Par distance of Rap
golf balls golf balls
1 – 2 = difference between
the mean distances
Simple random sample Simple random sample
of n11 Par golf balls of n22 Rap golf balls
x11 = sample mean distance x22 = sample mean distance
for sample of Par golf ball for sample of Rap golf ball
x1 - x2 = Point Estimate of 1 – 2

11
 Example: Par, Inc.

95% Confidence Interval Estimate of the Difference

Between Two Population Means: Large-Sample Case,
1 and 2 Unknown
Substituting the sample standard deviations for
the population standard deviation:
12  22 (15) 2 ( 20) 2
x1  x2  z / 2   17  1. 96 
n1 n2 120 80

= ___________ or 11.86 yards to 22.14 yards.

We are 95% confident that the difference between the
mean driving distances of Par, Inc. balls and Rap, Ltd.
balls lies in the interval of _______________ yards.

12
 Interval Estimate of 1 - 2:
Small-Sample Case (n1 < 30 and/or n2 < 30)
Interval Estimate with 2 Known (and equal)

x1  x2  z / 2  x1  x2
where:
1 1
 x1  x2   (  )
2
n1 n2

13
 Interval Estimate of 1 - 2:
Small-Sample Case (n1 < 30 and/or n2 < 30)

Interval Estimate with 2 Unknown (and assumed

equal)
x1  x2  t / 2 sx1  x2

where:
2 2
1 1 ( n  1) s  ( n  1) s
sx1  x2  s2 (  ) s2  1 1 2 2
n1 n2 n1  n2  2

and the degrees of freedom for the t-distribution is

n1+n2-2.

14
 Example: Specific Motors

Specific Motors of Detroit has developed a new

automobile known as the M car. 12 M cars and 8 J cars
(from Japan) were road tested to compare miles-per-
gallon (mpg) performance. The sample statistics are:

Sample #1 Sample #2
M Cars J Cars
Sample Size n1 = 12 cars n2 = 8 cars
Mean x1 = 29.8 mpg x2 = 27.3 mpg
Standard Deviation s1 = ____ mpg s2 = ____ mpg

15
 Example: Specific Motors

Point Estimate of the Difference Between Two

Population Means

1 = mean miles-per-gallon for the population of

M cars
2 = mean miles-per-gallon for the population of
J cars

Point estimate of 1 - 2 = x1  x2 = ________ = ___ mpg.

16
 Example: Specific Motors

95% Confidence Interval Estimate of the Difference

Between Two Population Means: Small-Sample Case
We will make the following assumptions:
– The miles per gallon rating must be normally
distributed for both the M car and the J car.
– The variance in the miles per gallon rating must
be the same for both the M car and the J car.

17
 Example: Specific Motors

n 95% Confidence Interval Estimate of the Difference

Between Two Population Means: Small-Sample Case
Using the t distribution with n1 + n2 - 2 = ___ degrees
of freedom, the appropriate t value is t.025 = ______.
We will use a weighted average of the two sample
variances as the pooled estimator of 2.

18
 Example: Specific Motors

95% Confidence Interval Estimate of the Difference

Between Two Population Means: Small-Sample Case
2 2 2 2
( n  1) s  ( n  1) s 11( 2 . 56)  7 (1. 81)
s2  1 1 2 2
  5. 28
n1  n2  2 12  8  2

2 1 1 1 1
x1  x2  t.025 s (  )  2. 5  2.101 5. 28(  )
n1 n2 12 8

= _____________, or .3 to 4.7 miles per gallon.

We are 95% confident that the difference between the
mean mpg ratings of the two car types is from .3 to
4.7 mpg (with the M car having the higher mpg).

19
 Hypothesis Tests About the Difference
between the Means of Two Populations:
Independent Samples
Hypotheses
H0: 1 - 2 < 0 H0: 1 - 2 > 0 H0: 1 - 2 = 0
Ha: 1 - 2 > 0 Ha: 1 - 2 < 0 Ha: 1 - 2  0

Test Statistic
Large-Sample Small-Sample
( x1  x2 )  ( 1   2 ) ( x1  x2 )  ( 1   2 )
z t
12 n1   22 n2 s2 (1 n1  1 n2 )

20
 Example: Par, Inc.

Hypothesis Tests About the Difference between the

Means of Two Populations: Large-Sample Case
Par, Inc. is a manufacturer of golf equipment and has
developed a new golf ball that has been designed to
provide “extra distance.” In a test of driving distance
using a mechanical driving device, a sample of Par
golf balls was compared with a sample of golf balls
made by Rap, Ltd., a competitor. The sample
statistics appear on the next slide.

21
 Example: Par, Inc.

Hypothesis Tests About the Difference Between the

Means of Two Populations: Large-Sample Case
– Sample Statistics

Sample #1 Sample #2
Par, Inc. Rap, Ltd.
Sample Size n1 = 120 balls n2 = 80 balls
Mean x1 = 235 yards x2 = 218 yards
Standard Dev. s1 = ____ yards s2 = ____ yards

22
 Example: Par, Inc.

Hypothesis Tests About the Difference Between the

Means of Two Populations: Large-Sample Case
Can we conclude, using a .01 level of
significance, that the mean driving distance of Par,
Inc. golf balls is greater than the mean driving
distance of Rap, Ltd. golf balls?

