Chapter 11 Hypothesis Testing About the Differences Between Two Population Means

H0: 1 - 2 = 0

Ha: 1 - 2 # 0

Slide 1

Hypothesis Testing About the Differences Between Two Population Means



Let Q1 equal the mean of population 1 and Q2 equal the mean of population 2. The difference between the two population means is Q1 - Q2. Let n1 be the sample size of population 1 and n2 the sample size of population 2. Let x1 equal the mean of sample 1 and x2 equal the mean of sample 2.

Slide 2

Hypothesis Tests About Q 1  Q 2: W 1 and W 2 Known

 Hypotheses

H 0 : Q1 Q2 u D0 H 0 : Q1 Q2 e D0 H 0 : Q1 Q2 D0 H a : Q1  Q2 { D0 a : Q1  Q 2 0 H a : Q 1 Q 2 " D0
LeftLeft-tailed Right-tailed RightTwo-tailed Two Test Statistic (Actual z Value) (Actual Value)

z!

( x1  x2 )  D0
2 W 12 W 2  n1 n2

Slide 3

Tw o c i ti e s, Bradford and Kane are separated only by the Conewango River. There is competition between the two cities. The local paper recently reported that with a standard deviation the mean household income of $7,000 for a sample of in Bradford is $38,000 with 35 households. At the 0.01 a standard deviation of significance level can we $6,000 for a sample of 40 conclude the mean income households. The same in Bradford is more? article reported the mean income in Kane is $35,000 Challenging Example 1 4 Slide

Step 4 State the decision rule. The null hypothesis is rejected if actual z is greater than critical z of 2.33 or if p .01 Step 1 State the null and alternate hypotheses. H0: B < K H1: B > K

Step 3 Find the appropriate test statistic. Because both samples are more than 30, we can use z as the test statistic.

Step 2 State the level of significance. The 0.01 significance level is stated in the problem.
Solution
Slide 5

Step 5: Compute the value of actual z and make a decision

z! $38,000  $35,000 ($6,000) ($7,000)  40 35
2 2

! 1.98

Actual Z

Because the actual Z = 1.98 < critical Z = 2.33, and since the p-value = 0.0239 > = 0.01 the decision is to accept the null hypothesis. Thus we cannot conclude that the mean household income in Bradford is larger then the mean household income in Kane.
H0: B < K H1: B > K
Slide 6

Hypothesis Tests About Q 1  Q 2: W 1 and W 2 Unknown and Small Sample

When W 1 and W 2 are unknown, we will:

use the sample standard deviations s1 and s2

as estimates of W 1 and W 2 , and

use t table instead of Z table. Assuming at least one of the sample is n < 30

Slide 7

Hypothesis Tests About Q 1  Q 2: W 1 and W 2 Unknown and Small Sample



Hypotheses

H 0 : Q1 Q2 u D0 H 0 : Q1 Q2 e D0 H 0 : Q1 Q2 D0 H a : Q1 Q2 { D0 a : Q1  Q 2 0 H a : Q 1 Q 2 " D0
LeftLeft-tailed


Right-tailed Right-

Two-tailed Two-

Test Statistic (Actual t)When n < 30 and W is (Actual t) unknown:

t!

( x1  x2 )  D0 s s  n1 n2
Slide 8
2 1 2 2

EXCEL APPLICATION
When in a problem raw data are given, then you may use either Data Analysis Add-Ins or SWStat+ Add-Ins in Excel to solve the problem. See next slides.

Hypothesis Tests About Q 1 ! Q 2 When W 1 and W 2 Unknown & Small Samples Challenging Example #1 Using SWStat+ and Data Analysis in Excel


Ariana Corporation wants to increase the productivity of its line workers. To do so, two different programs have been suggested to help increase productivity. Twenty employees, making up a sample, have been randomly assigned to one of the two programs and their output for a day's work has been recorded. The results are given on the next slide.
Slide 10

Example #1 Continued
Program A 150 130 120 180 145 185 220 190 180 175 Program B 150 120 135 160 110 175 150 120 130 220
Slide 11

Example #1 Continued Questions

 

a. State the null and alternative hypotheses. b. Use Excel, and at 95% confidence test to determine if the means of the two populations are equal, and c. Explain your answer

Slide 12

Hypothesis Tests About Q 1  Q 2 When W 1 and W 2 Unknown & Small Samples Using Data Analysis in Excel


Excels t-Test: Two Sample Assuming Unequal t Variances Tool Step 1 Select the Tools menu Step 2 Choose the Data Analysis option Step 3 Choose t-Test: Two Sample Assuming Unequal Variances from the list of Analysis Tools continued
Slide 13

Solution to #1 Using Data Analysis in Excel



Excel Dialog Box

Slide 14

Solution to #1 Using Data Analysis in Excel

H0: Q1 = Q2 Ha: Q1 # Q2

Slide 15

Hypothesis Tests About Q 1  Q 2 When W 1 and W 2 Unknown & Small Samples



SWStat+ t-Test: Two Sample Assuming Unequal Variances Tool

Step 1 Create Data area Step 2 Choose Statistics, and then choose Statistics, the Intervals and Tests option Step 3 From Type, Choose Two Samples, Type, Different Means, Unequal Variances, t-Test continued
Slide 16

