MHM530: Quantitative analysis for decision making

Fariha Ayaz 20221-32849

QA-Assignment: Hypothesis Testing-2

1. What is the main difference between paired and independent sample?

Independent Groups: Cases in each group are unrelated to one another.
Paired Groups: Cases in each group are meaningfully matched with one another; also known as
dependent samples or matched pairs

2. Explain the purpose of paired data. In certain situations, what might be the advantage of
using paired samples rather than independent ones?
Pairing is employed to control for extraneous sources of variance that might otherwise influence
the results of comparison i.e the result is more precise.
Paired t-tests are used when the same item or group is tested twice, which is known as a repeated
measures t-test.

3. Open Data File BP.Sav and test the hypothesis that:

a. H0: Males and Females have the same heart rate

t-test for Equality of Means

t df Sig. Mean Std. Error 95% Confidence
(2- Differe Difference Interval of the
tailed) nce Difference
Lower Upper
Equal variances 2.789 177 .006 5.574 1.99846 1.630 9.51851
heart rate assumed 63 75
mental
Equal variances not 2.787 175.7 .006 5.574 2.00013 1.627 9.52200
arithmetic
assumed 83 63 27
Equal variances 2.350 178 .020 5.326 2.26666 .8531 9.79907
heart rate cold assumed 09 1
pressor Equal variances not 2.344 174.0 .020 5.326 2.27202 .8418 9.81035
assumed 71 09 3

Group Statistics
subject N Mean Std. Std. Error
sex Deviation Mean
heart rate mental female 91 84.0330 13.03718 1.36667
arithmetic male 88 78.4583 13.69969 1.46039
female 92 86.5761 14.39187 1.50046
heart rate cold pressor
male 88 81.2500 16.00449 1.70608
As our p-value is less than 0.05 for 95% confidence interval in both cases, we can reject H0.
There is a significant difference between the heart rate of males and females.
 MHM530: Quantitative analysis for decision making
Fariha Ayaz 20221-32849

b. According to the WHO, a normal healthy adult should have a maximum of systolic
BP of 140, and a maximum diastolic BP of 90. Using the resting BP readings from
these subjects, test the hypothesis that their BP readings are within healthy range

One-Sample Test
Test Value = 90
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper
diastolic bp rest -39.088 180 .000 -22.61119 -23.7526 -21.4697

One-Sample Test
Test Value = 140
95% Confidence Interval of
Sig. (2- Mean the Difference
t df tailed) Difference Lower Upper
systolic bp rest -26.605 180 .000 -20.95580 -22.5100 -19.4016

If H0 suggests that there is no significant difference between sample mean

systolic and diastolic BP from the normal BP then based on our p-value
for both cases, we can reject the null hypothesis.
There is a significant difference between our sample mean and the normal BP
readings.

c. Many adults believe that a normal resting heart rate is 72 beats per minute. Did
these subjects have a mean heart rate significantly different from 72 while
performing a mental arithmetic task? Comment on what you find.

One-Sample Test
Test Value = 72
95% Confidence Interval of the
Sig. (2- Mean Difference
t df tailed) Difference Lower Upper
heart rate mental 9.129 178 .000 9.29236 7.2836 11.3012
arithmetic

If H0 suggests that there is no difference in the mean heart rate of subjects performing a
mental arithmetic task and the normal resting heart rate. On the basis of our sig value we
can reject this null hypothesis i.e. there is a significant difference between the mean heart
rate of subjects whilst performing a mental arithmetic task than the normal resting heart
rate which is 72 beats per minute.
4. Open the data file BEV.Sav. test the null hypothesis that:
 MHM530: Quantitative analysis for decision making
Fariha Ayaz 20221-32849

a. The mean current ratio for this entire sample of firms is equal to 3

One-Sample Test
Test Value = 3
95% Confidence Interval
Mean of the Difference
t Df Sig. (2-tailed) Difference Lower Upper
Current ratio .194 90 .847 .12681 -1.1725 1.4262

After completing a one-sample t-test with p value= 0.847, we find evidence to suggest

that the mean current ratio for the sample has a mean difference of 0.126 from
our test value.

b. Isolate the bottled and soft drink firms (SIC=2086) and their current ratio. Use an
appropriate test to see if the current ratio for these companies is significantly
different from 3.0.