23
 Example: Par, Inc.

n Hypothesis Tests About the Difference Between the

Means of Two Populations: Large-Sample Case
1 = mean distance for the population of Par, Inc.
golf balls
2 = mean distance for the population of Rap, Ltd.
golf balls
• Hypotheses H0: 1 - 2 < 0
Ha: 1 - 2 > 0

24
 Example: Par, Inc.

Hypothesis Tests About the Difference Between the

Means of Two Populations: Large-Sample Case
– Rejection Rule

Reject H0 if z > ________

( x1  x2 )  ( 1   2 ) ( 235  218)  0 17
z    6. 49
1  2
2 2 2
(15) ( 20) 2 2. 62
 
n1 n2 120 80

25
 Example: Par, Inc.

n Hypothesis Tests About the Difference Between the

Means of Two Populations: Large-Sample Case
• Conclusion

Reject H0. We are at least 99% confident that the

mean driving distance of Par, Inc. golf balls is
greater than the mean driving distance of Rap,
Ltd. golf balls.

26
 Example: Specific Motors

Hypothesis Tests About the Difference Between the

Means of Two Populations: Small-Sample Case
Can we conclude, using a .05 level of
significance, that the miles-per-gallon (mpg)
performance of M cars is greater than the miles-per-
gallon performance of J cars?

27
 Example: Specific Motors

n Hypothesis Tests About the Difference Between the

Means of Two Populations: Small-Sample Case
1 = mean mpg for the population of M cars
2 = mean mpg for the population of J cars
• Hypotheses H0: 1 - 2 < 0
Ha: 1 - 2 > 0

28
 Example: Specific Motors

Hypothesis Tests About the Difference Between the

Means of Two Populations: Small-Sample Case
– Rejection Rule
Reject H0 if t > _______
(a = .05, d.f. = 18)
– Test Statistic ( x1  x2 )  ( 1   2 )
t
s2 (1 n1  1 n2 )

where: s 2  (n1  1)s12  (n2  1)s22

n1  n2  2

29
 Inference About the Difference between the
Means of Two Populations: Matched Samples

With a matched-sample design each sampled item

provides a pair of data values.
The matched-sample design can be referred to as
blocking.
This design often leads to a smaller sampling error
than the independent-sample design because
variation between sampled items is eliminated as a
source of sampling error.

30
 Example: Express Deliveries

Inference About the Difference between the Means of

Two Populations: Matched Samples
A Chicago-based firm has documents that must
be quickly distributed to district offices throughout
the U.S. The firm must decide between two delivery
services, UPX (United Parcel Express) and INTEX
(International Express), to transport its documents.
In testing the delivery times of the two services, the
firm sent two reports to a random sample of ten
district offices with one report carried by UPX and
the other report carried by INTEX.
Do the data that follow indicate a difference in
mean delivery times for the two services?
31
 Example: Express Deliveries

Delivery Time (Hours)

District Office UPX INTEX Difference
Seattle 32 25 7
Los Angeles 30 24 6
Boston 19 15 4
Cleveland 16 15 1
New York 15 13 2
Houston 18 15 3
Atlanta 14 15 -1
St. Louis 10 8 2
Milwaukee 7 9 -2
Denver 16 11 5
32
 Example: Express Deliveries

Inference About the Difference between the Means of

Two Populations: Matched Samples
Let d = the mean of the difference values for the
two delivery services for the population of
district offices
– Hypotheses
H0: d = 0, Ha: d 

33
 Example: Express Deliveries

n Inference About the Difference between the Means of

Two Populations: Matched Samples
• Rejection Rule
Assuming the population of difference values is
approximately normally distributed, the t
distribution with n - 1 degrees of freedom applies.
With  = .05, t.025 = 2.262 (9 degrees of freedom).
Reject H0 if t < _________ or if t > __________

34
 Example: Express Deliveries

Inference About the Difference between the Means of

Two Populations: Matched Samples
 di ( 7  6... 5)
d    2. 7
n 10
2
 ( di  d ) 76.1
sd    2. 9
n 1 9
d  d 2. 7  0
t   2. 94
sd n 2. 9 10

35
 Example: Express Deliveries

n Inference About the Difference between the Means of

Two Populations: Matched Samples
• Conclusion
Reject H0.
There is a significant difference between the mean
delivery times for the two services.

36
 Introduction to Analysis of Variance

Analysis of Variance (ANOVA) can be used to test

for the equality of three or more population means
using data obtained from observational or
experimental studies.
We want to use the sample results to test the
following hypotheses.
H0: 1=2=3=. . . = k
Ha: Not all population means are equal

37
 Introduction to Analysis of Variance
n If H0 is rejected, we cannot conclude that all
population means are different.
n Rejecting H0 means that at least two population
means have different values.

38
 Assumptions for Analysis of Variance

For each population, the response variable is normally

distributed.
The variance of the response variable, denoted 2, is
the same for all of the populations.
The observations must be independent.

