Condence intervals and tests

Methods III Statistics and Quantitative Methods Copenhagen Business School Fall, 2011

List of Tables
1 2 3 Condence intervals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hypothesis tests (proportions and means) . . . . . . . . . . . . . . . . . Hypothesis tests (contingency tables and estimated regression parameters) 2 3 4

Table 1: Condence intervals

Description Proportions One proportion Dierence Means One mean Dierence - uneq. pop. var. - eq. pop. var. 1 2 1 2 x1 x2 x1 x2 sex1 2 = x sex1 2 = s x s= Regression analysis Single parameter
s2 1 n1

Parameter

Sample

Standard error sep =

p(1) p n p1 (11 ) p n1 p2 (1p2 ) n2

Condence interval p z1 sep 2 + p1 p2 z1 sep1 2 p 2 x t sex 2

Degrees of freedom

Relevant Excel 2007 commands AVERAGE, COUNT, NORMSINV(1 ) 2 AVERAGE, COUNT, NORMSINV(1 ) 2

p p1 p2

p p1 p2

sep1 2 = p sex =
s n

n1

AVERAGE, STDEV, COUNT, TINV(;deg. of free.)

s2 2 n2 1 n2

x1 x2 t sex1 2 x 2 x1 x2 t sex1 2 x 2

Welch-Satterthwaite AVERAGE, STDEV, COUNT, TINV(;deg. of free.) Approx. n1 + n2 2 n1 + n2 2 AVERAGE, STDEV, COUNT, TINV(;deg. of free.)

1 n1

(n1 1)s2 +(n2 1)s2 1 2 n1 +n2 2

bk

sebk

bk t sebk 2

n No. of param.

Regression in Data Analysis

: Signicance level, probability in NORMSINV is the left tail probability while probability in TINV is the sum of the tail probabilities.

Table 2: Hypothesis tests (proportions and means)

Description Proportions One proportion - one sided - one sided - two sided Dierence - one sided - one sided - two sided Means One mean - if t > 0: one sided one sided two sided - if t < 0: one sided one sided two sided Dierence - unequal pop. variances - equal pop. variances 1 2 1 2 x1 x2 x1 x2 H0 : 1 2 = 0 H0 : 1 2 = 0 se0 = se0 = s s= - if t > 0: one sided Ha : one sided Ha : two sided Ha : - if t < 0: one sided Ha : one sided Ha : two sided Ha : : Another approach: Use Data Analysis or the function 1 2 < 0 1 2 > 0 1 2 = 0 1 2 < 0 1 2 > 0 1 2 = 0 TTEST
s2 1 n1

Parameter

Sample

Hypotheses

Standard error under H0 se0 =

p0 (1p0 ) n

Test statistic z=
pp0 se0

Degrees of freedom

Relevant Excel 2007 commands AVERAGE, COUNT NORMSDIST(z) 1 NORMSDIST(z) 2 NORMSDIST(-ABS(z)) AVERAGE, COUNT NORMSDIST(z) 1 NORMSDIST(z) 2 NORMSDIST(-ABS(z))

H0 : Ha : Ha : Ha :

p = p0 p < p0 p > p0 p = p0

p1 p2

p1 p2

H0 : p1 p2 = 0 Ha : p1 p2 < 0 Ha : p1 p2 > 0 Ha : p1 p2 = 0

se0 =

p(1 p)

1 n1

1 n2

z=

p1 2 p se0

p: Pooled estimate

H0 : = 0 Ha : < 0 Ha : > 0 Ha : = 0 Ha : < 0 Ha : > 0 Ha : = 0

se0 =

s n

t=

x0 se0

n1

AVERAGE, STDEV, COUNT 1 TDIST(t; deg. of freedom; one tail) TDIST(t; deg. of freedom; one tail) TDIST(t; deg. of freedom; two tails) TDIST(ABS(t); deg. of freedom; one tail) 1 TDIST(ABS(t); deg. of freedom; one tail) TDIST(ABS(t); deg. of freedom; two tails)

s2 2 n2 1 n2

t= t=

x1 2 x se0 x1 2 x se0

Welch-Satterthwaite Approx. n1 + n2 2 n 1 + n2 2

AVERAGE, STDEV, COUNT AVERAGE, STDEV, COUNT

1 n1

(n1 1)s2 +(n2 1)s2 2 1 n1 +n2 2

1 TDIST(t; deg. of freedom; one tail) TDIST(t; deg. of freedom; one tail) TDIST(t; deg. of freedom; two tails) TDIST(ABS(t); deg. of freedom; one tail) 1 TDIST(ABS(t); deg. of freedom; one tail) TDIST(ABS(t); deg. of freedom; two tails)

Table 3: Hypothesis tests (contingency tables and estimated regression parameters)

Description Contingency tables Chi-squared Parameter Sample Hypotheses Standard error under H0 Test statistic X 2 = All cells (ObservedExpected) Expected Expected = Row totalColumn total Grand total
2

Degrees of freedom (Rows 1)(Cols 1)

Relevant Excel 2007 commands CHIDIST(X 2 ;deg. of freedom)

H0 : Independence Ha : Association H0 : Independence Ha : Association

Fishers exact test

p-value = (R1 !R2 !R!m !)(C1 !C2 !Cn !) N ij aij ! R: Row total C: Column total N : Grand total a: Cell count m: Number of rows n: Number of columns

FACT, PRODUCT

Regression analysis Single parameter - if t > 0: one sided one sided two sided - if t < 0: one sided one sided two sided All parameters

bk

H0 : k = 0 Ha : k < 0 Ha : k > 0 Ha : k = 0 Ha : k < 0 Ha : k > 0 Ha : k = 0

se0

t=

bk se0

n No. of param.

Regression in Data Analysis 1 TDIST(t; deg. of freedom; one tail) TDIST(t; deg. of freedom; one tail) TDIST(t; deg. of freedom; two tails) TDIST(ABS(t); deg. of freedom; one tail) 1 TDIST(ABS(t); deg. of freedom; one tail) TDIST(ABS(t); deg. of freedom; two tails)

1 , . . . , k

b1 , . . . , bk

H0 : 1 = = k = 0

F =

Mean square for regression M eansquareerror

df1 = No. of exp. var. df2 = No. of param.

Regression in Data Analysis

Ha : one = 0 Another approach: Use the function CHITEST