11- 1

Chapter

Eleven

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

 Chapter Eleven 11- 2

Two-Sample Tests of Hypothesis

GOALS
When you have completed this chapter, you will be able to:
ONE
Conduct a test of hypothesis about the difference between two
independent population means.
TWO
Conduct a test of hypothesis regarding the difference in two
population proportions.
THREE
Conduct a test of hypothesis about the mean difference between
paired or dependent observations.
 Chapter Eleven
11- 3
continued

Two Sample Tests of Hypothesis

GOALS
When you have completed this chapter, you will be able to:
FOUR
Understand the difference between dependent and
independent samples.
 11- 4

Comparing two populations

Does the
If both samples distribution of the
contain at least 30 differences in sample
observations we use means have a
the z distribution as mean of 0?
the test statistic.
The samples are
from independent No assumptions about the
populations. shape of the populations
are required.
The formula for X1  X 2
z
computing the s12 s 22
value of z is: 
n1 n2 Comparing two populations
 11- 5
Two cities,
Bradford and Kane
are separated only
by the Conewango
River. There is
competition
between the two
cities. The local
paper recently reported that
the mean household income with a standard deviation
in Bradford is $38,000 with of $7,000 for a sample of
a standard deviation of 35 households. At the .01
$6,000 for a sample of 40 significance level can we
households. The same conclude the mean income
article reported the mean in Bradford is more?
income in Kane is $35,000
EXAMPLE 1
 11- 6

Step 4 Step 3
State the decision rule. Find the appropriate test
The null hypothesis is statistic. Because both
rejected if z is greater samples are more than 30, we
than 2.33 or p < .01. can use z as the test statistic.

Step 1 Step 2
State the null and State the level of significance.
alternate hypotheses. The .01 significance level is
H0: µB < µK stated in the problem.
H1: µB > µK
Example 1 continued
 11- 7

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

$38,000  $35,000
z  1.98
($6,000 ) 2 ($7,000 ) 2

40 35

Because the computed Z of 1.98

The p(z > 1.98)
is .0239 for a < critical Z of 2.33, the p-value of
one-tailed test .0239 > a of .01, the decision is
of significance. to not reject the null hypothesis.
We cannot conclude that the mean
household income in Bradford is
larger. Example 1 continued
 11- 8

Two Sample Tests of Proportions investigate

whether two samples came from populations with an
equal proportion of successes.
The two samples The value of the test
are pooled using statistic is computed from
the following X  X the following formula.
p1  p 2
formula. pc  1 2
z
n1  n2 pc (1  pc ) pc (1  pc )

where X1 and X2 refer to n1 n2
the number of successes where X1 and X2 refer to the
in the respective samples number of successes in the
of n1 and n2. respective samples of n1
and n2.
 11- 9

Are unmarried
workers more likely
to be absent from
work than married
workers? A sample of
250 married workers
showed 22 missed
more than 5 days last
year, while a sample showed 35 missed more
o f 3 0 0 u n mar ried than five days. Use a .05
w o r k e r s significance level.

Example 2
 11- 10

The null and the alternate hypotheses

H0: pU < pM H1: pU > pM

The null hypothesis is The pooled proportion

rejected if the computed
value of z is greater than 35  22
1.65 or the p-value < .05. pc 
300  250

= .1036

Example 2 continued
 11- 11

35 22

z 300 250  1.10
.1036 (1  .1036 ) .1036 (1  .1036 )

300 250

Because a calculated z of 1.10 <

a critical z of 1.96, p of .136 > a
The p(z > 1.10) of .05, the null hypothesis is not
= .136 for a rejected. We cannot conclude
one-tailed test that a higher proportion of
of significance. unmarried workers miss more
days in a year than the married
workers.
Example 2 continued
 11- 12

Small Sample Tests of Means

The t distribution is used as the test statistic if one or
more of the samples have less than 30 observations.
The required assumptions
1. Both populations must follow
the normal distribution.
2. The populations must have
equal standard deviations.
3. The samples are from
independent populations.

Small Sample Tests of Means

 11- 13

Finding the value of the test statistic requires two steps.

Step One: Pool the
( n  1) s 2
 ( n  1) s 2
sample standard s 2p  1 1 2 2

deviations. n1  n2  2

Step Two: Determine the value of t from the

following formula.