39
 Analysis of Variance:
Testing for the Equality of k Population Means

Between-Treatments Estimate of Population Variance

Within-Treatments Estimate of Population Variance
Comparing the Variance Estimates: The F Test
The ANOVA Table

40
 Between-Treatments Estimate
of Population Variance
A between-treatment estimate of 2 is called the
mean square treatment and is denoted MSTR.

 j j
n (
j 1
x  x ) 2

MSTR 
k 1

The numerator of MSTR is called the sum of squares

treatment and is denoted SSTR.
The denominator of MSTR represents the degrees of
freedom associated with SSTR.

41
 Within-Samples Estimate
of Population Variance
The estimate of 2 based on the variation of the
sample observations within each sample is called the
mean square error and is denoted by MSE.

 j
( n
j 1
 1) s 2
j

MSE 
nT  k

The numerator of MSE is called the sum of squares

error and is denoted by SSE.
The denominator of MSE represents the degrees of
freedom associated with SSE.

42
 Comparing the Variance Estimates: The F Test

If the null hypothesis is true and the ANOVA

assumptions are valid, the sampling distribution of
MSTR/MSE is an F distribution with MSTR d.f. equal
to k - 1 and MSE d.f. equal to nT - k.
If the means of the k populations are not equal, the
value of MSTR/MSE will be inflated because MSTR
overestimates 2.
Hence, we will reject H0 if the resulting value of
MSTR/MSE appears to be too large to have been
selected at random from the appropriate F
distribution.

43
 Test for the Equality of k Population Means

Hypotheses
H0: 1=2=3=. k
. .=

Ha: Not all population means are equal

Test Statistic
F = MSTR/MSE
Rejection Rule
Reject H0 if F > F
where the value of F is based on an F distribution
with k - 1 numerator degrees of freedom and nT - 1
denominator degrees of freedom.

44
 Sampling Distribution of MSTR/MSE

The figure below shows the rejection region associated

with a level of significance equal to  where F
denotes the critical value.

Do Not Reject H0 Reject H0

MSTR/MSE
F
Critical Value

45
 ANOVA Table

Source of Sum of Degrees of Mean

Variation Squares Freedom Squares F
Treatment SSTR k-1 MSTR MSTR/MSE
Error SSE nT - k MSE
Total SST nT - 1

SST divided by its degrees of freedom nT - 1 is simply

the overall sample variance that would be obtained if
we treated the entire nT observations as one data set.
k nj
SST   ( xij  x) 2  SSTR  SSE
j 1 i 1

46
 Example: Reed Manufacturing

Analysis of Variance
J. R. Reed would like to know if the mean
number of hours worked per week is the same for the
department managers at her three manufacturing
plants (Buffalo, Pittsburgh, and Detroit).
A simple random sample of 5 managers from
each of the three plants was taken and the number of
hours worked by each manager for the previous
week is shown on the next slide.

47
 Example: Reed Manufacturing

Analysis of Variance
Plant 1 Plant 2 Plant 3
Observation Buffalo Pittsburgh Detroit
1 48 73 51
2 54 63 63
3 57 66 61
4 54 64 54
5 62 74 56
Sample Mean 55 68 57
Sample Variance ____ _____ ______

48
 Example: Reed Manufacturing

Analysis of Variance
– Hypotheses
H0: 1=2=3
Ha: Not all the means are equal
where:
1 = mean number of hours worked per
week by the managers at Plant 1
2 = mean number of hours worked per
week by the managers at Plant 2
3 = mean number of hours worked per
week by the managers at Plant 3

49
 Example: Reed Manufacturing

Analysis of Variance
– Mean Square Treatment
Since the sample sizes are all equal
=
x = (55 + 68 + 57)/3 = ____
SSTR = 5(55 - 60)2 + 5(68 - 60)2 + 5(57 - 60)2 = ____
MSTR = 490/(3 - 1) = 245
– Mean Square Error
SSE = 4(26.0) + 4(26.5) + 4(24.5) = _____
MSE = 308/(15 - 3) = 25.667

50
 Example: Reed Manufacturing

Analysis of Variance
– F - Test
If H0 is true, the ratio MSTR/MSE should be near
1 since both MSTR and MSE are estimating 2. If
Ha is true, the ratio should be significantly larger
than 1 since MSTR tends to overestimate 2.

51
 Example: Reed Manufacturing

n Analysis of Variance
• Rejection Rule
Assuming  = .05, F.05 = 3.89 (2 d.f. numerator,
12 d.f. denominator). Reject H0 if F > _______
• Test Statistic
F = MSTR/MSE = 245/25.667 = _______

52
 Example: Reed Manufacturing

Analysis of Variance
– ANOVA Table

Source of Sum of Degrees of Mean

Variation Squares Freedom Square F
Treatments 490 2 245 9.55
Error 308 12 25.667
Total 798 14

53
 Example: Reed Manufacturing

n Analysis of Variance
• Conclusion
F = 9.55 > F.05 = _____, so we reject H0. The mean
number of hours worked per week by department
managers is not the same at each plant.

54
End of Chapter 10

55