Example 1

Two consumer durables companies market two brands of

electric irons A and B, respectively. A researcher has
taken a random sample of size 35 from the first company
and size 40 from the second company and computed the
average life of both the brands in months (average life is
shown in Table 11.1(a) and 11.1(b)). Is there a significant
difference between the average life of the two brands A
and B? Take 95% as the confidence level.
Example 1.1 (Contd.)
Solution (Example)
Hypotheseis Testing for the Difference Between Two Population Means Using the t
Statistic (Case of a Small Random Sample, n1, n2 < 30, When Population Standard
Deviation Is Unknown
 Example 1.2(Contd.)
Anmol Constructions is a leading company in the construction sector in India. It wants to construct flats in Raipur and
Dehradun, the capitals of the newly formed states of Chattisgarh and Uttarakhand, respectively. The company wants
to estimate the amount that customers are willing to spend on purchasing a fl at in the two cities. It randomly
selected 25 potential customers from Raipur and 27 customers from Dehradun and posed the question, “how much
are you willing to spend on a flat?” The data collected from the two cities is shown in Table 11.2(a) and Table 11.2(b).
The company assumes that the intention to purchase of the customers is normally distributed with equal variance in
the two cities taken for the study. On the basis of the samples taken for the study, estimate the difference in
population means taking 95% as the confidence level
Statistical Inference About the Difference
Between the Means of Two Related Populations
(Matched Samples

 For dependent samples or related samples, it is important

that the two samples taken in the study are of the same
size.
An electronic goods company arranged a special training programme for one segment of its employees. The
company wants to measure the change in the attitude of its employees after the training. For this purpose, it
has used a well-designed questionnaire, which consists of 10 questions on a 1 to 5 rating scale (1 is strongly
disagree and 5 is strongly agree). The company selected a random sample of 10 employees. The scores
obtained by these employees are given in Table 11.3.

Use α = 0.10 to determine whether

there is a significant change in the
attitude of employees after the
training programme
Hypothesis Testing for the Difference in Two
Population Proportions