Solution to #1 Using SWStat+ (Creating Data Area)

Data Area
Slide 17

Solution to #1 Using SWStat+ (Selecting Intervals and Tests Option)

Slide 18

Solution to #1 Using SWStat+ (Results)

H0: Q1 = Q2 Ha: Q1 # Q2

Slide 19

Hypothesis Tests About Q 1 ! Q 2 When W 1 and W 2 Unknown Challenging Example #2



Information regarding the ACT scores of samples of twenty two students in two different majors at CSU is given in next slide. Questions: (a) Use Excel, and at 95% confidence test to determine whether there is a significant difference in the means of the two populations, and (b) explain your answer.

Slide 20

DATA

Hypothesis Test

H0: Q1 = Q2 Ha: Q1 # Q2

Slide 21

Solution to #2 Using Data Analysis in Excel

Slide 22

Solution to #2 Using SWStat+ (Results)

Two Samples, Different Means, Unequal Variances, t Test

H0: Q1 = Q2 Ha: Q1 # Q2
Slide 23

Hypothesis Tests About Q 1  Q 2 When W 1 and W 2 are Known



If samples are large (n130 and n230) and also if population standard deviations ( 1 and 2) are given then you can use either Data Analysis or SWStat+ in Excel to solve the problem. Note that in this case, the option that you use in Data Analysis is z-Test: Two Sample for Means and the option that you use in SWStat+ is Two Sample, diff Variances/SDs: F See next example.

Slide 24

Hypothesis Tests About Q 1  Q 2 When W 1 and W 2 are Known



Example: Par, Inc. Par, Inc. is a manufacturer of golf equipment and has developed a new golf ball that has been designed to provide extra distance. In a test of driving distance using a mechanical driving device, a sample of Par golf balls was compared with a sample of golf balls made by Rap, Ltd., a competitor. The sample statistics appear on the next slide.
Slide 25

Hypothesis Testing of Q1 - Q2: W 1 and W 2 Known



Example: Par, Inc. Sample #1 Par, Inc. 120 balls 275 yards Sample #2 Rap, Ltd. 80 balls 258 yards

Sample Size Sample Mean

Given that the two population standard deviations are known as: 1 = 15 yards and 2 = 20 yards, then

Can we conclude, using = 0.01, that the mean driving distance of Par, Inc. golf balls is greater than the mean driving distance of Rap, Ltd. golf balls?
Slide 26

Hypothesis Testing of Q1 - Q2 When W 1 and W 2 are Known

 p Value and Critical Value Approaches

The hypotheses is:

H0: Q1 - Q2 < 0  H a: Q 1 - Q 2 > 0

where: Q1 = mean distance for the population of Par, Inc. golf balls Q2 = mean distance for the population of Rap, Ltd. golf balls The level of significance is: E = .01

Slide 27

Hypothesis Tests About Q 1  Q 2 When W 1 and W 2 are Known



Excels z-Test: Two Sample for Means Tool z Step 1 After data entry, then select the Tools menu Step 2 Choose the Data Analysis option Step 3 Choose z-Test: Two Sample for Means from the list of Analysis Tools continued

Slide 28

Hypothesis Tests About Q 1  Q 2 When W 1 and W 2 are Known



Excel Dialog Box

H0: Q1 - Q2 < 0  H a: Q 1 - Q 2 > 0

OR

H0: Q1 Q2  H a: Q 1 > Q 2

Slide 29

Hypothesis Tests About Q 1  Q 2 When W 1 and W 2 are Known



Excel Value Worksheet

A B C Par Rap D E F

1 2 3 4 5 6 7 8 9 10 11 12 13

255 270 294 245 300 262 281 257 268 295 249 291

266 238 243 277 275 244 239 242 280 261 276 241

z-Test: T

ple f r Me s r, Inc. 235 225 120 0 6.483545607 4.47959E-11 2.326347874 8.95919E-11 2.575829304 p, t . 218 400 80

Me n Known V riance Obser ations Hypot esize Mean Difference z P(Z< z) one-tail z ritical one-tail P(Z< z) two-tail z ritical two-tail

Note: Rows 14-121 are not shown. 14Slide 30

Conclusion


Because pvalue = 0 < = 0.01 and also because actual z = 6.49 > critical z = 2.33 we reject H0. In other words:

At the 0.01 level of significance, the sample evidence indicates that the mean driving distance of Par, Inc. golf balls ( 1) is greater than the mean driving distance of Rap, Ltd. golf balls (2). In other words

H0: Q1 - Q2 < 0  H a: Q 1 - Q 2 > 0

OR

H 0: Q 1 Q 2  Ha: Q1 > Q2
Slide 31

End of Chapter 11

DANCER