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```Portions of these
from Statistics 7e
Making Comparisons
Inferences Based on Two Samples:
Confidence Intervals & Tests of Hypotheses
PBAF 527 Winter 2005
1
Portions of these
from Statistics 7e
Today
1. Scallops, Sampling and the Law
Confidence Intervals, Hypothesis Testing, and
Sampling
•
2. Hypothesis Testing
Special Cases: Small samples, proportions
•
3. Making Comparisons
Solve Hypothesis Testing Problems for Two
Populations
•


•
2
•
Mean
Proportion
Distinguish Independent & Related Populations
Create Confidence Intervals for the Differences
Portions of these
from Statistics 7e
•
a.
b.
c.
d.
3
Scallops, Sampling, and the
Law
Can a reliable estimate of the mean weight of all
the scallops be obtained from a sample size of
18?
Do you see any flaws in the rule to confiscate a
scallop catch if the sample mean weight is less
than 1/36 of a pound?
Develop your own procedure for determining
whether a ship is in violation of the weight
restriction using the data provided.
Apply your procedure to the data provided.
Portions of these
from Statistics 7e
Today
1. Scallops, Sampling and the Law
Confidence Intervals, Hypothesis Testing, and
Sampling
•
2. Hypothesis Testing
Special Cases: Small samples, proportions
•
3. Making Comparisons
Solve Hypothesis Testing Problems for Two
Populations
•


•
4
•
Mean
Proportion
Distinguish Independent & Related Populations
Create Confidence Intervals for the Differences
Hypothesis Testing When
n is Small and σ Unknown
Portions of these
from Statistics 7e
Because the sample is small


Cannot assume normality
Cannot assume s is a good approximation
for σ
So, use t-distribution:
x
t
s
n
5
with n-1 degrees of freedom
Portions of these
from Statistics 7e
Small Sample t-test
Example 1 (1)
Most water treatment facilities monitor the quality of their drinking
water on hourly basis. One variable monitored it is pH, which
measures the degree of alkalinity or acidity in the water. A pH
below 7.0 is acidic, one above 7.0 is alkaline, and a pH of 7.0 is
neutral. One water treatment plant has a target pH of 8.5 (most
try to maintain a slightly alkaline level). The mean and standard
deviation of 1 hour’s test results, based on 17 water samples at
this plant are:
s=.16
x  8.24
Does this sample provide sufficient evidence that the mean pH
level in the water differs from 8.5?
6
Portions of these
from Statistics 7e
Small Sample t-test
Example 1 (2)
1. Establish hypotheses
H 0:=8.5 Ha: 8.5
2. Set the decision rule for the test:
if |t|>t at n-1 df then reject the null hypothesis
pick  =.05 (for two-sided test this is .025 in each tail)
find t at n-1 df t=2.12 with 16 degrees of freedom
t
x   8.42  8.5  .08


 2.05
s
.16
.039
n
17
3. Find test statistic
4. Compare test statistic to critical value.
Since |t|< t we cannot the null hypothesis at a 5% level. We cannot conclude that that
the mean pH differs from the target based on the sample evidence.
7
Portions of these
from Statistics 7e
Small Sample t-test
Example 2 (1)
A major car manufacturer wants to test a new engine to
determine whether it meets new air-pollution standards. The
mean emission  for all engines of this type must be less than
20 parts per million of carbon. 10 engines are manufactured for
testing purposes, and the emission level for each is determined.
The mean and standard deviation for the tests are:
x  17.17
s=2.98
Do the data supply enough evidence to allow the manufacturer
to conclude that this type of engine meets the pollution
standard? Assume the manufacturer is willing to risk a Type I
error with probability =.01.
8
Portions of these
from Statistics 7e
Small Sample t-test
Example 2 (2)
1. Establish hypotheses H 0:≥20 Ha: <20
2. Set the decision rule for the test:
if t<t then reject the null hypothesis
pick  =.01 (for one-sided test this is .01 in the tail)
find t t=-2.821 with 9 degrees of freedom
x   17.17  20
t

 3.00
s
2
.
98
3. Find test statistic
n
10
4. Compare test statistic to critical value.
9
We can reject the null. The actual value is less than 20 ppm, and the new engine type
meets the pollution standard.
Large Sample Test for the
Population Proportion
Portions of these
from Statistics 7e
When the sample size is large (np and nq
are greater than 5)



