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Drawing conclusions and/or making decisions
concerning a population based on sample results.
º
0roblem Under Study

Data
Survey Experiment
0 &$
Example: The mean monthly cell phone bill of
this city is ȝ = $42
0 &
Example: The proportion of adults in this city
with cell phones is ʌ = 0.68
1&,* 2,3
) $
%$ (
&$
4
,3 ( 8 7
5#)#,$ 6& ./
Claim: the
population
mean age is 50.
(Null Hypothesis:
0opulation
H0: ȝ = 50 )
ës O º
ëf not likely, Suppose
the sample
REJECT mean age Sample
Null Hypothesis is 20: X = 20

H 1: o (TwoTailed Test)
< o (LeftTailed Test)
> o (RightTailed Test)
Test Statistic
A quantity calculated from sample of data.
ëts value is used to decide whether or not the null
hypothesis should be rejected in the hypothesis test
Critical value(s)
The critical value(s) for a hypothesis test is a value to
which the value of the test statistic in a sample is compared
to determine whether or not the null hypothesis is rejected.
The critical value for any hypothesis test depends on the
significance level at which the test is carried out, and
whether the test is onesided or twosided.
A)
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%
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Normal Test
t  Test
>  Test
1 $ &
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pp
pp
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p pp
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.9/+
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A&'$º'$$% (
68% of
the data
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Normal test
Test for the Mean of a Normal 0opulation
H0 : = 0 or
H0 : the sample has been drawn from the population
with mean 0
H1 : 0 (twotailed) or > 0 (righttailed) or
< 0 (lefttailed)
$
Test Statistic: Î
Test for the Mean«
Test Criteria
Depending on the alternative hypothesis selected, the test
criteria is as follows:
5% 1.960 1.645
1% 2.580 2.330
Test for the Mean«
3 s2+
where
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Test for the Mean«AN©THER Example
>rom a class, 36 students were selected at random and their marks
in a subject out of 20 were observed. The mean and standard
deviation are 18.7 and 1.25. Test whether the mean marks of
students is 19.
Solution:
H0: The sample of students has been drawn from the
population with mean marks = 19
H1: 19
@ n = 36, = 19, = 1.25
Under H0,
$
D $ MM
H0 is accepted at 5% level of significance
Test for Difference of Means
H0 : 1 = 2
Test for Difference of MeansExample
n1= 42
m
n2= 32 O R
Test whether the average expenditure per month per family is
equal.
H0 : 1 = 2 H1: 1 2
D = 3.36
Under H0
O O
O OO O
O OO
O O
n Ô Sample size
x Ô 0ersons possessing the given attribute
Ô ©bserved proportion of successes
0 Ô 0opulation proportion, Q = 1 0
H 0: 0 = 0 0
H1: 0 00 or 0 > 00 or 0 < 00
Test Statistic: Normal test
·
Test Criteria:
p= = 0.367
m
H0: 0 = 0.60
H1: 0 0.60
m
D>2.58, Ho is rejected and it is concluded that 60% employees
do not favour the new bonus scheme.
Test for Difference of 0roportions
Let x1 (x2) be the number of persons possessing a given
attribute A in random sample of size n1 (n2) from 1st (2nd)
population. Then sample proportions will be
Let 01 and 02 be the population proportions
H 0: 0 1 = 0 2
H1: 01 02 or 01 > 02 or 01 < 02
Test for difference of proportions«
Q =10
Î
OO
O
Test for difference of proportions«Example
ën a district, 450 persons were regular consumers of tea out of a
sample of 1000 persons. ën another district, 400 were regular
consumers of tea out of a sample of 800 persons. ës there a
significant difference between the two districts as far as tea
drinking habit is concerned?
Solution: H 0: 0 1 = 0 2 = 0
H 1: 0 1 0 2
ÿ ÿ
ÿ
ÿÿ
ÿÿÿ ÿÿ
H1 : 0 or > 0 or < 0
Test Criteria:
Since t < 2.14 (value of t at 5% and 14 d.f), the mean height is 69.5 in.
ttable
'
Test for the Difference of Two 0opulation Means
$ $
$
2 is estimated from the sample
$ Î $ Î
$
Test for the Difference«Example
Blue ©verlay ± 70, 80, 90, 80, 50, 80, 70, 80, 70, 80, 80, 70
Clear ©verlay ± 50, 40, 50, 50, 60, 60, 60, 40, 60, 70, 60, 80
Solution:
H0 : 1 = 2 H1 : 1 > 2
r r
r ÕÕ Õ
[ When n1 = n2 = n
[ Let di = xi  yi
H0 : 1  2 = 0
$
$
$
0aired ttest«Example
Before training: 49 53 51 52 47 50 52 53
After training: 52 55 52 53 50 54 54 53
Solution:
H0 : B = A H1 : B < A
1. 49 52 3 9
2. 53 55 2 4
3. 51 52 1 1
4. 52 53 1 1
5. 47 50 3 9
6. 50 54 4 16
7. 52 54 2 4
8. 53 53 0 0
0aired ttest«Example
R
R
R
R
H0 :
O O
Test Statistic:
©i «Ô ©bserved frequency of ith class
Ei Ô Expected frequency of ith class, i =1,«,n.
$
Test of Goodness of >it«Example
They were asked to taste the four brands without disclosing the
brand name and then declare their preference.
H0 : 0A =0B = 0C = 0D = 0.25
Test of Goodness of >it«Example
Frequenc
O served (Oi) pected ( i) Oi  i
2 25 5
31 25
28 25 3
21 25 4
Õ
Since 3.44 < 7.82 (value of chisquare at 5% and 3 d.f), the result is
not significant and hence the proportion is same which is 1/4.
Table of Chisquare
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
; . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . . .
. . . . . . . .
. . . . . . . .
. . . . . . . .
Test of ëndependence
Contingency Table
Class A1 A2 A3
Test Statistic:
©ij «Ô ©bserved frequency
Eij Ô Expected frequency i =1,«,r j =1,«,s
O
O O
H0 is rejected at level if
O O
Test of ëndependence«Example 1
>rom the following table, test the hypothesis that the test
result is related to the sex of the student:
6
Test of ëndependence«Example 2
0opn. ë Ô N( 1, O ) 0opn. ëë Ô N( 2, OO ),
 