One-Sample Test
Test Value = 3
95% Confidence Interval
Sig. (2- Mean of the Difference
t Df tailed) Difference Lower Upper
Current ratio -6.586 34 .000 -1.43571 -1.8788 -.9927

H0: There is no difference between the mean current ratio of bottled and soft drink firms
and population mean (3).
On the basis of our sig value .000, we can reject the null hypothesis.

c. What about the malt beverage firms (SIC=2082)? Is their ratio significantly
different from 3.0?

One-Sample Test
Test Value = 3
95% Confidence Interval of the
Sig. (2- Mean Difference
t df tailed) Difference Lower Upper
Current ratio 1.508 26 .144 3.13852 -1.1401 7.4171
If H0 suggests that there is no difference between mean current ratio of malt
beverage firms and population mean, then based on our sig value (.144), we fail to
reject our null hypothesis i.e. there is no evidence that there is a significant
difference.
 MHM530: Quantitative analysis for decision making
Fariha Ayaz 20221-32849

5. Open the data file London.Sav this data were collected in West London and represent the
hourly carbon monoxide concentration in the air (parts per million or PPM) for the year
1996. For these questions, use the daily readings for the hour ending at 12 noon.
a. In 1990, the first year of observations, West London had a mean carbon monoxide
concentration of 1.5 ppm. One reason for routine monitoring was the government’s
desire to reduce CO levels in the air. Is there a significant change in carbon
monoxide concentration between 1990 and 1996? What does your answer tell you?

One-Sample Test
Test Value = 1.5
95% Confidence
Interval of the
Sig. (2- Mean Difference
t df tailed) Difference Lower Upper
CO ppm 12 NOON GMT -37.586 324 .000 -1.0074 -1.060 -.955

Based on our p-value .000 (<0.05), there is a significant difference between the
carbon monoxide concentration of West London at 12 noon in the years 1990 and
1996.

b. Across town at London Baxley, the 1996 mean carbon monoxide observation was
0.4 ppm. Is there a significant difference between Baxley and West London?
Mean carbon monoxide concentration= 0.493

One-Sample Test
Test Value = 0.4
95% Confidence Interval
Sig. (2- Mean of the Difference
T df tailed) Difference Lower Upper
CO ppm 12 NOON GMT 3.456 324 .001 .0926 .040 .145
Based on our p-value, we can reject H0 as there is a significant difference
between the carbon monoxide concentrations of Baxley and West London.
 MHM530: Quantitative analysis for decision making
Fariha Ayaz 20221-32849

c. What about London bridge which observed 0.8 ppm?

One-Sample Test
Test Value = 0.8
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper
CO ppm 12 NOON GMT -11.469 324 .000 -.3074 -.360 -.255

Based on our p-value, we can reject H0 i.e. there is a significant difference

between the carbon monoxide concentrations of London bridge and West London
at 12 noon.

d. Cromwell road reported 1.4 ppm. Is their CO concentration significantly different

that the CO in west London?

One-Sample Test
Test Value = 1.4
95% Confidence Interval
Sig. (2- Mean of the Difference
t df tailed) Difference Lower Upper
CO ppm 12 NOON GMT -33.855 324 .000 -.9074 -.960 -.855

Based on our p-value, we can reject H0 i.e. there is a significant difference

between the carbon monoxide concentrations of Cromley and West London
at 12 noon.

6. Open the data file GSS2004.SAV and test that”

a. Is there a significant difference in the amount of times men and women spend
watching TV?