10
Assume p̂ is distributed normally with
mean p and standard deviation pq
n
where q=1-p
pˆ  p0
Test statistic:
z
p0 q0 n
2- or 1-tailed tests
Portions of these
from Statistics 7e
Large Sample Tests for
Proportion Example (1)
In screening women for breast cancer, doctors use a
method that fails to detect cancer in 20% of the women
who actually have the disease. Suppose a new method
has been developed that researchers hope will detect
cancer more accurately. This new method was used to
screen a random sample of 140 women known to have
breast cancer. Of these, the new method failed to detect
cancer in 12 women.
Does this sample provide evidence that the failure rate
of the new method differs from the one currently in use?
11
Portions of these
from Statistics 7e
Large Sample Tests for
Proportion Example (2)
1. Establish hypotheses H 0:p=.2 Ha: p≠.2
2. Set the decision rule for the test:
if |z|>z then reject the null hypothesis
pick  =.05 (for two-sided test this is .025 in each tail)
find t z=1.96
pˆ  p
.086  .2
 .114
z


 3.36
pq n
(.2)(.8) 140  .034
3. Find test statistic
4. Compare test statistic to critical value.
0
0 0
12
Since the test statistic falls in the rejection region, we can reject the null.
The rate of detection for the new test differs from the old at a .05 level of
significance.
Portions of these
from Statistics 7e
Today
1. Scallops, Sampling and the Law
Confidence Intervals, Hypothesis Testing, and
Sampling
•
2. Hypothesis Testing
Special Cases: Small samples, proportions
•
3. Making Comparisons
Solve Hypothesis Testing Problems for Two
Populations
•


•
13
•
Mean
Proportion
Distinguish Independent & Related Populations
Create Confidence Intervals for the Differences
Portions of these
from Statistics 7e
How Would You Try to
1. Do house prices in two Seattle neighborhoods differ?

By how much?
2. Does one method of teaching reading produce better
results than another?


Can I still have a reliable result with a small sample size?
How much better are the results of the method?
3. Do energy conservation efforts really reduce
consumption over time?

How much of a reduction?
4. Is the proportion of subprime mortgages to low-income
households greater than that for moderate-income
households?

14
How much greater?
Portions of these
from Statistics 7e
Two Population Tests
Two
Populations
Mean
Paired
Proportion
Variance
Z Test
F Test
Indep.
15
Z Test
t Test
t Test
(Large
sample)
(Small
sample)
(Paired
sample)
Comparison of Means for
Independent Subsamples
Portions of these
from Statistics 7e
Three scenarios:
1. H0: 1-2=0 Ha: 1-20
2. H0: 1-20 Ha: 1-2>0
3. H0: 1-2D Ha: 1-2>D
(not common, nor is 2-tailed test of D)
Could be:


16
Separate (unequal) Variances (Large Samples)
Equal Population Variances (Small Samples)
Portions of these
from Statistics 7e
Two Population Tests
Two
Populations
Mean
Paired
Proportion
Variance
Z Test
F Test
Indep.
17
Z Test
t Test
t Test
(Large
sample)
(Small
sample)
(Paired
sample)
Comparison of Means
Separate (Unequal) Variances
for 2 Independent Subsamples
Portions of these
from Statistics 7e
1. Assumptions




Independent, Random Samples
Populations Are Normally Distributed
If Not Normal, Can Be Approximated by Normal
Distribution (n1  30 & n2  30 )
For n’s<30, use t with the smaller of n1-1, n2-1 df
2. Two Independent Sample Z-Test Statistic
Z
18
X 1  X 2  1   2
2
1
2
2

n1
n2

X 1  X 2  1   2
2
s1
n1

s2
2
n2
Portions of these
from Statistics 7e
Example
Separate (unequal) Variances
Do house prices in two Seattle Neighborhoods differ?
By how much?
Is the average price of a home of a certain size equal
in Sandpoint and Ravenna?
You gather data on property value for a random sample
of 32 properties in Sandpoint and find that =\$345,650
and s=\$48,500. Then you gather data on the value of a
random sample of 35 properties in Ravenna and find
that =\$289,440 and s=\$87,090. Is the average property
value of all properties in both locations equal or not?
19
Portions of these
from Statistics 7e
Separate (unequal) Variances
Solution
H0:
Ha:

