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INSTITUTE: Chandigarh University

DEPARTMENT: University School of Business


Management (MBA)
Subject Name and Code:–Business Research Methods-20BAT654
Faculty Name: Dr. Satinder Pal Singh
Professor)

TOPIC OF PRESENTATION
DISCOVER . LEARN . EMPOWER
T Test for Difference of Means 1
Course Objective

COB No. Title

The course aims at equipping students with an understanding of the research process, tools and
COB1 techniques in order to facilitate managerial decision making.

COB2 To give students a proper understanding of Statistical tools and techniques 

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Course Outcome

Sr. No. Course Outcomes Blooms Taxonomy Level


CO1 To understand the research process for writing a Understand/Remember
research paper, Ph.D Thesis and dissertation
CO2 To apply different research designs and sampling Apply
techniques in various business research problems
CO3 To analyze and interpret various hypothesis tests to Analyze
supplement decision making in business scenario
CO4 To compare the various sampling techniques for Evaluate
collection of data
CO5 To create and implement a research proposal for the real Design/Create
life business problems

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Lecture Overview
In this Presentation, we will learn about:
T test for difference of means.
Assumptions related to T test.
This lecture will cover course outcome 3 (CO3)

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T test of Difference of Means
• Suppose we want to test if two independent samples Xi and Yi of sizes
n1 and n2 have been drawn from two normal populations with mean μx
and μy or from the same normal population.
OR
• If we want to check whether there is any significance difference
between the two samples or not.

We make uses of T test of difference of means

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Assumptions of T test of Difference of Means
• The parent population from which samples have been drawn are
normally distributed.
• The population variances are equal.
• The two samples are chosen randomly and are independent of each
other.

If the above assumptions are not fulfilled we use non parametric


version of the T statistic.

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T Statistic for Difference of Means
• The statistic t is given by =

t=

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T Statistic for Difference of Means
The null hypothesis and the alternative hypothesis are as under
• H0: μx = μy

• H1: μx ≠ μy

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T Statistic for Difference of Means
Under the null hypothesis t statistic is given by

t =

• where the are the means of the sample X and Y respectively. S is the pooled standard deviation and its
variance is given by

S2 =

which is the unbiased estimate of the population variance that follows student’s t
distribution with n1+n2-1 degrees of freedom.

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Example 1
• Below are given gain in weights of pigs in kg that are fed on two different diets
A and B. Test if two diets differ significantly.

Diet A 25 32 30 34 24 14 32 24 30 31 35 25

Diet B 44 34 22 10 47 31 40 30 32 35 18 21 35 29 22

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Solution
• Null and alternative hypothesis of the problems will be
• H0: There is no significant difference between the two diets (H0: μx = μy)
• H1: There is significant difference between the two diets (H1: μx ≠ μy)

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Y Y-Ȳ (Y-Ȳ) 2
Solution 44
34
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196
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X (X-Xˉ) (X-Xˉ) 2
22 -8 64
25 -3 9
10 -20 400
32 4 16
30 2 4 47 17 289
34 6 36 31 1 1
24 -4 16 40 10 100
14 -14 196 30 0 0
32 4 16 32 2 4
24 -4 16 35 5 25
30 2 4 18 -12 144
31 3 9
21 -9 81
35 7 49
35 5 25
25 -3 9
29 -1 1
Sum=336 Sum=0 Sum=380
22 -8 64
Sum=450 0 Sum=1410
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Solution
• =336/12 = 28 and =450/15 = 30;
• S2 = = (450+1410)/25

• S2 = 71.6

• Under null hypothesis

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Solution

•=

• =.609
• Also the tabulated value for 15+12-2 =25 degrees of freedom and at 5% level of
significance is 2.06.
• So the calculated value is less than tabulated value which clearly specify that null
hypothesis will be accepted and which further tells that there is no significant
difference between the two diets.

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Example 2
• Example 2: Sample of two types of electric bulbs were tested for
length of life and the following data were obtained
• Sample means =1234 and =1036;
• Sample SD S1 =36 hrs S2= 40
• Sample Sizes n1=8 n2=7
• Is life of first type of bulb is superior to second one.

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Solution
• Solution: The null and alternative hypothesis for the same is
• H0: μx = μy (No Difference)
• H1: μx > μy (Difference is there)
• We know that

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Solution

• S2 =

•=

• =(1/13)(8 X (36)2+7 X (40)2) = 1659.08


•t = = 9.39

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Solution
• Also the tabulated value of t statistic at 13 degrees of freedom and at
5 percent level of significance of one tailed test is 1.77
• As the calculated value of t statistic is higher than its tabulated value
null hypothesis will be rejected and alternative hypothesis will be
accepted. Hence we conclude that mean life of first type of bulbs are
higher than the mean life of second types of bulbs.

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Summary
T test of difference of means help us in differentiating two samples. Suppose we want
to check whether there is any significance difference between the two sample means
this can be done with the help of T test of difference of means. The two samples may
be two different training programs, two companies with their growth during the past 10
months and so on.

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REFERENCES
Reference Books
• Kothari, C.R,(2009), Research Methodology: Methods and Techniques, EW AGE; 2nd edition (30 March 2009) ISBN- 978-
8122415223
• Chawla Deepak, Sondhi, Neena (2018), Research Methodology: Concepts and Cases, 2 nd edition, 978-9325982390

Reference Website
• Video lecture on T test for difference of means
• https://youtu.be/jyoO4i8yUag

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Blackboard
Assessment Pattern

Components HT-1 HT-2 Assignment Surprise Business GD Forum Attendance Scaled


Test Quiz Marks

Max. Marks 10 10 6 4 4 4 2 40

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THANK YOU

For queries
Email: satinder.e8992@cumail.in
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