Independent Samples Test

t-test for Equality of Means
Std. 95% Confidence
Error Interval of the
Sig. (2- Mean Differenc Difference
t df tailed) Difference e Lower Upper
HOURS PER DAY Equal variances -1.520 897 .129 -.266 .175 -.609 .077
WATCHING TV assumed
Equal variances -1.543 887.775 .123 -.266 .172 -.604 .072
not assumed
Based on our p-value, we fail to reject H0 i.e. there is no evidence that there is any
difference in the amount of time men and women watch TV.
 MHM530: Quantitative analysis for decision making
Fariha Ayaz 20221-32849

b. Is there a statistically significant difference in the amount of time married and

unmarried people spend watching TV? You will need to create a new variable to
represent the two groups here.

Group Statistics
MARITAL STATUS N Mean Std. Deviation Std. Error Mean
HOURS PER DAY MARRIED 447 2.57 2.462 .116
WATCHING TV NEVER MARRIED 212 2.90 2.483 .171

Independent Samples Test

t-test for Equality of Means
Std. 95% Confidence
Mean Error Interval of the
Sig. (2- Differenc Differenc Difference
T df tailed) e e Lower Upper
HOURS PER Equal variances -1.605 657 .109 -.330 .206 -.735 .074
DAY assumed
WATCHING Equal variances -1.600 411.340 .110 -.330 .207 -.736 .075
TV not assumed

Based on our p-value, we fail to reject H0 i.e. there is no evidence of difference between time
spent watching tv by either married or unmarried individuals.

7. Open BP file and test:

a. Do subjects with a history of parental hypertension have significantly higher resting
SBP compared to subjects with no such history?

Independent Samples Test

t-test for Equality of Means
T df Sig. (2- Mean Std. Error 95% Confidence Interval
tailed) Difference Difference of the Difference
 MHM530: Quantitative analysis for decision making
Fariha Ayaz 20221-32849

Lower Upper
systolic bp Equal variances -2.364 179 .019 -3.67740 1.55565 -6.74717 -.60762
rest assumed
Equal variances -2.362 175.712 .019 -3.67740 1.55674 -6.74971 -.60509
not assumed

Independent Samples Test

t-test for Equality of Means
95% Confidence
Interval of the
Sig. (2- Mean Std. Error Difference
T df tailed) Difference Difference Lower Upper
systolic bp Equal variances -2.364 179 .019 -3.67740 1.55565 -6.74717 -.60762
rest assumed
Equal variances -2.362 175.712 .019 -3.67740 1.55674 -6.74971 -.60509
not assumed
For systolic BP at rest, there is a significant difference in the sample mean systolic BP
regardless of history of parental hypertension.

b) Check the same for resting diastolic BP

Group Statistics
parental Std.
hypertension N Mean Deviation Std. Error Mean
diastolic bp rest PH - 91 66.7596 7.03612 .73759
PH + 90 68.0250 8.46279 .89206

Independent Samples Test

t-test for Equality of Means
Std. 95% Confidence
Error Interval of the
Sig. (2- Mean Differenc Difference
t df tailed) Difference e Lower Upper
diastolic bp rest Equal variances -1.094 179 .275 -1.26538 1.15632 -3.54716 1.01639
assumed
 MHM530: Quantitative analysis for decision making
Fariha Ayaz 20221-32849

Equal variances -1.093 172.541 .276 -1.26538 1.15750 -3.55006 1.01929

not assumed

For diastolic BP at rest, there is no significant difference between individuals regardless

of their history of parental hypertension.

8. Open the London file and test:

a. Would you expect higher CO concentration at 9 am or at 5 pm?

Paired Samples Statistics

Mean N Std. Deviation Std. Error Mean
Pair 1 CO ppm 9 AM GMT .918 337 .8144 .0444
CO ppm 5 PM GMT .569 337 .5312 .0289

b. How would you explain your results?

The mean carbon monoxide concentration suggests higher levels at 9AM.

c. What might account for the difference during times in the same day?
This may be due to the photosynthesis, the process through which plants utilize oxygen to
produce nutrition for themselves.