Statistical Techniques in Business and Economics 16th Edition Lind Solutions Manual

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Statistical Techniques in Business and

Economics 16th Edition Lind Solutions


Manual
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Chapter 11 - Two-Sample Tests of Hypothesis

Chapter 11
Two-Sample Tests of Hypothesis
1. a. Two-tailed test
b. Reject Ho if z < −2.054 or z > 2.054
102 − 99
z=
52 6 2
+
c. 2.587, found by 40 50
d. Reject Ho
e. p = 0.0096, found by 2(0.5000 – 0.4952) (LO11-1)

2. a. One-tailed test
b. Reject Ho if z > 1.405
2.67 − 2.59
z=
(0.75) 2 (0.66) 2
+
c. 0.607 found by 65 50
d. Fail to reject Ho
e. p = 0.2709, found by 0.5000 – 0.2291 (LO11-1)

3. Step 1: Ho: Gibbs  Competitor H1: Gibbs < Competitor


Step 2: The 0.05 significance level was chosen
Step 3: Use a z-statistic as both population standard deviations are known.
Step 4: Reject Ho if z < –1.645
7.6 − 8.1
z=
(2.3) 2 (2.9) 2
+
Step 5: −0.936, found by 40 55
Fail to reject Ho.
Step 6: Babies using the Gibbs brand did not gain less weight. The p-value is 0.1736 found by
0.5000 – 0.3264 (LO11-1)

4. Step 1: Ho: c = p H1: c  p


Step 2: The 0.05 significance level was chosen
Step 3: Use a z-statistic as both population standard deviations are known.
Step 4: Reject Ho if z < –1.96 or z > 1.96
370 − 380
z=
(30) 2 (26) 2
+
Step 5: −1.532, found by 35 40
Fail to reject Ho. (LO11-1)
Step 6: There is no difference in the mean number of miles traveled per month for PNC Inc.
employees at Cincinnati and Pittsburg.

5. Step 1: Ho: Normal Delivery  Cesarean H1: Normal Delivery > Cesarean
Step 2: The 0.05 significance level was chosen
Step 3: Use a z-statistic as both population standard deviations are known.
Step 4: If z > 1.645, reject Ho.

11-1
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

61.4 − 60.6
z= = 3.187
(1.2) 2 (1.1) 2
+
Step 5: 45 39
Reject the null.
Step 6: It is reasonable to conclude those who had a Cesarean section are shorter. The p-value
is less than 0.001, virtually zero, and is equal to 0.0007 which was found using
software. That much of a difference could almost never be due to sampling error.
(LO11-1)

6. Step 1: Ho: Union  Non-union H1: Union > Non-union


Step 2: The 0.02 significance level was chosen
Step 3: Use a z-statistic as both population standard deviations are known.
Step 4: If z > 2.054, reject Ho.
20.75 − 19.8
z= = 2.089
(2.25) 2 (1.9) 2
+
Steps 5: 40 45
Reject the null.
Step 6: It is reasonable to conclude union nurses earn more. The p-value is 0.0183, found by
0.5000- 0.4817. (LO11-1)

7. a. Reject Ho if t > 2.120 or t < −2.120 df = 10 + 8 – 2 = 16


(10 − 1)(4) + (8 − 1)(5)
2 2
s 2p = = 19.9375
b. 10 + 8 − 2
23 − 26
t= = −1.416
 1 1
19.9375  + 
c.  10 8 
d. Do not reject Ho.
e. From the t-table we estimate the p-value is greater than 0.10 and less than 0.20, using
software we can find the p-value is about 0.175.(LO11-2)

8. a. Reject Ho if t > 1.697 or t < −1.697 df = 17 + 15 – 2 = 30


(15 − 1)(12) + (17 − 1)(15)
2 2
s 2p = = 187.20
b. 15 + 17 − 2
350 − 342
t= = 1.651
1 1
187.2  + 
c.  15 17 
d. Do not reject Ho.
e. From the t-table we estimate the p-value is greater than 0.10 and less than 0.20, using
software we can find the p-value is about 0.109. (LO11-2)

