ANALYSIS OF VARIOUS TESTS

BINOMIAL DISTRIBUTION
• One would use binomial distribution if and only if the experiment satisfies the
following conditions
• 1. There is a fixed number of trials.
• 2. Each trial is independent of one another.
• 3. There are only two possible outcomes (a Success or a Failure).
•  
• An example of an experiment that has a binomial distribution would be a coin toss.
• 1. You would toss the coin a n (a fixed number) times.
• 2. The result of a previous toss does not affect the present toss (trials are
independent).
• 3. There are only two outcomes - Heads or Tails.
• 4. The probability of success (whether a head is considered a success or a tail is
considered a success) is constant at 50%.
 
 POISSON DISTRIBUTION

• A Poisson experiment is a statistical experiment that has the following

properties:
• The experiment results in outcomes that can be classified as successes or
failures.
• The average number of successes (μ) that occurs in a specified region is
known.
• The probability that a success will occur is proportional to the size of the
region.
• The probability that a success will occur in an extremely small region is
virtually zero.
• In poisson distribution p is very small and n is very large.
 EXAMPLE
• Reginald Dunfey president of british World Airlines is fiercely proud of
his company’s on time percentage ; only 2 percent of all BWA arrive
more than 10 minutes early or late . In his upcoming speech to the BWA
board of directors ,Mr dunfey wants to include the probability that none
of the 200 flights scheduled for the following week will be more then 10
mins early or late. What is the probability that exactly 10 flights will be
more then 10 mins early or late.

(NOTE :- As Here n is very large and p is very small so we use poisson

distribution)
 NORMAL DISTRIBUTION
Practical Problem on the Normal Distribution.
• The lengths of rods held in stock have a mean of 4.5 m with a standard
deviation of 0.05. The distribution of lengths is normal. If the total
stock is 1000 rods, how many of the rods can be expected to have (a) a
length between 4.5 and 4.6 m and (b) a length less than 4.4 m?
• Note The number of rods = Pr x total number of rods.

• (a) μ = 4.5 m and σ = 0.05 m – we need to calculate z for each value at

the extremes of the range.
• When x = 4.5 m z1 = (4.5 – 4.5)/0.05 = 0.00
• When x = 4.6 m z2 = (4.6 – 4.5)/0.05 = 2.00
• The probability of the rod length being between 4.5 and 4.6 m is shown
in the diagram on the next slide.
 Pr = Area = 0.477.2
Number of rods equals
0.4772 x 1000 = 477 rods

(b) To find the number of rods < 4.4 m

z = (4.4 – 4.5)/0.05 = -2.00

Pr of having a length < 4.4 is the shaded area.

This is 0.5 – z-2.00
Area = 0.5 – 0.4772
Area = 0.0228 = 23 rods

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 SAMPLING AND SAMPLING DISTRIBUTION
• EXAMPLE-

• Mary bartel an auditor for a large credit card company knows that, on
avg. the monthly balance of any given customer is $ 112 and the S.D is $
56 If mary audits 50 randomly selected a/c what is the probability that
the sample avg. monthly balance Is
1. Below $100
2. Between $ 100 and $130.
 Two tail test
• From a total of 10200 loans made by a state
employees’ credit union in the most recent 5 year ,
350 were sampled to determine what proportion
was made to women. This sample showed that
39% of the loans were made to women
employees. A complete census of loans 5 yrs ago
showed that 41% of the borrowers then were
women. At 0.02 significance level, can you
conclude that the proportion of loans made to
women has changed or not?
 One tail test
• Two research laboratories have independently produce
drugs that provide relief to arthritis sufferers . The first drug
was tested on a group of 90 sufferers and produce an avg. of
8.5 hrs of relief , and sample S.D of 1.8 hrs the 2nd drug was
tested on 80 sufferers, producing an avg. of 7.9 hrs of relief,
and a sample S.D of 2.1 hrs. At the 0.05 level of significance
does the 2nd drug provide a significantly shorter period of
relief.
 T - TEST
• A Credit insurance org has developed a new high tech
method of training new sales personnel. The co. sampled 16
employees who were trained the original way and found
average daily sales to be $688 and the sample standard
deviation was $32.63 they also sampled 11 employees who
were trained using the new method and found average daily
sales to be $706 and the sample s.d was $24.84. @alpha .05,
can the co. conclude that average daily sales have increased
under the new plant .
 Example on Test of Goodness of Fit
• Louis Armstrong, salesman for the Dillard paper co. ,
has 5 accounts to visit per day. It is suggested that
the variable, sales by him may be described by the
binomial distribution, with the prob. Of selling each
account being 0.4. Given the following frequency
distribution , can we conclude that the data follow
the suggested distribution? Use 0.05 significance
level. No of 0 1 2 3 4 5
sales
per day
Freq. of 10 41 60 20 6 3
no of
sales