n1 = , n2 =
Critical Value(s)
/2?:
Test Statistic:
or
Decision:
Conclusion:
20
Separate (unequal) Variances
Solution
Portions of these
from Statistics 7e
H0: µ1 - µ2 = 0 (µ1 = µ2)
Ha: µ1 - µ2 ≠ 0 (µ1 ≠ µ2)
  .05
n1 = 32 , n2 = 35
Critical Value(s) or
/2?:
Reject H0
Reject H0
.025
.025
21
-1.96 0 1.96
z
Test Statistic:
z
x  x     
1
2
1
 12
 22
n1

n2
2 0

345,650  289,440  (0)  3.3
48,650 2 87,090 2

32
35
Decision: |z|>z /2
Reject at  = .05
Conclusion:
There is Evidence of a
Difference in Means
Confidence Interval for the
Difference
Portions of these
from Statistics 7e
Do house prices in two Seattle Neighborhoods differ?
By how much?
A (1-)100% confidence interval for the difference
between two population means 1-2 using independent
random sampling:
for n’s<30 use t/2 with the
2
2
 1  2 lesser of n -1, n -1 df
1
2
x x z


1
2

 /2
n1
n2
NB: are the variances of each of the two populations; when 12 and 22 are
unknown, use s12 and s22.
22
Confidence Interval for the
Difference
Portions of these
from Statistics 7e
Do house prices in two Seattle Neighborhoods differ?
By how much?
Construct a 95% confidence interval around the
difference and interpret it in words.
x  x   z
1
2
 /2
 12
 22
48,650 2 87,090 2

 345,650  289,440  1.96

n1 n2
32
35
 56,210  (1.96)(17,036)  [22819,89601]
We can be 95 percent confident that the average home
value in Sandpoint is between \$22,819 and \$89,601
more than the average home value in Ravenna.
23
Portions of these
from Statistics 7e
Two Population Tests
Two
Populations
Mean
Paired
Proportion
Variance
Z Test
F Test
Indep.
24
Z Test
t Test
t Test
(Large
sample)
(Small
sample)
(Paired
sample)
Portions of these
from Statistics 7e
Comparison of Means
Equal Population Variances
1.Tests Means of 2 Independent
Populations Having Equal Variances
2.Assumptions



Independent, Random Samples
Both Populations Are Normally Distributed
Population Variances Are Unknown But
Assumed Equal
3. Usually small samples
25
Comparison of Means
Equal Population Variances
Portions of these
from Statistics 7e
We select two independent random samples:
from population 1 of size n1 with mean x1 and variance s12
from population 2 of size n2 with mean x 2 and variance s22

x1  x2   1   2 
t
sP
Pooled
Estimate of
Variance
sP
26
2
2
Estimate of
Standard
Error
1 1
   
 n1 n2 

n1  1  s1

 n2  1  s2
n1  n2  2
2
df  n1  n2  2
2
For large n’s, use z
Comparison of Means
Equal Population Variances
Portions of these
from Statistics 7e
Example:
Does one method of teaching reading
produce better results than another?


27
Can I still have a reliable result with a
small sample size?
How much better are the results of the
method?
Portions of these
from Statistics 7e
Comparison of Means
Equal Population Variances
Example
Compare a new method of teaching reading to “slow
learners” to the current standard method.
You decide to base this comparison on the results of a reading test
given at the end of a learning period of 6 months.
Of a random sample of 22 slow learners, 10 are taught by the new
method and 12 are taught by the standard method. Qualified
instructors under similar conditions teach all 22 children for a 6month period. The results of the reading test at the end of 6 months
are as follows:
New Method: x1 =76.4; s12=34.04
Standard Method: x2 =72.33; s22=40.24
Are the reading scores of children using the new method
greater than those of children using the standard method with
28
alpha=.05?
Portions of these
from Statistics 7e
Comparison of Means
Equal Population Variances
Solution
Test Statistic:
H0: 1-20
Ha: 1-2>0
  .05
df  n1+n2-2=10+12-2=20 df
Critical Value(s):
Decision:
n<30, so use t. t =1.725
Decision Rule:
t>t
29
Conclusion:
Small-Sample t Test
Solution
Portions of these
from Statistics 7e