9. Step 1: Ho: Pitchers = Position Players H1: Pitchers ≠ Position Players


Step 2: The 0.01 significance level was chosen
Step 3: Use a t-statistic assuming a pooled variance with the standard deviation unknown.
Step 4: df = 12 + 13 – 2 = 23 Reject Ho if t is not between –2.807 and 2.807

11-2
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

(12 − 1)(7.469) 2 + (13 − 1)(7.474) 2


s 2p = = 55.825
Step 5: 12 + 13 − 2
6.59 − 5.308
t= = 0.429
1 1
55.825 + 
 12 13 
Do not reject Ho.
Step 6: There is no difference in the mean salaries of pitchers and position players. (LO11-2)

10. Step 1: Ho: s  d H1: s > d


Step 2: The 0.01 significance level was chosen
Step 3: Use a t-statistic assuming a pooled variance with the standard deviation unknown.
Step 4: df = 15 + 12 – 2 = 25 Reject Ho if t > 2.485
(15 − 1)(15.5) 2 + (12 − 1)(18.1) 2
s 2p = = 278.69
Step 5: 15 + 12 − 2
61 − 48.4
t= = 1.949
1 1
278.69  + 
 15 12 
Do not reject Ho.
Step 6: There is no difference in the mean amount of time spent watching television between
single and dual earner couples. (LO11-2)

11. Step 1: Ho: s  a H1: s> a


Step 2: The 0.10 significance level was chosen
Step 3: Use a t-statistic assuming a pooled variance with the standard deviation unknown.
Step 4: df = 6 + 7 – 2 = 11 Reject Ho if t > 1.363
(6 − 1)(12.243) 2 + (7 − 1)(15.787) 2
s 2p = = 204.076
Step 5: 12 + 13 − 2
142.5 − 130.3
t= = 1.535
1 1
204.076 + 
6 7
Reject Ho.
Step 6: The mean daily expenses are greater for the sales staff. From the t-table we estimate
the p-value is between 0.05 and 0.10, using software we can find the p-value is about
0.076. (LO11-2)

12. Step 1: Ho: n  t H1: n > t


Step 2: The 0.01 significance level was chosen
Step 3: Use a t-statistic assuming a pooled variance with the standard deviation unknown.
Step 4: df = 12 + 8 – 2 = 18 Reject Ho if t > 2.552

11-3
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

(8 − 1)(34.404) 2 + (12 − 1)(22.84) 2


s 2p = = 779.098
Step 5: 8 + 12 − 2
835.75 − 826.75
t= = 0.706
1 1 
779.098 + 
 8 12 
Do not reject Ho.
Step 6: There is no difference in the mean salary of nurses and school teachers. From the t-
table we estimate the p-value is greater than 0.20, using software we can find the p-
value is about 0.243. (LO11-2)

(5 15 + 15 12 )
2 2 2

= 12 .96
(5 15) + (15 12 )
2 2 2 2

13. a. df = 12, found by 14 11


b. If t < -2.179 or t > 2.179, then reject Ho.
50 − 46
t= = 0.885
5 2 15 2
+
c. 15 12
d. You fail to reject the null hypothesis. (LO11-2)

(
15
20
+8
16
) 2 2 2

= 30 .09
(15 20 ) + (8 16 )
14. a. df = 30, found by 2 2
2 2

19 15
b. If t > 1.697, then reject Ho.
100 − 94
c. t= = 1.536
15 2 8 2
+
20 16
d. You fail to reject the null hypothesis. (LO11-2)

15. Ho: Private  Public H1: Private > Public


(
1545
18
+ 835
16
)
2 2 2

= 26 .7
(1545 18) + (835 16 )
df = 26, found by 2 2
2 2

17 15
22,840 − 21,045
If t > 1.706, then reject Ho. t= = 4.276
15452 8352
+
18 16
Reject the null hypothesis and find evidence indicating the mean cost at a private agency is
larger. (LO11-2)

11-4
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

16. Ho:  Claiborne   Calvin Klein H1:  Claiborne >  Calvin Klein
(0.795
15
+ 0.881
2

12
) 2 2

= 22 .5
(0.795 15) + (0.881 12 )
df = 22, found by 2 2
2 2

14 11
If t > 1.717, then reject Ho.
4.387 − 3.858
t= = 1.619
0.795 2 0.8812
+
15 12
You fail to reject the null hypothesis at the 5% level. (LO11-2)

