AMA2104 Probability and Engineering Statistics

6 Hypothesis Test

Dr Bob He

1
2
3
4
5
6
7
8
9
10
11
12
13
14
Summary: Tests About a Population Mean, with Known
Variance

a Null hypothesis: Ho : µ = µo
a Test statistic:

_X_-_µ_o
Z=
o-/vn
a Alternative hypotheses and rejection regions with significance a

Alternative Hypothesis Rejection Region

H1: µ =/= µo Ra= (-oo, -Za;2) U (Za/2, oo)

H1: µ > µo Ra= (Za, oo).

H1: µ < µo Ra = (-oo, -Za)

15
16
17
18
19
20
21
Example
A survey of credit card holders revealed that Americans carried an
average credit card balance of $3900 in 1995 and $3300 in 1994.
Suppose that these averages are based on random samples of 400
credit card holders in 1995 and 450 credit card holders in 1994 and
that the population standard deviations of the balances were $880
in 1995 and $810 in 1994. Test at 1% significance level if the
mean credit card balances for all credit card holders in America in
1995 and 1994 were different.
Sol. Let A: 1995 and B: 1994.
Step 1. H0 : µA − µB = 0, H1 : µA − µB 6= 0.
Step 2. Test statistic
X̄A − X̄B − d0 3900 − 3300 − 0 600
Z= q 2 = q = = 10.30
σA 2
σB (880)2 (810)2 58.0258
nA + nB 400 + 450
Rejection region:
Rα = (−∞, −Zα/2 ) ∪ (Zα/2 , ∞) = (−∞, −2.58) ∪ (2.58, ∞).
Step 3. Z ∈ Rα . Reject H0 . Therefore, they were different. 22
23
24
25
Example
To test two car breaking systems, we equip 6 cars with system A and get the
stopping distances at 50 mph data with x̄A = 115.7 and sA = 5.03. We do the
same experiment on system B with 6 cars to get x̄B = 129.3 and sB = 5.38. At
significance level α = 1% test the hypothesis H0 : µA − µB = −10 against
H1 : µA − µB < −10.

Sol. Step 1. Specified already.

Step 2. Test statistic and approximate degree of freedom:
x̄A − x̄B − d0 115.7 − 129.3 − (−10)
T = q 2 2
= q = −1.1973.
sA sB 5.032 2
nA
+ nB 6
+ 5.38
6
 2 2
sA s2
nA
+ nBB
ν = (s 2 /n )2 (s 2 /nB )2
= 9.9551 ≈ 10.
A A
nA −1
+ BnB −1

Rejection region: Rα = (−∞, −tα,ν ) = (−∞, −2.764). T 6∈ Rα .

Step 3. Do not reject H0 . So the true mean stopping distance of system A is
not significantly less than that of system B by 10.
26
27
Example
A taxi company manager is trying to decide whether the use of radial tires
instead of regular belted tires improves fuel economy. Twelve cars were
equipped with radial tires and driven over a prescribed test course. Without
changing drivers, the same cars were then equipped with regular belted tires
and driven once again over the test course. The gasoline consumption, in
kilometers per liter, was recorded as follows, as well as their sample means and
sample standard deviations.

Can we draw the

conclusion that cars
equipped with radial
tires give better fuel
economy than those
equipped with belted
tires? Use significance
level 0.05.

28
Sol. Step 1. H0 : µR − µB = d0 = 0, H1 : µR − µB > 0. α = 0.05.
Step 2. Test statistic

D̄ − d0 0.1417 − 0
T = √ = √ = 2.4854.
sD / n 0.1975/ 12

Rejection region: Rα = (tα,n−1 , ∞) = (t0.05,11 , ∞) = (1.796, ∞).

Step 3. Reject H0 . So, cars equipped with radial tires give better fuel economy
than those equipped with belted tires.

29
30
Example

In the Case 2 example, can we assume a-r = a-� fo r building a confidence

interval for µ1 - µ2? Use significance level a= 0.02.

31