X
t
1
 X 2   1   2 
SP
SP
2
1 1
   
 n1 n2 

76.4  72.33  0 

 0.35
1
1
37.45    
 10 12 
2
2




n

1

S

n

1

S
2
1
2
2
 1
n1  n2  2

10  1  34.04   12  1  40.24 

10  12  2
30
 37.45
Portions of these
from Statistics 7e
Comparison of Means
Equal Population Variances
Solution
Test Statistic:
H0: 1-20

76.4  72.33  0
Ha: 1-2>0
t
 1.55
1 1
  .05
37.45    
 10 12 
df  n1+n2-2=10+12-2=20 df
Critical Value(s):
Decision:
t is less than t . We cannot reject
n<30, so use t. t =1.725
the null hypothesis.
Decision Rule:
Conclusion:
We do not have enough evidence to reject the null
t>t
31
hypothesis and conclude that the new method of
testing does not improve reading scores.
Confidence Interval for the Difference
(equal population variances)
Portions of these
from Statistics 7e
Does one method of teaching reading produce better
results than another?

How much better are the results of the method?
Construct a 95% confidence interval for the difference
between the two means and interpret it.


1 1
1 1
x1  x2  t / 2 s     76.4  72.33  2.086 37.45  
 10 12 
 n1 n2 
 4.07  (2.086)( 2.62)  4.07  5.47  [1.4,9.54]
32
2
p
Portions of these
from Statistics 7e
Two Population Tests
Two
Populations
Mean
Paired
Proportion
Variance
Z Test
F Test
Indep.
Z Test
t Test
t Test
(Large
sample)
(Small
sample)
(Paired
sample)
33
Paired-Sample t Test
for Mean Difference
Portions of these
from Statistics 7e
Is a population parameter different over time or between groups?
1. Tests Means of 2 Related Populations


Paired or Matched
Repeated Measures (Before/After)
2. Eliminates Variation Among Subjects
3. Assumptions


34
Both Population Are Normally Distributed
If Not Normal, Can Be Approximated by
Normal Distribution (n1  30 & n2  30 )
Paired-Sample t Test
Hypotheses
Portions of these
from Statistics 7e
Research Questions
Hypothesis
H0
H1
No Difference Pop 1 Pop 2 Pop 1  Pop 2
Any Difference Pop 1 < Pop 2 Pop 1 > Pop 2
D = 0
D 0
Note: Di = X1i - X2i for ith
observation
35
D  0
D < 0
D  0
D > 0
Paired-Sample t Test
Data Collection Table
Portions of these
from Statistics 7e
Observation Group 1 Group 2 Difference
1
x11
x21
D1 = x11-x21
2
x12
x22
D2 = x12-x22
36

i

x1i

x2i

n

x1n

x2n

Di = x1i - x2i

Dn = x1n - x2n
Paired-Sample t Test
Test Statistic
Portions of these
from Statistics 7e
xD  D0
z or t 
sD
nD
Sample Mean
n
xD 
37
 Di
i 1
nD
df 
When n>30,use z
nD  1 When n<30 use t(n-1) df
D0=0 when testing whether
there is any difference or not.
Sample
Standard
Deviation
sD 
n
 (Di - xD)2
i 1
nD  1
Portions of these
from Statistics 7e
Paired-Sample t Test
Example
Do energy conservation efforts really reduce consumption
over time? By how much?
A study is undertaken to determine how consumers react to energy
conservation efforts. A random group of 60 families is chosen.
Each family’s rate of consumption of electricity is monitored in
equal length time periods before and after they are offered financial
incentives to reduce their energy consumption rate. The difference
in electric consumption between the periods is recorded for each
family. The average reduction in consumption is 0.2 kW and the
standard deviation of the differences sD=1.0 kW. At =0.01, is
there evidence to conclude that the incentives reduce
consumption?
38
Portions of these
from Statistics 7e
Paired-Sample t Test
Solution
H0: μD=0
Ha: μD<0
 = .01
Decision Rule:
n>30, so use z;
z<z
Critical Value(s):
Test Statistic:
xD  D 0 -0.2  0
t