17. Reject Ho if t > 2.353


12 (2 − 3) 2 + (3 − 3) 2 + (3 − 3) 2 + (4 − 3) 2
d= = 3.00 sd = = 0.816
4 4 −1
3
t= = 7.348
0.816 / 4
Reject the Ho. There are more defective parts produced on the day shift.
From the t-table we estimate the p-value is less than 0.005, but greater than 0.0005, using
software we can find the p-value is about 0.003. (LO11-3)

18. Reject Ho if t < −2.776 or t > 2.776


23
d= = 4.6
5

(4 − 4.6) 2 + (3 − 4.6) 2 + (5 − 4.6) 2 + (4 − 4.6) 2 + (7 − 4.6) 2


sd = = 1.5166
5 −1
4.6
t= = 6.782
1.5166 / 5
Reject the Ho. There is a difference in the mean number of citations given by the two officers.
From the t-table we estimate the p-value is less than 0.01, but greater than 0.001, using
software we can find the p-value is about 0.003. (LO11-3)

19. Step 1: Ho: d  0 H1:  d < 0


Step 2: The 0.05 significance level was chosen
Step 3: Use a t-statistic with the standard deviation unknown for a paired sample.
Step 4: Reject Ho if t < -1.796
− 25 .917
Step 5: 25.917 sd = 40.791 t= = −2.201
40 .791
12
Reject Ho.
Step 6: The incentive plan resulted in an increase in daily income. The p-value is about 0.025.
(LO11-3)

20. Step 1: Ho: d  0 H1: d > 0


Step 2: The 0.01 significance level was chosen
11-5
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

Step 3: Use a t-statistic with the standard deviation unknown for a paired sample.
Step 4: Reject Ho if t > 2.998
3.625
Step 5: d = 3.625 sd = 4.8385 t= = 2.119
4.8385
8
Do not reject Ho.
Step 6: There has not been a decrease in the number of crimes. From the t-table we estimate
the p-value is less than 0.05 but more than 0.025, using software we find the p-value is
about 0.036. (LO11-3)

21. H0: Men = Women H1: Men  Women Reject H0 if t < -2.645 or t > 2.645
(35 − 1)(4.48) + (40 − 1)(3.86)
2 2
s 2p = = 17.31
35 + 40 − 2
24.51 − 22.69
t= = 1.890
 1 1 
17.31 + 
 35 40 
Do not reject the null hypothesis. There is no difference in the means.
From the t-table we estimate the p-value is between 0.05 and 0.10, using software we find the
p-value is about 0.063. (LO11-1)

22. Ho: Day  Night H1: Day < Night Reject Ho if z < −1.645
345 − 351
z= = −1.30
(21) 2 (28) 2
+
54 60
Fail to reject Ho. There is not enough evidence to conclude that more units are produced on the
afternoon shift. (LO11-1)

23. Ho: Clark = Murnen H1: Clark  Murnen Reject Ho if z < −1.96 or z > 1.96
4.77 − 5.02
z= = −1.04
(1.05) 2 (1.23) 2
+
40 50
Ho is not rejected. There is no difference in the mean number of calls. The p-value is 0.2984
found by 2(0.5000 – 0.3508).(LO11-1)

24. Ho: Regular  Decaf H1: Regular < Decaf Reject Ho if z < −2.326
4.35 − 5.84
z= = −5.44
(1.20) 2 (1.36) 2
+
50 40
Ho is rejected. The mean number of cups for regular coffee drinkers is less than decaffeinated
coffee drinkers. The p-value is almost 0, found by 2(0.5000 – 0.5000).(LO11-1)

25. Ho: A  B H1: A < B

11-6
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

(9200 2

40
+ 7100
2

30
) 2

= 67 .9
( ) ( )
df = 67, found by 2 2
2
9200 7100 2
40 + 30
39 29
57000 − 61000
Reject Ho if t < -1.668 t= = −2.053
92002 71002
+
40 30
Reject Ho. The mean income of those selecting Plan B is larger. From the t-table we estimate
the p-value is less than 0.025, using software we find the p-value is about 0.022. (LO11-1)

