Chapter 10

Two-Sample Tests
David Chow
Nov 2014

Learning Objectives
In this chapter, you learn how to use hypothesis testing to
compare the:
a.

1 = 2? Means of two independent populations

b.

1 = 2? Proportions of two independent populations,

c.

Variances of two independent populations (F-test)

Only part (c), F-test of two variances, is covered in

the exam

Any Difference Between 1 & 2?

Comparing Means: Want to know if 1 = 2
The question can also be posed in the form of a one-

tailed test such as 1 > 2

Eg: TOFEL scores from HK and Singapore students

Comparing Proportions: Test if 1 = 2

Eg: Proportion of students in a relationship (yr1 vs yr4)
Eg: Passing proportion in math (local vs int schools )
Eg: Proportion of contact-lens users (male vs female)

Some Funny Findings

DSME 2010, Fall 2011

Sleeping duration
related to societal activities, living in campus

not related to gender, part-time, dating

No. of FB friends
not related to gender, majors

related to no. of siblings

More phone conversations

related to smartphone users, gender

Skipping classes
1:58 PM
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Two-Sample Tests
Independent Populations
Assumptions:

Independent
Population Means

1 and 2 known

1 and 2 unknown

population distributions are normal

Or sample size 30 for each sample
Samples are randomly and independently drawn
Independence: sample selected from one
population has no effect on the sample
selected from the other population

Use a Z test statistic

Use S to estimate unknown ,
use a t test statistic
5

F-Test of Population
Variances

Testing Population Variances

Purpose: To determine if two independent

populations have the same variability.

H0: 12 = 22
H1: 12 22

H0: 12 22
H1: 12 < 22

H0: 12 22
H1: 12 > 22

Two-tail test

Lower-tail test

Upper-tail test

Testing Population Variances

Assume each population distributions
is normally distributed, then the ratio
of the two sample variances follows
the F distribution.

The test statistic is:

S12
F 2
S2

S12 = Variance of Sample 1 (usu the larger one)

n1 - 1 = numerator degrees of freedom

S 22 = Variance of Sample 2
n2 - 1 = denominator degrees of freedom
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Testing Population Variances

The critical F-value is found from the F table.
There are two appropriate degrees of freedom:
numerator degrees of freedom (column),
denominator degrees of freedom (row).

Testing Population Variances

Lower-tail test

Upper-tail test

H0: 12 22
H1: 12 < 22

H0: 12 22
H1: 12 > 22

0
Reject
H0

FL

Do not
reject H0
Reject H0 if F < FL

Do not
reject H0

FU

Reject H0

Reject H0 if F > FU

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Testing Population Variances

Two-tail test

H0: 12 = 22
H1: 12 22

Rejection region for

a two-tail test is:

/2

S12
F 2 FU
S2

/2
0

FL

Do not
reject H0

FU

Reject H0

S12
F 2 FL
S2
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Testing Population Variances

To find the critical F values, FU and FL:
1. Find FU from the F table for n1 1 numerator
and n2 1 denominator degrees of freedom

1
F

2. Find FL using the formula: L F

U*

Check FU
only if

Where FU* is from the F table with n2 1 numerator and n1 1

denominator degrees of freedom (i.e., switch the d.f. from FU)
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Eg: Dividend Yield

Is there a difference in the variances between the

NYSE & NASDAQ return rates at the = 0.05 level?

NYSE
21

NASDAQ
25

Mean

3.27

2.53

Std dev

1.30

1.16

Number

13

Example
Form the hypothesis test:
H0: 21 22 = 0

(there is no difference between variances)

H1: 21 22 0

(there is a difference between variances)

FU:

FL:

Numerator:
n1 1 = 21 1 = 20 d.f.
Denominator:

Numerator:
n2 1 = 25 1 = 24 d.f.
Denominator:

n2 1 = 25 1 = 24 d.f.

n1 1 = 21 1 = 20 d.f.

FU = F.025, 20, 24 = 2.33

FL = 1/F.025, 24, 20 = 0.41

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15

Testing Population Variances

The test statistic is:

S12 1.30 2
F 2
1.256
2
S 2 1.16

/2 = .025

/2 = .025

0
Reject H0

Do not
reject H0

FL=0.41
F = 1.256 is not in the

rejection region, so we do
not reject H0

Reject H0

FU=2.33

Conclusion: There is insufficient

evidence of a difference in
variances at = .05
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Review Questions
10.36 Find the upper critical F-value for a two-tailed test if
a. = 0.01, n1=16, n2=21
b. = 0.05, n1=16, n2=21
c. = 0.10, n1=16, n2=21

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Review Questions
10.46 At the = 0.05 level, is there a difference in the
variances between the male & female anxiety level? The
scale runs from 20 (no anxiety) to 100 (highest level of
anxiety).
Male
FEMALE
Number
100
72
Mean
40.26
36.85
Std dev
13.35
9.42

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