sD
1.0
nD
-2.326 0
60
is not less than z ; we
Decision: zcannot
reject the null
hypothesis.
Conclusion:
.01
39
-1.55
z
We do not have
enough evidence to say
that incentives reduce
consumption.
Portions of these
from Statistics 7e
Confidence Interval for
Paired Observations
Do energy conservation efforts really reduce consumption
over time? By how much?
A (1-)100% confidence interval for the mean difference is
constructed using the t distribution for small sample sizes and z
distribution for large sample sizes.
x D  z / 2
x D  z / 2
40
sD
n
When n>30,use z
When n<30 use t(n-1) df
sD
1.0
 0.2  2.576
 [0.5,0.1]
n
60
Portions of these
from Statistics 7e
Two Population Tests
Two
Populations
Mean
Paired
Proportion
Variance
Z Test
F Test
Indep.
Z Test
t Test
t Test
(Large
sample)
(Small
sample)
(Paired
sample)
41
Z Test for Difference in
Two Proportions
Portions of these
from Statistics 7e
1. Can test


H0: p1-p2=0 Ha: p1-p20
H0: p1-p20 Ha: p1-p2>0
2. Assumptions


Populations Are Independent
Normal Approximation Can Be Used

npˆ  3 npˆ 1  pˆ 
Does Not Contain 0 or n
3. Z-Test Statistic for Two Proportions
z
42
 pˆ1  pˆ 2   0
1 1
pˆ  1  pˆ     
 n1 n2 
where pˆ 
x1  x2
n1  n2
Portions of these
from Statistics 7e
Z Test for Difference in
Two Proportions
Is the proportion of sub-prime mortgages to low-income
households greater than than for moderate-income households?
How much greater?
In 1998, a sample of mortgages was taken from the over 1
million mortgages disclosed nationally under HMDA. Here is
a decription of the sample:
Income Group
Percent Subprime
n
Low-income
26%
400
Moderate-income
11%
600
Is there sufficient evidence to claim that the proportion of subprime mortgages to low-income households exceeds that
43 among moderate income households? Test using =.01
Portions of these
from Statistics 7e
Z Test for Two Proportions
Solution
H0: p1-p2≤0
Ha: p1-p2>0
 = .01
n1 = 400 n2 = 600
Decision Rule:
z>z
Critical Value(s):
z =2.326
44
Test Statistic:
Decision:
Conclusion:
Z Test for Two Proportions
Solution
Portions of these
from Statistics 7e
n1  pˆ 1  400  .26  104
n2  pˆ 2  600  .11  66
X1  X 2
104  66
pˆ 

 .17
n1  n2
400  600
Z
 pˆ1  pˆ 2   0
1
1 
pˆ  1  pˆ     
 n1 n2 
 6.19
45

.26  .11  0
.17   1  .17   
1
1 


 400 600 
Portions of these
from Statistics 7e
Z Test for Two Proportions
Solution
H0: p1-p2≤0
Ha: p1-p2>0
 = .01
n1 = 400 n2 = 600
Decision Rule:
z>z
Critical Value(s):
z =2.326
46
Test Statistic:
Z=6.19
Decision:
z is greater than z . There is evidence to reject
the null hypothesis at the 1% level.
Conclusion:
We have evidence that higher proportions of
mortgages than moderate income
households.
Portions of these
from Statistics 7e
Confidence Interval for the
Difference in Proportions
Is the proportion of sub-prime mortgages to low-income
households greater than than for moderate-income households?
How much greater?
A large sample (1-)100% confidence interval for the difference
between two population proportions:
 pˆ1  pˆ 2   z / 2
pˆ1 1  pˆ1  pˆ 2 1  pˆ 2 

n1
n2
How much greater is the proportion of subprime mortgages to
.261  .26 .111  .11
.26  .11  2.575

 .15  2.575(0.02538)  [.12,.18]
400
600
47
Portions of these
from Statistics 7e
Two Population Tests
Two
Populations
Mean
Paired
Proportion
Variance
Z Test
F Test
Indep.
Z Test
t Test
t Test
(Large
sample)
(Small
sample)
(Paired
sample)
48
Portions of these
from Statistics 7e
Today
1. Scallops, Sampling and the Law
Confidence Intervals, Hypothesis Testing, and
Sampling
•
2. Making Comparisons
Solve Hypothesis Testing Problems for Two
Populations
•


•
•
49
Mean
Proportion
Distinguish Independent & Related Populations
Create Confidence Intervals for the Differences
End of Chapter
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