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    Hypothesis-Test - 2 Samples

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    Aditya Sinha
    The document discusses hypothesis testing for the difference between two population means or proportions. It provides examples of null and alternative hypotheses when comparing two populations. The key test statistics discussed are: 1) Z-test, used when both population standard deviations are known 2) T-test, used when population standard deviations are unknown and estimated from samples 3) Matched pairs t-test, used when comparing two treatments on the same individuals 4) Test for two proportions, used to compare proportions from two populations Steps for hypothesis testing include developing hypotheses, choosing a significance level, collecting sample data, calculating test statistics, and deciding whether to reject or accept the null hypothesis. Confidence intervals for the difference between two

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    Hypothesis-Test - 2 Samples

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    Aditya Sinha
    50 views20 pages
    The document discusses hypothesis testing for the difference between two population means or proportions. It provides examples of null and alternative hypotheses when comparing two populations. The key test statistics discussed are: 1) Z-test, used when both population standard deviations are known 2) T-test, used when population standard deviations are unknown and estimated from samples 3) Matched pairs t-test, used when comparing two treatments on the same individuals 4) Test for two proportions, used to compare proportions from two populations Steps for hypothesis testing include developing hypotheses, choosing a significance level, collecting sample data, calculating test statistics, and deciding whether to reject or accept the null hypothesis. Confidence intervals for the difference between two

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    6. Hypothesis-Test_2 Samples

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    The document discusses hypothesis testing for the difference between two population means or proportions. It provides examples of null and alternative hypotheses when comparing two populations. The key test statistics discussed are: 1) Z-test, used when both population standard deviations are known 2) T-test, used when population standard deviations are unknown and estimated from samples 3) Matched pairs t-test, used when comparing two treatments on the same individuals 4) Test for two proportions, used to compare proportions from two populations Steps for hypothesis testing include developing hypotheses, choosing a significance level, collecting sample data, calculating test statistics, and deciding whether to reject or accept the null hypothesis. Confidence intervals for the difference between two

    Copyright:

    © All Rights Reserved
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    Download as pptx, pdf, or txt
    50 views20 pages

    Hypothesis-Test - 2 Samples

    Uploaded by

    Aditya Sinha
    The document discusses hypothesis testing for the difference between two population means or proportions. It provides examples of null and alternative hypotheses when comparing two populations. The key test statistics discussed are: 1) Z-test, used when both population standard deviations are known 2) T-test, used when population standard deviations are unknown and estimated from samples 3) Matched pairs t-test, used when comparing two treatments on the same individuals 4) Test for two proportions, used to compare proportions from two populations Steps for hypothesis testing include developing hypotheses, choosing a significance level, collecting sample data, calculating test statistics, and deciding whether to reject or accept the null hypothesis. Confidence intervals for the difference between two

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    Hypothesis Testing:

    2 samples

    Dr. Shraddha Mishra


    IMI, New Delhi
    Test of Hypothesis
    Difference of Two Population Means
    • Mean score of Business Statistics of Section A and Section
    B of PGDM 2022-24 is not different.

    • Average salary of female employees is less than male


    employees

    • Proportion of promotable employees at one office is


    lower than other office of the same organization.

    • Stock Return of Cognizant has been showing a different


    trend from WIPRO or INFOSYS or TCS.
    Test of Hypothesis
    Difference of Two Population Means
    • Stock Return of Cognizant has been showing a different
    trend from WIPRO or INFOSYS or TCS for the past few
    months. How should you test this belief/statement?

    - Test of hypothesis should test the characteristics of Cognizant


    Stock Return is different or no different from WIPRO Stock Return
    - Two populations are: Cognizant’s Stock Return and WIPRO’s
    Stock Return
    - Characteristics of these two populations could be its mean or
    variance or proportions
    - Let’s start with the means of two populations
    Test of Hypothesis
    Difference of Two Population Means

    Population 1
    Population 2
    Cognizant Stock Return
    WIPRO Stock Return
    m1 = mean return
    of Cognizant m2 = mean return of WIPRO

    μ1 – m2 = difference between
    the mean returns of two populations

    Simple random sample Simple random sample


    of n1 stock return from Cognizant of n2 stock return from WIPRO
    x1 = Its sample mean x2 = Its sample mean

    x1 - x2 = Point Estimate of m1 – m2
    Steps of Hypothesis Testing
    Step 1: Develop the null and alternative hypotheses.

    Step 2: Specify the margin of error or level of significance α


    and hence confidence level of the test

    Step 3: Collect evidence or sample data, compute the


    sample statistic, and then test statistic like Z (standard
    normal variate) or t (Student’s t) etc.