X1  X 2
t
2 1 1 
s p   
 n1 n2 
Small sample test of means
continued
 11- 14
A recent EPA study A sample of 12 imported
compared the highway cars revealed a mean of
fuel economy of 35.7 mpg with a standard
domestic and imported deviation of 3.9. At the
passenger cars. A .05 significance level can
sample of 15 domestic the EPA conclude that the
cars revealed a mean of mpg is higher on the
33.7 mpg with a standard imported cars?
deviation of 2.4 mpg.

Example 3
 11- 15

Step 3
Find the appropriate test
statistic. Both samples
are less than 30, so we
use the t distribution. Step 2
State the level of
significance. The .05
significance level is
stated in the problem.
Step 1
State the null and
alternate hypotheses.
H0: µD > µI
H1: µD < µI Example 3 continued
 11- 16

Step 4
The decision rule is to reject Step 5
H0 if t<-1.708 or if p-value We compute the
< .05. There are n-2 or 25 pooled variance.
degrees of freedom.

( n  1)( s 2
)  ( n  1)( s 2
2)
sp 
2 1 1 2
n1  n 2  2
(15  1)( 2.4) 2  (12  1)(3.9) 2
  9.918
15  12  2

Example 3 continued
 11- 17

We compute the value of t as follows.

X1  X 2
t 
 1 1 

n  n 
s 2p 
 1 2 

33 .7  35 .7
  1.640
 1 1 
8.312   
 15 12 

Example 3 continued
 11- 18

P(t < -1.64) = Since a computed z of –1.64

.0567 for a one- > critical z of –1.71, the p-
tailed t-test. value of .0567 > a of .05, H0
is not rejected. There is
insufficient sample evidence
to claim a higher mpg on the
imported cars.

Example 3 continued
 11- 19
Independent samples Dependent samples are
are samples that are not samples that are paired or
related in any way. related in some fashion.

If you wished to buy a car you would look

at the same car at two (or more) different
dealerships and compare the prices.

If you wished to measure

the effectiveness of a new
diet you would weigh the
dieters at the start and at
the finish of the program.
Hypothesis Testing Involving Paired Observations
 11- 20

Use the following test when the samples are

dependent:

d
t
sd / n
where d is the mean of the differences
sd is the standard deviation of the differences
n is the number of pairs (differences)

Hypothesis Testing Involving Paired

Observations
 11- 21
An independent testing
City Hertz Avis ($)
agency is comparing the ($)
daily rental cost for
Atlanta 42 40
renting a compact car
Chicago 56 52
from Hertz and Avis. A
Cleveland 45 43
random sample of eight
Denver 48 48
cities revealed the
following information. Honolulu 37 32
At the .05 significance Kansas City 45 48
level can the testing Miami 41 39
agency conclude that Seattle 46 50
there is a difference in
the rental charged?
EXAMPLE 4
 11- 22

Step 1 Step 4
Ho: md = 0 H0 is rejected if
H1: md ≠ 0 t < -2.365 or t > 2.365;
or if p-value < .05.
Step 2 We use the t distribution with
The stated n-1 or 7 degrees of freedom.
significance
level is .05.
Step 5
Step 3 Perform the
The appropriate calculations and make
test statistic is the a decision.
paired t-test. Example 4 continued
 11- 23
City Hertz Avis d d2
Atlanta 42 40 2 4
Chicago 56 52 4 16
Cleveland 45 43 2 4
Denver 48 48 0 0
Honolulu 37 32 5 25
Kansas City 45 48 -3 9
Miami 41 39 2 4
Seattle 46 50 -4 16

Example 4 continued
 11- 24

d 8.0
d   1.00
n 8

d 2 
d  2
78 
82
sd  n  8  3.1623
n 1 8 1

d 1.00
t   0.894
sd n 3.1623 8

Example 4 continued
 11- 25

P(t>.894) = .20 for a

one-tailed t-test at 7
degrees of freedom.

Because 0.894 is less

than the critical value,
the p-value of .20 > a of
.05, do not reject the
null hypothesis. There
is no difference in the
mean amount charged
by Hertz and Avis.
Example 4 continued
 11- 26

Two types of dependent samples

Disadvantage of
dependent samples: The same
subjects Matched or
Degrees of freedom paired
are halved measured at two
different points observations
in time.
Advantage of dependent samples:
Reduction in variation in the sampling distribution
Comparing dependent and independent samples