26. Ho: Software  Hardware H1: Software > Hardware


(4 .2
35
+ 3 .9
2

45
) 2 2

= 70 .4
(4.2 35) + (3.9 45)
df = 70, found by 2 2
2 2

34 44
18 − 15.5
Reject Ho if t > 1.667 t= = 2.724
4.2 2 3.9 2
+
35 45
Reject Ho. Software issues take longer on average than hardware issues.
From the t-table we estimate the p-value is less than 0.005, using software we find the p-value
is about 0.004. (LO11-2)

27. Ho: iTunes = WinMX H1: iTunes ≠ WinMX


( + 0 .3 )
2 2 2
0.56
12 12 = 16 .8
(0.56 12) + (0.3 12 )
df = 16, found by 2 2
2 2

11 11
1.65 − 2.2
Reject Ho if t < -2.120 or t > 2.120 t= = −2.999
0.56 2 0.32
+
12 12
You reject the null hypothesis the downloads are different. (LO11-2)

28. Ho: e-coupon = traditional H1: e-coupon ≠  traditional


(
10 .9
35
+ 4 .8
25
)
2 2 2

= 49 .8
(10.9 35) + (4.8 25)
df = 49, found by 2 2
2 2

34 24
33.6 − 39.5
If t < -2.680 or t > 2.680, then reject Ho. t= = −2.84
10.9 2 4.8 2
+
35 25

11-7
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

You reject the null hypothesis in favor of the alternative that e-coupon users are different than
traditional coupon users. (LO11-2)

29. Ho: n = s H1: n  s


( + 14 .25 )
2 2 2
10 .5
10 12 = 19 .8
(10.5 10) + (14.25 12)
df =19, found by 2 2
2 2

9 11
83.55 − 78.8
Reject Ho if t < −2.093 or t > 2.093 t= = 0.899
10.5 2 14.25 2
+
10 12
Do not reject Ho. There is no difference in the mean number of hamburgers sold at the two
locations. (LO11-2)

30. Ho: 1 = 2 H1: 1  2


( + 6.71 )
2 2 2
13 .68
10 14 = 12 .1
(13.68 10 ) + (6.71 14 )
df =12, found by 2 2
2 2

9 13
83.8 − 79.29
Reject Ho if t > 1.782 or t < −1.782 t= = 0.964
13.682 6.712
+
10 14
Do not reject Ho. There is no difference in the mean number of hours for the two treatments.
(LO11-2)

31. Ho: Peach = Plum H1: Peach  Plum


(2.33
10
+ 2.55
14
2
) 2 2

= 20 .6
(2.33 10 ) + (2.55 14 )
df =20, found by 2 2
2 2

9 13
15.87 − 18.29
Reject Ho if t > 2.845 or t < −2.845 t= = −2.414
2.332 2.552
+
10 14
Do not reject Ho. There is no difference in the mean amount purchased at the 1% level.
(LO11-2)

32. Ho:  Little River =  Murrells Inlet H1:  Little River   Murrells Inlet
(4.44 10 + 2.685 12 )
2 2 2

= 14 .237
(4.44 10 ) + (2.685 12 )
df =14, found by 2 2
2 2

9 11

11-8
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

27.46 − 25.69
Reject Ho if t > 2.145 or t < −2.145 t= = 1.104
4.44 2 2.6852
+
10 12
Do not reject Ho. The mean waiting times are not different. (LO11-2)

33. Ho:  Under 25   Over 65 H1:  Under 25 >  Over 65


(2.264 8 + 2.461 11)2 2 2

= 15 .953
(2.264 8 ) + (2.461 11)
df =15, found by 2 2
2 2

7 10
Reject Ho if t > 2.602
10.375 − 5.636
t= = 4.342
2.264 2 2.4612
+
8 11
Reject Ho. Under 25 customers use ATMS more than Over 65 customers. (LO11-2)