    Step 4: Decide to reject or accept null hypothesis based on


    decision rule
    • p-value approach or
    • critical value approach
    Hypothesis Tests
    About μ 1 - μ 2
    Possible Situations
    • I: Difference between two population means is 0
     1= 2
    • H0: 1 -2 = 0
    • H1: 1 -2  0
    • II: Difference between two population means is less than 0
     1 2
    • H0: 1 -2  0
    • H1: 1 -2  0
    • III: Difference between two population means is less than D
     1  2+D
    • H0: 1 -2  D
    Hypothesis Tests
    About μ 1 - μ 2
    Possible Forms of Null Hypothesis

    Left-tailed Right-tailed Two-tailed


    1 is the mean of population 1 and 2 is the mean of
    population 2.
    The difference D0 between the two population means is
    1 - 2 .
    D0 can be positive or negative or zero. D0 = 0 is the most
    common form of the test.
    Test Statistic About μ 1 - μ 2

    Case I: Test Statistic is Z (Standard Normal)


    When Population standard deviations σ1 and σ2 are known.
    μ1 – μ2

    Standard Error or Standard


    Deviation of (x1 – x2 )
    Confidence Intervals for the
    Difference between Two Population
    Means: μ 1 - μ 2
    Case I: Test Statistic is Z (Standard Normal)
    When Population standard deviations σ1 and σ2 are known.

    A large-sample (1-)100% confidence interval for the difference


    between two population means, 1- 2 , using independent random
    samples:
    Test Statistic About μ 1 - μ 2
    Case II: Test Statistic is t (Student’s t-Statistic)
    When Population standard deviations σ1 and σ2 are unknown and
    have to be estimated from two samples
    (x  x )  (   )
    t= 1 2 1 20
     
    2  1 1
    sp   
    n n 
     1 2

    Assuming that the population variances σ12 and σ22 are equal (even though
    unknown), the statistic follows student’s t distribution with (n1 + n2 – 2) degrees
    of freedom.
    Under this assumption, the two sample variances, s12 and s22, provide two
    separate estimators of the common population variance.
    Combining the two separate estimates into a pooled estimate sp2 should give us
    Pooled Estimate of the Population
    Variance
    A pooled estimate of the common population variance,
    based on a sample variance s12 from a sample of size n1 and a
    sample variance s22 from a sample of size n2 is given by:

    The degrees of freedom associated with this estimator is:


    df = (n1+ n2-2)

    That is, larger weight is given to the variance from the larger
    sample.
    Confidence Intervals for the
    Difference between Two Population
    Means: μ 1 - μ 2
    Case II: Test Statistic is t (Student’s t-Statistic)
    When Population standard deviations σ1 and σ2 are unknown and
    have to be estimated from two samples; using the pooled
    variance Sp2

    A (1-) 100% confidence interval for the difference between two


    population means, 1- 2 , using independent random samples and
    assuming equal population variances:
    Class Exercise ??
    9-7
    A credit-insurance organization has developed a new high-tech method of training new sales personnel.
    The company sampled 16 employees who were trained the original way and found average daily sales to
    be $688 and the sample standard deviation was $32.63. They also sampled 11 employees who were
    trained using the new method and found average daily sales to be $706 and the sample standard
    deviation was $24.84. At α = 0.05, can the company conclude that average daily sales have increased
    under the new plan?
    (t-test = -1.54425, t critical = -1.708 , so can not reject H0. Average daily sales have not
    increased significantly)
    9-8
    A large stock-brokerage firm wants to determine how successful its new account executives have been
    at recruiting clients. After completing their training, new account execs spend several weeks calling
    prospective clients, trying to get the prospects to open accounts with the firm. The following data give
    the numbers of new accounts opened in their first 2 weeks by 10 randomly chosen female account execs
    and by 8 randomly chosen male account execs. At a = 0.05, does it appear that the women are more
    effective at generating new accounts than the mean are?
    (t-test = 2.245266, t critical = 1.746, p-value = 0.019617, so reject H0. The women are
    significantly more effective than the men in generating new accounts)
    Number of New Accounts
    Female account execs 12 11 14 13 13 14 13 12 14 12
    Male account execs 13 10 11 12 13 12 10 12    

    01/12/2023 13
    Hypothesis Tests
    About μ1 – μ2: Matched Samples
    Possible Situations
    • I: Difference between two population means is 0
     1 - 2 =  d
    • H0: d = 0
    • H1: d  0
    • II: Difference between two population means is less than 0
     d 0
    • H0: d  0
    • H1: d  0
    Test Statistic
    Confidence Intervals for Paired Observations
    Problem 9.13
    Aquarius Health Club has been advertising a rigorous program for body
    conditioning. The club claims that after 1 month in the program, the
    average participant should be able to do eight more push-ups in 2
    minutes than he or she could do at the start. Does the random sample
    of 10 program participants given below support the club’s claim? Use
    the 0.025 level of significance.

    Participant 1 2 3 4 5 6 7 8 9 10
    Before 38 11 34 25 17 38 12 27 32 29
    After 45 24 41 39 30 44 30 39 40 41

    01/12/2023 17
    Hypothesis Tests:
    Difference between two Population
    Proportions p1 - p2
    Possible Hypotheses
    H0: p1 - p2 < 0
    Ha: p1 - p2 > 0

    Left-tailed Right-tailed Two-tailed


    Hypothesis Tests:
    Difference between two Population
    Proportions p1 - p2
    Test Statistic

    Where is the sample proportion for sample 1

    and is the sample proportion for sample 2


    Problems on hypotheses testing

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