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Complete Business Statistics: The Comparison of Two Populations
Complete Business Statistics: The Comparison of Two Populations
BUSINESS
STATISTICS
by
AMIR D. ACZEL
&
JAYAVEL SOUNDERPANDIAN
7th edition.
Chapter 10
The Comparison of Two Populations
McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.
8-2
10 LEARNING OBJECTIVES
After studying this chapter you should be able to:
• Explain the need to compare two population parameters
• Conduct a paired-difference test for the difference in population means
• Conduct an independent-samples test for the difference in population means
• Describe why a paired-difference test is better than independent-samples test
• Conduct a test for difference in population proportions
• Test whether two population variances are equal
• Use templates to carry out all tests
8-4
the hypothesis testing we have sufficient evidence to prove that the variance of the number of cars
sold per month before the announcement is different from the variance of the number of cars sold
The F Distribution
•• The
TheFFrandom
randomvariable
variablecannot
cannot F Distributions with different Degrees of Freedom
benegative,
be negative,so soititisisbound
boundbyby
zeroon
zero onthe
theleft.
left. 1.0 F(25,30)
f(F)
•• The
TheFFdistribution
distributionisisskewed
skewedtoto F(10,15)
theright.
the right. 0.5
•• The
TheFFdistribution
distributionisisidentified
identified
thenumber
the numberof ofdegrees
degreesof of 0.0
F(5,6)
freedomin
freedom inthe
thenumerator,
numerator,kk,1, 0 1 2 3 4 5
F
1
andthe
and thenumber
numberof ofdegrees
degreesofof
freedomin
freedom inthe
thedenominator,
denominator,
kk2.2.
8-51
k1 1 2 3 4 5 6 7 8 9 0.7
0.6
k2
1 161.4 199.5 215.7 224.6 230.2 234.0 236.8 238.9 240.5 0.5
2 18.51 19.00 19.16 19.25 19.30 19.33 19.35 19.37 19.38 0.4
f(F)
3 10.13 9.55 9.28 9.12 9.01 8.94 8.89 8.85 8.81
4 7.71 6.94 6.59 6.39 6.26 6.16 6.09 6.04 6.00 0.3
5 6.61 5.79 5.41 5.19 5.05 4.95 4.88 4.82 4.77 0.2
6 5.99 5.14 4.76 4.53 4.39 4.28 4.21 4.15 4.10
7 5.59 4.74 4.35 4.12 3.97 3.87 3.79 3.73 3.68 0.1
8 5.32 4.46 4.07 3.84 3.69 3.58 3.50 3.44 3.39 0.0 F
9 5.12 4.26 3.86 3.63 3.48 3.37 3.29 3.23 3.18 0 1 2 3 4 5
10 4.96 4.10 3.71 3.48 3.33 3.22 3.14 3.07 3.02
11 4.84 3.98 3.59 3.36 3.20 3.09 3.01 3.01 2.95 2.90
12 4.75 3.89 3.49 3.26 3.11 3.00 2.91 2.85 2.80 F0.05=3.01
13 4.67 3.81 3.41 3.18 3.03 2.92 2.83 2.77 2.71
14 4.60 3.74 3.34 3.11 2.96 2.85 2.76 2.70 2.65
15 4.54 3.68 3.29 3.06 2.90 2.79 2.71 2.64 2.59
0.4
FF(6,9) =3.37
(6,9)=3.37
f(F)
0.3
0.05
0.2
0.1 Thecorresponding
The correspondingleft-hand
left-handcritical
critical
0.0 pointisisgiven
point givenby:
by:
0 1 2 3 4 5 F
1 1
F0.95=(1/4.10)=0.2439 F0.05=3.37
0.2439
F 9 , 6 410
.
8-53
I:I:Two-Tailed
Two-TailedTestTest
• • 1 1==2 2
•
•
HH0:0:1 1==2 2
•
•
HH1:
1:2
2
II:One-Tailed
II: One-TailedTestTest
•
•
1
12
2
H0:0:1 1
•• H 2 2
•
•
HH1:1:1 1
2 2
8-54
Example 8-9
The economist wants to test whether or not the event (interceptions and prosecution of insider
traders) has decreased the variance of prices of stocks.
Population 1 : Before
n = 25 2
1 2 2
H 0:
s 2 9 .3 1 21
1
2 2
Population 2 : After H1:
n = 24 1 2
2
s2
s 2 3 .0 1 9.3
F F 3.1
2
n1 1, n 2 1
24,23 s2 3.0
2
0.05
F 2.01
24,23 H 0 may be rejected at a 1% level of significance.
0.01
F 2.70
24,23
8-55
0.6
statisticisisabove
statistic abovethethecritical
critical
0.5 point,even
point, evenforforaalevel
levelof
of
0.4
significanceas
significance assmall
smallasas0.01,
0.01,
f(F)
0.3
0.2 thenull
the nullhypothesis
hypothesismay maybebe
0.1
rejected,and
rejected, andwewemaymay
0.0 F
0 1 2 3 4 5 concludethat
conclude thatthe
thevariance
varianceofof
F0.01=2.7 Test Statistic=3.1 stockprices
stock pricesisisreduced
reducedafter
after
theinterception
the interceptionand and
prosecutionof
prosecution ofinside
insidetraders.
traders.
8-56
Population 1 Population 2
n = 14 n =9 2
H :
2
1 2 0 1 2
2 2 2 2
s 0.12 s 0.11 2 2
1 2 H :
1 1 2
0.05
s2
F 3.28 1 0.12 2
F F 119
.
13,8 n1 1, n2 1 13,8 s 0.11
2 2
2
0.10
F 2.50 H may not be rejected at the 10% level of significance.
13,8 0
8-58
0.10
0.6 0.80 statistic
0.5
0.4
points,even
points, evenfor foraa20%
20%level
levelof
of
f(F)
0.3
0.10 significance,we
significance, wecan
cannot
notreject
reject
0.2
0.1 thenull
the nullhypothesis.
hypothesis. We We
0.0
0 1 2 3 4 5 F concludethe
conclude thetwo
twopopulation
population
F0.90=(1/2.20)=0.4545 F0.10=3.28
variancesare
variances areequal.
equal.
Test Statistic=1.19
8-59
Donot
Do notreject
rejectthe
the
nullhypothesis
null hypothesisforfor
equalityofofvariances
equality variances
sinceP-values
since P-valuesare are
largefor
large forboth
boththe
the
F-testand
F-test andLevine’s
Levine’stest.
test.
8-64
overlap.
Sample
overlap.
2
2