34. Ho:  Prada =  Oracle H1:  Prada   Oracle


(
1.0563
10
+ 2.2079
12
)2 2 2

= 16 .4
(1.0563 10 ) + (2.2079 12 )
df =16, found by 2 2
2 2

9 11
Reject Ho if t > 2.120 or t < −2.120
12.17 − 14.875
t= = −3.759
1.05632 2.20792
+
10 12
Reject Ho. There is a difference in the mean race times. (LO11-2)

35. Ho:  Reduced   Regular H1:  Reduced >  Regular


Reject Ho if t > 2.650
X 1 =125.125 s1 = 15.094 X 2 = 117.714 s2 = 19.914
(8 − 1)(15.094) + (7 − 1)(19.914)
2 2
s 2p = = 305.708
8+7−2
125.125 − 117.714
t= = 0.819
1 1
305.708  + 
8 7
Ho is not rejected. We fail to reject the null hypothesis, finding no evidence that the reduced
price increased sales. (LO11-2)

36. Ho:  After -  Before =d  0 H1: d < 0


Reject Ho if t < −2.998
−2.5
d = −2.5 sd = 2.928 t= = −2.415
2.928 / 8
Do not reject Ho. There mean number of accidents has not been reduced. (LO11-2)

11-9
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

37. Ho:  Before -  After = d  0 H1: d > 0 Reject Ho if t > 1.895


1.75
d = 1.75 sd = 2.9155 t= = 1.698
2.9155 / 8
Do not reject Ho. We fail to find evidence the change reduced absences. Using the t-table we
estimate the p-value is less than 0.1 but greater than 0.05, using software we find the p-value
is about 0.067. (LO11-3)

38. Ho: d = 0 H1: d  0


Reject Ho if z < −1.761 or z > 1.761
− 246.333
d = −246.333 sd = 546.959 t= = −1.744
546.959 / 15
Do not reject Ho. There is no difference in the mean insurance price. (LO11-3)

39. Ho: 1 = 2 H1: 1  2


If t is not between −2.024 and 2.024, reject Ho.
(15 − 1)(40000) 2 + (25 − 1)(30000) 2
sp = = 1,157,894,737
2

15 + 25 − 2
150000 − 180000
t= = −2.699
1 1 
1,157,894,737 + 
 15 25 
Reject Ho, we find evidence the population means are different. (LO11-2)

40. Ho:  Without =  With H1:  Without   With


If t is not between −2.228 and 2.228, reject Ho.
(5 − 1)(1.73)2 + (7 − 1)(0.9)2 3 − 1.857
s 2p = = 1.683 t= = 1.505
5+7−2 1 1
1.683 + 
5 7
Do not reject Ho. We fail to reject that the ratings are the same with and without almonds.
(LO11-2)

41. Ho:  Before -  After = d  0 H1: d > 0 Reject Ho if t > 1.895


3.113
d = 3.113 sd = 2.911 t= = 3.025
2.911/ 8
Reject Ho. We find evidence the average contamination is lower after the new soap is used.
(LO11-3)

42. Ho: NYSE  NASDAQ H1: NYSE > NASDAQReject Ho if t > 1.397
(5 − 1)(5.95) + (5 − 1)(4.02)
2 2
16.67 − 14.81
s 2p = = 25.78 t= = 0.58
5+5−2 1 1
25.78  + 
5 5
Do not reject Ho. We cannot conclude the big board yields higher returns. (LO11-2)

43. Ho: Ocean Drive = Rio Rancho H1:  Ocean Drive  Rio Rancho
Reject Ho if t < -2.008 or t > 2.008.
(25 − 1)(23.43) 2 + (28 − 1)(24.12) 2
s 2p = = 566
25 + 28 − 2
11-10
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McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

86.2 − 92.0
t= = −0.886
 1 1 
566  + 
 25 28 

Do not reject the null hypothesis. It is reasonable to conclude there is no difference in the
mean number of cars in the two lots. (LO11-2)

6.3
44. Ho: d  0 H1: d > 0 t= = 2.258
12.48 / 20
Using software find the p-value is 0.018. For any significance level above 1.8% reject the null
hypothesis and conclude the percentage is less now than it was 5 years ago. (LO11-3)