n1 O n2 O OO
O
O O
£ OO £ O
O
O
O
£ O £
O
> test«
H0 : O OO
Test Statistic:
m
m m m
Solution: n1 = 6, n2 = 5
H0 : O OO , H1 : O
O
O
m
M M
Since > < 5.19 (value of > at 5% and 5, 4 d.f), the two
samples have the same variability
>table (5%)
5
5 5 5 5
55 5
5 5 5 5
5 5 5 5 5 5 5 5
5 5 5 5
55 5 5
5 5
5
5
5 5 5
5 5 5
5 5
55 5 5
5 5
5
5
5 5
5 5 5
5
%$ (@
$ ! $*
$
A
$
$#
$2 $$
?33 &
*
9#
>? #
+3#3?
A "º!"&! M
«
#
"'A! "º!"$O! MA
@
()&
Test Statistic:
H0: ʌ = 0.08
H1: ʌ 0.08 #3? #3
@ >#B
. / #3. #3/
+3#3?
?33
+?332+3#3?
Critical Values: å 1.96 Decision:
Reject Reject (: º
Conclusion:
Oº Oº
1.96 0 1.96 x *
:
'OM%
B &
%$ (
. 5!/
$1 C !
DA
# $$
>? &
9+DB>#?3
H0: ȝ = 168
)+D?#3# H1: ȝ 168
+3#3?
#
.&$ & & $/
%$ )&(
H0: ȝ = 168
;OOº ;OOº
H1: ȝ 168
«+& (: 1
: (:
'+D;O
'
'+D;O
+& 2.0639 1.46
2.0639
) ,
m m
m m
) m
w ).
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