45. Ho:  US 17 -  SC 707 = d  0 H1: d > 0

2 .8
Reject Ho if t > 1.711 d = 2.8 sd = 6.589 t= = 2.125
6.589
25

Reject Ho. There are on average more cars in the US 17 lot. (LO11-3)

46. Ho: 8-10 Year olds   11-14 Year olds H1:  8-10 Year olds <  11-14 Year olds
Reject Ho if t < -2.453
(15 − 1)(3.167) 2 + (18 − 1)(4.379) 2 8.8 − 12.333
s =
2
= 15.045 t= = −2.605
15 + 18 − 2
p
1 1
15.045 + 
 15 18 
Reject H0. The mean allowance for children in 11 to 14 year age group is more that for
children 8 to 10. Using the t-table we estimate the p-value is below 0.01, using software we
find it is about 0.007. (LO11-2)

47. a. 1 = without pool 2 = with pool


Ho: 1 = 2 H1: 1  2
Reject Ho if t > 1.983or t < −1.983
X 1 = 202.8 s1 = 33.7 n1 = 38
X 2 = 231.5 s2 = 50.46 n2 = 67
(38 − 1)(33.7) + (67 − 1)(50.46)2
2
s 2p = = 2041.05
38 + 67 − 2
202.8 − 231.5
t= = −3.12
 1 1 
2041.05  + 
 38 67 
Below is the Excel output for the test that does not round the statistics.

11-11
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

t-Test: Two-Sample Assuming Equal Variances

No Pool Pool
Mean 202.7974 231.4851
Variance 1136.031 2557.258
Observations 38 67
Pooled Variance 2046.72
Hypothesized Mean Difference 0
df 103
t Stat -3.12249
P(T<=t) one-tail 0.001164
t Critical one-tail 1.659782
P(T<=t) two-tail 0.002328
t Critical two-tail 1.983264

Reject Ho. There is a difference in mean selling price for homes with and without a
pool with a p-value of approximately 0.23%
b. 1 = without garage 2 = with garage
Ho: 1 = 2 H1: 1  2 Reject Ho if t > 2.000 or t < −2.000
 = 0.05 df = 34 + 71 – 2 = 103
X 1 = 185.44 s1 = 28.01 X 2 = 238.18 s2 = 44.88
(34 − 1)(28.01)2 + (71 − 1)(44.88) 2
s 2p = = 1620.25
103
185.44 − 238.18
t= = −6.28
 1 1
1620.25  + 
 34 71 
Below is the Excel output for the test that does not round the statistics.

11-12
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

t-Test: Two-Sample Assuming Equal Variances

No Garage Garage
Mean 185.45 238.1761
Variance 784.2571 2013.896
Observations 34 71
Pooled Variance 1619.934
Hypothesized Mean Difference 0
df 103
t Stat -6.28132
P(T<=t) one-tail 4.06E-09
t Critical one-tail 1.659782
P(T<=t) two-tail 8.12E-09
t Critical two-tail 1.983264

Reject Ho. There is a difference in mean selling price for homes with and without a
garage with a p-value of almost zero.
c. 1 = Township #1 2 = Township #2
Ho: 1 = 2 H1: 1  2 Reject Ho if t > 2.036 or t <
−2.036 X 1 = 196.91 s1 = 35.78 n1 = 15
X 2 = 227.45 s2 = 44.19 n2 = 20
(15 − 1)(35.78) + (20 − 1)(44.2)2
2
s 2p = = 1667.43
15 + 20 − 2
196.91 − 227.45
t= = −2.19
1 1 
1667.43  + 
 15 20 
Below is the Excel output for the test that does not round the statistics.

11-13
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

t-Test: Two-Sample Assuming Equal Variances

Twnship #1 Twnship #2
Mean 196.9133 227.45
Variance 1280.498 1953.054
Observations 15 20
Pooled Variance 1667.727
Hypothesized Mean Difference 0
df 33
t Stat -2.1892
P(T<=t) one-tail 0.01788
t Critical one-tail 1.69236
P(T<=t) two-tail 0.035761
t Critical two-tail 2.034515

Reject Ho. There is a difference in mean selling price for homes in Township 1 and
Township 2 with a p-value of almost 3.5%. (LO11-2)

48. a. 1 = American League 2 = National League


Ho: 1 = 2 H1: 1  2
If t is not between −2.048 and 2.048, reject Ho.
(14 − 1)(37.4496) 2 + (16 − 1)(31.0924) 2
sp = = 1169.0422
2

14 + 16 − 2
93.2786 − 84.3438
t= = 0.7141
1 1
1169.0422 + 
 14 16 

Below is the Excel output for the test that does not round the statistics.

11-14
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

t-Test: Two-Sample Assuming Equal Variances

AL Salaries NL Salaries
Mean 93.27857143 84.34375
Variance 1402.469505 966.738625
Observations 14 16
Pooled Variance 1169.042248
Hypothesized Mean Difference 0
df 28
t Stat 0.714059096
P(T<=t) one-tail 0.240550628
t Critical one-tail 1.701130934
P(T<=t) two-tail 0.481101255
t Critical two-tail 2.048407142

There may be no difference in the mean salaries by league as we fail to reject the null
hypothesis that the salaries are equal in the two leagues.
b. 1 = American League 2 = National League
Ho: 1 = 2 H1: 1  2
If t is not between −2.048 and 2.048, reject Ho.
(14 − 1)(0.6463) 2 + (16 − 1)(0.7388) 2
sp = = 0.4863
2

14 + 16 − 2
2.306 − 2.571
t= = −1.038
1 1
0.4863 + 
 14 16 
Below is the Excel output for the test that does not round the statistics.

t-Test: Two-Sample Assuming Equal Variances

AL Attendance NL Attendance
Mean 2.306428571 2.57125
Variance 0.417747802 0.545798333
Observations 14 16
Pooled Variance 0.486346301
Hypothesized Mean Difference 0
df 28
t Stat -1.037632814
P(T<=t) one-tail 0.154159671
t Critical one-tail 1.701130934
P(T<=t) two-tail 0.308319342
t Critical two-tail 2.048407142

11-15
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

Do not reject Ho. There may be no difference in the mean attendance by league as we
fail to reject the null hypothesis that attendance is equal in the two leagues.
c. 1 = Highest 10 salaried teams 2 = Lowest 10 salaried teams
Ho: 1 = 2 H1: 1  2
If t is not between −2.101 and 2.101, reject Ho.
(10 − 1)(10.4717) 2 + (10 − 1)(11.3578) 2
sp = = 119.0778
2

10 + 10 − 2
88.1 − 74.5
t= = 2.787
1 1
119.0778 + 
 10 10 
Below is the Excel output for the test that does not round the statistics.

t-Test: Two-Sample Assuming Equal Variances

Highest 10 Lowest 10
Mean 88.1 74.5
Variance 109.6555556 128.5
Observations 10 10
Pooled Variance 119.0777778
Hypothesized Mean Difference 0
df 18
t Stat 2.786817634
P(T<=t) one-tail 0.00608783
t Critical one-tail 1.734063607
P(T<=t) two-tail 0.01217566
t Critical two-tail 2.10092204

Reject Ho, there appears to be a difference in the number of wins between “high”
salary and “low” salary teams. (LO11-2)

49. 1 = Diesel 2 = Gasoline


Ho: 1 = 2 H1: 1  2
If t is not between −1.991 and 1.991, reject Ho.
(53 − 1)(52.9) 2 + (27 − 1)(55.1) 2 454.8 − 441.5
sp = = 2878 t= = 1.05
2

53 + 27 − 2 1 1 
2878 + 
 53 27 
Below is the Excel output for the test that does not round the statistics.

11-16
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Chapter 11 - Two-Sample Tests of Hypothesis

t-Test: Two-Sample Assuming Equal Variances

Diesel Gasoline
Mean 454.7735849 441.4814815
Variance 2802.255443 3031.336182
Observations 53 27
Pooled Variance 2878.615689
Hypothesized Mean Difference 0
df 78
t Stat 1.047795891
P(T<=t) one-tail 0.14898431
t Critical one-tail 1.664624645
P(T<=t) two-tail 0.297968619
t Critical two-tail 1.990847069

Do not reject Ho. There may be no difference in the mean maintenance cost for the two types
of busses. (LO11-2)

11-17
Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.

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